ROMANIAUPDATED | 11 | 2014

2014 | 2020EU BUDGETS

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Global Europe

Administration

Compensation

Security & Citizenship

€ 199.828

€ 959.988in current prices: € 1.082.555

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The five European Structural and Investment Funds;

| The European Regional Development Fund

| The European Social Fund

| The Cohesion Fund

| The European Maritime and Fisheries Fund

| The European Agricultural Fund for Rural Development

ESI FUNDSTHE 5

| EU Member States are required to draw up and implement

strategic plans with investment priorities covering the five ESI

Funds.

| These Partnership Agreements (PAs) are negotiated between the

European Commission and national authorities, following their

consultation of various levels of governance, representatives from

interest groups, civil society and local

and regional representatives.

AGREEMENTSPARTNERSHIP

Under the new map, regions accounting for 89.4% of the population of

Romania fall under the category of area’s which have a GDP per capita

below 75% of the EU average and will continue to be eligible for regional

investment aid at maximum aid intensities varying between 35% and 50%

of the eligible costs of the relevant investment projects.

Other regions in can also become eligible provided that they comply with a

GDP per capita above 75% of the EU average. 10.6% of the Romanian

population living in the region around Bucharest will be eligible for regional

investment aid under this category, at maximum aid intensities varying

between 10% and 35%.

AID PERCENTAGESMAXIMUM

The maximum aid intensities for regional investment aid are lower than in

the previous period. The remaining assisted regions will have identical

maximum aid intensities with the exception of one region (Vest) which will

have a slight (15 percentage points) decrease because its GDP increased

and it is now less disadvantaged with regard to the EU average.)

AID PERCENTAGESMAXIMUM

CU

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STotal number

of OP s submitted

per country

Countries have

their OP s

adopted:21 OP >Denmark

1 OP >Lithuania

| Partnership Agreement Adopted 08 – 2014

| 8 Operational Programme’s submitted

| Adoption of OP’s by European commission in Q4 2014

| Exp.1st grant calls Q1 2015 for funding priorities related to OP’s

OPs should be submitted by Member States within 3 months following the

submission of the Partnership Agreement.

The Commission makes observations within 3 months and adopts the OP

no later than 6 months from the date of its submission.

PLANNING

The PA focusses on the following challenges and corresponding priorities:

| Promoting competitiveness and local development, with a view to reinforcing the sustainability of economic operators and improving regional attractiveness;

| Developing human capital, by increasing the employment rate and tertiary education attainment, but also tackling the severe social challenges and poverty levels, in particular for deprived or marginalised communities and in rural areas;

PRIORITIESFUNDING

| Developing physical infrastructure, both in ICT and the transport sector, in

order to increase the accessibility of Romanian regions and their

attractiveness for investments;

| Encouraging sustainable and efficient use of natural resources through

promotion of energy efficiency and a low carbon economy, protection of the

environment and adaptation to climate change;

| Building a modern and professional public administration by means of a

systemic reform aimed at overcoming the structural governance

shortcomings.

PRIORITIESFUNDING

ESIF support will substantially contribute to promoting Romania’s

ability to achieve key EU and national development priorities

including, inter alia:

Europe 2020 objectives:

| more than €1 billion allocated to R&D and innovation, supporting the

national target of 2% of GDP invested in R&D (against 0.49% in 2012);

| More energy efficient economy, with €3.9 billion to be invested to support

theshift to low carbon economy

RESULTSEXPECTED

| €3.4 billion, for tackling the severe social challenges faced by Romania

and contributing to the objective of reducing by 580.000 the number of

people at risk of poverty or exclusion

| Increase labour market participation, with a focus on young people, with

the aim of reaching the 70% national employment target (benefiting of €

2.2 million);

| Contribute to reducing the early school leaving to 11.3% and increasing

the participation in tertiary education to 26.7% (TO10), by investing an

amount of EUR 1.65 bn.

RESULTSEXPECTED

Boosting national competitiveness:

| Further develop national coverage of broadband and NGA with >30 Mbps

| Increase productivity of agriculture, fisheries and aquaculture

| Increase competitiveness and the survival rates of young SMEs

| Further develop the endowment and reliability of transport network

| Tackle the administrative deficiencies, through governance reforms

RESULTSEXPECTED

| OP Competitiveness

(Competitivitate)

| OP Human Capital

(Capital Uman)

| OP Infrastructure

(Infrastructura Mare)

| OP Technical Assistance

(Asistenta Tehnica)

| OP Regions

(Regional)

| OP Administrative Capacity

(Capacitate Administrativa)

PROGRAMMESOPERATIONAL

In 2014-2020 the allocation for Romania is around € 22.4 billion for Cohesion Policy (ERDF, ESF, Cohesion Fund) with additional resources of € 106 million from the Youth Employment Initiative (matched by the same amount from ESF).

A further € 8 billion will be devoted to development of the agricultural sector and rural areas from the European Agricultural Fund for Rural Development (EAFRD).

The allocation for European Maritime and Fisheries Fund (EMFF) amounts to some € 168 million.

ALLOCATIONSFINANCIAL

Budget breakdown per Operational Programme

| € 9.5 billion Major Infrastructure Operational Programme,

| € 6.7 billion Regional Operational Programme

| € 4.2 billion Human Capital Operational Programme

| € 1.2 billion Competitiveness Operational Programme

| € 0.55 billion Administrative Capacity Operational Programme

| € 0.21 billion Technical Assistance Operational Programme

| € 0.45 billion Trans-border Cooperation Operational Programme.

PER OPBREAKDOWN

Cohesion policy will be delivered by 8 operational programmes

(OPs), so 1 less compared to 2007-13 period:

| Programme for competitiveness (ERDF), focusing on objectives 1 and 2;

| Programme for large infrastructure (transport, environment and energy),

financed by ERDF and Cohesion Fund, under thematic objectives 6 and 7;

| Regional programme (ERDF), addressing regional and local needs

(under thematic objectives 1, 3, 4, 6, 8 and 9);

| Programme for technical assistance (ERDF), supporting the management

of ESIF;

ARCHITECTUREPROGRAMME

| Programme for human capital (ESF), under thematic objectives 8, 9 and

10, tackling employment, education and social inclusion priorities;

| Programme for administrative capacity (ESF), under thematic objective

11, tackling administrative reform and support to public institutions;

Similar to the 2007-13 period, there will be one national-level Rural

Development Programme (financed by EAFRD) and one Maritime and

Fisheries programme (financed by EMFF).

ARCHITECTUREPROGRAMME

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THEMATIC OBJECTIVESFUNDING PRIORITIES &

THEMATIC OBJECTIVE& BY FUNDALLOCATION BROKEN DOWN BY