Utilization of European funds in the Public Administration. Study Case - Galati County Council

• Author: Manuela Panaitescu
• Position: Senior Lecturer, PhD, 'Danubius' University of Galati, Faculty of Economic Sciences, Romania
• Pages: 200-205

European Integration - Realities and Perspectives 2014

200

Utilization of European Funds in the Public Administration.

Study case - Galati County Council

Manuela Panaitescu

1

Abstract: The main objectives of this paper are to reveal some aspects regarding European funds‟ utilization,

starting with the comprehension of EU philosophy regarding cohesion policy and emphasizing the important

role played by Structural and Cohesion Funds for pub lic administration, especially in times of economic

downturn when the financial resources are difficult to access. Prior Work: this work continues prior research

carried out for the “European Programs and Projects Management” MA thesis. Approach: The main methods

employed for capturing the research evidence consists in management strategies analysis in the public

administration, especially in studying the capacity of absorption of European funds in the case Galati County

Council. The main results of this paper show that the risks of abso rption capacity decrease of EU funds are

linked to a number of factors, such as financial problems, poor information, lack of managerial experience,

etc.

Keywords: economic integration; economic development; public administration

JEL Classification: F15; F36; O10; H83

1. Introduction

Following the integration into the European Union, the main financing source for development

programs consists of European funds. Various instances of the national administration consider that

such funds are one of the solutions to overcome the economic and financial crisis.

2. EU Cohesion Policy

The cohesion policy is defined through its objective, namely to support the process of reducing

disparities between the more developed regions and Member States of the European Union and the

less developed ones. The objective to strengthen economic and social cohesion is mentioned under the

Treaty of Amsterdam, being a prime objective for the European Union. Cohesion is a prerequisite for

EU‟s harmonious development, specifying the desire to “reduce disparities between the levels of

development of the various regions.”

The cohesion policy is a central pillar for achieving EU‟s sustainable development objectives. The

benefits of this policy can be seen in the growth of the GDP per capita in some EU Member States, out

of which Ireland is the most significant example.

The National Development Plan of Romania 2007-2013, document of strategic planning and

multiannual financial programming, has been created in accordance to the European policy of

economic and social cohesion. The overall objective of the Plan is to reduce disparities between

Romania and the other EU Member States. In order to achieve this objective, Romania‟s development

1Senior Lecturer, PhD, “Danubius” University of Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd.,

Galati, Romania, Tel. +40372361102, Fax. +40372361290, Corresponding author: manuelapanaitescu@yahoo.com.