EU halts funds for Romania, to resume after audit

EU Commission’s decision to interrupt funding for a programme highlights Romania’s continuing problems with absorbing European Union funds.

The European Commission is to block payments worth 3.5 billion euro to Romania from the Human Resources funding line, after the European Commission report in 2011 found irregularities in the operation of the programme in Romania.

According to the Commission, the problems relate to project selection and verification in the Human Resources programme, called POSDRU. According to the regulations on structural funds, these problems trigger a payment hiatus of six months.

“Payments will re-start after the audit authorities have confirmed that the problems were solved. Approved projects will continue to receive funding,” the Commission said.