Romania could mobilise between 60 billion and 70 billion euros in the economy in the next European financial framework if EU funds are used to attract private investment, the Minister of Investments and European Projects, Dragos Pislaru, told a specialist conference.
According to him, changing the financing model by using financial instruments such as equity, public-private partnerships or the capital market could generate a significant capital multiplier effect.
'Romania is an example in Central and Eastern Europe when it comes to multiplying investments through equity funds. From having almost nothing, we now have 18 funds and have invested 400 million euros, which has generated a multiplier of 5.8. In practice, for almost every euro invested we have generated six euros from the private sector. In total, equity investments have reached 2.3 billion euros,' Dragos Pislaru said at the conference 'Innovation in the Romanian Economy - Companies' Adaptation to Global Technology Trends,' organised by the publication Curs de Guvernare.
In the minister's view, the financing model based on traditional grants must be adapted so that European funds can generate additional investment in the economy.
'The idea is that we have everything we need. In practice, we must change the financing model from one in which money is given one-to-one through traditional grants - where you spend two years on evaluation and implementation - to a model in which you go directly to the market, whether through equity, public-private partnerships (PPP), or the capital market through listings,' he added.
Pislaru said that in the next European financial framework the objective should be for each euro of European funds to attract private investment, which could generate significant resources for the development of the economy.
'And here, I won't hide the fact that my thinking is that in the next financial framework every European euro should attract one private euro. That would mean looking at 60-70 billion euros that we could mobilise in the economy. And once again, I am not telling you the dreams of an economic analyst, but what is feasible, after a week spent in Luxembourg at the European Investment Bank Forum and in Brussels in discussions with the top leadership of the European Commission. Romania can allocate money for the private sector and must do so. The question we face afterwards is what we allocate it for,' Pislaru said.
The minister added that the available European funds are not the main problem, but rather the capacity to identify viable projects that can be financed.
'Here we enter a very interesting debate: if we had projects to finance in Romania, we would have the money for them. From the perspective of the minister responsible for European funds, it should be said that there has been the option of financing the private sector much more than we currently do, through the National Recovery and Resilience Plan or through cohesion funds,' the official added.
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