Horváth & Partners: “Romania cannot regain economic competitiveness without 100% use of EU funds and a strategy aligned with the Green Deal”

Without a significant increase in the rate of absorption of European funds, at least three times the current rate, and without taking into account funding for the integration of green technologies, including hydrogen, the Romanian economy will not benefit from the chance of a sustainable recovery, as well as competitively priced energy in the coming decades, according to Horváth & Partners management consultancy company.

Representatives of the company believe that private actors should be involved in developing strategies for using European funds, including capitalizing on the potential of green energy. The objective should be to increase the absorption capacity so that Romania can use, in proportion of 100%, the European funds that have been allocated to it, through the multiannual budget of 80 billion euros, of which 33.4 billion are destined for the National Plan of Recovery.

The central role of green energy was emphasized again in 2020, through the Green Deal agreement, focused on developing a competitive and sustainable economy in the new economic context affected by the pandemic. Its main targets, by 2030, are to increase energy efficiency by 32.5%, increase the share of renewable energy resources by 32% and reduce greenhouse gas emissions by at least 55%.

In recent years, Romania has recorded one of the highest electricity prices in the European Union on the wholesale market, having in 2018 the fourth highest price, after Cyprus, Greece and Spain, according to Eurostat statistics. The same trend was maintained in 2019, the increase being about 20%, after an increase of 16% in 2018, in conditions of constant demand. Representatives of Horváth & Partners believe that if the lack of competitiveness of electricity prices is maintained in the long term, it risks affecting the competitiveness of all industries.

“I believe that Romania must declare zero priority to the full absorption of European funds available, as well as their use in areas that create long-term competitiveness. Priorities include digitalisation and renewable energy, including emerging technologies, mainly hydrogen, which should drive competitive electricity prices in about a decade and be able to provide both energy security and a major boost to the local economy. That is why it is vital that, as soon as possible, our country develops an effective National Strategy for the use of European funds and the steps that will ensure their full absorption. It is not only the task of the authorities to draw up such a program, but also companies, including private ones, the whole business environment, which is directly interested in clarifying and finding the most appropriate answers to current challenges. Horváth & Partners plans to support and involve in such an approach, both in terms of management consulting and experience of over four decades in carrying out numerous local and regional projects, including hydrogen technology,” said Kurt Weber, General Manager of Horváth & Partners Romania.