ABSORPTION RATE OF EUROPEAN FUNDS – ECONOMIC GROWTH FACTOR

• Published in: Analele Universităţii Constantin Brâncuşi din Târgu Jiu : Seria Economie 2023-12, Vol.I (6), p.258-265
• Main Author: CERCEL (ZAMFIRACHE) CAMELIA
• Format: Article
• Language: English
• Subjects: absorption rate; economic growth; european funds; sustainable development
• ISSN: 1844-7007

Finance plays a major role in all economies by providing the necessary funds for economic activities and implicitly for all sustainable investments. Financing for sustainable development foregrounds directions for major investments in longer-term activities. In my opinion, one of the major problems of the sustainable development of the Romanian economy is closely related to the tendency and capacity to absorb European funds with a dominant investment and multiplier impact. The absorption rate of European funds can be an important factor in terms of economic growth. Effective use of these funds can stimulate investment, innovation and infrastructure development, which in turn can contribute to economic growth. These funds can also help create jobs and increase the economic competitiveness of a country or region. The study is based on the comparative analysis of Romania, as an emerging country of Central and Eastern Europe, with the other countries of the European Union in order to know the stage of sustainable development of our country and to emphasize the major role of European funds in this regard, in the countries of the Union European and we also used the theoretical research method and the method of reading the specialized bibliography, to outline the conceptual aspects addressed in the paper. This study emphasizes the fact that it is very important that the absorption of European funds is as high as possible to be a factor of economic growth and implicitly to support sustainable economic development