Romanian rural development between the european union financing supply and the possibilities of the local economy

Abstract

For Romania, the agriculture is economically more important than in any other country in EU. Romania joint European Union in 2007 with a lot of disparities, most of them from the rural areas, and the consequence is the huge demand of European Financial Support. This paper investigates the correlation between the European Union financing supply and the possibilities of the local economy on the development rural. This research is based on the National Development Plan (NDP) and it is the fundamental instrument that Romania will use in order to diminish the social and economic development disparities with the EU as soon as possible The indicative financial programming of the National Development Plan for Romania 2007-2013 lead to a total amount of 58.7 billion Euro, distributed on the 6 national development priorities. The Romanian rural development gets 15.3 billion Euro, representing 26% from the total financing allocation in the period 2007-2013 with the following financing sources: EU funds - 43%; national public sources - 48%; private sources -9%. Romania has an important rural sector, but because there are many differences between the rural zones from Romania and the rural zones from European Union, it generates one vicious circle for the local communities: the solutions for social problems and economic diversification in rural communities needs a huge demand of Financial Support, but this economy should ensure half of necessary from co-financing or private resources. This paper presents an interaction model between the 3 categories of financing resources.