luni, 9 noiembrie 2015

Romanian agriculture meets E.U.

When Romania became a part of the EU, the European Union promised to direct large amounts of money in order to decrease the differences between Romania and the EU with the so called "cohesion funds". I'm not the type of guy that reads statistics carefully, but it's pretty obvious that this country has a low absorbtion rate in most of the areas.

But even in the areas where it did a good job in getting EU money (like agriculture) huge issues still exist. Here are some:

  1. Although many farmers got funds from EU, they do not have the know-how needed to get a competitive edge against german, french and even hungarian farmers
  2. Also, Romanian farmers have to buy agricultural equipment and livestock mostly from foreign producers/breeders, so basically, you could say that the EU funds are a subsidy that European governments give to their own breeders/manufacturers of agri machineries,
What does that mean? It practically menas that even if local farmers got moeny, they did not knew how to maximize their value. Plus, since most of the farming infrastructure and producst were bought directly or indirectly from abroad, they practically supplied their competitors with money

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