IMM Romania is requesting the introduction of a 'Safe Harbor' protection clause, which would guarantee the separation of European funding intended for the private sector from political conditionalities, so that the beneficiaries who meet their technical objectives receive settlements on time and are not exposed to the risk of lack of liquidity.

In a position paper with reference to the Multiannual Financial Framework 2028-2034 released on Thursday, on the occasion of Entrepreneurs' Day, IMM Romania draws attention to the negative effects of making the payments from European funds conditional on political milestones and macro-institutional reforms, a conditionality that can generate systemic blockages, in which companies are directly affected by delays or failures over which they have no control.

'The debates on the future Multiannual Financial Framework are at a moment of maximum intensity, and Romania's strategic priority must be to efficiently capitalise on more than EUT 60 billion hat will be allocated to the country in the financial year 2028-2034. That money can bridge Romania's economic gaps only if it reaches where value is created, namely in the real economy. From that perspective, IMM Romania, as a representative of local entrepreneurs, believes that the success of European funds should no longer be measured only by absorption percentages, but by their ability to do good to the true Romanian economy, that economy of the local private sector, which has always been an engine of stability and growth of the country,' IMM Romania Chairman Florin Jianu told an event that marked the 33rd edition of the Entrepreneurs' Day, according to a press release of the organisation.

The document underlines that the plan to put the Cohesion, Agriculture and Social Funds under the single administrative umbrella of the National and Regional Partnership Plan (NRP) will lead to an excessive centralisation of the decision-making process and will favour large state projects to the detriment of the private sector. In fact, SMEs, the central pillar of national economic resilience, require a financing framework based on measurable performance, radical administrative simplification and a genuine partnership.

In the position paper of entrepreneurship regarding the future multiannual financial framework, IMM Romania suggests protection mechanisms for accessing the amounts from the future European Competitiveness Fund, of which EUR 409 billion are proposed for allocation.

Thus, SMEs are asking for the introduction of a 'convergence bonus', which is the application of a mandatory additional score in centralised calls for projects that include partners from countries with GDP per capita below the EU average, as is the case of Romania. Companies in such countries face higher capital costs, and in the absence of such a mechanism, the European Competitiveness Fund will be able to be successfully accessed only by technological champions existing in more advanced states, thus deepening the industrial gap, says IMM Romania.

At the same time, the organisation is asking for a reserved share of at least 20% of the competitiveness funds for medium-sized companies (Mid-Caps) and innovative SMEs, considering that the current model of giant projects in transnational consortia excludes most Romanian companies capable of research and development.

IMM Romania also calls for a financing framework based on measurable performance, radical administrative simplification and a genuine partnership in terms of allocating European money to the private sector. Specifically, the association demands the urgent completion of the interoperability of the MySMIS platform with ANAF, ONRC and REVISAL, but also the mandatory implementation of the Single Guide of Common Conditions for all financing programs, the application of the 'Single Audit' principle to avoid repeated controls on the already validated beneficiaries and the introduction of an automatic mechanism for indexing grants with inflation, so that projects are not blocked by bureaucracy or rising costs.

'The business environment also suggests European funds being steered towards programmes designed to increase the competitiveness of SMEs, through investments in digitalisation and AI technologies, energy efficiency and green transition, innovation and integration with the European value chains, as well as supporting the internationalisation and development of companies' managerial capacity. The request related to prioritising digitalisation comes in the context in which, although 61% of Romanian SMEs have their own website and almost 77% are present on social networks, only 21% sell online, thus managing to monetise their online presence.'

IMM Romania is also calling for a programme to increase the administrative capacity of representative employers' and trade union organisations, with eligible funding for technical expertise, analysis and consultancy in public policies, digitalisation of internal processes, training staff in project management, monitoring and evaluation.

Recent official data indicate a critical period for domestic capital, marked by an increase in the number of insolvencies and a severe contraction of consumption, recalls the organisation.

'We cannot celebrate entrepreneurship only with congratulatory messages when the data show us a 25% drop in consumption and an explosion of company dissolutions. Romanian entrepreneurs are navigating an unprecedented economic storm and urgently need real support mechanisms adjusted for the ongoing crisis,' according to Elena Coanda, chair of the National Employers' Association of Businesswomen in SMEs (PNFAIMM), who attended the event. AGERPRES (RO - editing by: Andreea Marinescu; EN - writing by: Corneliu-Aurelian Colceriu)