ROMANIA’S REGIONALIZATION PROJECT

Article 235, paragraph I of the Treaty of Rome provide insight for reducing disparities between the regions of the Member States. The Maastricht Treaty introduced the concept of economic and social conditions that have to be met by those who receive financial aid from the European Union, in order to alleviate regional disparities. The Regional Policy is a common policy developed by the European Union. The E.U. is the strongest international regional organization to date; regional disparities have increased after the enlargement towards Central and Eastern Europe. Common regional policy means the transfer of competence in terms of economic and social development, from central to local level. Romania is facing the most serious regional disparities in Europe and seeks to mitigate their needs of capital inflows or foreign investment, funding from foreign banks, foreign workers from abroad through European funds. Due to the current economic and financial crisis, the only solution is the absorption of European funds. For efficient absorption of EU funds it is necessary to complete the process of regionalization, meaning the division of the country in 10 region, one of which is Sibiu region