Goodbye anti-registrations: business insight



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Vladimir Ivanovo (VŽ) nuotr.

The calls to action of the European Union are turning into a real farce: the Ministry of Economy and Innovation, in its change of government, seems to have relaxed completely and is not only formal but negligent. The institution claims the most absurd records: the recent call for Smart FDI, published by the Lithuanian Business Support Agency (LVPA), lasted an incredibly short time, about 80 minutes, and was stopped once and over budget of the measure.

The COVID-19 Products LT call was published on October 28. and suspended on October 29. – to the estimated 31 million. Eur claims for projects for 38 million. EUR.

Although the businessmen try to express their dissatisfaction with the LVPA leadership, its director, Aurimas Želvys, explains that the ministry informs the agency about future invitations almost the same day.

“Communication doesn’t work. For example, you would only know Thursday night that there would be a Smart FDI call. Until the Minister has signed the description of the measure, we cannot issue an invitation and it takes at least a couple of days to prepare. I do not remember those records during my years of work and that this would interrupt the communication of the ministry. Perhaps because the management of the ministry is changing, perhaps because we work remotely ”, – considers the director of LVPA.

The invitations end and the requests with brief descriptions must appear on the page “Esinvesticijos.lt”. But they have to wait almost a day. The companies that paid money to consultants who were waiting for an invitation to apply stayed to spend the money and could not apply for the EU investment because they did not do so within 80 minutes. To put it mildly, there were no such strange records in Lithuania.

Understandably, incomprehensibly short calls for EU measures annoy companies: after all, projects are thrown away and less valuable applications may be eligible for funding. The LVPA itself highlights concerns about application quality issues and risks.

If there is a high demand and flow of requests, perhaps the deadline should be extended to better assess the quality of projects and allocate money to the best rather than the fastest?

Such urgency, which has resulted in an absurd record, smacks of opacity and inefficient use of funds. As the VŽ reader writes, what about the “image in the eyes of serious investors when the system is powered by local” application tricks? Not to mention that the authors of dubious “space” projects are also finding a place. under the sun.

The importance and efficiency of EU investments can also be questioned when monitoring some applications under the measure “COVID-19 LT products”: here 72 companies request 38 million. European funds Eur are part of its intention to buy equipment and start producing disinfectants or expand existing capacity. The requested investments range between 100,000 and 700,000 euros and more.

Alcohol suppliers warn: The resulting overproduction has led to a sharp drop in demand, a return on investment and a misuse of EU funds.

“The bubble formed in early March, a few weeks after the deficit, and people lined up. Now the market is saturated and some manufacturers are forced to sell disinfectants below cost, and some have even asked us to buy back the alcohol we buy ”, explained Rokas Mituzas, CEO of AB Vilniaus degtinė (VD).

VD currently sells a very small proportion of the alcohol produced for disinfectant production compared to March. According to the director of the company, the need has decreased not dozens, but hundreds of times. The price of disinfectant has dropped. And not only in Lithuania. As far as he knew, there were buyers who saw the need in Africa and shipped large quantities there. But now exports have also stopped.

“We can see very well what is happening in the market, because almost 90% of the disinfectant manufacturers bought our liquors,” says Mituz. In his view, European money should be invested where it would bring long-term benefits to make the country more competitive.

“Using them to make a disinfectant would be very reckless,” said my manager.

The LVPA has already begun evaluating submitted applications.

According to VŽ, Rimantas Sinkevičius, the envoy of the clan of the so-called “old beavers”, still sitting in the minister’s chair and receiving the appropriate salary, should take responsibility for such approaches at EIM. Such negligent attitude and (in) activity of the Ministry does not seem to have existed yet. The leadership vacuum that has long prevailed in this ministry appears to have shifted to limited management thinking as well.

The author’s opinion does not necessarily coincide with the editorial position.

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