Local authorities in counties with 50,000 citizens or more can get up to 1 million euro funds from PHARE 2006 for waste management and used water purification facilities. The announcement came after the government announced today it plans to drastically cut budgetary spendings, since both the European Commission and Romania's National Bank pressures the government to control this year's high deficit.

Moreover, PM Tariceanu criticized local authorities for irresponsible spending. However, European funds are destined to counter this issue in the country. The total value offered for each project can reach from 100,000 euro to 1,000,000 euro. This is the last auction for projects within PHARE structures.

Environment Minister, Attila Korodi said that local administrations engaged in 264 contracts using PHARE funds, while only 23 regarded private businesses. The total number of money invested with PHARE projects is 115 million euro.