Romania’s Strategy as EU Member State

Presentation by Gabriel Traistaru, Europuls Bucharest

2

Romania and The European Union

• Romania joins the European Union on 1 January 2007 along

with Bulgaria.

• It was the latest expansion of the EU, though considered by

the European Commission as part of the same wave (the

fifth) as the 2004 enlargement of the European Union.

Member countries Population Area (km²)GDP

(billion US$)GDP

per capita (US$)

       Romania 22,329,977 238,391 204.4 9,153

       Bulgaria 7,761,000 111,002 62.29 8,026

Accession countries 30,090,977 349,393 266.69 8,863

EU 25464,205,90

14,104,844 12,170.11 26,217

EU 27494,296,87

8(+6.48%)

4,454,237(+8.51%)

12,436.80(+2.04%)

25,160.59

(-4.03%)(-4.03%)

3

The general expectations before becoming EU member

EU membership it means permission

of free movement and a open

labor market

Main Political Parties

The EU membership will bring

more economic stability in

Romania, new financial resources

and a market oriented economy!

Business SectorPopulation

++

Future EU membership will bring

economic growth and will give

Romania a role in the EU’s

Parliament decision mechanisms.

4

Romania’s Strategy as EU Member State

Objectives for

2007-2013

Objectives for

2014-2020

After 1st of January 2007 Romania needed a post accesion strategy

Benefit from the EU member state status

both economically and social

STRATEGY

5

Objective 2007 – 2013Social cohesion based on economical and institutional consolidation

I. Increase the economic competitiveness1. Infrastructure modernization (Transport, Communication, Energy and Environment)

2. Human capital development (Educational System Reform, Professional Training, Continuous Education)

3. Finalizing the structural reforms and consolidating the mechanisms of market based economy

4. Promoting research through the principle of economy based on knowledge

5. Increase of Romanian business sector attractiveness

6. Labor market optimization

7. Development of Macroeconomic Policies for competition stimulation

Convergence with the EU member states

Minimum wages EUR/monthMotorway KM

STR

ATEG

IC

DIR

EC

TIV

E:

FA

CTS

:

+42 KM since 2006

323

27 25 41 5071 68 79 90 115 139 149 142

402446

494526 542 553

586 610644

673 670 685

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

EU 27

Romania

6

II. Diminution of social and regional differences

1. Assuring equal chances for every citizen for acceding to public service jobs

2. Development of rural communities

3. Increasing the number of active people in the work field

4. Improving the living conditions and reduction poverty

5. Increase the territorial cohesion

Objective 2007 – 2013Social cohesion based on economical and institutional consolidation

STR

ATEG

IC

DIR

EC

TIV

E:

FA

CTS

:

Convergence between Romania’s Macro Regions

Regional gross domestic product (billion EUR), by NUTS 2 regions

7

38

11 11 11 8

40

15 14 13 16

29

10 13

45

18

810999 1013

22

Centru Nord-Est Sud-Est Sud -Muntenia

Bucuresti -Ilfov

Sud-VestOltenia

Vest EU 27

2005 2006 2007

Romanian Macro regions

7

III. Increasing the capitalization degree of economic and social resources1. Improving the capacity of public resources management

2. Efficient use of structural funds

3. Public Administration modernization to reach the EU specific indicators for efficiency

4. Efficient use of renewable and non renewable resources

5. Stimulating private resources capitalization

Objective 2007 – 2013Social cohesion based on economical and institutional consolidation

STR

ATEG

IC

DIR

EC

TIV

E:

Better management of Romania’s own resources

Total general government

Revenue in 2009(%/GDP)

32.1

1. Danube Delta – Solar Energy

2. Dobrogea – Solar Energy and

Wind Energy

3. Moldavia – Micro Hydro

(<10MW)

4. Carpathians Mountains

Biomass, Micro Hydro

5. Transylvania – Micro Hydro

6. West Plain – Geothermal

7. Sub Carpathians – Biomass,

Micro Hydro

8. South Plain – Biomass,

Geothermal, Solar

Types of Renewable Energy Sources by geographic area

FA

CTS

:

8

IV. Assuring the convergence for adopting by Romania of Euro at 1 January

20141. Fulfilling the criteria of nominal convergence

2. Accelerating the convergence process

Objective 2007 – 2013Social cohesion based on economical and institutional consolidation

STR

ATEG

IC

DIR

EC

TIV

E:

FA

CTS

:

IMPOSSIBLE

Maastr

ich

t C

rite

ria F

ulfi

lmen

t

9

V. Consolidating Romania’s role in the process of European Development1. Intensification of national debate process regarding the European Identity

2. Consolidating the new image of European Romania

Objective 2007 – 2013Social cohesion based on economical and institutional consolidation

STR

ATEG

IC

DIR

EC

TIV

E:

FA

CTS

:

10

Objective 2014 – 2020Performance based EU member state

I. Reaching the European standards in economic and social sectors

II. Consolidating the decentralization of administration sector

III. Dilution of demographic crisis effects

IV. Active participation for Romania at the European decision making process

V. Creating a more stimulating environment for research and innovation

VI. Assuring new energy resources while reducing energy intensity, protecting

the environment and conservation of natural resources

STR

ATEG

IC

DIR

EC

TIV

E:

11

Is there any public support for the decision makers in following this strategy ?

“Only 50% of Bulgarians are satisfied

with the advantages of accession - 20

percent points less than Romanians.”

Eurobarometer 67, Spring 2007

“Euro-optimists with strong links to their

local-national space are to be found in

countries from the 1981, 2004 or 2007

accession waves. Romania belongs to

this group.”

Eurobarometer 67, Spring 2007

12

After 3 years as a EU Member…

Currently, 15 member states allow

Romanians and Bulgarians to work

without a permit.

Restrictions in the other 10 EU

member states may remain in place

until 2014 – 7 years after their

accession

No restrictions on

getting work

Partial to full

restrictions on

getting work still

maintained

33 seats in the European Parliament

is Romania’s EU Structural Funds absorption rate 10%

2,18 billion Euros is Romania’s total absorption after 3 years

4,53 billion Euros is Romania’s contribution to EU Budget in 3 years

Total Benefits: -2,35 billion Euros

13

1.440

357(20%)

1.797

Regional Cohesion

909

155(15%)

1.064

Economic Competitiveness

1.650

216(12%)

1.866

Environment

1.270

130(9%)

1.400

Human Resources

1.710

38(2%)

1.748

Transports

Total Structural Funds

Total Absorbed Funds in 3 years

How Romania used EU Structural Funds after 3 years?

(Billions of Euros)

14

Personally Affected by the Economic Downturn?

15

EU or Euro Good for the Economy?

16

Should Economic Difficulties Lead Member States to Build a Stronger EU?

17

Conclusions…

The Post Accession Strategy did not delivered results until now not

because is a bad strategy but because the implementation instruments

are not well defined and developed yet!

…BUT NOT THE WRONG STRATEGY !

18

THANK YOU !

Do you have any questions?