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Romania

Page history last edited by Brian D Butler 9 years, 3 months ago

see also:

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Table of Contents:


 

 

 

Romania

Romania is located in Central Europe and, as a country, is focused on restructuring and privatizing large state-owned enterprises to ensure sustained economic growth. It is a medium sized country, at the crossroads of Central Europe, Eastern Europe and the Balkan states.

 

Romania offers investors the second largest market in Central Europe with almost 23 million domestic consumers and a skilled labor force, which is well trained in engineering and technology and available at competitive wage rates.

 

The state legislation in place contains several concrete provisions meant to offer foreign investors a wide range of possibilities for investment. Romania welcomes investment from overseas as it is regarded as a major element in the economic growth plan for the country.

 

 

Investment Promotion Agency:

 

Romanian Development Agency

7 Maghero Blvd

Bucharest

Romania

tel: +401 312 28 86

fax: +401 315 46 98

 

 

Places in Romania

 

Bucharest

Bucharest is the capital and largest city in Romania with a population of around 2.5 million. It is the country’s chief industrial center and the siting of the main national university.

 

 

 

  • "The Carpathian Mountains define Romania, but in an odd way. Rather than serving as the border of the country, protecting it, the Carpathians are an arc that divides the country into three parts. To the south of the mountains is the Wallachian Plain, the heart of contemporary Romania, where its capital, Bucharest, and its old oil center, Ploesti, are located. In the east of the Carpathians is the Moldavian Plain. To the northwest of the Carpathians is Transylvania, more rugged, hilly country.


Read more: Geopolitical Journey, Part 3: Romania | STRATFOR

see also Carpathian Mountains - dividing Europe from Russia

 

 

 

GeoPolitics:

 

  • "Romania is always a hard country to read. Geopolitically, its capital is on the wrong side of the Carpathians if the Russians are the threat, on the right side if Austria or Germany is the threat. Romania is oriented toward the European Union but is one of the many countries in the union that may not really belong there. Unlike the Poles, for whom history and resistance is a tradition, the Romanians accommodate themselves to the prevailing winds.


Read more: Geopolitical Journey, Part 2: Borderlands | STRATFOR 

see also Carpathian Mountains - dividing Europe from Russia

 

 

 

European Union and Romania:

 

see also:  European Union and European Union - enlargement

 

"Romanians believed their redemption lay with the West’s multilateral organizations. If they were permitted to join NATO and especially the European Union, their national security needs would be taken care of along with their economic needs"....Read more: Geopolitical Journey, Part 3: Romania | STRATFOR 

 

 

"As for the European Union, there is a deep structural tension in the system. The main European economic power is Germany. It is also the world’s second-largest exporter. Its economy is built around exporting. For a country like Romania, economic development requires that it take advantage of its wage advantage. Lower wages allow developing countries to develop their economy through exports. But Europe is dominated by an export superpower. Unlike the postwar world, where the United States absorbed the imports of Germany and Japan without needing to compete with them, Germany remains an exporting country exporting into Romania and leaving precious little room for Romania to develop its economy.

 

"At this stage of its development, Romania should be running a trade surplus, particularly with Germany, but it is not. In 2007, it exported about $40 billion worth of goods and imported about $70 billion. In 2009, it exported the same $40 billion but cut imports to only $54 billion (still a negative). Forty percent of its trade is with Germany, France and Italy, its major EU partners. But it is Germany where the major problem is. And this problem is compounded by the fact that a good part of Romania’s exports to Germany are from German-owned firms operating in Romania.

 

"During the period of relative prosperity in Europe from 1991 to 2008, the structural reality of the EU was hidden under a rising tide. In 2008 the tide went out, revealing the structural reality. It is not clear when the tide of prosperity will come rolling back in. In the meantime, while the German economy is growing again, Romania’s is not. Because it exists in a system where the main engine is an exporter, and the exporter dominates the process of setting rules, it is difficult to see how Romania can take advantage of its greatest asset — a skilled workforce prepared to work for lower wages.

 

"Add to this the regulatory question. Romania is a developing country. Europe’s regulations are drawn with a focus on the highly developed countries


Read more: Geopolitical Journey, Part 3: Romania | STRATFOR 

 

 

 

Macroeconomic Profile

 

Crisis Update 2011:

 

"The government proposed wage cuts of 25% and pension cuts of 15% last July in order to reduce the country's budget deficit. Romania's economy shrank more than 7% in 2009 and it needed an IMF bail-out in order to meet its wage bill. It says it needs to implement new austerity measures to qualify for further instalments of the 20bn-euro IMF loan..."  Read more from BBC here:  http://www.bbc.co.uk/news/10162176

 

Austerity 2010:

 

"The government proposed wage cuts of 25% and pension cuts of 15% in July in order to reduce the country's budget deficit.  Romania's economy shrunk more than 7% in 2009 and it needed an IMF bail-out in order to meet its wage bill.  It says it needs to implement new austerity measures to qualify for the next instalment of the 20bn-euro ($25bn; £17bn) IMF loan. Angry protests have greeted the cuts and Interior Minister Vasile Blaga resigned after thousands of police officers went on strike over the 25% pay cut."  read more here:  BBC.com

 

 

 

2010

"some of Europe's harshest austerity policies, including a 25 percent pay cut for public sector workers"

 

2008

Romania looks worse. As in the Baltic countries, it has a big current account deficit, but it has predominantly been financed with foreign bank loans, which are now drying up, and its budget deficit of some 3 percent of GDP is excessive. So far, its salvation has been its floating exchange rate and an independent central bank that pursues a strict monetary policy, but Romania's growth will suffer.

 

 

 

External Links

 

 

 

Library of Congress: Country Studies

 

Excellent source of historical information about a country; "The Country Studies Series presents a description and analysis of the historical setting and the social, economic, political, and national security systems and institutions of countries throughout the world.

 

 

 

 

 

 

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