The rapid economic growth since 2000 hasbeen the main driver of poverty reduction in Romania.However, even under the current positive growth scenario,there are still people who live in poverty, and some who areunlikely to benefit from future growth and thus may continueto be left behind. For these people an effectiveredistributive social policy and targeted interventions areneeded. The purpose of this note is to assist the Ministryof Labor, Family and Equal Opportunities (MLFEO) to analyzeand monitor the effectiveness of the main social safety netbenefits to fight social exclusion and reduce poverty. Todetermine the extent to which social transfers offerprotection to the poorest groups of the population, thepaper uses the last available (2004-2006) rounds of thehousehold budget survey data. The analysis presented hereuses the consumption aggregate and the absolute povertydefinition presented in the 2003 and 2007 povertyassessments. Three main indicators are used to assess theeffectiveness of social protection (SP) programs: coverage(share of population covered by the programs), targeting(share of funds directed to each welfare group ofpopulation), and adequacy of benefit (share of the benefitin the consumption of beneficiaries). The paper begins witha review of the main findings, followed by an overview ofthe social protection system and its overall effectiveness.Then it assesses the main social assistance programs, andconcludes with a review of key issues.