Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes

World Bank

Washington, DC

关键词: COUNTRY ECONOMIC WORK;    REFORM POLICY;    REFORM IMPLEMENTATION: EUROPEAN UNION MEMBERSHIP;    ECONOMIC INTEGRATION;    MARKET DRIVEN;   

RP-ID  :  29123

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This Country Economic Memorandum (CEM)looks at the broad reform program, including institutional,governance, and economic restructuring reforms Romania ispursuing, which are anchored in its process for accession tothe European Union (EU). The challenge is to expandintegration with the EU more broadly throughout the economy,by relying on market driven mechanisms in a predictablerules-based policy environment, with the state sharplyfocused on the provision of essential public goods.Implementing the institutional reform agenda is the firstpriority in the accession-led reform, having the country thelargest increase in its share of EU external imports amongthe Central Eastern European Countries (CEECs), with tradediversification providing a robust foundation for tradeexpansion. But, to deepen trade integration, Romania wouldneed to broaden its trade performance throughout theeconomy. On restructuring the enterprise sector, the CEMindicates enterprise reform needs to be accelerated, andbudget constraint discipline needs to be extended to thetransaction interface between the state and enterprises. Asfor implementing agricultural transformation, the potentialcompetitiveness of agriculture, associated withRomania's moderate climate, and the availability ofland, remains largely untapped. Therefore, agriculturalpolicies and transformation need to be driven bycompetitiveness. Moreover, increased labor marketflexibility is needed to improve sectoral employmentimbalances, and competitiveness, and hence reduce the risksto the sustainability of growth, as competing in the EU, andglobal markets becomes increasingly more difficult.Notwithstanding recent progress, there are risks andvulnerabilities to the macroeconomic stabilization, andreform achievements. The energy sector in Romania has been amain source of persistently large quasi-fiscal deficits,more so than in many other transition economies, with highhidden subsidies, and losses in the energy sector.Completing the energy sector reform is essential, but thechallenge is to implement budget constraints between thestate and energy enterprises, so as to complete therestructuring of the energy sector. Further recommendationsinclude elimination of quasi-fiscal financing, replaced byefficient financial intermediation, and strengthening theregulatory and supervisory infrastructure; deepening thereforms of the social security system; and, containing thecosts of upgrading environmental standards.