Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes
This Country Economic Memorandum (CEM) looks at the broad reform program, including institutional, governance, and economic restructuring reforms Romania is pursuing, which are anchored in its process for accession to the European Union (EU). The c...
| Main Author: | |
|---|---|
| Format: | Country Economic Memorandum |
| Language: | English en_US |
| Published: |
Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/06/4411983/romania-restructuring-eu-integration-policy-agenda-country-economic-memorandum-vol-2-2-main-report-annexes http://hdl.handle.net/10986/15647 |
| id |
okr-10986-15647 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
COUNTRY ECONOMIC WORK REFORM POLICY REFORM IMPLEMENTATION: EUROPEAN UNION MEMBERSHIP ECONOMIC INTEGRATION MARKET DRIVEN PUBLIC SERVICE DELIVERY INSTITUTIONAL REFORM GOVERNANCE APPROACH ECONOMIC REFORM RESTRUCTURING TRADE EXPANSION DIVERSIFICATION PROGRAM ENTERPRISE DEVELOPMENT PRIVATIZATION AGRICULTURE IN TRADE COMPETITIVENESS LAND ALLOTMENT AGRICULTURAL POLICY REFORM LABOR MARKET NEXUS EMPLOYMENT CREATION POLICIES RISK ASSESSMENT ENERGY SECTOR REFORM FISCAL DEFICITS BUDGET IMPLEMENTATION FISCAL MANAGEMENT FINANCIAL INTERMEDIATION REGULATORY FRAMEWORK SOCIAL SECURITY FINANCE SOCIAL SECTOR REFORM ENVIRONMENTAL REGULATIONS AGRICULTURAL SECTOR AGRICULTURE BANKING SECTOR BANKRUPTCY BUDGET CONSTRAINTS CAPITAL ACCOUNT CAPITAL INFLOWS CENTRAL BANK COMPETITIVENESS CONSOLIDATION CONSUMPTION GROWTH CPI DEBT DEVALUATION DIRECT FINANCING DISINFLATION DOMESTIC SAVINGS ECONOMIC CRISES ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RECOVERY ECONOMIC SHOCKS EMPLOYMENT EXCHANGE RATE EXCHANGE RATES EXPENDITURES EXPORT GROWTH EXPORTS EXTREME POVERTY FINANCIAL INTERMEDIATION FINANCIAL SECTOR FISCAL BALANCE FISCAL DEFICITS FISCAL POLICIES FOREIGN ASSETS GDP GROSS DOMESTIC PRODUCT GROWTH RATE HARD BUDGET CONSTRAINTS IMPORTS INCOME INCOME GROUPS INFLATION INFLATION RATE INSTITUTIONAL CHANGE INTEREST RATE LABOR COSTS LABOR MARKET LIQUIDATION LIVING ADJUSTMENT LOW INFLATION MACROECONOMIC ADJUSTMENT MACROECONOMIC FRAMEWORK MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MONETARY POLICIES POLICY DECISIONS POLICY ENVIRONMENT POVERTY CHANGES POVERTY RATE POVERTY REDUCTION PRICE INCREASES PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC BORROWING PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC REVENUES REAL EXCHANGE RATE REAL INCOMES REAL SECTOR REAL WAGE RATES REAL WAGES REDUCING POVERTY REFORM PROGRAM REGULATORY SYSTEMS RELATIVE PRICES SAFETY NET SAVINGS TARIFF BARRIERS TAX TAX REVENUES TAXATION TOTAL COSTS TOTAL REVENUE TRADE DEFICIT URBAN AREAS URBAN POVERTY WAGE RATES WAGES WELFARE IMPACT |
| spellingShingle |
COUNTRY ECONOMIC WORK REFORM POLICY REFORM IMPLEMENTATION: EUROPEAN UNION MEMBERSHIP ECONOMIC INTEGRATION MARKET DRIVEN PUBLIC SERVICE DELIVERY INSTITUTIONAL REFORM GOVERNANCE APPROACH ECONOMIC REFORM RESTRUCTURING TRADE EXPANSION DIVERSIFICATION PROGRAM ENTERPRISE DEVELOPMENT PRIVATIZATION AGRICULTURE IN TRADE COMPETITIVENESS LAND ALLOTMENT AGRICULTURAL POLICY REFORM LABOR MARKET NEXUS EMPLOYMENT CREATION POLICIES RISK ASSESSMENT ENERGY SECTOR REFORM FISCAL DEFICITS BUDGET IMPLEMENTATION FISCAL MANAGEMENT FINANCIAL INTERMEDIATION REGULATORY FRAMEWORK SOCIAL SECURITY FINANCE SOCIAL SECTOR REFORM ENVIRONMENTAL REGULATIONS AGRICULTURAL SECTOR AGRICULTURE BANKING SECTOR BANKRUPTCY BUDGET CONSTRAINTS CAPITAL ACCOUNT CAPITAL INFLOWS CENTRAL BANK COMPETITIVENESS CONSOLIDATION CONSUMPTION GROWTH CPI DEBT DEVALUATION DIRECT FINANCING DISINFLATION DOMESTIC SAVINGS ECONOMIC CRISES ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RECOVERY ECONOMIC SHOCKS EMPLOYMENT EXCHANGE RATE EXCHANGE RATES EXPENDITURES EXPORT GROWTH EXPORTS EXTREME POVERTY FINANCIAL INTERMEDIATION FINANCIAL SECTOR FISCAL BALANCE FISCAL DEFICITS FISCAL POLICIES FOREIGN ASSETS GDP GROSS DOMESTIC PRODUCT GROWTH RATE HARD BUDGET CONSTRAINTS IMPORTS INCOME INCOME GROUPS INFLATION INFLATION RATE INSTITUTIONAL CHANGE INTEREST RATE LABOR COSTS LABOR MARKET LIQUIDATION LIVING ADJUSTMENT LOW INFLATION MACROECONOMIC ADJUSTMENT MACROECONOMIC FRAMEWORK MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MONETARY POLICIES POLICY DECISIONS POLICY ENVIRONMENT POVERTY CHANGES POVERTY RATE POVERTY REDUCTION PRICE INCREASES PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC BORROWING PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC REVENUES REAL EXCHANGE RATE REAL INCOMES REAL SECTOR REAL WAGE RATES REAL WAGES REDUCING POVERTY REFORM PROGRAM REGULATORY SYSTEMS RELATIVE PRICES SAFETY NET SAVINGS TARIFF BARRIERS TAX TAX REVENUES TAXATION TOTAL COSTS TOTAL REVENUE TRADE DEFICIT URBAN AREAS URBAN POVERTY WAGE RATES WAGES WELFARE IMPACT World Bank Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes |
| geographic_facet |
Europe and Central Asia Romania |
| description |
This Country Economic Memorandum (CEM)
looks at the broad reform program, including institutional,
governance, and economic restructuring reforms Romania is
pursuing, which are anchored in its process for accession to
the European Union (EU). The challenge is to expand
integration with the EU more broadly throughout the economy,
by relying on market driven mechanisms in a predictable
rules-based policy environment, with the state sharply
focused on the provision of essential public goods.
Implementing the institutional reform agenda is the first
priority in the accession-led reform, having the country the
largest increase in its share of EU external imports among
the Central Eastern European Countries (CEECs), with trade
diversification providing a robust foundation for trade
expansion. But, to deepen trade integration, Romania would
need to broaden its trade performance throughout the
economy. On restructuring the enterprise sector, the CEM
indicates enterprise reform needs to be accelerated, and
budget constraint discipline needs to be extended to the
transaction interface between the state and enterprises. As
for implementing agricultural transformation, the potential
competitiveness of agriculture, associated with
Romania's moderate climate, and the availability of
land, remains largely untapped. Therefore, agricultural
policies and transformation need to be driven by
competitiveness. Moreover, increased labor market
flexibility is needed to improve sectoral employment
imbalances, and competitiveness, and hence reduce the risks
to the sustainability of growth, as competing in the EU, and
global markets becomes increasingly more difficult.
Notwithstanding recent progress, there are risks and
vulnerabilities to the macroeconomic stabilization, and
reform achievements. The energy sector in Romania has been a
main source of persistently large quasi-fiscal deficits,
more so than in many other transition economies, with high
hidden subsidies, and losses in the energy sector.
Completing the energy sector reform is essential, but the
challenge is to implement budget constraints between the
state and energy enterprises, so as to complete the
restructuring of the energy sector. Further recommendations
include elimination of quasi-fiscal financing, replaced by
efficient financial intermediation, and strengthening the
regulatory and supervisory infrastructure; deepening the
reforms of the social security system; and, containing the
costs of upgrading environmental standards. |
| format |
Economic & Sector Work :: Country Economic Memorandum |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes |
| title_short |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes |
| title_full |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes |
| title_fullStr |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes |
| title_full_unstemmed |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes |
| title_sort |
romania - restructuring for eu integration--the policy agenda : country economic memorandum, volume 2. main report and annexes |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/06/4411983/romania-restructuring-eu-integration-policy-agenda-country-economic-memorandum-vol-2-2-main-report-annexes http://hdl.handle.net/10986/15647 |
| _version_ |
1764428587745673216 |
| spelling |
okr-10986-156472021-04-23T14:03:17Z Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 2. Main Report and Annexes World Bank COUNTRY ECONOMIC WORK REFORM POLICY REFORM IMPLEMENTATION: EUROPEAN UNION MEMBERSHIP ECONOMIC INTEGRATION MARKET DRIVEN PUBLIC SERVICE DELIVERY INSTITUTIONAL REFORM GOVERNANCE APPROACH ECONOMIC REFORM RESTRUCTURING TRADE EXPANSION DIVERSIFICATION PROGRAM ENTERPRISE DEVELOPMENT PRIVATIZATION AGRICULTURE IN TRADE COMPETITIVENESS LAND ALLOTMENT AGRICULTURAL POLICY REFORM LABOR MARKET NEXUS EMPLOYMENT CREATION POLICIES RISK ASSESSMENT ENERGY SECTOR REFORM FISCAL DEFICITS BUDGET IMPLEMENTATION FISCAL MANAGEMENT FINANCIAL INTERMEDIATION REGULATORY FRAMEWORK SOCIAL SECURITY FINANCE SOCIAL SECTOR REFORM ENVIRONMENTAL REGULATIONS AGRICULTURAL SECTOR AGRICULTURE BANKING SECTOR BANKRUPTCY BUDGET CONSTRAINTS CAPITAL ACCOUNT CAPITAL INFLOWS CENTRAL BANK COMPETITIVENESS CONSOLIDATION CONSUMPTION GROWTH CPI DEBT DEVALUATION DIRECT FINANCING DISINFLATION DOMESTIC SAVINGS ECONOMIC CRISES ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RECOVERY ECONOMIC SHOCKS EMPLOYMENT EXCHANGE RATE EXCHANGE RATES EXPENDITURES EXPORT GROWTH EXPORTS EXTREME POVERTY FINANCIAL INTERMEDIATION FINANCIAL SECTOR FISCAL BALANCE FISCAL DEFICITS FISCAL POLICIES FOREIGN ASSETS GDP GROSS DOMESTIC PRODUCT GROWTH RATE HARD BUDGET CONSTRAINTS IMPORTS INCOME INCOME GROUPS INFLATION INFLATION RATE INSTITUTIONAL CHANGE INTEREST RATE LABOR COSTS LABOR MARKET LIQUIDATION LIVING ADJUSTMENT LOW INFLATION MACROECONOMIC ADJUSTMENT MACROECONOMIC FRAMEWORK MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MONETARY POLICIES POLICY DECISIONS POLICY ENVIRONMENT POVERTY CHANGES POVERTY RATE POVERTY REDUCTION PRICE INCREASES PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PRODUCTIVITY PRODUCTIVITY GROWTH PUBLIC BORROWING PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC REVENUES REAL EXCHANGE RATE REAL INCOMES REAL SECTOR REAL WAGE RATES REAL WAGES REDUCING POVERTY REFORM PROGRAM REGULATORY SYSTEMS RELATIVE PRICES SAFETY NET SAVINGS TARIFF BARRIERS TAX TAX REVENUES TAXATION TOTAL COSTS TOTAL REVENUE TRADE DEFICIT URBAN AREAS URBAN POVERTY WAGE RATES WAGES WELFARE IMPACT This Country Economic Memorandum (CEM) looks at the broad reform program, including institutional, governance, and economic restructuring reforms Romania is pursuing, which are anchored in its process for accession to the European Union (EU). The challenge is to expand integration with the EU more broadly throughout the economy, by relying on market driven mechanisms in a predictable rules-based policy environment, with the state sharply focused on the provision of essential public goods. Implementing the institutional reform agenda is the first priority in the accession-led reform, having the country the largest increase in its share of EU external imports among the Central Eastern European Countries (CEECs), with trade diversification providing a robust foundation for trade expansion. But, to deepen trade integration, Romania would need to broaden its trade performance throughout the economy. On restructuring the enterprise sector, the CEM indicates enterprise reform needs to be accelerated, and budget constraint discipline needs to be extended to the transaction interface between the state and enterprises. As for implementing agricultural transformation, the potential competitiveness of agriculture, associated with Romania's moderate climate, and the availability of land, remains largely untapped. Therefore, agricultural policies and transformation need to be driven by competitiveness. Moreover, increased labor market flexibility is needed to improve sectoral employment imbalances, and competitiveness, and hence reduce the risks to the sustainability of growth, as competing in the EU, and global markets becomes increasingly more difficult. Notwithstanding recent progress, there are risks and vulnerabilities to the macroeconomic stabilization, and reform achievements. The energy sector in Romania has been a main source of persistently large quasi-fiscal deficits, more so than in many other transition economies, with high hidden subsidies, and losses in the energy sector. Completing the energy sector reform is essential, but the challenge is to implement budget constraints between the state and energy enterprises, so as to complete the restructuring of the energy sector. Further recommendations include elimination of quasi-fiscal financing, replaced by efficient financial intermediation, and strengthening the regulatory and supervisory infrastructure; deepening the reforms of the social security system; and, containing the costs of upgrading environmental standards. 2013-09-05T14:27:35Z 2013-09-05T14:27:35Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4411983/romania-restructuring-eu-integration-policy-agenda-country-economic-memorandum-vol-2-2-main-report-annexes http://hdl.handle.net/10986/15647 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Country Economic Memorandum Economic & Sector Work Europe and Central Asia Romania |