Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report
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...
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| Format: | Country Economic Memorandum |
| Language: | English en_US |
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Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/4411803/romania-restructuring-eu-integration-policy-agenda-country-economic-memorandum-vol-1-2-summary-report http://hdl.handle.net/10986/15646 |
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okr-10986-15646 |
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| 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 ACCOUNTABILITY ACCOUNTING ADMINISTRATION REFORM AGRICULTURE AIR POLLUTION ANTI-CORRUPTION ASSET DECLARATIONS ASSETS AUDITING BANK RESTRUCTURING BANKING SECTOR BANKRUPTCY BANKS CAPITAL MARKETS CENTRAL BANK CIVIL SERVICE COAL COLLATERAL COMPARATIVE ADVANTAGE COMPETITIVENESS CONSOLIDATION CONSTITUTIONAL AMENDMENTS CONSUMERS CORRUPTION COUNTRY COMPARISONS COURT SYSTEM CPI CREDIT RISK CROWDING OUT DEBT DEFICITS ECONOMIC CRITERIA ECONOMIC PERFORMANCE EMPLOYMENT ENTERPRISE REFORM ENVIRONMENTAL POLICIES EXPENDITURES EXPORTS EXTREME POVERTY FARMS FINANCIAL INTERMEDIATION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL DEFICITS FISCAL SUSTAINABILITY FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP GOVERNMENT OFFICIALS GOVERNMENT'S REFORM PROGRAM GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS IMPORTS INDEXATION INFLATION INFLATION RATE JUDICIAL REFORM JUDICIARY LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET PARTICIPATION LABOR MARKET POLICIES LABOR MOBILITY LAWS LEGAL FRAMEWORK LEGISLATION LEGISLATIVE FRAMEWORK LOCAL GOVERNMENTS MACROECONOMIC ADJUSTMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MINISTRY OF FINANCE MONETARY POLICY OIL PERVERSE INCENTIVES POLLUTION REDUCTION PRIVATIZATION PRODUCTIVITY PROFITABILITY PUBLIC ADMINISTRATION PUBLIC ADMINISTRATION REFORM PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC OFFICIALS RATIONALIZATION REAL GDP REAL SECTOR REFERENDUM REGULATORY FRAMEWORK RETIREMENT REVENUE COLLECTION SECURITIES SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE-OWNED ENTERPRISES SUBSIDIARIES SUPERVISORY FRAMEWORK TAX ARREARS TOTAL COSTS TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPARENCY UNEMPLOYMENT UNEMPLOYMENT RATES VALUATION WASTE MANAGEMENT WORLD TRADE ORGANIZATION WTO |
| 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 ACCOUNTABILITY ACCOUNTING ADMINISTRATION REFORM AGRICULTURE AIR POLLUTION ANTI-CORRUPTION ASSET DECLARATIONS ASSETS AUDITING BANK RESTRUCTURING BANKING SECTOR BANKRUPTCY BANKS CAPITAL MARKETS CENTRAL BANK CIVIL SERVICE COAL COLLATERAL COMPARATIVE ADVANTAGE COMPETITIVENESS CONSOLIDATION CONSTITUTIONAL AMENDMENTS CONSUMERS CORRUPTION COUNTRY COMPARISONS COURT SYSTEM CPI CREDIT RISK CROWDING OUT DEBT DEFICITS ECONOMIC CRITERIA ECONOMIC PERFORMANCE EMPLOYMENT ENTERPRISE REFORM ENVIRONMENTAL POLICIES EXPENDITURES EXPORTS EXTREME POVERTY FARMS FINANCIAL INTERMEDIATION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL DEFICITS FISCAL SUSTAINABILITY FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP GOVERNMENT OFFICIALS GOVERNMENT'S REFORM PROGRAM GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS IMPORTS INDEXATION INFLATION INFLATION RATE JUDICIAL REFORM JUDICIARY LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET PARTICIPATION LABOR MARKET POLICIES LABOR MOBILITY LAWS LEGAL FRAMEWORK LEGISLATION LEGISLATIVE FRAMEWORK LOCAL GOVERNMENTS MACROECONOMIC ADJUSTMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MINISTRY OF FINANCE MONETARY POLICY OIL PERVERSE INCENTIVES POLLUTION REDUCTION PRIVATIZATION PRODUCTIVITY PROFITABILITY PUBLIC ADMINISTRATION PUBLIC ADMINISTRATION REFORM PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC OFFICIALS RATIONALIZATION REAL GDP REAL SECTOR REFERENDUM REGULATORY FRAMEWORK RETIREMENT REVENUE COLLECTION SECURITIES SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE-OWNED ENTERPRISES SUBSIDIARIES SUPERVISORY FRAMEWORK TAX ARREARS TOTAL COSTS TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPARENCY UNEMPLOYMENT UNEMPLOYMENT RATES VALUATION WASTE MANAGEMENT WORLD TRADE ORGANIZATION WTO World Bank Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report |
| 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 1. Summary Report |
| title_short |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report |
| title_full |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report |
| title_fullStr |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report |
| title_full_unstemmed |
Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report |
| title_sort |
romania - restructuring for eu integration--the policy agenda : country economic memorandum, volume 1. summary report |
| publisher |
Washington, DC |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/06/4411803/romania-restructuring-eu-integration-policy-agenda-country-economic-memorandum-vol-1-2-summary-report http://hdl.handle.net/10986/15646 |
| _version_ |
1764428584671248384 |
| spelling |
okr-10986-156462021-04-23T14:03:17Z Romania - Restructuring for EU Integration--The Policy Agenda : Country Economic Memorandum, Volume 1. Summary Report 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 ACCOUNTABILITY ACCOUNTING ADMINISTRATION REFORM AGRICULTURE AIR POLLUTION ANTI-CORRUPTION ASSET DECLARATIONS ASSETS AUDITING BANK RESTRUCTURING BANKING SECTOR BANKRUPTCY BANKS CAPITAL MARKETS CENTRAL BANK CIVIL SERVICE COAL COLLATERAL COMPARATIVE ADVANTAGE COMPETITIVENESS CONSOLIDATION CONSTITUTIONAL AMENDMENTS CONSUMERS CORRUPTION COUNTRY COMPARISONS COURT SYSTEM CPI CREDIT RISK CROWDING OUT DEBT DEFICITS ECONOMIC CRITERIA ECONOMIC PERFORMANCE EMPLOYMENT ENTERPRISE REFORM ENVIRONMENTAL POLICIES EXPENDITURES EXPORTS EXTREME POVERTY FARMS FINANCIAL INTERMEDIATION FINANCIAL MANAGEMENT FINANCIAL SECTOR FINANCIAL VIABILITY FISCAL FISCAL DEFICITS FISCAL SUSTAINABILITY FOREIGN DIRECT INVESTMENT FOREIGN INVESTORS GDP GOVERNMENT OFFICIALS GOVERNMENT'S REFORM PROGRAM GROSS DOMESTIC PRODUCT HARD BUDGET CONSTRAINTS IMPORTS INDEXATION INFLATION INFLATION RATE JUDICIAL REFORM JUDICIARY LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET PARTICIPATION LABOR MARKET POLICIES LABOR MOBILITY LAWS LEGAL FRAMEWORK LEGISLATION LEGISLATIVE FRAMEWORK LOCAL GOVERNMENTS MACROECONOMIC ADJUSTMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICIES MACROECONOMIC STABILITY MACROECONOMIC STABILIZATION MINISTRY OF FINANCE MONETARY POLICY OIL PERVERSE INCENTIVES POLLUTION REDUCTION PRIVATIZATION PRODUCTIVITY PROFITABILITY PUBLIC ADMINISTRATION PUBLIC ADMINISTRATION REFORM PUBLIC DEBT PUBLIC ENTERPRISES PUBLIC EXPENDITURE PUBLIC GOODS PUBLIC OFFICIALS RATIONALIZATION REAL GDP REAL SECTOR REFERENDUM REGULATORY FRAMEWORK RETIREMENT REVENUE COLLECTION SECURITIES SOCIAL SAFETY SOCIAL SAFETY NET SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE-OWNED ENTERPRISES SUBSIDIARIES SUPERVISORY FRAMEWORK TAX ARREARS TOTAL COSTS TOTAL FACTOR PRODUCTIVITY TRANSITION ECONOMIES TRANSPARENCY UNEMPLOYMENT UNEMPLOYMENT RATES VALUATION WASTE MANAGEMENT WORLD TRADE ORGANIZATION WTO 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. 2013-09-05T14:24:18Z 2013-09-05T14:24:18Z 2004-06 http://documents.worldbank.org/curated/en/2004/06/4411803/romania-restructuring-eu-integration-policy-agenda-country-economic-memorandum-vol-1-2-summary-report http://hdl.handle.net/10986/15646 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 |