Romania'S Economy After The European Union Accession

If, during the communism, Romania had an unusual position at the European level, after 1989 it had a different path, in comparison with other former communist states: the country had the harshest difficulties finding its European path, then it had the most important economic growth rate; in the same time, it has been the candidate state facing many economic and social issues, which have worsened during the crisis. In this paper, the authors present the evolution of the Romanian economy, by analyzing representative economic indicators, the dynamics of the national economy, after its accession to the European Union (EU). It is obvious that the country's evolution has been influenced by the decisions taken and implemented during the pre-accession period. At first sight, it is very difficult to economically separate the two periods of time. However, one can notice that, after the beginning of negotiations (February 2000), Romania's economic policies have been implemented in a more sustained rhythm, due to the surveillance coming from the European authorities. After seven years of economic growth, which contributed to a partial catching-up with the European average, Romania became member of the EU, having a precarious economic and social situation. Under those circumstances, it would have been normal to continue to implement economic reform policies. Unfortunately, the determination of national authorities has sharply diminished after 2007. The first years of Romania's membership have been characterized by important rates of economic growth, due, among other factors, to favourable international circumstances. This contributed to an increased trust on the part of Romania's population and government in the national economy (even too optimistic). This, together with the fact that Romania had an unhealthy economic growth, contributed, after the outbreak of the crisis, to some powerful shocks for the population and for the economy as a whole (a sudden and rapid economic fall, wage cuts unwittnessed in other European economies, increase of expenditures taxes). The Romanian authorities had to make external loans (from the International Monetary Fund, the EU and the World Bank). In spite of those measures, the Romanian economy did not straighten out . Due to reasons less linked to the economy, those funds did not reach the intended purpose. On the contrary, the Romanian economic and social environment had severely worsened. In the meanwhile, as the EU was facing its own issues, it had adopted firm measures to deal with it. Romania had to accept those measures (for instance, the Fiscal Treaty).