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European Funds €“ A Solution For The Romanian Economic Recovery

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  • Anca Mădălina BOGDAN

Abstract

In Romania, the economic agents are used to excessively consume raw materials and energy without ensuring, in compensation, the corresponding added value. Thus, it is no wonder that the insolvency is a frequent phenomenon. Another problem of Romania’s economy is determined by the improper costs/prices- profits report, correlated with the supply and demand of the market. If the firms do not take into account the laws of the real market, the risk and the profits, they will not be able to avoid insolvency, since the economic decisions, often disastrous, will continue to promote inefficiency. Many factories are temporarily insolvent, even if they function properly, because their partners have delayed the payments or haven’t respected the contract by delaying the deliveries of parts, raw materials and services. When the mechanism of taking/profits and payments is blocked because of the lack of cash at a certain link of the economic cycle, the activity of many commercial agents, connected by several transactions, is threatened.

Suggested Citation

  • Anca Mădălina BOGDAN, 2012. "European Funds €“ A Solution For The Romanian Economic Recovery," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 6(6(18)/ Su), pages 115-120.
  • Handle: RePEc:ush:jaessh:v:7:y:2012:i:1(18)_summer2011:p:115
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    More about this item

    Keywords

    economic crisis; dynamic model; supply and demand;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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