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Romania made a bruised entry into the EU last January and its integration continues to be rocky. ‘The Diplomat’ assesses Romania’s first year in the EU. Report by Ana-Maria Nitoi and Michael Bird
Romania remains among the most dynamic countries in the EU, but the rhythm of growth is slipping, its long term strategies are few and there are fears over how irresponsible public spending could destabilise the economy.
“Romania’s economy is fragile and affected by a lack of structural reforms in key sectors, especially agriculture,” says Nicolae Idu, general director of the European Institute of Romania (EIR).
The IMF predicts that growth will remain at six per cent for 2008, but there is concern that the country’s disinflation policy has stopped. Inflation rose from 4.9 per cent in 2006 to an estimate of 5.7 per cent for this year, way clear of the four per cent target.
Foreign investment has also fallen in 2007, from nine billion Euro in 2006 to between five and seven billion Euro.
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