FFA-English I Presentation of Topics Economy in Romania Lecturer: Bernhard Kammer Teacher: M. Breuner

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Historical background under Ceaucescu self-sufficiency was major goal exportation of food at the expense of domestic consumption to eliminate foreign debt focus on heavy industry (oilfields, iron and steel works)  shortage of food and consumer goods transition from communism began in 1989

Strengths Romania is an EU-enlargement candidate export commodities (1999): textile & footwear (26%), metals & metal products (15%), machinery & equipment (11%), minerals & fuels (6%) export partners (1999): Italy (23%), Germany (18%), France (6%), Turkey (5%), US financial allocation of EU-fonds: Rumania is the second biggest receiver (after Poland)

Weaknesses economic restructuring lagged behind most other countries in the region corruption has worsened extremely population below poverty line: 44.5% (2000) inflation rate: 45.7% (2000) unemployment rate: 11.5% (1999)

Opportunities new government elected in November 2000 promises to promote economic reform negotiations over new IMF standby agreement began 2001 many projects based on EU-funds start in 2002

Threats EU ranks Romania last among enlargement candidates EBRD rates Romania's transition progress the region‘s worst no ability to borrow from public or private sources  dependence on external money

Conclusion great problems to stop corruption people rely too much on EU help road to the EU-enlargement will be very long