Relatively recently joined the functional market economies club, although it has multiple pending development (not just economic) issues, Romania looked around and chose a poisonous… Mai mult›
Spectacular GDP growth in Q1: 5%, in the context of rhythm decline in manufacturing to just 1.2%. Dilemmas
Gross Domestic Product for the first quarter of 2019 increased by 5% in real terms compared to the same period of the previous year (5.1%… Mai mult›
Simply put, data recorded over time in the monthly budget implementation published by the Ministry of Finance indicate a share of staff costs in total… Mai mult›
Germany (16.9%), France (11.7%) and Italy (9.5%) are the countries with the largest share in Romania’s economy by the number of employees in 80,905 groups… Mai mult›
Budget implementation in Q1, short and simple: wages and social spending up, general and local investments down, co-financing for projects implemented with European money down
The general consolidated budget recorded, after the first two months of 2019, a deficit of about RON 5.5 billion, equivalent to 0.54% of the GDP… Mai mult›
de Marin Pana , 24.9.2018
Romania is the EU member state that has benefited the most from EU membership, with an increase in the standard of living expressed in GDP per capita at the standard purchasing power parity (adjusted with the country price levels) from only 39% in 2006 to 63% last year, according to data released by Eurostat.
The advance of 24 percentage points was above the one recorded by Lithuania (23pp), Poland (19pp, although it was the only country that went through the crisis without a decline in the economy), Malta (18pp, surprisingly positioned among colleagues from the 2004 accession round), Slovakia and Latvia (14 pp.) and Estonia (13 pp.).
- GDP/capita Advance in 2006-2017 compared to EU average
- Country 2016 2017 Percentage points Percentage
- Czech Republic
Our EU accession round colleague Bulgaria, which started from a GDP/inhabitant level very close to ours (37% of the EU average at that time, only two percentage points below us), managed to advance by only 12 percentage points and is the only country left below half of the EU average, despite its intentions to join the Eurozone.
While the ten-point advance is a solid and sustainable one for the Czech Republic, with a certain approach to the West, Hungary has gained only 7 pp. and saw an increase in the standard of living by only 11% over the past 11 years, after going round in circles since 2014. It has thus achieved only a performance similar to the European driver Germany.
In fact, Germany is the only Western state that has benefited massively from the eastward expansion of the EU, followed from the distance by its sister Austria (+2pp, which ranks, though, slightly higher in the last year’s Eurostat statistics, with 128% of the EU average vs. only 123% in Germany’s case). Only Denmark has also managed not to lose ground to the EU average.
Surprisingly, there is also a state in the former socialist bloc that lost a percentage point to the mobile benchmark of the European average, namely Slovenia, which slightly regressed from 86% to just 85% of this benchmark. It joined several Western states that declined in relative terms, which is a natural result of the higher rhythms of development of new members.
- Countries that moderately regressed compared to the EU average (2006-2017)
- GDP/capita Advance in 2006-2017 compared to the EU average
Unlike those countries that were relatively well yet not so well as the EU newcomers, but they had resources to support relatively minor losses in the GDP/capita (a notable exception is Portugal, which declined from where it had not actually the chance to advance, although it is an EU member since 1986 and accessed substantial funds during that time), we also have countries that lost more than ten percentage points compared to the EU average.
The most interesting situation is UK’s one, in fact, the only country that has managed to maintain the level above the EU average, but the negative feeling (caused by those who searched elsewhere for the blame that the EU had no use, on the contrary) brought the surprising vote that would lead to the UK leaving the bloc.
Other two relatively large economies, Italy and Spain, had a performance of pronounced speed loss, which (significantly to us who are also of Latin origins) was caused, to a significant extent, by the socio-cultural coordinates. Their situation has confirmed the assertion that it is not enough to reach a certain level, you also have to maintain there, which is not obtained by itself.
- Countries that regressed significantly compared to the EU average (2006-2017)
- GDP/capita Advance in 2006-2017 compared to the EU average
This is also the case of smaller countries, not primary cousins, but almost sisters, Cyprus and Greece. The first has lost the target attained in 2006, of reaching the EU average, while the enthusiasm of approaching the same target was so high for the latter that it led to major economic policy slippages and a real collapse, from 96% to just 67% of the EU average.These are some aspects and experiences at hand, from which we should learn so that we do not repeat the experience of others. Especially that we are, although obviously not British, both Latin and Balkan nationals.
Perhaps we shall succeed though in getting the Latin nature closer to France, and positioning ourselves in the Balkans, in terms of economy, as a sort of Poland, since we started to progress.
Lăsați un comentariu
The National Bank increased the inflation forecast for 2019 by 1.2 percentage points, from 3% to 4.2%. Also, the forecast for 2020 goes up by… Mai mult›
Emergency procedure at European Court of Justice for Romania’s question: Are MCV recommendations mandatory?
The Court of Justice of the European Union (CJEU) has decided that Bihor Court’s request to be discussed under the emergency procedure, which is a… Mai mult›
Government decides to increase external borrowing ceiling by EUR 4bn. It has consumed program resources for two years
The Government's agenda for Wednesday also includes the draft decision to increase the foreign loans ceiling for 2019 and 2020 by EUR 4 billion, up… Mai mult›
On Tuesday, the European Commission presented a series of policy recommendations on how Europe can shape its future within an increasingly uncertain and multipolar world.… Mai mult›
Meeting between Prime Minister Viorica Dancila and Chinese Prime Minister Li Keqiang: talks on a possible involvement of Chinese companies in PPP projects in Romania
On Friday, Prime Minister Viorica Dancila had a meeting with Chinese Prime Minister Li Keqiang, during which she stated her interest in involving Chinese companies… Mai mult›
So-called "Belina Law" was adopted. Opposition will refer CCR: it turns Belina Island into a fiscal paradise
The Chamber of Deputies adopted on Tuesday the bill that provides for a derogating tax regime, such as tax exemptions or reductions, for land and… Mai mult›
Deveselu shield is undergoing an upgrade process; the US provides alternative defence capabilities with THAAD systems
Aegis Ashore anti-missile system installed at Deveselu 99 Military Base will go in the next period through a previously planned upgrade process, the MApN announced… Mai mult›
How 2019 began: Investments, allocations by 78.5% lower than the same period of 2018. 21% decrease in co-financing for attracting European funds
The consolidated general budget recorded a deficit of 0.5% of GDP in the first two months of 2019 namely RON 5.2 billion, a "performance" only… Mai mult›
Romania's GDP exceeded Portugal’s in 2018: which has a population two times lower and a GDP/inhabitant twice as high
Romania's economy exceeded, at current prices in euros, Portugal's economy in 2018, a country with a population and a surface two times smaller as Romania.… Mai mult›
The Ministry of Public Finance published Tuesday evening, a day and a half before the approval in the Government, the draft OUG that amends the… Mai mult›
The Justice Ministry has prepared the two OUG drafts for which the coalition has put much pressure on the Justice Minister Tudorel Toader before granting… Mai mult›
ECOFIN / Tax havens list has been updated. Politico: Eugen Teodorovici took EU Finance Ministers by surprise
Finance Ministers of the EU voted on Tuesday at the third meeting of the Council for Economic and Financial Affairs (ECOFIN) chaired by Romania, the… Mai mult›
Dozens of companies, mayoralties, sports teams, public figures, organizations and many ordinary people joined the protest "Romania wants motorways". Of course, the country did not… Mai mult›
Facebook announced Thursday that it has closed hundreds of false accounts promoting false content in the UK and in Romania and this is the first… Mai mult›
Laura Codruta Kovesi was indicted on Thursday in a second case. The section for investigating the crimes committed by magistrates accused her of having led… Mai mult›