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Commission Report 2002 (Romania)
Macroeconomic stability has improved noticeably in Romania although
progress with the implementation of structural reforms has been slow. The
privatisation process has continued, but only slowly, and the Government has
not been able to meet its own privatisation programme. A variety of measures
have been taken to stimulate domestic and foreign investment, but although
Romania witnessed a steady growth in both domestic and foreign investments,
overall levels of investment remain low. Despite a number of high-profile
initiatives, actual progress in simplifying legal and administrative
procedures has been limited and the rules governing privatisation and
business operation still suffer from instability and a lack of transparency.
New bankruptcy procedures were introduced in 2002 but it is not yet possible
to assess if the new legislation is being effectively implemented. A revised
plan for restructuring the steel sector has been produced and progress has
been made with the implementation of restructuring measures. Romania is in
the process of developing individual viability plans for steel enterprises.
Restructuring of the national air carrier has continued and a cost reduction
programme has led to a significant reduction in losses - although additional
reforms will be needed to reach a financial equilibrium. The land market in
Romania is progressing, although the market in land sale lags behind the
rental market. Efforts have been taken to develop a policy for agricultural
land consolidation, and progress with the issuance of land titles is
continuing, albeit more slowly than anticipated. Romania has not yet
developed a policy framework for rural credit and rural financial
infrastructure compatible with IFI and EC financial support. In line with the
provisions set out in the Action Plan, Romania has taken a number of
initiatives to support SMEs - notably through the implementation of an Action
Plan for the Removal of the Administrative Barriers from the Business
Environment. Despite these efforts, the overall economic, legal and
administrative environment remains difficult. New legislation has attempted
to simplify the registration for new companies but there has been no
substantial progress with the simplification of enterprise licensing.
The Accession Partnership priorities in this area have only been partially
met. The Action Plan measures are being implemented although additional
efforts are needed.
© European Commission; last modified 2003-05-23
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