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EIU Romania

Overview

Since Romania joined the EU in January 2007, a series of political showdowns between government and opposition parties, especially the National Liberal Party (NLP) and the Democratic Party (DP), and between the prime minister, Calin Popescu Tariceanu, and the president, Traian Basescu, has created a mood of almost permanent political crisis. Mr Tariceanu restructured the government (in April 2007) to exclude the DP, and a minority government comprising the NLP and the Hungarian Democratic Union in Romania (HDUR) was supported in parliament by the Social Democratic Party (SDP) until it brought a no-confidence motion against the government in October in a bid to gain more political leverage. Although the confidence vote failed, the minority government will remain under pressure to make policy concessions to its political opponents to the detriment of the macroeconomy. Romania's political malaise is likely to persist, with negative consequences for EU-related reforms and economic policymaking in general. Lax fiscal and wages policies will fuel domestic demand, generate inflationary pressures and drive up the annual current-account deficit to the equivalent of more than 13% of GDP in 2007-09.

Key Reports Available for Romania
  • Country Report
  • Country Profile
  • Country Forecast
  • Country Risk Service
  • Basic Data

    Land area
    238,391 sq km; 12th-largest in Europe
    Population
    21,5286,27 (May 28th 2008)
    Main towns
    Population in '000 (July 1st 2006)
    Bucharest (capital) 1,931 Galati 297
    Iasi 317 Cluj-Napoca 306
    Timisoara 304 Craiova 301
    Constanta 306 Brasov 281
    Climate
    Continental
    Weather in Bucharest (altitude 92 metres)
    Hottest month, July, 16-30°C (average daily minimum and maximum); coldest month, January, minus 7-1°C; driest month, February, 33 mm average rainfall; wettest month, June, 89 mm average rainfall
    Language
    Romanian
    Weights and measures
    Metric system
    Currency
    Leu=100 bani; the plural of leu is lei. The average exchange rate in 2008 was Lei2.52:US$1; Lei3.68:€1. Exchange rate on January 19th 2009: Lei3.23US$1; Lei4.29:€1
    Fiscal year
    Calendar year
    Time
    2 hours ahead of GMT
    Public holidays
    January 1st-2nd, January 6th, Easter (Orthodox calendar), May 1st, December 1st, December 25th, December 26th
    SOURCE: Country Profile


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