Romania: Transition Successes

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Romania Transition Successes Challenges
James HYSLOPDeputy Head of Office, EBRD Romania
23 November 2005
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What will I cover?

• Macroeconomic Performance an update
• EU Accession and Regional Integration
• Progress in Structural Reform
• Transition Challenges
• EBRD Strategic priorities

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Macroeconomic Performance - an update

• Real Economy - Strong GDP growth
• - Private consumption
• - Gross fixed capital formation
• Economic Policies - Inflation
• - Inflation targeting
• - Liberalisation of capital account
• External Sector - Expanding trade and current
  account deficits

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EU Accession and Regional Integration

• Target Entry 1 January 2007
• 3 Safeguard Clauses ? 1 January 2008
• October 2005 Comprehensive Monitoring Report
• Border control
• Fight against corruption
• Control over regional development funds
• Environmental control
• April/May 2006 Report

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Progress in structural reform
Transition Indicators of EU Accession Countries
2005
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Progress in structural reform (II)

• Entrepreneurs perception of the business
  environment

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Transition Challenges

• Business climate improvement ? FDI Levels as
  large privatisations come to an end
• Public Administration and Judicial reform
• Ability to absorb EU funds
• Preparation for open competitive market
• Investment needs

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EBRD Strategic Priorities

• Infrastructure Development
• Privatisation and commercialisation
• PPP structures
• Prioritisation
• Support Private Sector and improve investment
  climate
• Focus on equity
• Deepen financial intermediation and capital
  market development
• Longterm local currency funding
• Strengthen absorption capacity for pre-and
  post-accession funding
• JASPERS

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Contact Information

• James HYSLOP
• Deputy Head of Office, Romania
• 8, Gina Patrichi Street
• Sector 1 Bucharest
• EBRD Romania
• Tel [phone]
• Fax [phone]
• E-mail HyslopJ_at_ebrd.com