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| Capital city: |
Bucharest |
| Surface area: |
238,000 sq km |
| Population: |
21.6 million |
| Official language(s): |
Romanian |
| Head of State: |
H.E. President Mr Traian Basescu |
| Head of Government: |
H.E. Prime Minister Mr Calin Popescu-Tariceanu |
| Australian exports to Romania: |
A$148 million |
| Australian imports from Romania: |
A$32 million |
| Romania's principal export destinations: |
Italy, Germany, Turkey |
| Romania's principal import sources: |
Italy, Germany, Russian Federation |
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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Economic climate
Romania joined the European Union in January 2007, but is being monitored by the European Commission to ensure that it meets its membership obligations in crucial areas.
Policy will focus on the remaining large privatisations, restructuring the energy sector and investing in health, education and infrastructure.
Key economic indicators and statistics for 2007:
- GDP – US$158.5 billion
- GDP per capita – US$11,079
- Real GDP growth – 6.3 per cent
- Inflation – 4.3 per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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Romania's transition to a market economy has been protracted and painful. The legacy of the communist regime, extreme centralisation, a high degree of bureaucracy, and no experience of partial reforms such as those undertaken in other Central European economies during the 1980s, left Romania with one of the longest paths toward a market economy.
Romania is a constitutional republic with a multi-party parliamentary system. Parliament includes a 345-member Chamber of Deputies and a 140-member Senate, representing 41 counties plus Bucharest municipality. The President is elected by universal suffrage and has responsibility for foreign and security affairs. The president designates a candidate for prime minister following consultations with the political parties represented in parliament. The designated prime minister, his cabinet, and their governing program must be approved by parliament before taking office.
A four Party government coalition of Liberals (major partner), Democrats (major partner), Conservatives (minor partner) and Hungarian Minority (minor partner) was formed following the November 2004 general election. In December 2006 the Conservatives’ departure from the coalition left a minority government. The subsequent breakdown in relations between the Liberals and Democrats led the Liberal Prime Minister to seek a confidence vote in a ‘super minority’ Liberal/Hungarian Minority government which he won on 3 April 2007. The Democrats went into opposition. The next general election is due by December 2008. Next presidential elections are due in 2009.
Head of state is the President, currently Traian Basescu.
Cabinet is headed by the Prime Minister currently the Liberal Calin Popescu Tariceanu.
The minority government, comprising the National Liberal Party (NLP) and the Hungarian Democratic Union in Romania (HDUR), will continue to make policy concessions to the opposition Social Democratic Party (SDP) in return for its support in parliament. The government is expected to serve out its term until the parliamentary election scheduled for November 2008 (local elections will be held in June 2008). Another coalition or minority government is likely after 2008, led possibly by the newly created Democratic Liberal Party (DLP). |
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Trade relations and statistics
Romania became a full member of the European Union (EU) starting 1 January 2007. EU membership has been the main goal of every Romanian Government, after 1989.
Since 1st of January 2007, Romania has to apply the EU common trade policy ('Common Commercial Policy'). EU acts as one single actor (including WTO matters) where the European Commission negotiates trade agreements and represents the European interests on behalf of the Union's 27 member atates.
Romania became an associate member of the European Union (EU) and European Free Trade Association (EFTA) in 1993. In December 1999, the European Council invited Romania and five other countries to become candidate states to accession to the European Union and to start negotiations for EU membership. Romania's current foreign trade policy aims at the country's integration into Western markets.
As a founding member of the World Trade Organisation, Romania has ratified most codes of the Tokyo Round, and has been an active participant in the Uruguay Round. Romania is also a member of the United Nations (UN) and became full member of NATO as from 2 April 2004.
Romania is a party to many multi and bilateral international conventions, treaties and agreements in various aspects of international relationships including economic cooperation, human rights, environmental protection, and disarmament.
About half of Romania's foreign trade is with the European Union (EU) (mainly Italy, Germany, Netherlands and France), followed by central and eastern European countries (including Russia), Turkey and the USA.
Major Australian exports to Romania (2006-07):
- Zinc ores and concentrates – A$98 million
- Coal – A$39 million
- Plastic plate, sheet, film and strip – A$3 million
- Aluminium ores (including alumina) – A$1 million
Major Australian imports from Romania (2006-07):
- Clothing – A$8 million
- Fertilisers (excluding crude) – A$3 million
- Rubber tyres – A$3 million
- Furniture – A$2 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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