ROMANIAN PALACE OF THE PARLIAMENT
Romania, with year on year GDP growth at 8.8%, is currently the fastest growing economy in the EU. It is
beginning to resemble the period before the financial crisis of 2008, where Romania was known as a tiger
economy due to the growth rates it produced regularly, as high as 8 or 9%. Nevertheless, despite this exceptional
performance, there are still some fundamental structural issues which should be achieved for assuring a sustainable economic development. The IT services sector, as well as manufacturing, electronics and car production, are where Romania exhibits a comparative advantage over other countries in the region. Foreign direct investment is also a main driver behind this, with net inflows at around 3% of yearly GDP in 2016.
CENTENARY OF THE GREAT UNION OF 1918& THE BIRTH OF THE ROMANIAN MODERN STATE
In the annus mirabilis 1918, at the end of the bloodiest war history had ever known, Romanians fulfilled their most cherished political ideal: the unification of all provinces where they were in the majority Transilvania, Banat, Crisana, Maramures, Basarabia, and Bucovina with the Old Kingdom of Romania in one democratic, national state. Follow year by year and struggle by struggle this momentous achievement and learn more about the men
and women who wrote, with a life of courage and vision, the greatest Romanian story ever told. It was a lesson of patriotism which will remain a brilliant example for the entire period passed ever since. The authors of this Great Union taught us a sacred lesson, namely that of unity, solidarity, giving up vain selfishness, placing national interest
higher than personal or group ambitions, promoting tolerance and mutual respect. This year marks the Centenary of the Great Union of 1918, and the birthday of the Romanian modern state.
The new Romania born then has made in the following decades great efforts to promote, domestically and
externally, to the highest standards of the time, the values of tolerance, fairness, and respect. These values remain today at the core of our policies. December 1 is celebrated by Romanians all over the world as a symbol
of solidarity, hope and triumph against adverse circumstances. It reflects, to this day, Romanias attachment
to the principles of tolerance, mutual respect, peaceful coexistence and respect for cultural values of all people.
Currently Romania is on an ascending economic path and has the highest rates of annual economic growth
within the European Union. That is not only a statistical fact, but also a reality already reflected in the living conditions of our people.
We are enjoying in Romania, today, unprecedented development, security and welfare in our history. Our collective duty is to protect them, secure them in the medium and long term, being prepared for contexts that may be less favourable to us. We owe to consecrate a future Romania, preserving what is particular and authentic of its specific values and, at the same time, the most dynamic and pro-European, important and creative within the EU.
ECONOMIC ENVIRONMENT OF ROMANIA
Romanias macroeconomic situation is one of the strongest in EU in terms of GDP growth, fiscal deficit and public debt, inflationary pressures and current account balance, with positive evolutions expected by some credit rating agencies. The GDP growth rate was 4.9 in 2016, the highest in EU28, with forecasts maintaining a positive
outlook. Economic growth has been robust since 2013, driven by strong exports and strong industrial output in 2013 2015. At the same time, a gradual recovery of domestic demand took place during 2014 2016. Real GDP was estimated to have increased up to 4.9% in 2016 on account of surging consumption and recovering investment. In current prices, the nominal GDP is above EUR 160 billion according to Eurostat.
On the production side, growth was fueled by the recovery of two important sectors (construction and industry). At the same time, on the demand side there was a strong surge in private consumption and investments due to increase in wages and fiscal incentives. Estimate growth for 2017 was 5.2%, according to the National Prognosis Commission, following the pro-growth fiscal policy, including tax cuts, and the positive economic evolution from the past years.
In 2015, FDI net flow stood at EUR 3,461 million. The FDI net flow went primarily to trade (EUR 1,000 million) and to financial intermediation & insurance (EUR 926 million). Significant FDI flows (EUR 745 million) were also channeled to manufacturing, its main sub-sectors that benefited from foreign direct investment being transport means (EUR 532 million), oil processing, chemicals, rubber and plastic products and machinery and equipment (EUR 183 million each) and manufacture of computer, electronic, optical and electrical products (EUR 133 million).
Romania belongs among those countries that have been notably supporting the development of the market with the renewable energies. Generally, all renewable energy production resources and systems (the RES) are promoted (only some inefficient system types are ineligible for support). The electricity market is liberalised and the volume of investments in RES is increasing. Current share of the renewable energy corresponds approximately to 12% of total electricity production in Romania and is expected to grow (as proclaimed by EU the 20% share is the goal in 2020).
There are huge expectations regarding the amount of MW to be newly installed and the development of many projects has already begun. The Romanias climate and geographical position-with the Black Sea to the east, the
Carpathians in the centre and the Danube crossing the territory in the south-provides many opportunities to exploit its renewable energy sources. For over 30 years, Romanias most important source of clean energy has been large hydropower plants. Up to and including 2009, other renewable sources accounted for only a very small share of electricity production in Romania. In 2010 the situation began to change dramatically in favour of renewable energy
sources (other than large hydropower plants and especially wind.