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GENERAL PRESENTATION OF THE LEGAL SYSTEM APPLICABLE WHEN DOING BUSINESS INROMANIAThis publication represents only a brief description of the legal system applicable when doingbusiness in Romania, its purpose not being to present an exhaustive report. Consequently, foreach particular case, a specific legal advice shall be necessary.I. INTRODUCTION1. Location and PopulationRomânia is located at the crossroads of Central and Southeastern Europe and is the ninth largestcountry of the European Union by area, having 237.500 square kilometers, and the seventhlargest population with 21,5 million people.The capital of Romania and also its largest city is Bucharest, southern city having approximatelytwo million people.As regards the Romania’s climate, we must include it into the category of the countries having atemperate-continental climate, having four seasons and an annual average temperature of 11 °C(52 °F) in its south part and 8 °C (46 °F) in the north. Thus, the climate conditions are wellappropriate for living and conducting business in Romania, events of such nature that couldinfluence a company’s activity - like the sudden changes of temperature or unexpecteddifferences of temperature - are unlikely to happen.2. LanguageThe official language is Romanian, a Latin language related to Italian, French, Spanish,Portuguese and other such languages, spoken by 91% of the population. Hungarian and Germanare the most important minority languages especially in the Banat and Transylvania region.However, English, German, French and Italian are also spoken by many Romanians.3. Administrative divisionRomania is divided into 41 counties and the municipality of Bucharest. Each county isadministered by a county council, responsible for local affairs, as well as a prefect responsiblefor the administration of national affairs at the county level, which is appointed by the centralgovernment.4. CurrencyRomania's official currency is Leu.Foreign currencies may be exchanged at banks or authorized exchange offices, but thoseexchange rates may differ from the official rate established by the National Bank of Romania. Aslandmark, the official exchange rate for July 1 st , 2011 is:3