Doing Business with Romania - Über die Osec

Doing business with Romania:
Data base for foreign businessmen
Authors: student’s group of the MBA programme organised by the Department UNESCO Chair on the
study of inter-cultural and inter-religious exchanges at the University of Bucharest, Romania
Coordination Group: Diana-Maria GEORGESCU
Ioana Maria DRAGOMIR
Andra IOANA
Alexandru Cosmin TEODORESCU
Cosmin George VLAD
Members: Hanelore Brighite BENING
Alexandra DIN
Corina DUMITRESCU
Amalia-Maria OTEA (VOICA)
Elena Monica PETRESCU
Roxana Andreea SANDU
Ileana Oana STAVARACHE (NITA)
Ioana Adriana STEFAN (POPA)
Mariana UDREA
Denisa VINTILESCU
Supervision:
Prof Dr. Jean-Daniel CLAVEL, School of business administration (HEG) Fribourg, Switzerland
ClavelConsulting, Switzerland
Ms Diana-Maria GEORGESCU, Coordinator of the MBA Student Working Group, Department
UNESCO Chair on the study of inter-cultural and inter-religious exchanges at the University of
Bucharest, Romania
Lecturer a.i. Lilian CIACHIR, Department UNESCO Chair on the study of inter-cultural and interreligious
exchanges at the University of Bucharest, Romania
Translations:
Mrs Oana ROMAN-TARCINIU, Manager, Lexigo Translation, Romania
Ms Ioana Maria DRAGOMIR, member of the Coordination MBA Student Working Group,
Department UNESCO Chair on the study of inter-cultural and inter-religious exchanges at the
University of Bucharest, Romania
Ms Catalina-Elena-Iulia MARMUREANU, Canada
Lecturer a.i. Lilian CIACHIR, Department UNESCO Chair on the study of inter-cultural and interreligious
exchanges at the University of Bucharest, Romania
With the support of:
Prof Dr. Martin HAUSER, Director, Department UNESCO Chair on the study of inter-cultural and
inter-religious exchanges at the University of Bucharest, Romania
Prof Dr. Mathias Jaques ROSSI, School of business administration (HEG) Fribourg, Switzerland
Prof Dr. Paul MEYER, School of business administration (HEG) Fribourg, Switzerland
Prof Dr. Lucien WUILLEMIN, Dean, School of business administration (HEG) Fribourg, Switzerland
3

Table of content
Foreword / 4
1. By Mr Costin LIANU, Director of the Direction of Monitoring Synthesis, Reporting and Exporting
Promoting, Ministry of Economy, Trade and Business Environment, Romania
2. By Mr Daniel KÜNG, CEO, OSEC Swiss Trade Promotion Office
Premises / 10
1. Comparative positioning of Romania (2009)
2. Eastern Europe - Old cultures, new markets, by Prof. Martin HAUSER
3. The research of effectiveness - the inescapable objective, by Prof. Jean-Daniel CLAVEL
Abbreviations & Acronyms / 15
1. Framework conditions / 17
1.1. Historical background
1.2. The Romanian Economy
1.3. Economic policies
2. Legal & fiscal affairs / 28
2.1. Visas, residence & work authorization
2.2. Copyright, patents & trademarks
2.3. Foreign exchange operations
2.4. Fiscal affairs
3. Economic sectors / 40
3.1 Primary Sector
3.2 Secondary Sector
3.3 Tertiary Sector
3.4 Quaternary Sector
3.5 Sectors with High Potential vs. Risky Investments
4. Business model & business management / 66
4.1. Introductory remarks
4.2. Setting up a business
4.3. Official representative (trading partner)
4.4. Subsidiary
4.5. Franchising
4.6. Licensing
4.7. Consortium
4.8. Management contract
4.9. Ceasing a business in Romania
4.10. Business management in Romania
5. Choosing a local partner / 77
5.1. Introductory remarks
5.2. Cross-cultural issues
5.3. Suggestions for a safe choice of partners
5.4. Risk and risk assessment
5.5. Experiences
4

6. Errors and traps / 83
6.1. Introductory remarks
6.2. Cultural and behavioral gaps
6.3. The corruption issue
7. UBCG – University of Bucharest Consulting Group / 87
7.1. The team
7.2. UBCG’s network
7.3. UBCG’s competencies
7.4. Business tools
7.5. Services offered
7.6. Website
Attachments / 90
Tables
Table 1 - Comparative positioning of Romania (2009) / 10
Table 2 - GDP, Current account balance / 19
Table 3 - Imports & Exports 2006-2009 / 19
Table 4 - Consumer price index by major groups 2004-2007 / 19
Table 5 - Monthly Average Consumption of Selected Food Products in kilograms per Capital / 47-48
Table 6 - Selection criteria for export strategy / 62
Figures
Figure 1: The convergence criteria for joining the Euro zone / 23
5

Cuvânt înainte la Ghidul de afaceri „Doing Business with Romania“
realizat în colaborare de Departamentul-Catedra UNESCO, Universitatea din
Bucureşti, România, cu Haute Ecole de Gestion (HEG-HSW) Fribourg, ElveŃia
Exportul României este direcŃionat cu precădere către Ńările Uniunii Europene, având o pondere de
aproape 75% din totalul exporturilor, după cum arata datele pe primele 8 luni ale anului în curs.
De asemenea, potrivit datelor Eurostat, România ocupa locul al doilea în Uniunea Europeana în functie de
ritmul de creştere a exporturilor.
Un aspect îmbucurător al evoluŃiei actuale a exporturilor îl constituie creşterea cu peste 25% a acestora
faŃă de perioada similară a anului trecut, ceea ce arata indubitabil că exporturile şi cresterea acestora sunt
unul din principalele motoare de ieşire a României din criză.
Un alt aspect pozitiv al ultimelor luni constă în aceea că ritmul de creşterea a exporturilor continuă să-l
devanseze pe cel de creştere a importurilor, tendinŃă ce s-a manifestat pentru prima oară în luna noiembrie
2007.
Ministerul Economiei, ComerŃului şi Mediului de Afaceri administrează mai multe instrumente de susŃinere
a exporturilor. Aceste instrumente au fost dezvoltate şi reglementate legal pe parcursul ultimilor nouă ani,
constuindu-se astazi în cel mai coerent sistem de susŃinere a exporturilor din Ńările Europei de Est şi
posibil chiar la nivelul Uniunii Europene. Dezvoltarea acestui sistem de susŃinere a exporturilor cu sprijin
de la bugetul de stat a răspuns imperativelor Strategiei NaŃionale de Export în ciclul strategic 2005-2009,
urmând să fie perfecŃionat în cursul noului ciclu strategic conform noii Strategii NaŃionale de Export 2010-
2014.
Cel mai recent instrument, care a fost dezvoltat şi lansat în anul 2009, este Portalul de comerŃ exterior al
României.
Portalul reprezintă un sistem interactiv de informaŃii şi consiliere a mediilor de afaceri privind pieŃele
externe şi modalităŃile cele mai eficiente de a încheia tranzacŃii internaŃionale şi de a dezvolta exportul.
Portalul este conceput astfel încât să menŃină o legătură operativă între comunităŃile de afaceri teritoriale
şi pieŃele externe prin intermediul reŃelei de reprezentare comercial-economică din străinătate.
Rolul portalului este de a concentra informaŃiile de comerŃ exterior şi de a coagula eforturile tuturor celor
implicaŃi în exportul românesc, spre a oferi exportatorilor o fereastră care să le orienteze activitatea de
comerŃ exterior şi să-i ajute la elaborarea strategiilor de penetrare pe pieŃele externe. Această misiune
este potenŃată de posibilitatea oferită de portal tuturor membrilor reŃelei de sprijin a comerŃului exterior de
a se coordona prin intermediul său.
Ministerul Economiei, ComerŃului şi Mediului de Afaceri a iniŃiat, în condiŃiile unei perioade dificile din
punct de vedere financiar, o serie de măsuri pentru continuarea finanŃării exporturilor, susŃinute de o
promovare intensă a produselor româneşti pe pieŃele tradiŃionale, cum ar fi finanŃarea participării firmelor
romaneşti la evenimente promoŃionale internaŃionale (târguri, expoziŃii, misiuni) şi dezvoltarea Portalului
de comerŃ exterior al României.
Analiza structurii exporturilor arată o îmbunătăŃire constantă a acesteia comparativ cu perioadele similare
din trecut, respectiv creşterea ponderii ramurilor construcŃiilor de maşini, mijloace de transport,
componente electronice, electrotehnica şi produse ale industriei chimice, inclusiv farmaceutice, ceea ce
demonstrează creşterea valorii adăugate prin activitatea de export.
Din sfera serviciilor, exporturile din domeniul tehnologiei informaŃiilor, domeniu pe care Strategia
NaŃională de Export a mizat permanent şi care s-au comprimat mai puŃin în anul 2009, dau semne de
relansare conform surselor asociaŃiilor de ramura ARIES şi ANIS.
Au apărut şi s-au consolidat noi produse de export precum: produsele agricole ecologice, cele din
audiovizual, componentele auto, navele (valoarea exporturilor de construcŃii de nave şi reparaŃii de nave
6

în anul 2009 a fost de 800 mil Euro, iar România ocupa locul 4 în cadrul şantierelor navale europene),
componenetele electronice şi produsele electrotehnice, care vor contribui şi în viitor la diversificarea
structurii exporturilor.
S-a extins baza de export pentru agricultura ecologică şi vie-vin prin creşterea standardelor de calitate.
S-au produs mutaŃii în sensul certificării calităŃii.
În ultimii ani s-a constatat o creştere a numărului de firme care exportă sub brand propriu din domeniile
mobilei, designului vestimentar, IT, produselor agriculturii ecologice, vie–vin. Ministerul Economiei,
ComerŃului şi Mediului de Afaceri va avea în vedere în viitor promovarea cu precădere a firmelor cu brand
de export şi a firmelor inovative.
Firmele româneşti sunt bine poziŃionate pe piaŃa Uniunii Europene, însă se impune o reorientare către
pieŃele din afara UE, cu precădere către pieŃele Ńintă din Ńările emergente precum cele numite generic
BRIC. Astfel, în Programul de târguri 2009 manifestările organizate în spaŃiul din afara UE
au reprezentat 39,21 % din totalul acŃiunilor, iar în 2010 vor reprezenta 40,74 %.
În contextul celor de mai sus, lansarea Ghidului de afaceri „Doing Business with Romania”, realizat în
colaborare de Departamentul-Catedra UNESCO, Universitatea din Bucureşti și Înalta Şcoală
(Universitatea) de FinanŃe din Friburg, Elveția, este binevenită. Ghidul se va alătura Portalului de comerŃ
exterior spre a deschide şi mai mult poarta oportunităŃilor de export firmelor din România, oferindu-le
totodată investitorilor stăini informații importante despre potențialul pieței românești. Cele două
instrumente se vor completa reciproc în mod fericit, furnizand investitorilor străini și exportatorilor locali,
unelte sigure, aliniate tendinŃelor actuale şi de viitor de pe piaŃa mondială, permiŃând realizarea în timp
accelerat a procesului decizional privind abordarea pieŃelor locale și internaŃionale. Totodată Ghidul se va
alătura mijloacelor actuale de susŃinere pentru exportatori în vederea analizării oportunităŃilor şi măsurării
impactului financiar al deciziei de a ataca o piaŃă sau alta.
Ghidul de afaceri „Doing Business with Romania” va putea fi accesat şi de pe Portalul de comerț exterior
al României, ceea ce reprezintă, în opinia noastră, o recunoaştere a rolului şi utilităŃii sale.
Dr. Costin Lianu,
Director,
DirecŃia Monitorizare, Sinteze, Raportare şi Promovare Export,
Ministerul Economiei, ComerŃului şi Mediului de Afaceri, România
7

Foreword to „Doing Business with Romania“ Business Guide
conducted in collaboration with Department UNESCO Chair, University of
Bucharest, Romania, and Haute Ecole de Gestion (HEG-HSW) Fribourg,
Switzerland
Romania’s export is mainly oriented towards the EU countries, which receive up to 75% of total exports
as shown by the data collected in the first eight months of the current year.
Furthermore, according to Eurostat data, Romania is situated on the second place in EU for exports
increase rate.
A pleasing aspect of the current export evolution is the 25% growth compared to last year’s
corresponding months, which clearly indicates that exports and their growth are the main factors that will
help Romania overcome the finanical crisis.
Another positive aspect seen in the last few months is that the export growth rate continues to outgrow
the imports one, a tendency that was first observed in November 2007.
The Ministry of Economy, Trade and Business Environment manages several instruments that support
exports. These instruments have been developed and regulated during the course of the past 9 years,
and nowadays constitute the most coherent system of export support in Eastern European countries, and
possibly even in the entire EU. The development of this export support system, conducted with the help of
state funding, was a response to the National Strategy imperatives for the strategic time-period 2005-
2009, and is set to be optimised during the new strategic time-period in accordance to The National
Strategy for Export of 2010-2014.
The most recent instrument, developed and launched during 2009, is the Romanian Foreign Trade Portal.
The Portal is an interactive information and consulting system for the business environment, offering
information on foreign markets and presenting the most effective methods of conducting international
transactions and developing export.
The Portal is designed so as to maintain an operative connection between territorial business
communities and external markets with the help of the foreign economic and trade representation network.
The purpose of this portal is to concentrate the foreign trade information and to bring together the efforts
of all the parties involved in the Romanian export, in order to provide exporters with a window that will
help them target their foreign trade activity and elaborate foreign market penetration strategies. This
mission is enhanced by the possibility for all members of the foreign trade support network to coordinate
their activities with the help of this platform.
The Ministry of Economy, Trade and Business Environment has initiated, during such a financially difficult
time period, a series of measures for the continuance of export financing, which are reinforced by an
intense mediatisation of the Romanian products on the traditional markets, such as the participation
financing awarded to Romanian firms attending international promotional events (fairs, exhibitions,
missions) and the development of the Romanian Foreign Trade Portal.
The exports structure analysis shows constant improvement when compared to the same months of last
year, more precisely in the segments of car construction, transportation, electronic components, electrotechnical
sectors, chemical industry and pharmaceutical products, which demonstrates the growth of
added value through export activities.
In the services sector, exports from information technology segment, an important field for the National
Strategy for Export, contracted less during 2009, and according to associations such as The Romanian
Association of Electronic and Software Industry (ARIES) and Employers’ Association of the Software and
Services Industry (ANIS) are now showing signs of reinstatement.
8

New products have appeared and have been consolidated in segments such as bio-agriculture,
audiovisual, car components, shipbuilding (the total value of ship construction and repairs exports in 2009
reached 800 mil Euro, with Romania ranking 4 th for shipbuilding sites in Europe), electronic and electrotechnical
components that will contribute to export structure diversification in the future.
The export platform for bio-agriculture and wine has extended by increasing quality standards and
changes have been made to the quality certification process.
During the last years a growth in the number of firms that export their own brand has been registered in
segments such as furniture, clothes design, IT, bio-agriculture products, wine. From here on out, The
Ministry of Economy, Trade and Business Environment will focus on promoting brand and innovative firms.
Romanian firms are well positioned in the EU market, although a reorientation towards the non-EU
markets is necessary, with focus on emerging markets, such as BRIC. Therefore, in the 2009 Fair
Program, the events organised outside The EU represented 39, 21%, and in 2010 the value is expected
to rise up to 40, 74%.
In the framework presented up until now, the launching of the „Doing Business with Romania” Business
Guide, conducted in collaboration with The Department Chair UNESCO, University of Bucharest and
Haute Ecole de Gestion of Fribourg, is auspicious. This guide will join the Foreign Trade Portal in bringing
more opportunities of export to Romanian business firms and in the same time give foreign investors
important information on the potential of the Romanian market. The two instruments will complement one
another, providing the foreign investors and the local exporters with trustworthy instruments, aligned with
the current and future tendencies of the global market, permitting an accelerated decisional process of
approaching international and local markets. Moreover, the Guide will contribute to the current support
measures for exporters by helping them analyse opportunities and measure the financial impact of the
decisions to approach a certain market.
The „Doing Business with Romania” Business Guide can also be accessed from the Foreign Trade Portal
of Romania, which in our opinion represents the recognition of its purpose and usefulness.
By Dr. Costin Lianu,
Director,
Director of the Direction of Monitoring Synthesis, Reporting and Exporting Promoting,
The Ministry of Economy, Trade and Business Environment, Romania
9

Vorwort von Daniel Küng
CEO der OSEC
Liebe Leserin, lieber Leser
Die EU ist der wichtigste Handelspartner der Schweiz, wobei rund 60% aller Exporte aus der Schweiz in
die EU-Staaten gehen. Wie stark die EU und die Schweiz wirtschaftlich miteinander verbunden sind, zeigt
das hohe Handelsvolumen zwischen der Schweiz und der EU: Per Ende 2009 betrug dieses fast CHF
240 Mrd. Auch die neuen EU-Staaten aus Osteuropa werden für Schweizer Unternehmen immer
wichtiger, nicht zuletzt, weil nach Osteuropa auch hohe Beträge an EU-Fördergelder fliessen und sich
dort deshalb für Schweizer Firmen beachtliche Geschäftsmöglichkeiten ergeben.
Fast die Hälfte aller Schweizer Direktinvestitionen liegen in der EU. Auch das zeigt, wie verflochten die
Schweizer Wirtschaft mit den EU-Staaten ist. Die Direktinvestitionen der Schweizer Unternehmen in
Rumänien haben in den letzten Jahren denn auch stark zugenommen. Seit 2004 haben sie sich mehr als
verfünffacht und betragen jetzt über CHF 2 Mrd. Das dürfte auch mit dem Geschäftspotenzial in
Rumänien zusammenhängen, gilt das Land doch zu den wachstumsstärksten Staaten der Region. Viele
Geschäftschancen für Schweizer Unternehmen bieten sich vor allem in der Bau- und Infrastrukturbranche
an, weil es in Rumänien in diesem Bereich leider noch einige Defizite gibt. Aber auch im
Maschinenbereich, in der chemisch-pharmazeutischen Industrie, im Outsourcing, in der Zuliefererbranche
und im Cleantech-Bereich haben Schweizer Firmen gute Chancen. Umfangreiche EU-Fördermittel
werden zudem für Grossprojekte im Wasser- und Entsorgungssektor zur Verfügung gestellt.
Als Kompetenzzentrum der Schweizer Aussenwirtschaftsförderer informieren, beraten und begleiten wir
bei der Osec Schweizer und Liechtensteiner KMU bei ihren internationalen Geschäftsvorhaben. Dazu
vernetzen wir auch Unternehmen, Know-how-Träger sowie private und öffentliche Organisationen
weltweit und ermöglichen so eine schlagkräftige Aussenwirtschaftsförderung. Neben der Exportförderung
nehmen wir auch die nationale Standortpromotion der Schweiz sowie die Import- und
Investitionsförderung zu Gunsten von ausgewählten Entwicklungs- und Transitionsländern wahr.
Bei unseren Aktivitäten in der Aussenwirtschaftsförderung koordinieren wir ein dichtes Netzwerk
(„Business Network Switzerland“) mit kompetenten Partnern im In- und Ausland. In der Schweiz arbeiten
wir mit kantonalen Industrie- und Handelskammern, Gewerbe- und Wirtschaftskammern sowie mit den
kantonalen Volkswirtschaftsdepartementen und Wirtschaftsförderstellen zusammen. Im Ausland umfasst
das Netzwerk unter anderem 16 Swiss Business Hubs, die in Wachstums- und Schwerpunktmärkten
bei Schweizer Vertretungen und bei bilateralen Handelskammern angesiedelt sind. Sowohl in der
Schweiz als auch im Ausland unterhalten wir ein weltweites Spezialisten-Netzwerk („Pool of Experts“) mit
diversen Kompetenzen im Bereich Exporte und Internationalisierung.
Wenn Sie Fragen zur Internationalisierung haben, bei Ihrer Expansion ins Ausland Unterstützung
brauchen oder Kontakte zu Geschäftspartnern suchen, dann kontaktieren Sie die Osec. Wir helfen Ihnen
gerne weiter.
Ich wünsche Ihnen eine interessante Lektüre.
Daniel Küng
CEO der OSEC
10

Foreword of Mr. Daniel Küng
CEO of OSEC
Dear reader,
EU is the most important business partner of Switzerland; about 60% of Swiss exportation products go to
EU states. How strongly EU and Switzerland are linked economically each to the Ether, is reflected by the
amount representing the business volume between the two: At the end of 2009, this amount reached
nearly CHF 240 Milliards. The new EU-states of Eastern Europe have become continuously more
important for Swiss enterprises. The reason for that is also the fact that big amounts of European
development funds are dispatched in and for Eastern Europe, and so possibilities for business has
became interesting for Swiss enterprises in this part of Europe.
Nearly half of Swiss direct investment goes to EU. This demonstrates once again how linked Swiss
economy and EU-states are. Direct investment of Swiss enterprises in Romania have increased
significantly in the last years. Since 2004 it has it has been multiplied five times and has reached until
now a level higher then CHF 2 Milliards. This may be based on the big business potential within Romania.
Indeed, Romania is considered as one of the states of that region with strong increase potential. A lot of
business opportunities for Swiss enterprises are open in the sectors of construction and infrastructure,
because of the continuously existing lacks in Romania in these sectors. Furthermore, in the sectors of
engines, pharmaceutics, outsourcing, supply services and cleaning technologies Swiss enterprises may
be welcomed. Vast developing funds of EU are furthermore dedicated to big projects in the water
(energy) and cleaning vector.
As Centre of competence of Swiss foreign business promoters, we, within OSEC, inform, advice and
accompany SME from Switzerland and Lichtenstein in their international business actions. Furthermore,
we connect enterprises, know how centres as well as private and public organisations.
Throughout the world, promoting in that way business abroad. Beyond promotion of exportation we
sustain the geographical business position of Switzerland as well. We are also active in the import and
investment promotion in favour of selected developing and countries of transition.
Related to our activities of promoting business abroad, we coordinate a dense network («Business
network Switzerland») including competent partners in our country and abroad. In Switzerland we
cooperate with chambers of industry and commerce, chambers of trade and economy of the Cantons as
well as with Departments of public economy and offices for economic promotion. On abroad this network
includes 16 Swiss Business Hubs which are located in increasing and core economies and there related
to Swiss representations and bilateral chambers of commerce. We dispose in Switzerland and abroad of
a pool of experts, specialized in the area of exports and internationalization.
If you have questions related to internationalization, if you need support for your expansion towards
foreign countries or if you need contacts to business partners, please contact OSEC. We will be pleased
to help you.
I hope you will enjoy this information.
By Daniel Küng,
CEO of OSEC
11

Premises
1. Comparative positioning of Romania (2009)*
By the UBCG – University of Bucarest Consulting Group
Romania Bulgaria Slovakia Hungary Poland Austria
Doing business 55 44 42 47 72 28
Starting a
business 42 50 66 39 117 122
Dealing with
construction
permits 91 119 56 87 163 55
Employing
workers 113 53 81 77 76 60
Registering
prooperty 92 56 11 61 88 39
Getting credit 15 4 15 30 15 15
Protecting
investors 41 41 109 119 41 132
Paying taxes 149 95 119 122 151 102
Trading across
borders 46 106 113 70 42 24
Enforcing
contracts 55 87 61 14 75 11
Closing a
business 91 78 39 58 85 20
Comments: In green, competitive position; in red, position to be improved
* Source: http://doingbusiness.org
12

2a. Eastern Europe - Old cultures, new markets
The contribution of the Department UNESCO Chair on the study of intercultural
and inter-religious exchanges at the University of Bucharest
The end of the Second World War was the prelude to multiple migrations and an intense assimilation of
remote cultures on the European continent. From the 1950’s to the 1960’s, economic, political and
intrapersonal exchanges developed quickly, being reinforced by the growing independence of many
African States and the fall of the communist regime in Eastern Europe.
With the disappearance of the iron curtain, Western contractors seized the occasion to invest in Eastern
Europe, delocalizing local companies and consequently widening its markets. However, with an infiltration
of new work placements amongst the newly created democracies of Eastern Europe, a loss of local
industries transpired as well.
This profound change poses, on a European level, the dilemma of managing the convergence of very
different cultures. Indeed, Europe is distinguished from Asia, Africa and America, by a mosaic of cultures,
languages and religions, coexisting within a restricted space. This extraordinary “miniaturization” explains,
on the whole, the difficulty EU faces in its efforts of integration and political alignment, with its Member
States.
The cultural topography of Romania is complex as several ethnical groups with their respective cultures
have taken part in its construction – the Daces, the Greeks, the Romans, the Goths, the Slavs, the
Ottomans ect. Yet despite the influence of all these cultures, it is interesting to note that Romania has
rigidly maintained a Latin language. This was for instance the case when the Daces invaded by the Goths
in the 3 rd century AD, following the defeat of the Roman emperor Aurelian, colonized the invader. And
isn’t this an interesting trait, worthy of capturing the attention of the foreign businessman?! Shouldn’t this
Romanian perseverance, inherited from the Daces and Romans, be considered in the pursuit of his
objectives?!
A flight from Frankfurt to Bucharest is a short distance - approximately two hours. In the cultural plan
however, it takes on another span: a German contractor leaves behind a world largely marked by the
“Protestant spirit”, modern and capitalist, to plunge himself in an orthodox space, marked by the impress
of traditions. From initial contact, contrast can be particularly strong, especially if our traveler moves away
from the capital, venturing out and making contact with the orthodox country side. This very cultural
difference can be lessened if our contractor moves towards Transylvania and his German and Hungarian
minorities. In fact, the cultural distance between the West and these minorities living in Romania will
appear less marked than will that between the West and the Eastern part of Romania where Orthodoxy is
entirely dominant.
Through its Master programs, the University of Bucharest and the UNESCO Department on the study of
intercultural and interreligious exchanges, thanks to its indigenous and international professorial college
and its diverse areas of specialization prepare students for the intercultural complexes that arise when
cultures convene. The three Masters programs organized by this Department take obvious account of
anthropological, religious, social, political and the economic components characterizing Romania and
satisfy the requirements of any university formation. This Business Guide, elaborated on within the
framework of the training given by this Department, results from the engagement of a group of students,
coming from diverse viewpoints but having gathered their forces to improve their formation.
By Prof. Martin Hauser
13

2b. Europa de Est: culturi vechi, pieŃe noi
ContribuŃia Departamentului-Catedra UNESCO pentru schimburi
interculturale şi interreligioase, Universitatea din Bucureşti
Sfârşitul celui de-Al Doilea Război Mondial a constituit preludiul pentru multiple migraŃii şi a condus la o
intensificare a întâlnirilor dintre culturi îndepărtate. Începând cu anii ‘50-‘60 schimburile economice şi
politice, precum şi contactele interumane, s-au dezvoltat foarte rapid, acŃiune întărită şi de obŃinerea
independenŃei de către numeroase State africane. Ulterior această dinamică s-a intensificat considerabil
ca urmare a căderii regimurilor comuniste în Europa de Est.
Odată dispărută Cortina de Fier, antreprenorii occidentali au profitat de oportunitatea de a investi în
Europa de Est, delocalizând unele dintre întreprinderile lor şi extinzându-şi astfel pieŃele. Astfel au fost
create, pe de o parte, noi locuri de muncă în majoritatea noilor democraŃii din Europa de Est, însă pe de
altă parte au dispărut o parte din industriile autohtone.
Această mutaŃie pune în profunzime problema gestionării întâlnirii dintre culturi foarte diferite, în special la
nivelul Europei. De fapt, Europa se distinge de Asia, de Africa şi de America printr-un mozaic de culturi,
de limbi şi de religii distribuite pe un spaŃiu restrâns. Această extraordinară « miniatuarizare » explică întro
mare măsură dificultatea pe care o întâlneşte Uniunea Europeană în eforturile ei de integrare şi de
aliniere politică, economică şi socială a Statelor membre.
Universul cultural al României este complex, multe popoare participând la edificarea lui – Dacii, Grecii,
Romanii, GoŃii, Slavii, Otomanii… Apropo de acest lucru, interesant este de subliniat faptul că dacă
româna este o limbă latină, aceasta se datorează Dacilor, invadaŃi de GoŃi în secolul al III-lea d.H. care,
urmare retragerii împăratului roman Aurelian, i-au colonizat pe invadatori. Nu există, oare, aici o trăsătură
interesantă de caracter care ar trebui să atragă atenŃia oamenilor de afaceri din Europa şi din afara
acesteia: perseverenŃa de neegalat a Românilor, moştenitori ai Dacilor şi ai Romanilor, în căutarea
obiectivelor lor ?!
O călătorie cu avionul de la Frankfurt la Bucureşti reprezintă astăzi, din punct de vedere temporal, o
nimica toată – aproximativ două ore. Pe plan cultural, însă, lucrurile stau altfel: antreprenorul german lasă
în spatele său o lume profund marcată de “spiritul protestant”, modern şi capitalist, pentru a se arunca
într-un spaŃiu ortodox şi empatic, marcat de religiozitate şi impregnat de tradiŃii. Încă de la primele
contacte, contrastul poate fi foarte puternic, în special dacă voiajorul nostru se îndepărtează de capitală şi
întră în contact cu provincia ortodoxă. Acelaşi contrast cultural va fi mai puŃin puternic dacă antreprenorul
nostru se îndreaptă spre Transilvania cu minorităŃile acesteia germane şi maghiare : de fapt, distanŃa
culturală între Occident şi minorităŃile sale care locuiesc în România va fi mai puŃin pronunŃată decât între
Occident şi partea orientală a României unde Ortodoxia este dominantă.
Departamentul-Catedra UNESCO pentru schimburi interculturale şi interreligioase, Universitatea din
Bucureşti, graŃie corpului său profesoral autohton şi internaŃional, dispunând de specializări diverse, îi
pregăteşte pe studenŃii săi pentru această întâlnire interculturală complexă prin intermediul programelor
sale de master şi de doctorat. Cele trei programe de master organizate de Departament Ńin în mod
evident cont de componentele antropologice, religioase, sociale, politice şi economice, ce caracterizează
sufletul românesc şi satisfac în acest sens exigenŃele oricărei formări universitare demne de acest nume.
Acest Ghid de Afaceri, elaborat în cadrul programelor de master organizate de Departamentul nostru,
este rezultatul angajamentului ferm al unui grup de studenŃi care, deşi având formaŃii universitare diferite,
şi-au unit forŃele pentru a-şi perfecŃiona formarea lor academică.
Prof. Martin Hauser
14

3a. The research of effectiveness - the inescapable objective
The passage from a planned economy to a market economy, with the emergence of a competitive private
sector, at the international and national level of generating employment is not reduced to a simple
technical equation; rather the perception and the management of historical, cultural, psychological and
sociological components are essential. This immaterial dimension is particularly important, for Europe as
well as for Romania, a country deeply anchored in its traditions and crossed by multiple cultural, religious
and political currents. The debate on the fate reserved for Rroms in certain EU states illustrates this
problem.
Already difficult to manage, this process of international openness becomes complicated under the
strains of economic globalization: all is in constant movement - competition becomes sour, the modes of
consumption change, the methods of management are refined, the dynamics of information hustles
marketing and communication, the structures of costs follow the evolution of the production process, the
consumers’ priorities also change quickly, the modes of financing are constantly renewed,… this
entrepreneurship generates more and more followers.
Adhesion in EU arrives thus at a marked point, which offers Romania a more favourable framework that
facilitates its integration in the world economy. Unfortunately, the debt crisis of certain European countries,
and the subsequent weakening of the euro, will reduce EU’s room for movement and as a result,
Romania will have to redouble its efforts to accelerate its integration in the European and world economy.
The resolution to this combination of problems rests then on a triple requirement: a formation with the
point of progress, an economic effectiveness of foreground, and a savage insistence on this effort.
This business guide responds this triple requirement.
To begin with, the business guide is written by a student’s group of the MBA programme organised by the
Department UNESCO Chair on the study of inter-cultural and inter-religious exchanges at the University
of Bucharest, combining university training with intensive and accelerated “business” preparation. The
outmoded “B2S” principle is replaced by “S2B”, applicable in our constant changing world.
The business guide then offers to the foreign companies interested in the Romanian market, and to the
Romanian companies interested in international expansion, a practical and effective working tool,
elaborated in direct contact with the Romanian business world.
Finally, with the emergence of the UBCG - University of Bucharest Consulting Group – the guide reflects
the will of a rising Romanian generation, determined to take its destiny in its own hands without asking for
assistance. The many challenges EU will inevitably be confronted with, will push the younger generations
to pick up their problems and become innovative and effective. Which in today’s society, motivate any
occupation – even that of a student.
By Prof Jean-Daniel Clavel
15

3b. Cercetarea eficienŃei – obiectivul ineluctabil
Drumul de la o economie planificată la o economie de piaŃă, în contextul apariŃiei sectorului privat
competitiv, la nivel naŃional şi internaŃional, de generare a locurilor de muncă, nu se reduce la o simplă
ecuaŃie tehnică. EsenŃiale sunt administrarea şi percepŃia componentelor istorice, culturale, psihologice şi
sociologice. Această dimensiune imaterială este cu precădere importantă, atât pentru Europa cât şi
pentru România, o Ńară bine ancorată în tradiŃiile sale şi străbătută de multiple curente politice, culturale şi
religioase. DiscuŃiile cu privire la soarta rromilor din anumite state europene vin ca o confirmare a
afirmaŃiei de mai sus.
Acest proces de deschidere internaŃională dificil de administrat se complică şi mai mult sub presiunea
globalizării economice: totul se află într-o continuă mişcare – competiŃia este acerbă, modelele de
consum se schimbă, tipurile de management se rafinează, dinamica informaŃiei ia cu asalt marketingul şi
comunicaŃiile, structurile costurilor urmează evoluŃia procesului de producŃie, priorităŃile consumatorilor de
asemenea se modifică rapid, metodele de finanŃare sunt în permanenŃă înnoite, acest tip de
antreprenoriat atrage tot mai mulŃi adepŃi.
Integrarea în Uniunea Europeană survine astfel într-un moment marcant, oferind României un cadru mult
mai favorabil, care îi va facilita intregrarea în economia mondială.
Din păcate, datoriile cauzate de criză ale anumitor Ńări europene şi devalorizarea implicită a monedei
unice va reduce spaŃiul de manevră a Uniunii Europene, iar România va trebui să-şi redubleze eforturile
de accelerare a integrării în economia Europeană şi mondială.
SoluŃia acestui amalgam de probleme rezidă într-o cerinŃă triplă: un program de formare de ultimă oră, o
eficacitate economică de prim plan şi perseverenŃă aprigă în effort.
Acest ghid de afaceri răspunde acestei cerinŃe.
În primul rând, acest ghid a fost redactat de un grup de studenŃi de la Programul MBA organizat de
Departamentul-Catedra UNESCO pentru schimburi interculturale şi interreligioase, Universitatea din
Bucureşti, combinând astfel educaŃia universitară cu o pregătire intensivă şi accelerată pentru domeniul
afacerilor. Conceptul deja depăşit de business to school (de la afaceri la şcoală) a fost înlocuit de cel de
school to business (de la şcoală la afaceri) în lumea aceasta aflată în permanentă schimbare.
Ghidul oferă, companiilor străine interesate de piaŃa românească şi companiilor româneşti interesate de
extinderea internaŃională un instrument practic şi eficient, elaborat în contact direct cu mediul de afaceri
din România.
În cele din urmă, odată cu apariŃia Grupului de ConsultanŃă a UniversităŃii Bucureşti - UBCG – ghidul
reflectă voinŃa şi aspiraŃiile unei noi generaŃii, hotărâtă să-şi ia soarta în mâini. Numeroasele provocări cu
care inevitabil se va confrunta Uniunea Europeană vor determina generaŃiile tinere să îşi rezolve singure
problemele, să fie innovative şi eficiente. Acum, mai mult ca oricând, eficienŃa este leitmotivul întregii
activităŃi profesionale, care începe astfel chiar de pe băncile facultăŃii.
Prof. Jean-Daniel Clavel
16

Abbreviations & Acronyms
Ag Silver
AGD Anti-Corruption General Directorate
AGD Anti corruption General Directorate
AMCOR Romanian Management Consultancies Association
ANCA National Agency for Agricultural Consulting
ARIS National Agency for Foreign Investments (since 01.2010 – CRPCE)
Au Gold
bbl/d oil barrel/day
BMI Business Monitor International
BP Statistical Energy Survey
BWA Broad Wireless Access
CAEN Classification of the Activities in the National Economy
CAP Common Agricultural Policy
CCIR Chamber of Commerce and Industry of Romania
CEE Central Eastern Europe
CEFTA Central European Free Trade Agreement
CIL carbon in leach
CMT cut make and trim
CNL Oltenia National Lignite Company
CNVM National Commission of Movable Valuables
CPI Consumer Price Index
CRPCE Romanian Center for Promoting Comerce
CSCE Commission on Security and Cooperation in Europe
EAFRD European Agriculture Fund for Rural Development
EC European Commission
EC European Community
EEA European Economic Area
EES European Economic Space
EFTA European Free Trade Association
EU Europe
FDI Foreign direct investment
FEPAIUS The Professional Association of Textiles, Clothing and Leather Producers
FNUP Fonds des Nations Unies pour la Population
FOB Free on Board, is an initialism which pertains to the shipping of goods
g/t grams per tonne
GD Governmental Decision
GDP Gross Domestic Product
GEO/OUG Government Emergency Ordinance
GHz Gigahertz
GPRS General Packet Radio Service
GSCP General System of Customs Preferences
GWh Gigawatt Hour
Ha. hectare
IMF International Monetary Fund
ITC International Trade Centre
Kcal kilocalorie
Kg kilogram
kWh/m2 Kilowatt Hour per square metre
M million
m2 square metres
m3 cubic metres
MECMA Ministry of Economy, Commerce and Business Environment
MGR mass grocery retail
17

MHz Megahertz
MIA Ministry of Interior and Administration
MMFPS The Ministry of Labour, Family and Social Protection
Moz Million Ounces
Mt metric ton
MW Megawatt
MW Megawatt
MWt Megawatt Thermal
NAD National Anticorruption Directorate
NAD National Anticorruption Directorate
NBR/BNR National Bank of Romania
NIS/ INS National Institute of Statistics
NES National Export Strategy
OSCE Organization for Security and Co-operation in Europe
OSIM Romanian State Office for Inventions
OSIM State Office for Inventions and Marks
PED Primary Energy Demand
ROL Romania’s previous currency. 1 RON is equal to 10,000 ROL
SAPARD Special Accession Programme for Agriculture and Rural Development
SME Small and Medium Enterprise
SRL Limited company, Ltd.
SSA Public company, Plc.
t. tons
tbpd thousands barrels per day
TJ TeraJoule
UDI Utilities Dynamic Inc
UDMR Democratic Union of the Magyars in Romania
WB World Bank
WIPO World Intellectual Propriety Organization
WTO World Trade Organization
WWII World War II
YoY year over year
ZF Ziarul Financiar (The Financial Newspaper)
18

1. Framework conditions
Drafting team:
Ioana Maria DRAGOMIR (ioana_dragomir2001@yahoo.com)
Diana-Maria GEORGESCU (diana.georgescu@ipsos.com)
Andra IOANA (andraioana_2000@yahoo.com)
Cosmin George VLAD (cosminvlad83@yahoo.com)
1.1. Historical background
1.2. The Romanian Economy
1.3. Economic policies
1.1. Historical background
Past periods (up to the EU accession):
� Historical background See Attachment no 1
� The centrally planned system See Attachment no 2
� The transition period See Attachment no 3
The accession of Romania to the EU and its consequences:
o Romania expressed its intentions to become an EU (EC) Member State beginning with 1990, but
it took more than a decade for negotiations to commence. During that period, all political
declarations and economic measures were conducted in regard to the accession and many locals
saw EU as the escape from the severe economic problems Romania was facing.
o The beginning of the negotiations showed that Romania was far from ready for the EU, and
several reforms, some of them very harsh, had to be implemented. The 2004 EU expansion,
which did not include Romania, was perceived as a great disappointment and it had become
obvious that the country still needed to make great progress in order to be accepted in the EU.
Soon after, the deadline for the EU accession was established by the European Commission (1 st
of January 2007), after sufficient measures had been taken. Even if many fiscal, economic,
monetary and social reforms were undertaken, Romania still had problems regarding justice and
agriculture in particular. The main issue that concerned EU was the corruption present in every
sector and at every level of the society. Romania had to prove that its justice system was truly
independent and that the politicians and public servants accused of corruption would be
investigated. Romania succeeded in acceding to the EU in 2007, having solved most of its
problems but still having to fight against corruption.
o The fact that Romania would enter the EU on 1 st January 2007 had a very positive impact on the
local economy and on the living standard of most Romanians. Foreign investors, attracted by the
prospect of greater profits and by the now stable economy and society, came to invest billions of
Euros in the local economy.
o Now, as EU Member State, Romania and Bulgaria share the status of the poorest countries
inside the EU, and still have to make great steps in order to reach the European level.
Romania – EU relations – see:
o http://www.emergingeuropemonitor.com/file/int_start/160/7580/romaniaarticlelisting.html
o http://epp.eurostat.ec.europa.eu/guip/themeAction.do
o http://ec.europa.eu/economy_finance/publications/publication10962_en.pdf
19

Main pending issues
Like every country that went through major reforms, Romania still has many tasks on its “to do list”. Even
more so since the country has gone through tough decades from WWII until 1989/1990. Under these
circumstances, a lot of topics are still on Romania’s agenda for the years to come, such as:
o Political experience - Romanian political parties still lack experience and their actions do not
always follow their doctrine;
o Justice – Romania’s justice system is independent but problems and injustice may occur due to
corruption. Furthermore, decisions may be influenced by politicians;
o Infrastructure – Even if 20 years have passed since 1989, the Romanian infrastructure does not
meet European standards, this being a downside for the economic productivity and tourism. The
greatest setback is the lack of motorways and the slow pace at which infrastructural projects are
being developed;
o Bureaucracy – It can sometimes take more than a day to solve a minor problem because a great
part of the public servants are not committed to their work;
o Corruption – Romania is regarded as one of the most corrupted nations in the EU and
Transparency International placed Romania on the 71 st place out of 180 countries;
o Fiscal Policy – Budget revenues are relatively lower than in other EU countries. The collection of
taxes is still a problem, even if the flat tax introduced in 2005 appears to have partially solved it;
o Undeclared income – A lot of individuals do not declare their income and there are few and
expensive methods to uncover this type of fraud;
o Labour – undeclared work – Many SMEs prefer not to register all their employees in order to
avoid paying taxes, and even the registered employees earn more than it is declared;
o Education – There are rural regions without sufficient qualified teachers and even in the highest
educational institutions modern teaching methods are rarely used; moreover, many teachers
have lost their commitment because they are poorly paid;
o European funds absorption – Every country in its first years as EU member had problems
regarding funds absorption and Romania is not an exception, with less than 5% of available funds
used in some sectors;
o Citizens’ protection – Minors, orphans, security – Romania registered great progress in this field,
becoming a safer country that cares about the young generation; there are still problems in the
poorest parts of the country where the sets of reforms are slowly implemented;
o Health – This sector still has serious problems as the quality, accessibility and coordination
between hospitals and general medicine practices are still dissatisfactory. The private initiative in
this sector is not able to offer comprehensive services;
o Research – Many Romanian specialists decided to leave the country in order to earn better
wages, gain access to larger budgets and better research infrastructure;
o Regional development and local administration – Decentralisation is not complete and many
regions depend too much on financing from the Central Government.
1.2. The Romanian economy
� GDP, Current account balance
� Imports & exports of goods – volume & value
� Cost of living and consumer price index
� Inflation rate
� Key points
� Romania's ranking in Doing Business 2010
� Free World Academy country rating
� Heritage Index of Economic Freedom
20

After an average annual rate growth of 6% experienced between 2000 and 2008, under the impact of the
global financial crisis, the Romanian economy started sliding backwards into recession and contracted by
7% in 2009. In the same year the current account deficit adjusted to approximately 4.5% of GDP from
11,8 % in 2008 and it is expected to remain below 5% in 2010 as well. While the private sector has seen
its financing needs being reduced by the downturn in private consumption and export demand, the public
sector has been confronted to higher financing necessities. In these conditions the country requested in
March 2009 a stand-by agreement with the International Monetary Fund worth 20 billion Euros. According
to IMF estimations, Romania’s economy will contract again in 2010, shrinking by 1.9 % due mainly to the
sluggish domestic demand, before recovering and starting growing by around 1,5 % in 2011.
GDP, Current account balance
Table 1: GDP, Balance of payments 2005-2009, EUR mill.
Indicators/Year 2005 2006 2007 2008 2009
GDP (Nominal) 63,600 86,086 103,926 133,895 129,781
GDP per capita 3,700 4,500 5,800 6,500 5,600
Current account -6,888 -10,156 -16,714 -16,157 -5,054
Capital and financial account 6,483 9,532 17,467 17,830 6,150
Source: Eurostat - The statistical office of the European Union
Imports & exports of goods – volume & value
Table 2: Trade balance: Imports & Exports 2005-2009, EUR mill.
Indicators/Year 2005 2006 2007 2008 2009
Exports 22 26 30 34 29,116
Imports 30 38 47 53 35,903
Trade balance -8 -12 -18 -19 -6,787
Share of exports in GDP 28 27 24 25 22
Share of imports in GDP 38 39 38 39 28
Economy openness:
(exports+imports)/GDP 66 65 62 63 50
Source: www.insse.ro - The National Institute of Statistics
Cost of living and consumer price index
Table 3: Consumer price index by major groups 2005-2009, (%)
Current Reference
Food
period period TOTALS goods Non-Food goods Services
Year 2009 Year 2005 127.22 121.66 128.66 136.50
Year 2006 119.38 117.15 118.61 126.16
Year 2007 113.88 112.77 112.97 118.31
Year 2008 105.59 103.25 106.22 108.97
Source: www.insse.ro - The National Institute of Statistics
Inflation rate
After the hyper-inflationist period that dominated the Romanian economy for over 15 years, starting with
2004 the annual inflation rate decelerated, reaching its lowest level since 1990, of 3.7% YoY in March
2007. This low level was the result of the national currency appreciation above the equilibrium level that
couldn’t be sustained on the long term. Therefore, starting with July 2007 a rapid increase in the inflation
21

ate occurred due to several factors: large increase in incomes (public wages and pensions), increase in
prices not sustained by productivity, depreciation of the national currency, etc.
Since Q2 2009 Romania has started experiencing again a disinflation process as a result of the fall in
volatile prices, stable administered prices and lower household expenses. However, the increase of
tobacco excises and natural gas prices occurred at the very end of the year kept the inflation rate in 2009
(5,6%) far from the EU 27 average (1,0%)
For the inflation rate evolution and benchmarking see Attachment 5.
Key points
o Costs of production – Even if production costs have grown in the last decade, the cost of production
is still much lower than in most European countries, which turns it into a FDI promotion factor; this is
why a lot of western companies decide to outsource their activity in Romania (while others decide to
go further east, as lately, Romania has become more expensive). Compared to other countries in the
region, the cost of production is lower than in Hungary, Greece and Slovakia but higher than in
Bulgaria, Moldova, Serbia and Ukraine.
o Labour force skills – Romanian workers are well qualified, especially when it comes to theoretical
knowledge, but they lack experience and need to gain expertise in order to become truly skilled and
effective. Romania can provide specialists fluent in English in such fields as IT, petrochemical
industry, agriculture, and textile industry.
o Leadership – 20 years after the fall of the communist regime, Romania continues to be in an acute
need for leaders in many fields and very often multinational companies are not able to find locals
qualified for upper management jobs.
o Weak infrastructure – It represents a huge problem for Romanian development because
infrastructure is decisive for any economic activity and society.
- the lack of modern motorways which would facilitate a rapid transit between different regions
(e.g. the time to reach the Hungarian border leaving from Bucharest is around 9 to 10 hours
for 575km);
- Local infrastructure such as local roads and public transportation need upgrading;
- The railway transportation network is not providing high-speed trains;
- Airports need upgrading.
Romania's ranking in Doing Business 2010 _________
In Doing Business 2010, Romania is ranked 55 th ; the country ranked ahead of Poland, Czech Republic
and Moldova but behind Hungary, Bulgaria and Slovakia. The main criteria at the basis of the World
Bank’s Doing business ranking are the costs, time and procedures difficulty in setting up the business,
operating in the specific country, employing workers, registering property, getting credit, protecting
investors, paying taxes, trading across borders, enforcing contracts and closing the business. For further
information see attachment 4.
“Romania increased the cost of insolvency procedures by requiring that 1.5 percent of the amount
recovered from each insolvency procedure be transferred to a fund that reimburses the expenses of
insolvency administrators when debtors have no assets. Construction permit costs rose because of a new
fee equal to 0.05 percent of the project value. In addition, labour taxes were
increased. Property registration was expedited with the introduction of new procedures at the land registry
and cadastre.
Areas of Reform: Dealing with construction permits (making it more difficult), Registering property,
Paying taxes (making it more difficult), Closing a business (making it more difficult)”
Free World Academy country rating (according to its potential regarding a small business
investor)
Romania, together with Slovenia, Croatia and Bulgaria is placed 47 th out of 130 and is given 2 stars
equivalent of acceptable conditions.
22

Heritage Index of Economic Freedom
Romania’s economic freedom score is 64.2, making its economy the 63 rd freest in the 2010 Index.
Its score is 1.0 point better than last year, reflecting improvements in half of the 10 economic freedoms.
Romania ranked 29 th out of 43 countries in the European region, and its overall score is higher than the
world average.
GDP, Current account
balance
For macroeconomic indicators – see
o www.eurostat.eu
o www.bnr.ro - National Bank of Romania
o www.worldbank.org.ro – World Bank
Inflation o www.indexmundi.com from the CIA Factbook
o www.eurostat.eu
Trade o www.intracen.org
o www.eurostat.eu
Consumer price index o www.insse.ro - The National Institute of Statistics
o www.eurostat.eu
FDI o www.bnr.ro - The National Bank of Romania
o www.eurostat.eu
o www.oecd.org
Employment o http://www.anofm.ro/ - The National Agency for Occupying the
Labour Force
o http://www.mmuncii.ro/en/ - Ministry of Labour, Family and Social
Protection
R&D o Science, Technology and Innovation in Europe, Eurostat News
release, 8 September 2009
Doing business in
Romania (synthesis)
o www.oecd.org
Production & trade o www.worldbank.org
1.3. Economic policies
o www.worldbank.org, Doing Business 2010: Reforming through
Difficult Times, Fact Sheet—Summary of Reforms in Europe and
Central Asia
o http://www.heritage.org/Index/pdf/2010/countries/romania.pdf
o http://www.heritage.org/Index/Country/Romania
o http://www.freeworldacademy.com/newbizzadviser/fw8.htm#2
� Government policy & strategy
� Central Bank policy & strategy
� European Union common trade policy – General conditions
� Foreign trade of Romania in 2009
� FDI policy
Government policy & strategy
The most relevant measures for the development of foreign economic & commercial relations are the
following:
o Cohesion policy: maintaining the current objectives of the EU cohesion policy and renegotiating
them for the 2014-2020 time period;
o Free circulation of individuals: supporting the EC recommendation for the Member States not to
impose restrictions on the freedom of movement for workers of the new Member States;
o Stability and predictability in the public finance domain;
23

o Insuring a competitive and predictable business environment;
o Contributing to attracting FDI to Romania and to the enlargement of the cooperation with foreign
partners on third markets;
o Promoting the products & services of the Romanian SMEs on foreign markets;
o Stimulating business communication and partnerships;
o Preparing specialists in the field of export promotion techniques;
Note that, unfortunately, in the current recession framework the Government’s priorities might not
include the undertaking of foreign economic & commercial actions.
Governmental policy & strategy – see
o www.gov.ro/capitolul-26-afaceri-europene__l1a2065.html
o http://portalmfp.mfinante.ro/wps/portal
o www.mae.ro/index.php?unde=doc&id=4988&idlnk=0&cat=2
o www.minind.ro/pdf/planstrategic.pdf
Priority sectors
Energy, Oil and Gas
o Ensuring energy security – limitation of the import of energy resources;
o Durability – promoting energy production from renewable sources;
o Competition – continuing the restructuring and privatisation process of the electric energy and
natural gas sectors.
Mining Industry
o Commercial approach of the mining industry;
o Decrease of the Government direct involvement and search for private sector investments;
o Undertaking mining activities in compliance with mining protection criteria.
Environment
o Managing hazardous substances and waste;
o Controlling industrial pollution;
o Promoting investments in water and air quality control;
o Promoting projects for preventing contamination with nitrates in vulnerable areas;
o Developing integrated waste management systems and rehabilitation of contaminated sites.
Health
o Search for an additional involvement of the private sector in the supply of medical services, in
order to reduce the pressure put on the public resources and improve healthcare quality;
o Increasing quality of life by improving the quality and safety of the healthcare services;
o Providing equal access to healthcare for all citizens.
Priority sectors – see
o http://www.minind.ro/presa_2007/mai/Strategia_16_mai.pdf
o http://www.minind.ro/domenii_sectoare/theStrategy.htm
o http://www.mmediu.ro/pdf/Plan_strategic_2007-2009-componenta_management.pdf
o http://www.ms.ro/pagina.php?id=119
Central Bank policy & strategy
� Monetary policy (interest & exchange rate)
o In the short run, prices may respond to many different shocks, some originating in the domestic
economy and some in the foreign sector. Both types of shocks will affect aggregate demand and
supply, cash and prices;
o In the medium to long run, monetary policy plays the major role in supplying the appropriate
amount of money in order to foster growth and maintain stability.
24

� Inflation issues
o The National Bank of Romania (NBR – Romania’s Central Bank) shifted to direct inflation
targeting in August 2005. This monetary policy strategy was adopted after completing a
preparatory process, whose last stage consisted in setting up and testing of the economic
analysis and monetary policy decision framework specific to inflation targeting. The other
prerequisites and criteria that are conditional to the effectiveness of this strategy were also fulfilled
(see Attachment 5).
o Concrete impacts on business development: uncertainties, as far as ROL is concerned, as well as
future value of the invested capital.
o Given the ongoing disinflation process in the domestic economy - a sustainable inflation rate over
the medium term in line with the quantitative definition of price stability has yet to be attained -
inflation targets are formulated on an annual basis (December/December) and are set over a twoyear
horizon.
For a more detailed analysis of the inflation impact on the national economy see the Central Bank’s
Inflation Annual Report http://www.bnro.ro/PublicationDocuments.aspx?icid=6876
Inflation – see
o http://www.bnro.ro/Direct-Inflation-Targeting-3646.aspx
o http://www.bnro.ro/Characteristics-3653.aspx
o http://www.bnro.ro/Inflation-Targets-3241.aspx
o http://www.bnro.ro/NBR-Projections-4353.aspx
o http://www.bnro.ro/page.aspx?prid=3493
o http://www.bnro.ro/Inflation-Reports-3343.aspx
o http://epp.eurostat.ec.europa.eu/tgm/web/_download/Eurostat_Table_tsieb060HTMLDesc.htm
� Shift to the Euro
o Adoption of the euro foreseen earliest for the 01.01.2015;
o General conditions to enter the eurozone – the five convergence criteria
Figure 1. The convergence criteria for joining the Euro zone
What is
measured:
How it is
measured:
Convergence
criteria:
Price stability
Consumer
price inflation
rate
Not more than
1.5 percentage
points above
the rate of the
three best
performing
Member States
Sound public
finances
Government
deficit as %
of GDP
Reference
value: not
more than
3%
25
Sustainable
public
finances
Government
debt as % of
GDP
Reference
value: not
more than
60%
Durability of
convergence
Long-term interest
rate
Not more than 2
percentage points
above the rate of
the three best
performing
Member States in
terms of price
stability
Source: http://ec.europa.eu/economy_finance/euro/adoption/who_can_join/index_en.htm
Exchange rate
stability
Deviation from
a central rate
Participation in
ERM II for at
least 2 years
without severe
tensions
Comments – Romania is still far from fulfilling these conditions and the recent financial problems made
this objective less important for the moment. It is said that the fast recovery from the crisis will increase
chances to entry to the eurozone. The euro will be an objective for BNR but it is important not to obstruct
the country’s development which sometimes requires inflation and governmental debt.

Relations Central Bank of Romania – European Central Bank – See
o http://www.bnro.ro/The-NBR's-role-in-the-preparation-for-joining-the-Eurosystem-1584.aspx
o http://www.bnro.ro/Coordination-of-the-NBR's-participation-in-the-ECB-ESCB-structures-andsub-structures-1583.aspx
o http://www.bnro.ro/The-NBR's-participation-in-the-activities-of-EU-fora--1585.aspx
o http://www.ecb.int/euro/intro/html/map.en.html
o http://www.ecb.int/stats/exchange/eurofxref/html/eurofxref-graph-ron.en.html
o http://ec.europa.eu/economy_finance/the_euro/joining_euro9413_en.htm
European Union common trade policy – General conditions
Starting 1 st January 2007, Romania is applying the EU common trade policy that ensures the observance
of:
o Uniform frontier taxations;
o The Stability and Growth Pact;
o Trade security measurements;
o Preferential trade and cooperation agreements with third party countries;
o Commercial agreements in the WTO.
Foreign trade of Romania in 2010
FOB exports during 1.I-30.VI 2010, amounted to 71407.3 million lei (17214.5 million euro). Compared
with the corresponding period of 2009, exports increased with 23.7% at values expressed in lei (26.2% at
values expressed in euro) (source: NIS)..
In order to support Romanian exports, the local MECMA implemented the National Export Strategy
(2005-2009) which is available on the web site (www.dce.gov.ro). Furthermore, the strategy for (2010-
2014) was just developed.
For more datas regarding exports see attachements – page 11
Trade policy – See
o http://www.dce.gov.ro/
o http://www.insse.ro/cms/files/arhiva_buletine2010/bsci_6.pdf
o http://europa.eu/legislation_summaries/external_trade/index_en.htm
o http://www.intracen.org/countries/toolpd06/tpi-notes-2002-2006.pdf
o http://www.intracen.org/menus/countries.htm
Primary sector
Oil and other raw materials
o Oil law – all actions related to the oil operations are the object of the Romanian Oil Law no.
238/2004
o Natural Gas Law - all actions related to the natural gas operations are the object of the
Romanian Natural Gas Law no. 351/2004
o http://www.minind.ro/
Oil and other raw materials – see
o The main objective of the National Strategy for Energy for 2007-2020 is:
- To satisfy energetic needs on short, medium and long term basis at the lowest price
possible and meeting the conditions of the market economy and of a civilized life
standard in terms of quality, safety in supplying while respecting the sustainable
development principles
Strategic objectives:
26

Energetic security
- Increase the energetic security by assuring the necessary energetic resources and by
limiting the dependency on imported energy resources;
- Diversify the import suppliers, energetic resources and their transportation routes;
- Increase the level of adequacy of the national transportation networks for electric
power, natural gases and oil;
- Assure the safeguard of the critical infrastructure.
Sustainable development
- Increase the energetic efficiency;;
- Promote the production of the renewable energy;
- Promote the production of electric and thermal energy in power plants with
cogeneration, especially in high efficiency cogeneration installations;
- Support the research and development activities and the dissemination of the
applicable results;
- Reduce the negative impact of the energetic sector on the environment;
- Rational and efficient use of primary energetic resources.
Competitiveness
- Develop competitive electric energy, natural gases, oil and uranium markets;
- Liberalize the energy transit and assure the permanent and non discriminatory
access of participants to the transportation and distribution networks and to the
international interconnections;
- Continue with the process of restructuration and privatization in the electric and
thermal power and natural gases sectors;
- Continue with the restructuring of the lignite sector in order to increase its profitability
and access the capital market;http://www.minind.ro/domenii_sectoare/H163-
04.html - #
Timber
o In Romania, the forestry and timber industry sectors are separated
o The legal framework for forest preservation and sustainable management is provided by the
Forest Bill (Law no. 26/1996).
In this sense, the section 6 – Wood Removal – specifies that:
- the harvesting of wood products is in compliance with the provisions of forestry management
and with the instructions concerning the terms, methods and ages, logging and handling of
wood materials, issued by the central authority responsible for the forestry;
- When harvesting the wood material, the forest districts, economic agents and legal persons
are bound to use methods for harvesting – skidding of wood properly selected to avoid soil
degradation, damaging of seedlings and of trees.
- The Ministry of Economy and Commerce is the body responsible for the implementation of
Government policy in the field of industrial production and goods.
Timber – See
o http://www.unece.org/timber/docs/sem-1/papers/r29Istratescu.pdf - European Forestry
Commission, STRATEGIES FOR THE SOUND USE OF WOOD
Agriculture
The main objective of the policy for agriculture is to support the sustainable development of the
agricultural sector and the domains related to it.
o The policy for agriculture respects the EU Common Agricultural Policy (CAP) and its main elements:
o The Common Customs Tariff
o The EU bilateral trade agreements
o The Integrated Tariff of the European Communities
27

The main objectives for the following period are:
o Developing a competitive environment in agriculture, forestry and fisheries based on knowledge and
private initiative;
o Reducing the proportion of the population employed in agriculture along with strengthening the
economic viability of farming units;
o Reducing the fragmentation of farmland property and stimulating the concentration of small farms;
o Maintaining quality and diversity of rural space and forest estates in ways that maintain a proper
balance between human activities and the conservation of natural resources.
Agriculture – See
o www.maap.ro – The Ministry of Agriculture
o www.strategia.ncsd.ro - The National Sustainable Development Strategy of Romania
Industry
In conformity to the core business of the Romanian economic policies and strategies as well as to the
European Economic Recovery Plan the main objectives of Romania’s industrial policy for 2009-2012 are:
o Increase competitiveness and secure market access;
o Improvements to the general framework and specific conditions for research, development and
eco-innovation domains;
o Consolidate the ecological potential of the industry;
o Assure a sustainable use of resources;
o Develop the industrial services and foster public-private partnerships;
o Adapt labour market mechanisms to the requirements of a modern integrated economy;
o Develop cluster mapping projects in order to identify clusters and cluster networks.
Industry – See
o http://www.minind.ro/
o http://www.minind.ro/newsletter/Newsletter_ME_nr_3_2009.pdf
o http://www.fabricadebani.ro/userfiles/Ghid_ita_2010.pdf
FDI policy
Foreign Investor Rights
o national treatment for foreign investors;
o foreign investment allowed in all sectors of economy;
o possibility to freely manage the company with full ownership rights;
o full repatriation of capital and profits;
o protection against expropriation and nationalization;
o Access to incentives and funds provided by EU and Romanian legislation;
Incentives and subsidies
Fiscal:
o Tax exemption for reinvested profit;
o Possibility to use accelerate depreciation of equipments (50% in the first year);
o Possibility to carry forward the fiscal losses for a period of up to 7 years;
o Exemptions from the payment of taxes on buildings and land applied by local councils in Romania
on basis of state aid schemes;
o Fiscal incentives for R&D: additional deduction of 20% from the eligible expenses from research
and development activities;
o Subsidies for hiring and training new personnel.
State aid schemes/incentives for:
o investments between EUR 10-20 mill and creating at least 100 new jobs;
o investments between EUR 20-30 mill and creating at least 200 new jobs;
28

o investments over EUR 30 mill and creating at least 300 new jobs;
o investments over EUR 100 mill and 500 new jobs; eligible costs over Euro 50 mill;
o investments in green energy - 50% subsidy from the total eligible expenses for all regions in
Romania, except Bucharest (40% subsidy); Eligible expenses: investment in tangible assets (land,
buildings, new equipments, installations) and intangible assets. Intensity ceilings increase by 20%
in case of small enterprises, and by 10% in case of medium sized enterprises (Exception:
economic agents activating in the field of transport)
According to the information presented by the Romanian Center for Trade and Investments, FDI
incentives will be provided for investments in the following sectors:
o Activities in agro-industrial processing;
o Top sectors in the manufacturing industry;
o Electric and thermal energy production and delivery; production of equipments for increasing
energetic efficiency and use of renewable energy resources;
o Environmental quality protection and improvement;
o Water distribution, purification, waste management;
o IT;
o Research, development and innovation activities or new products development;
o Activities providing work force services.
Beneficiaries are investments and investors complying with the following conditions:
o contribute to the achievement of at least one of the condition mentioned above
o activities are carried on in the above mentioned sectors
o have no unpaid debts to the funds of the general consolidated budget
o did not ask the Ministry of Economy and Finance to perform neither falling due payments for state
guaranteed foreign and domestic credits, nor payments to the risk fund
o did not contract any state guaranteed loans
o are not subject to compulsory execution or insolvency, dissolution or other situations regulated by
the law
o there are no state aid recouping decisions issued against them or, in case there are, these
decisions have been executed according to the law
FDI policy - see
o www.traderom.ro
o www.monitoruloficial.ro – The Official Gazette of Romania
o Government Decision No 1680/ 2008 – State aid scheme ensuring sustainable economic
development
o Government Decision No. 753/2008 – State aid scheme supporting regional development
by stimulating investment
o Order No. 479/2008 issued by the Ministry of Economy and Finance – State aid scheme
granting support for the consolidation and the development of the Romanian productive
sector through investments of big enterprises, corresponding to SOP IEC
o Government Decision No. 718/2008 – Horizontal state aid scheme for regional
sustainable development and reduction of emissions
o Government Decision No. 750/2008 – Regional state aid scheme for renewable energy
resources harnessing
o www.oecd.org
29

2. Legal & fiscal affairs
Drafting team
Amalia-Maria OTEA (VOICA) (amalia_voica@yahoo.com)
Ileana Oana STAVARACHE (NITA) (ostavarache@yahoo.com)
Mariana UDREA (mariana.udrea@qnet.ro)
2.1. Visas, residence & work authorization
2.2. Copyright, patents & trademarks
2.3. Foreign exchange operations
2.4. Fiscal affairs
2.1. Visa, residence and work authorization
� Visa regime in Romania
o The stay right granted by visa may be exercised only during the validity period of the visa.
o The Romanian visa shall be granted by the Romanian diplomatic missions and consular offices.
o Two main categories of visas for foreigners: short-term and long-term visa, single or multiple
entries. Both visa categories allow foreign citizens to stay in Romania for 90 days within a sixmonth
period. While the short-term visa cannot be extended, the long-term visa can be extended
by the Romanian authorities upon request, by applying for a residence permit. The request filed in
this respect must be addressed to the Romanian Office for Immigration, Ministry of Interior and
Administrative Reform.
o The short-stay visa for business purposes (identified through the symbol C/A) – issued to
foreigners travelling to Romania for economic or commercial purposes, with a view to the
conclusion of contracts or for negotiations, to learn or to verify the use and operation of goods
acquired or sold under commercial and industrial co-operation contracts and to foreigners who
are or will become associates or shareholders within a Romanian company. The required
documents are: a travel ticket valid to destination, or alternatively, the driving license, green card
and the registration documents of the means of transport, in the case of vehicle drivers; medical
insurance; an invitation from a company or public authority for participation in meetings,
conferences, fairs or congresses related to the trade or industry they are involved in, stating that
the respective company or public authority will cover the repatriation expenses, should the invited
foreigner not leave Romania upon expiry of his right of stay; proof of the financial means
amounting to EUR 50/day for the entire period, but not less than EUR 500/stay or the equivalent
value in convertible currency; proof of accommodation.
o Depending upon the activity that the applicant is bound to carry out on the territory of Romania,
there are different types of long-stay visa, with specific conditions for its granting: the long-stay
visa for economical activities (identified through the letters D/AE), the long-stay visa for
professional activities (identified through the letters D/AP), the long-stay visa for commercial
activities (identified through the letters D/AC), the long-stay visa for employment (identified
through the letters D/AM), the long-stay visa for studies (identified through the letters D/SD), the
long-stay visa for family reunification (identified through the letters D/VF), the long-stay visa for
religious or humanitarian activities (identified through the letters D/RU), the long-stay visa for
scientific research (identified through the letters D/CS) , the diplomatic and work visa (identified
through the letters DS) and the long-stay visa for other purposes (identified through the letters
D/AS).
o Citizens of EU countries and of the European Economic Area Member States (i.e. Norway,
Liechtenstein, Iceland) may enter Romania without a visa, being allowed to stay for a period not
exceeding 90 days during a six-month period, by using the passports, or the valid identity cards
issued by the relevant authorities from their home country.
30

o Citizens of the United States of America, Canada and Japan may also enter Romania without
visa and extend their stay without providing proof for means of support.
o Under the immigration law, foreign citizens can obtain in certain cases (i.e. frequent business
trips) short-term multiple entries visas, valid for a period of up to 1 year and only for exceptional
situations for a period up to 5 years. The provision stipulating that the foreigners are allowed to
stay in Romania for 90 days during a six months period is also applicable for this type of visas.
� Residence permits
o Foreign nationals staying in Romania for more than 90 days in a six-month period should apply
for a Romanian residence permit;
o The companies located in an EU or EEA member states can accompany the EU and EEA
nationals to Romania for an undetermined period without the need to obtain a Romanian work
permit. The individuals should apply directly for a Romanian registration certificate/ residence
permit;
o Foreigners assigned as heads of Romanian branches of foreign companies, as well as foreigners
nominated as administrators of Romanian companies will apply only for a residence permit
provided that certain conditions are fulfilled.
� Work Authorization
The work authorization represents the official document issued under provisions of Emergency
Ordinance no. 56/2007 which entitles its bearer to be employed and work in Romania.
The work authorization is issued by the Romanian Immigration Office at the employer’s request if
there are met a number of conditions:
• The employer performs a legal activity in Romania, has no debts and made a legal selection
according to the provisions of the law regarding employment and detachment of foreigners on the
Romanian territory;
• The foreigner fulfils the condition of professional training, work experience and authorization, and
is able from medical point of view to perform the respective activity;
• The foreigner has no criminal record.
The Romanian Immigration Office shall issue the authorization within 30 days from the date of the
employer’s request.
� Main regulations (Law, Government Decision)
o Decision of the Romanian Government no. 1108 of 25 October 2001, on the unilateral exemption
of Canadian, Israeli, Norwegian, Swiss and Japanese citizens from the entry clearance regime in
Romania.
o The Emergency Ordinance no. 194/12 December 2002 on the foreigners’ status in Romania.
o The Emergency Ordinance no. 56/2007 related to the employment and assignment of foreign
citizens in Romania.
Visas, residence & work permit – See
o www.ori.mai.gov.ro – The Romanian Office for Immigration
o www.mae.ro – The Ministry of Foreign Affairs
o www.mmssf.ro – The Ministry of Labour, Family and Social Protection
o www.professional.com.ro – Professional – Human Resources Agency
o www.ccir.ro – The Chamber of Commerce and Industry of Romania
2.2. Copyright, patents & marks
Romania is a signatory party to international conventions with respect to intellectual and industrial
property rights (WIPO). As such, the Agreement concluded with the European Union includes specific
provisions which reaffirm Romania's commitment to internationally agreed rules in this field.
31

� Copyright
Nature of the right
o Copyright is the set of exclusive rights granted to the author or creator of an original work,
including the right to copy, distribute and adapt the work. The original works can be from
literary, artistic or scientific field.
o The copyright holder has the right to authorize or prohibit its reproduction, distribution, renting,
lending and adaptation through derivative works.
It must be mentioned that related rights have evolved around the works protected by copyright that
protect:
• Performers for their interpretations or executions;
• Producers of sound recordings and audiovisual recordings producers for their
recordings;
• Broadcasting organizations to broadcast their programs and services (Article 94
of Law no. 8/1996 with subsequent amendments).
Protection
o The right is automatically protected on creation of the original work and need not be obtained
through official registration with government office or any other public authority.
o The Romanian copyright framework is governed by Law no. 8/1996.
o Romania is a member of the Bern Convention on Copyrights (In all countries that are
members of the Berne Convention copyright is automatic, and need not be obtained through
official registration with any government office).
o The Romanian authority in this domain is ORDA (the Romanian Copyright Office) and the
National Phonogram and Computer Program Register.
Law enforcement
o Infringing the rights triggers either civil or criminal liability.
Duration of the protection
o Copyright is assigned to the author and involves moral and patrimonial rights, with copyright
protection starting from the creation of the work. The patrimonial rights related to copyright
last for as long as the author lives and, generally, after the author’s death they are transmitted
to his/hers heirs for an additional 70-year period.
o The patrimonial rights related to copyright in the case of computer programs last all lifetime of
the author, and after his/her death they are transmitted by inheritance, according to civil law
for a period of 50 years.
� Patents
Nature of the right
o A patent shall be granted for any invention having as a subject a product or a process, in all
technological fields, provided that it is new, involves an inventive step and is susceptible of
industrial application.
o An invention shall be considered to be new if it does not form part of the state of the art.
o The right to the patent belongs to the inventor or his successor in title.
o The patent holder has an exclusive right to exploit an invention for the duration of the patent.
Unauthorized production, use, marketing, sale or import of the patented product or of the
patented process or of the product directly obtained through the patented process is
prohibited.
Protection
o The patent is protected on registration with the Romanian State Office for Inventions and
Trademarks (OSIM).
32

o The procedure for registering patents with OSIM, as well as the rights and obligations
deriving from these patents are governed by Law no. 64/1991.
o Romania is a party to the 1883 Paris Convention for the Protection of Industrial Property,
ratifying all its amendments, and of the 1973 European Patent Convention.
Law enforcement
o Infringing the rights triggers either civil or criminal liability.
Duration of the protection
o Patents have a 20-year validity from the date of filing the application for registration; not
renewable.
o Law no. 255/1998 enacts a special legal regime for the protection of plant species, also
based on a patent certificate. The term of protection of the variety is 25 years from the date of
patent. For species of fruit trees, wines and ornamental forest trees the term of the variety
patent is 30 years from the granting of the protection.
� Trademarks
Nature of the right
o A trademark is a sign susceptible of graphic representation which serves to distinguish the
goods or services of a natural or legal person from those belonging to other persons. The
trademark holder has the right to:
• use the trademark during the course of its business;
• prevent others from using the trademark;
• prevent others from registering a similar or identical trademark;
• sell or license the trademark.
Protection
o The right to a mark shall be acquired and protected by registration with the State Office for
Inventions and Trademarks.
o Trademarks framework and protection are regulated under Law no. 84/1998, which details
the procedure for registering trademarks with OSIM, the priority rights recognized and the
rights and obligations deriving from trademark protection.
o Romania is a signatory party to the 1894 Madrid Agreement on International Registration of
Trademarks and a party to the Community Trademark System administered by the Office for
Harmonization in the Internal Market.
Law enforcement
o Infringing the rights triggers either civil or criminal liability.
Duration of the protection
o The registration of a mark shall take effect on the date of the regular national filing of the
mark and shall subsist for ten years.
o At the request of the owner, the registration of a mark may be renewed at the end of each
ten-year period on payment of the prescribed fee.
o The request for renewal of a registration may be made before expiry of the current term of
protection, but three months at the earliest prior to expiry of that term.
o Renewal of a registration shall take effect as from the day immediately following the expiry of
the current term of protection.
Main regulations (Law, Government Decision)
o Patent Law no. 64/1991;
o Government Decision no. 499/2003 for the approval of the Law no. 64/1991;
33

o Government Ordinance no 41/1998 on the fees in the industrial property protection field and the
conditions for using the same;
o Design Law no. 129/1992;
o Law no. 84/1998 on Marks and Geographical Indications;
o Law on Utility Models no. 350/2007;
o Law no. 255/1998 on the protection of new plant varieties;
o Law on Copyright no. 8/1996.
Copyright, patents & marks – See
o www.wipo.com
o www.mark-patent.ro
o www.osim.ro – State Office for Inventions and Trademarks
2.3. Foreign exchange operations
� Foreign exchange regime
In Romania, the foreign exchange regime is regulated by the BNR Regulation No. 4/2005 as further
amended and supplemented, which confirms the full liberalization of the capital account operations
beginning 1 st September 2006.
� Currency operations between residents and non-residents
Non-residents:
- Natural persons - foreign citizens, Romanian citizens and stateless persons residing abroad, with
identity documents issued by law;
- Legal persons and other entities established abroad, and individuals, foreign citizens, Romanian
citizens and stateless persons residing abroad who are authorized and / or registered to conduct
business as provided in the regulations in force;
- Branches, agencies, representative offices, Romanian legal persons and any other Romanian
entities, registered and / or authorized to work abroad;
- Embassies, consulates and other representative offices and permanent missions of other States
in Romania and international organizations or representations of such organizations operating in
Romania.
Currency operations:
- Current operations – performed between residents and non-residents and arising, from:
a) International trade transactions with immediate reimbursement;
b) Repatriation of net revenues in the form of interests, dividends etc.;
c) Repatriation of petty cash deriving from legal obligation of supporting family members;
d) Other transactions;
e) Expenses made by residents abroad other than currency capital operations, for religious,
educational, recreational, business, meetings, conferences, and other similar purposes.
The current currency operations are not subject to reporting to BNR.
- Capital operations – currency operations performed between residents and non- residents,
arising from: (i) direct investments; (ii) real estate investments (related to a direct investment); (iii)
transactions with financial instruments; (iv) financial credits and loans; (v) guarantees; (vi)
operations in current accounts and in deposit accounts; (vii) transfers representing subsidies,
annuities, secured amounts, allowances; (viii) other capital movements.
Transactions between resident companies or between resident companies and resident
individuals must be made in RON, the Romanian currency. Transactions between residents and
non-residents can be made both in RON and foreign currency. Certain transactions that are
deemed by law to be capital transfers require the prior approval of the BNR. Such approval is no
34

longer required for certain capital transfers (i.e. operations with securities and other instruments
in the monetary market) from 1 st September 2006.
� Regime applicable to non-residents
In accordance with Regulation (EC) no. 1889/2005 of the European Parliament and of the Council
any natural person entering or leaving the Community and carrying cash amounting to EUR 10 000 or
more shall declare that sum to the competent authorities of the Member Stare through which he is
entering/leaving the Community.
Since the currency market is completely liberalized, “non-residents have the right to acquire, hold and
use financial assets expressed in foreign currency and in domestic currency (RON)”.
Non-residents may open foreign-currency accounts in Romanian banks or foreign banks authorised
to operate in Romania and repatriate and transfer their financial assets.
� Safeguard measures
Due to liberalization, the capital account transactions are subject to the following principles:
a) Inflows before outflows,
b) Medium and long term flows before short term flows,
c) Direct investment before portfolio investment,
d) Respecting the sequence banks - companies - households.
The Romanian National Bank can take safeguard measures related to monetary capital operations
according to Regulation no. 4/2005, such as:
- Compelling residents and non-residents to notify the National Bank of Romania, 10 days earlier,
of their intention to perform short-term capital transactions;
- Charging a commission fee at the initiation of interbank exchange market transactions concerning
the selling/buying of foreign currency;
- Raising the mandatory reserve ratio for the amounts representing short-term capital inflows;
- Imposing other restrictions or taking supplementary measures for monitoring capital transactions.
The period of application of the safeguard measures shall not exceed six months.
� Main regulations
o BNR Regulation no. 4/2005 regarding currency operations, with the subsequent modifications
(“Currency Regulation”) as subsequently amended;
o BNR Norms no. 17/2002 regarding the statistical reporting to BNR of long and medium term
currency capital operations of the long and middle term private external debt type, with the
subsequent modifications;
o EC Regulation no. 1889/2005 of the European Parliament and of the Council, on control of cash
entering or leaving the Community.
Capital movement & profit transfer – See
o www.bnr.ro – The National Bank of Romania
o www.aris-invest.ro – Romanian Agency for Foreign Investment
2.4. Fiscal affairs
As a rule, once an entity begins to carry out business subject to taxation in Romania, as per the legal
provisions currently in force, it will have to pay taxes starting with that precise moment.
� LEGAL ENTITIES
PROFITS TAX
Are subject to profits tax:
o Romanian legal persons- it concerns taxable revenues coming from any source, be it Romanian
or foreign;
o Foreign legal entities which carry out activities with permanent establishment in Romania;
35

o Foreign legal entities and non resident natural persons that carry out activities in Romania in an
association that does not result in the creation of a legal entity;
o Foreign legal entities that obtain income from/in connection with real estates located on the
Romanian territory or from the sale/transfer of shares of a Romanian legal entity.
o Residents natural persons in association with Romanian legal entities for the income obtained
both in Romania and abroad for associations without the status of a legal entity
o Legal entities headquartered in Romania incorporated according to the European law
With regard to the foreign legal persons, they become subject to taxation the moment they begin to
carry out part or the whole of their business by means of a permanent establishment in Romania.
According to governing legal provisions in the field, before starting business in Romania through a
permanent establishment, the legal representatives of the foreign legal person must register the
permanent establishment with the competent tax authority.
The applicable profits tax quota is 16%. As a rule, profits subject to taxation are calculated as follows:
accounting profits minus income exempt from taxation plus undetectable expenses.
Where is the case of a permanent establishment, profits tax shall be calculated only based on the
profits that can be attributed to the permanent establishment. With a view to determining the
permanent establishment’s profits tax, the permanent establishment shall be deemed as a separate
person and intercompany transfer price regulations will be used to calculate the market price of a
transfer between the mother company and its permanent establishment.
To calculate profits tax, the fiscal year is equal to a calendar year (in case a tax payer starts its
business or ceases its business during one fiscal year, the period of time subject to taxation is the
period of the calendar year during which the tax payer carried out its business).
MINIMUM TAX
The taxpayers which carry on activities such as night-bars, night-clubs, discos, casinos or sports
betting, including the legal persons obtaining these incomes based on deed of partnership, and for
which the profit tax owed for the activities provided in this article is less than 5% of the respective
incomes shall be liable to pay a tax equal to 5% of such obtained incomes.
Romanian legal person, foreign legal entities which carry out activities through permanent
establishment in Romania and Legal entities headquartered in Romania incorporated according to
the European law shall be bound to pay the minimum tax established depending on the total incomes
registered on 31 December of the previous year (minimum tax is 2.200 lei).
EXEMPTED TAX
The taxpayers are exempted from paying any tax of the amount of the invested profit in certain
conditions.
EARNINGS REPATRIATION, PROFIT DISTRIBUTION AND OTHER INCOME
Dividends - Net profits distributed by a Romanian legal person to a non-resident entity are subject to
dividend tax (16%). A lower tax rate may be applicable, should the provisions of the relevant double
tax treaty (‘DTT’) be invoked.
Dividend tax is reduced to nil if are complied certain conditions, as established by the agreement
between Switzerland and the European Community on the implementation of measures equivalent to
those stipulated by EC Council Directive 48/2003 on taxation of income from savings in the form of
interest payments, published in the Official Journal of the European Union no. L385/30 of 29th
December 2004
Permanent establishments do not distribute dividends, a mere repatriation of net profits (after they
pay the profit tax) to the non-resident is made. In this case, for the repatriation of the net profit tax is
not due.
Interests - According to the internal legislation, interests from a non-resident are considered taxable
income realized in Romania. The tax payable by a non-resident (calculated by applying the 16%
36

quota onto the gross revenue) is retained and transferred to the state budget by the taxpayer.
Consequently, the interest paid to a non-resident is subject to withholding tax in Romania (16%). The
rate may be reduced based on the provisions of the relevant DTT.
For the permanent establishment, the taxation treatment of interest is the same as for the Romanian
legal person, if such interest is an expense deductible for the permanent establishment.
Royalties - Royalties paid to a non-resident are subject to withholding tax in Romania (16%). The
rate may be reduced based on the provisions of the relevant DTT.
According to the Agreement signed between Switzerland and the European Community interest and
royalty payments made between associated companies or their permanent establishments are not
subject to taxation in the state of source, if there are met a number of conditions, mentioned in this
agreement.
Capital gains - Foreign legal persons that obtain income from immovable property located in
Romania or from the sale-assignment of participation stock in a Romanian legal person are required
to pay the profit tax for the taxable profit related to such income.
Gambling - In case of income obtained from gambling, the tax shall be calculated by applying the
20% quota onto the gross income.
Transfer prices rules
The Romanian tax authorities may, in order to calculate the tax obligations of the affiliated persons, to
reconsider the records of the affiliate in Romania for the purpose of tax investigation, if following the
special relations between the Romanian affiliate and the foreign person, these records do not reflect
the actual taxable profits sourced from Romania.
Affiliate’s records are not reconsidered whenever the transactions between such affiliates are
conducted in commercial terms on the free market.
TAXATION ON WAGES AND CONTRIBUTIONS TO THE STATE SECURITIES BUDGET
According to Romanian employment regulations, both employer and employee have to contribute to
the social security system but the employer is the one who has to withhold and pay all salary
contributions to the state.
Social security contributions at the employer level:
o Social security contribution – between 20.8% and 30.8%, depending on working conditions. It is
calculated and paid monthly taking into account the total gross amount paid to employees.
o Health fund contribution - 5.2% of the total gross amounts paid to employees; it is withheld and
paid every month.
o Unemployment fund contribution – 0.5% applied to the gross monthly amount paid to employees.
o Contribution for medical leave and indemnity - 0.85% of the total gross amount paid to employees
on a monthly basis, capped at 12 national minimum gross salaries multiplied with the number of
insured persons
o Contribution to the National insurance fund for work accidents and professional diseases - the
contribution ranges between 0.15% and 0.85% and depends on the risk category; the basis is the
total gross monthly amount paid to employees.
o Labour Chamber commission - 0.25% or 0.75% applied to the total gross amount paid to
employees. It is paid monthly and the different percentage depends on the keeper of the
workbooks: the Labour Chamber or the company through the human resources inspector.
o Contribution to the Guarantee fund for payment of salary debts - 0.25% applied to the total gross
amount paid to employees; the basis of calculus is monthly.
� VAT
Taxable operations
According to the Fiscal Code, operations that cumulatively fulfil the following conditions are subject to
VAT:
o they represent a supply of goods or services against payment;
o the place of delivery of goods or supply of services is considered to be in Romania;
o the delivery of goods or supply of services is made by a taxable person;
37

o The delivery of goods or supply of services results from economic activities.
TERRITORIALITY
The operations relating to the transfer of ownership right over the assets located on the Romanian
territory are subject to VAT.
The imported goods are taxable in Romania upon registration of the customs declaration.
From 1st of January 2010 Romania transposed the Council Directive 2008/8/EC as regards the place
of supply of services. According to this European Directive the place of supply of services is changed
from the place where the supplier is established to the place where the beneficiary is established. For
the services rendered by a taxable person to a non-taxable person, is still applicable the general rule:
the place of taxation is the place where the supplier is established.
From this general rule, the tax code establishes a series of exceptions, for example: if are provided services to
real property, place of supply is where the property is located.
VAT PAYERS
Any entity, regardless of their legal status, that carry out economic activities and that are registered
as VAT payers.
The importers of assets, regardless as to whether import is carried out directly, by agents or by third
legal entities.
Individuals, for the goods they bring into the country, as per the customs regulation.
Legal entities or individuals, having their headquarters or permanent residence in Romania,
beneficiary of services performed by foreigners.
VAT RATES AND REGIMES
Romanian VAT legislation is generally in line with the principles of the European Directives.
Taxable operations may be:
o Taxable operations. The standard rate of VAT is 24% and is applied to all supplies of goods
and services. A reduced VAT rate of 9% is available inter alia for medicines, hotel services,
books, admission fees to castles, exhibitions. Also, a reduce VAT rate of 5% is available,
inter alia, for the delivery of housing buildings (maximum 120 sq.m. excluding attachments),
social buildings.
o exempt operations with right of deduction, for which value-added tax is not payable,
but a deduction of the value-added tax due or paid for purchases (such as: Exemptions
for exports or other similar operations, for intra-Community supplies and for international and
intra-Community transport - supplies of goods which are dispatched or transported outside
the Community by the supplier or by another person on his behalf; provisions of services in
Romania for the purchased or imported movable property, in view of processing in Romania
and that are subsequently transported outside the Community by the provider of services or
by the client, if he is not established in Romania, or by another person on behalf of any of
these; international transport of passengers;);
o exempt operations without right of deduction, for which value-added tax is not payable
and a deduction of the value-added tax due or paid for purchases is not allowed (such
operations are, inter alia, hospital treatment, medical care, and closely-related operations
carried out by units authorised for such activities, regardless of the form of organisation, such
as hospitals, sanatoriums, rural or urban health centres, dispensaries, medical practices and
laboratories, centres for medical care and diagnosis, treatment and recuperation resorts,
emergency stations and other units authorised to carry on such activities;; provisions of the
following financial and banking services; insurance and/or reinsurance operations, as well as
the provision of services in connection with insurance and/or reinsurance operations which
are provided by persons who intermediate such operations);
o imports operations and intra-community acquisition, exempted from tax (for example
the import of goods and intra-Community acquisition whose supply in Romania is exempt
from value-added tax inside the country in any situation; import of natural gas through the
natural gas distribution system, or of electricity);
o Operations provided, as are mentions above, that are exempted without right of
deduction being made by small enterprises which apply the special exemption regime.
38

As a general rule, the fiscal period is the calendar month. For taxable persons registered for VAT
purposes whose previous year-end turnover did not exceed EUR 100.000 the fiscal period is the
calendar quarter.
We would like to mention that if a taxable person using the calendar quarter as a fiscal period is
performing an intra-community acquisition taxable in Romania, the fiscal period shall become the
calendar month.
The usage of standard pre-printed invoices is no longer mandatory, but the invoices must contain the
minimum information required by the law.
For the payment of VAT, the beneficiaries, from Romanian, of services provided by foreign persons,
and for Intra-Community acquisitions, the mechanism that will have to be applied is the reverse
taxation (the tax is to be registered into the VAT register both as a deductible tax and as collected tax)
Simplification measures are applied to the following transactions: selling waste and secondary raw
materials resulted from their sale; selling wood material.
EXCISE DUTY
The excises represent special consumption duties owed to the State budget for certain domestic and
imported products.
Products subject to excise duties: alcoholic beverages, cigarettes, mineral oils, electricity. Also, subject
to excise duties are the following products: green coffee, roasted coffee, soluble coffee.
The products shall be subject to excise duties at the time of their production on the Community
territory or at the moment of their import to Community territory.
However, the internal legislation establishes a series of exemptions from excise duties, such as:
o General exemptions - are granted if the excisable goods are intended to be used in areas
expressly mentioned by the law (for example: the excisable products intended for supply in
the context of consular or diplomatic relations);
o Special exemptions - as an example, are exempt from excise duties the products supplied by
tax-free shops, the products carried in personal the personal luggage of passengers travelling
by air or sea to a third territory or to a third country. This exemptions are granted only under
certain special conditions established by legal regulations;
o Exemptions for certain categories of excisable goods which are granted in certain situations.
Thus, by way of example, we mention, the exemptions for processed tobacco. The processed
tobacco shall be exempt from the payment of excise duties, when it is solely destined to
scientific tests or quality tests for products.
Payment procedures: the excise is due at the moment of the release for consumption or when
losses or shortages of excisable products are assessed. The persons liable for the payment of excise
duties are the importer or the warehouse keeper.
Also we want to note that there are special rules regarding the production and processing of certain
excisable goods (such as energy products, tobacco). For these products the production and
processing can take place only under a special regime (warehousing procedure).
It should also be noted that, moving and receiving excisable goods can take place under excise duty
suspension, in which case a series of documents are required. If these documents are missing or are
improperly completed, the law provides a series of sanctions, both contravention and criminal
sanctions.
IMPORT TAXES (tariffs)
Romania is a member of the World Trade Organization (WTO), of the Central European Free Trade
Agreement (CEFTA) and of the General System of Customs Preferences (GSCP).
The custom duties are applied to imported goods, and the applicable rates are specified under the EU
Customs Tariff. The customs duties are expressed in percentages and are applied to the customs
value of the goods, denominated in Romanian currency – RON and valid on the date the import
customs declaration is registered (ad valorem).
There are cases when custom duties are expressed as a fix amount applied to a specific quantity.
39

� NATURAL PERSONS
o Direct Taxations:
Taxpayers are: resident natural person; non-resident natural person who carry on an independent
activity through a permanent head office in Romania; non-resident natural persons who carry on
dependent activities in Romania; non-resident natural persons who obtain the specific incomes from
Romania
Income taxable in Romania: income from independent activities, income from wages, income from
the grant of using the goods; income from investments; income from pensions; income from
agricultural activities; income from prizes and from gambling, income from the transfer of real estates;
income from other sources.
The standard income rate is 16%.
Income from dependent activities
Pursuant to domestic tax regulations, the income obtained by non-resident natural persons from
dependent activities carried out on the territory of Romania, are taxable in the said country provided
that one of the following conditions of the Tax Code is met:
- The non-resident person is present in Romania during one or several time intervals which, as a
total, exceed 183 days of any 12-consecutive-month period, which is closed in the respective
calendar year;
- The earned incomes are paid by or in the name of a resident employer;
- The earned incomes represent the deductible expenditure of a permanent establishment in
Romania.
In case the 183-day interval is not exceeded, the provisions of the convention shall be applied, and
those incomes are taxable in the state of residence.
In case the 183-day period of presence in Romania is exceeded, the foreign natural person will be
assimilated to a resident natural person and will be imposed in Romania with a quote of 16%.
Taxation on other income
Dividends - For foreign individuals tax rate on dividends is 16% applied on the gross dividend
amounts. A lower tax rate may be applicable, should the provisions of the relevant double tax treaty
(‘DTT’) be invoked.
Interests - According to the internal legislation, interests from a non-resident are considered taxable
income realized in Romania. The tax payable by a non-resident (calculated by applying the 16%
quota onto the gross revenue) is retained and transferred to the state budget by the taxpayer.
Consequently, the interest paid to a non-resident is subject to withholding tax in Romania (16%). The
rate may be reduced based on the provisions of the relevant DTT.
Royalties - Royalties paid to a non-resident are subject to withholding tax in Romania (16%). The
rate may be reduced based on the provisions of the relevant DTT.
Capital gains – Non-resident persons that obtain income from immovable property located in
Romania or from the sale-assignment of participation stock in a Romanian legal person are required
to pay the income tax for the gain obtained, in a quota of 16%.
Income from independent professions – The income obtained by non-residents, derived from the
exercise on their own an independent professions or other activities having an independent character
shall be taxable only in the State of residence, provided that the non-resident do not normally have in
Romania a fixed base for performing its activity. If he has such a fixed base, the income attributable
to this fixed base represents taxable income to Romania, by applying the rate of 16%.
Exempted from taxation
Salary income earned by employees whose activity consists of the creation of software is income tax
exempt, subject to certain conditions stipulated by a Government Order (Order No. 250/189/748/2004
40

issued by Ministry of Labour, Social Solidarity and Family, Ministry of Communications and
Information Technology and Ministry of Finance).
Taxation on wages
Social security contributions at the individual level (employees):
o Social security contribution (i.e. pension) - 10.5% on the gross income from every month;
o Health fund contribution - 5.5% applied to the gross monthly income;
o Unemployment insurance contribution - 0.5% applied to the same gross monthly income.
� LOCAL TAXES AND DUTIES:
Local taxes in Romania are regulated by the Fiscal Code and represent a distinct category set by the
local administration; the local taxes are payable by both individuals and entities in Romania.
o Tax on buildings: Real estate owners pay an annual tax on buildings, except for some
specific cases provided by the Fiscal Code.
o Tax on land: This tax is calculated annually per square meter. The tax varies in accordance
with the location of the land.
o Vehicle tax: Owners, whether individuals or legal entities, pay a tax on their own means of
transport, calculated according to engine cylinder capacity.
o Fee for the issuance of certificates, permits and authorizations;
o Fee for using means of advertising and publicity;
o Tax on shows/performances: Organizers of artistic events, sport competitions, artistic
activities and entertainment activities, such as discotheques and videotheques, are liable to
pay a tax on shows, determined as a percentage of the revenues from sale of tickets or
subscriptions, or as a fixed amount per square meter.
o Hotel fee: A tax of between 0.5% - 5% of the hotel tariffs charged by accommodating units
may be levied by local councils.
Delay penalties
Also, we want to mention, that the tax law establishes the responsibility of taxpayers obligations to
pay accessories obligations for outrunning the statutory period for payment. Accessories are
calculated for each day of delay in payment of taxes from the due date until the date of their payment.
� MAIN REGULATIONS (Law, Government Decision)
� Fiscal Code approved by Law no. 571/2003, as amended up to date;
� Fiscal Proceedings Code, approved by GO 92/2003, as amended up to date;
� Modernized Customs Code, as amended up to date;
� Law no. 146/1997 on judicial stamp taxes, republished;
� Law no. 12/2010 approving the social security budget for 2010
� Agreement between Switzerland and the European Community on the implementation of
measures equivalent to those stipulated by EC Council Directive 48/2003 on taxation of income
from savings in the form of interest payments, published in the Official Journal of the European
Union no. L385/30 of 29th December 2004.
� Government Emergency Ordinance no. 58/2010 amending and supplementing Low no. 571/2003
regarding the Tax Code and other fiscal measures
� Government Emergency Ordinance no. 59/2010
Fiscal affairs – See
o www.eur-lex.europa.eu
o www.customs.ro – National Customs Authority
o http:///www.anaf.ro – National Agency for Fiscal Administration
o www.mfinante.ro – The Ministry of Finance
41

3. Economic sectors
Drafting team:
Hanelore Brighite BENING (hanicutzu@yahoo.com)
Alexandra DIN (din_alexandra2005@yahoo.com)
Corina DUMITRESCU (corinadumitrescu1@gmail.com)
Elena Monica PETRESCU (elena_monica_petrescu@yahoo.com)
3.1 Primary Sector
o Agriculture
o Fishing and Fish Farming
o Extractive Industry
3.2 Secondary Sector
o Manufacturing Industry
o Electricity, Gas and Water
o Construction and Real Estate
3.3 Tertiary Sector
o Transport Means and Infrastructure
o Healthcare and Pharmaceutical Industry
o Tourism
3.4 Quaternary Sector
o IT & Telecommunications
o Education
o Media & Communication Industry
3.5 Sectors with High Potential vs. Risky Investments
3.1. Primary Sector
Agriculture
Overview
o Recent years have shown growing activity in private sector consultancy mostly in response to the
financing possibilities offered by SAPARD, with 50% subsidies on investments in farm
improvement such as stables and equipment;
o 2007 – major changes in Romanian agricultural field due to joining the EU;
o Agriculture in Romania is a significant sector of the national economy in terms of area
contribution to the GDP and in particular (12,4% - CIA Worldfactbook, 2009 est.), in terms of
share (29,7% - NIS, 2006) in the total employment;
o Romania's total agricultural area is of 14.8 million ha (or 63% of total area), out of which 9.4
million ha are arable land accounting for 63.3% of total agricultural area;
o At present, the Romanian extension system is represented both by public and private bodies. The
Ministry of Agriculture and Rural Development (MARD) is responsible for the extension of
institutional building in the public sector. As a result, the public extension system has been in
operation since 1998 and consists of the National Agency for Agricultural Consulting (ANCA), the
first institutional structure of European origin, set up in 1998 based on the PHARE Programme
RO 9505 01 0. ANCA was established with the aim to initiate the provision of agricultural
consultancy services to Romanian farmers. It is an agency operating under the framework of the
Ministry of Agriculture and Rural Development. It has been required by the European Union;
o Recent years have also shown growing activity in the private sector consultancy;
42

o The agricultural land size and the natural available human resources makes Romania a very
important producer and partner for the Central and Eastern European market of agro-food
products;
o The support available under the EAFRD represents the ambition to implement the core EU
policies including the re-launched Lisbon strategy and the Gothenburg declaration on sustainable
development;
o Since February 2010, the European Commissioner for Agriculture and Rural Development Mr.
Dacian Ciolos.
Issues
o Low performance of the Romanian agriculture not correlated at all with its real potential;
o High proportion of small, subsistence farms (56% of farms are under 3 ha);
o Low level of productivity and efficiency (due to land fragmentation and lack of capital);
o Low access to credits and low development of specific services for agriculture;
o Lack of strategic and coordinated plans in the land cultivation area;
o Lack of healthy natural products consumption at population level;
o Lack of crop gathering points, in conjunction with communication and coordination with suppliers
and clients within the value chain;
o Lack of watering systems.
Opportunities
o Increasing the comprehensive, harmonious and sustainable contribution for the development of
the rural area;
o Reconstitution of ownership of agricultural land and forest;
o Completion of the privatization-lease assets and agricultural land and agricultural services;
o Stimulating and supporting the establishment of real agricultural farms and professional
organizations;
o Improving the structure of crops, for maximum efficiency in use of climatic conditions, to meet
internal and external market needs and to increase the profitability of farmers;
o Improvement of procedures for increasing the budget and its use with maximum efficiency -
financial resources, internal and external resources;
o Protecting and developing the forest and hunting fund;
o Settlement on other grounds of education, scientific research and counselling in agriculture, food
and forestry which used to be an important asset for local agriculture
o Rebuilding the watering systems which worked during the last years of the communist regime
o Structural reform of public institutions which falls under the authority of the Ministry of Agriculture;
o Achieving gradual but steady growth rate, minimum performance parameters, for integration into
the EU structures;
o Export of agro-ecologic products;
o Building further the certification and inspection systems for various products;
o Building export centres;
o Biofuels production plants, in accordance with EU biofuel rules.
Agriculture – See
o www.maap.ro
o www.apia.org.ro
o www.fao.org
o www.consultantaagricola.ro
o www.agroinfo.ro
o www.ccir.ro
o www.mmediu.ro
o www.ecomagazin.ro
o www.lumeasatului.ro
o http://europa.eu/pol/agr/index_ro.htm
o www.gazetadeagricultura.info
o www.ecolife/articole/agricultura/
43

o http://www.3idei.ro/video/leliana-parvulescu/tendinte-in-zootehnie/870
o http://www.3idei.ro/video/sergio-d-aloisio/romania--un-loc-virgin-pentru-agricultura/876
o www.federatiaagrostar.ro
o http://countrystudies.us/romania/
o http://ec.europa.eu/agriculture/index_en.htm
Fishing and Fish Farming
Overview
o Inland waters represent 3% of the total area of Romania.
o The fishery sector makes a marginal contribution to the GDP and is continuously decreasing
because of the decline in the distant-water fleet and the decline in fish farming.
o Local consumption is 90000 tones (2007), which means 5,6kg/ capita (EU average is 20 kg/
capita)
o Local fish consumption has fallen; now being only 25-30% of total
o Fishery has great socio-economic importance in the Danube Delta, where alternative occupations
(agriculture or industry) are not feasible.
Issues
o Important gap between imports and exports – the main cause is a poor diversity of valuable
aquaculture species, as well as a narrow range of processed products. In 2007, exports valued
EUR 1 million, whereas imports valued EUR 13 million.
o The commercial ports of Mangalia, ConstanŃa and Sulina have no specific facilities for landing,
storage and sale of fishery products.
o Fishing is practiced with fixed or towed gears, using small wooden boats. No mechanized fishing
is used in inland waters.
o Currently, there is no marine aquaculture in Romania.
o There are no first sale points and the distribution channels are not developed.
Opportunities
o Given the landscape diversity, there are suitable conditions in Romania for performing
recreational fishing activities in mountain or plain waters.
o With the help of The European Fisheries Fund which is designed to promote the sustainable
development of fisheries in the European Union, Romania adopted a National Strategic Plan so
as to define its objectives. For the period running from 1 January 2007 to 31 December 2013, the
total aid for Romania is estimated at EUR 231 million plus 80 million from the government.
o The Black Sea fishing - taking into account the potential of marine resources in the Black Sea,
that have been estimated by the Romanian Marine Research Institute at about 20 000 t, is
important to promote the upgrade of the existing fishing vessels.
o Coastal fishing has a long tradition in Romania. It includes small-scale fishing. The support to
small-scale fishing will contribute to maintaining employment in coastal areas and to reconvert the
fishery activities into activities in other sectors (for example tourism).
Fishing and Fish Farming – See
o http://www.ecomagazin.ro/piscicultura-poate-deveni-afacerea-anului-2008/
o www.anpa.ro
o http://www.apdrp.ro/
o http://www.fao.org/fishery/en
o www.mmediu.ro
o http://ec.europa.eu/fisheries/cfp/structural_measures/operational_programmes_en.htm
44

Extractive Industry
Energy Products (Mining and quarrying of energy products)
Coal Mining
Overview
o Romania has coal reserves estimated to 545 million short tons;
o According to the 2008 BP Statistical Energy Survey, in 2007 Romania had a coal production of
35.41 million t. and a consumption of around 30 million t (9.01 million t oil equivalent);
o Virtually all production is used for power generation, with coal accounting for 29% of Romanian
energy production;
o More than 90% of Romanian coal reserves are located within the basin of Oltenia Region;
o More than 80% of Romanian lignite reserves can be mined profitably in opencasts, whereas the
remaining 20% require underground mining;
o Two state-owned companies are responsible for lignite and brown coal production, National
Lignite Co Oltenia (CNL Oltenia) and National Coal Co Ploieşti (SNC Ploieşti), whereas one
company is responsible for hard coal production - National Hard Coal Co Petroşani (CNH
Petroşani);
o CNL Oltenia is the major lignite company. It produces around 35 Mt from 6 open pits and 5
underground mines;
o Surface mine technology is predominantly bucket wheel-based, while the underground mines
operate ten modern long walls.
Issues
o Coal is between 50%-200% heavier on the same energy unit, which makes transportation a lot
more difficult;
o Coal extraction is done with the help of liquid fuel operated machinery. Therefore, the increase in
oil price will trigger an increase in the price of coal;
o Coal has a recovered energy/invested energy report of 8 -18 to 1; it is estimated that in 2030-40,
the report will be of 1 to 1, which means that in order to produce a coal cart, the energy of a coal
cart will be necessary (oil has the report of 40 - 60 to 1);
o Romanian coal has an energy content of about 1 400 kcal/kg, while in Germany, the energy
intake is of 3 000 kcal/kg and that of the United States is of 6 000 kcal/kg;
o The coal industry is one of the biggest debtors to the Romanian state, owing about RON 379
Million (about EUR 88 Million);
o A large number of employees have been made redundant over the past years;
o The miners used to protest in a very violent way in the years before 1989, being a major social
problem.
Opportunities
o The coal industry is being restructured. For this purpose the Government has allocated over USD
2.2 billion between 2004-2010
o The European Commission approved the state help funds for the Romanian coal industry
between 2007 and 2010. Thus, the coal and uranium industry received in 2008 a subvention of
almost RON 350 million (around EUR 81 Million);
o Romania has enough oil and gas proven reserves for 15 years and uranium for 18, whereas coal
is sufficient for about 30 years – giving the state and investors enough time for necessary
investments;
o Romania’s intention is to erase the debt of the coal industry to the state, in order to attract foreign
investors;
o Coal is getting more expensive on an international level and thus, the Romanian coal industry is
turning into a real attraction for foreign investors.
45

Coal Mining – See
o http://www.mbendi.com/indy/ming/coal/eu/ro/p0005.htm
o http://standard.money.ro/articol_104312/industria_carbunelui_si_cfr_ul__marii_datornici_la_s
tat.html
o http://depletition.3x.ro/Carbune.htm
o http://www.realitatea.net/comisia-europeana-a-aprobat-ajutoarele-pentru-industriacarbunelui_102691.html
o http://economie.hotnews.ro/stiri-energie-2323330-subventii-300-milioane-lei-pentru-industriacarbunelui.htm
o http://www.ziare.com/articole/rezerve+carbune+romania
o http://www.green-report.ro/stiri/psua-construiesc-prima-centrala-verde-pe-carbunep
Oil and Gas
Overview
o Romania was the first country with an oil production officially registered in international statistics;
o Romania is the largest oil producer in Central and Eastern Europe with proven reserves of 600 to
950 million barrels (40-45 th ). According to the 2008 BP Statistical Energy Survey, Romania
produced an average of 105.4 thousand barrels of crude oil per day in 2007 (51 st ), 0.12% of the
world total with a difference of 0.9% compared to 2006. The country is a net oil importer, and
according to the 2008 BP Statistical Energy Survey, Romania consumed an average of 229.290
thousand barrels of oil per day (tbpd) in 2007, 0.27% of the world total, with a difference from
2006 of 10.44 tbpd. Romania imports 217000 bbl/day and exports 115000 bbl/day (2007 est.).
o The refining capacity of the country of 504 000 bbl/d (80 100 m 3 /d) far exceeds its domestic
demand for refined petroleum products, with the surplus going for export. (The Oil Refineries in
Romania produced in 2008 nearly 9.0 million tones of petrol and diesel);
o Romania imports oil via the Black Sea through two major ports, ConstanŃa and Tulcea, giving the
country the opportunity to be a major energy transport point. Because of its potentially strategic
importance, the Romanian government has no plans to privatize Conpet, the state-owned oil
transport company, which operates the national pipeline system;
o Romania dominates Balkans downstream petroleum industry, with ten refineries and 35% of total
refining capacity; none of the Romanian refineries exceeds a refining capacity of 100 000 bbl/d.
o According to the 2008 BP Statistical Energy Survey, Romania had in 2007 proved natural gas
reserves of 0.62 trillion m 3 , 0.35% of the world total. According to the 2008 BP Statistical Energy
Survey, Romania had in 2007 natural gas production of 11.55 billion m 3 and natural gas
consumption of 16.36 billion m 3. Local producers are Romgaz (state owned company) and Petrom
(former state owned company – now OMV Group).
o Romania has enough oil and gas proven reserves for only about 15 years.
Opportunities
o Even though Romania has enough oil and gas reserves to last for about 15 more years, there is
still enough time for proper investments. What’s more, Romania has a very high refining capacity,
therefore investments can be made in that direction for even more than 15 years from now on;
o Romania has a very low royalty rate related to oil extraction; in the last 3 years, the price of oil
has tripled, while the royalty has remained at the same rate – in 2007, the Romanian state has
earned from royalties only EUR 85 million for 32.6 gallons extracted by Petrom. In the case of gas,
however, royalties are at a higher rate.
Oil and Gas – See
o http://www.mbendi.com/indy/ming/coal/eu/ro/p0005.htm
o http://standard.money.ro/articol_104312/industria_carbunelui_si_cfr_ul__marii_datornici_la_s
tat.html
o http://depletition.3x.ro/Carbune.htm
o http://www.realitatea.net/comisia-europeana-a-aprobat-ajutoarele-pentru-industriacarbunelui_102691.html
46

o http://economie.hotnews.ro/stiri-energie-2323330-subventii-300-milioane-lei-pentru-industriacarbunelui.htm
o http://www.ziare.com/articole/rezerve+carbune+romania
o http://www.green-report.ro/stiri/psua-construiesc-prima-centrala-verde-pe-carbunep
o http://rbd.doingbusiness.ro/ro/5/articole-ultima-editie/1/254/crude-refining-petrochemicalssector-in-romania
o http://www.petrom.com/portal/01/petromcom
o http://www.romgaz.ro/
o http://www.transgaz.ro/
o http://www.rompetrol.com/online/index.php?_website_id=67
o http://www.lukoil.ro/
Uranium
Overview
o The uranium production in Romania has decreased constantly over the last decade, as several
plants became unprofitable or ran out of ore and shut down. While Romania's energy strategy for
2007-2020 mentions that the remaining uranium ores will support the functioning of two nuclearelectric
units at Cernavodă for eight years, NuclearElectrica (national nuclear energy company)
officials declared that the reserve will hold for ten years;
o In Romania, uranium is extracted at the Crucea-Botuşana mine in Suceava, the only mine that is
still functioning nowadays.
Issues
o According to the Ministry of Economy, the state subsidies for the Romanian National Uranium
Mining Company have been reduced by 14.3%. On average, the subsidies for all mining
companies have been lowered by approx. 28%;
o Several tons of waste sludge contaminated with uranium leaked from a mining operation in
western Romania into nearby streams and subsequently the Fekete Körös River in eastern
Hungary;
o Uranium reserves will probably last for 7 more years, until 2017;
o In the future, Romania will acquire uranium from Kazakhstan.
Opportunities
o In the future, the most plausible investment opportunities lie in uranium processing or in the
nuclear-electric units at Cernavodă.
Uranium – See
o http://www.wise-uranium.org/umop.html#RO
o http://www.cnu.ro/
o http://www.ziare.com/business/economie/12-18-2009/romania-va-cauta-diamante-si-uraniuin-angola-978891
o http://www.ecomagazin.ro/minele-si-haldele-de-uraniu-din-romania-zac-neecologizate/
o http://www.nuclearelectrica.ro/en
Other Products (Mining and quarrying of non-energy products)
Mining
Overview
o During 2004, Romania issued approximately 28 exploration licenses for gold, silver and
polymetallic ore exploration, grouped primarily in three areas of the country: in the north around
Baia Mare, in the Eastern Carpathians and in the west of the country in the Apuseni Mountains
and Western Carpathians;
47

o There are three leading players on the Romanian gold market: Transgold SA, a 50-50 joint
venture between Eurogold Ltd of Australia and its state-owned partner, Remin SA; it operates a
modern CIL facility at Baia Mare, initially constructed for a major tailings retreatment project. The
company is now progressing to develop a number of mining sites to supply ore from its own
sources, and is involved with a number of exploration campaigns, primarily in the north of the
country.
The Roşia Montana gold project in the Apuseni Mountains, where a joint venture between
Canadian junior Gabriel Resources (80%), the state-owned company Minvest (19.31%) and
smaller shareholders, is endeavouring to develop a major resource around the site of an existing
small, Minvest operation. The proposed project target is estimated to contain proven and
probable reserves totalling approximately 218 Mt averaging 1.52 g/t Au and 7.47 g/t Ag,
containing 10.6 Moz of gold and 52.3 Moz of silver.
European Goldfields holds five mineral properties located within the “Golden Quadrilateral”
area of Romania, where it has embarked on a resource development and pre-feasibility
programme to underpin the value of its 80%-owned Certej deposit and surrounding satellite
bodies. A current resource estimate outlines measured and indicated resources of 31.4 Mt
grading 2.1 g/t gold and 11.0 g/t silver for 2.34 Moz of gold equivalent (80% attributable: 1.87
Moz);
o Important gold areas in Romania are in Maramureş, Deva and Roşia Montana.
Issues
o In the year 2000, in Baia Mare, as result of an accident, 100 000 m 3 of water contaminated with
cyanide and heavy metals overflowed.
o Gold mining in Romania is currently very much frowned upon due to the controversial situation in
Roşia Montana, where Gabriel Resources plans to exploit the area. The mine would be Europe’s
largest open cast gold mine. It would destroy Roman ruins more than 2 000 years old, which led
the International Council on Monuments and Sites to make a resolution condemning the intended
destruction of monuments. The mining company also plans to use cyanide leaching, which
creates large quantities of waste and sludge laced with heavy metals and cyanide. The sludge is
to be stored in a toxic lake enclosed with a 180 meter high dam. A similar type of dam collapsed
in Baia Mare, two years ago, killing most of the freshwater life in rivers for 400 km downstream.
Promoters say the mine will create 300 new jobs, but these would last only 17 years whereas the
mine would destroy the livelihood of 740 subsistence farmers forever. Due to various tax breaks
and other preferential treatment, the mine would provide little revenue to Romania, but instead
burden it with the risk of accident and a decades-long toxic heritage; however, villagers look
forward to the mine opening, as they are all in desperate need of jobs. In spite of the public
opinion and international institutions, the new Romanian government decided on 18 December
2009 to start mining in the area as soon as possible.
Opportunities
o The Romanian state cannot afford to extract the gold in the Apuseni mountains region due to the
very high costs;
o Agnico Eagle, competitor for Gabriel Resources, is successfully exploring gold in an area in
Finland almost as controversial as Roşia Montana; in Kittila, a Finnish town in northern Finland.
The people have accepted to compromise the exquisite landscape, as, in the 850 ha occupied by
the mine, the vegetation and fauna have been destroyed. The surroundings of the area are,
however, intact; numerous jobs have been created for the locals and the company has been
involved in several environmental projects, gaining a better image in the public eye.
Gold – See
o http://www.mbendi.com/indy/ming/gold/eu/ro/p0005.htm
o http://www.bankwatch.org/project.shtml?s=153982
o http://www.bankwatch.org/project.shtml?apc=--153982g--1&x=326886
o http://www.miningweekly.com/article/romania-centrists-support-gold-mine-project-2009-12-18
48

Salt
o http://www.ecomagazin.ro/rosia-montana-a-finlandei/
o http://www.greenpeace.org/romania/campaigns/ro-ia-montan
o http://stiri.rol.ro/content/view/319266/2/
o http://www.rmgc.ro/
Overview
o There are many salt mines in Romania; Slănic, in Prahova region and Praid, in Harghita region
are two of the most famous;
o Local salt production was 2,7 million tones (2008) (1,7 for industrial purpose, 0,92 for food
industry and agriculture and 100000 tones for human consumption).
o In 1989 local production was 5,5 million tones
o Romania exports 25000 tones of salt for human consumption per year.
o The salt mine in Slănic Prahova is a balneoclimatic resort, located at about 44 km of Ploieşti, at
400 m altitude;
Opportunities
o Romania has rich salt deposits which can fulfil European demand for many decades.
o Salt mines are important touristic attractions in Romania, as they offer numerous facilities for
visitors: they have therapeutic, as well as leisure purposes, besides their most basic use – that of
salt extraction; all these facilities are worth further investigation and investment.
Salt – See
o http://www.romanianmonasteries.org/romania/salt-mine-slanic
3.2. Secondary Sector
Manufacturing Industry
Food, beverages and tobacco
Overview
o The total food and drink market in Romania was worth in 2008 EUR 23.0 billion, EUR 18.5 billion
in retail (80.5%) and EUR 4.5 billion (19.5%) in foodservice;
o Before the recession the food, beverages and tobacco sector was in continuous growth: the
internal demand grew with 27.8% and the export rate with 25.6% in 2007 compared to the
previous year.
o In terms of competition, there is a slight concentration of power as the Top-10 companies
supplied 20.8% of the total market in Romania in 2008; in many food and drink sectors, familybusinesses
are still on the lead;
o Demand: high on bread and derivates, vegetables and milk;
o Demand decreased by 30-60% in some market segments in 2009
Table no. 4 Monthly Average Consumption of Selected Food Products in kilograms per
Capital
2000 2001 2002 2003 2004
Bread and bakery
products
9.582 9.825 9.931 10.112 9.875
Fresh meat 2.359 2.175 2.284 2.447 2.542
49

Meat products 0.951 0.822 0.839 0.894 0.945
Milk 5.576 5.96 5.82 5.854 5.934
Potatoes 4.68 4.58 4.396 4.114 4.027
Fresh and canned
vegetables
7.967 7.293 7.027 7.102 7.083
Edible fruits 2.103 2.144 2.019 2.277 2.457
Source: www.insse.ro - The National Institute of Statistics, 2008 Report
o Import/Export: Export – small percent from total exports. Main exports are raw materials or
processed food. There are low export rates to the EU especially on meat products because of the
strict standard regulations of EU. Main imports consist of end products for household
consumption distributed especially through local giant retailers.
Issues
o The local raw materials are still insufficient or of a lower quality than those of the European
competitors.
o There still are quality standard issues regarding the EU regulations, especially those concerning
meat products, milk and derivates;
o A number of Romanian companies, active in both the food and drinks as well as in the mass
grocery retail (MGR) market sectors, have begun to feel the effects of economic downturn;
o Romania’s food and drinks market will continue to be held back by low per capita income, large
sections of rural population, and its negative food and drinks trade balance;
o Given that the country's MGR sector was hit by a sharper than expected fall in consumer
confidence, supermarkets and hypermarkets will struggle to retain their customers, who are
increasingly seeking cheaper alternatives from the discount sector;
o Demand for cheaper private-label goods has picked up noticeably, while discounters are also
benefiting from their ability to set up in urban areas (unlike hypermarkets) and residential
neighbourhoods, which reduces transportation expenses for the clients;
o Due to the changes in consumption created by the economic crisis in Romania, the survival of
some niches of food and beverages is challenged.
Opportunities
o The MGR market is expected to experience additional changes in the next years. For example,
existing supermarket operators will focus on smaller formats in order to address changing needs
of their consumers, while smaller and independent retailers are likely to succumb to larger
companies, all of which will affect the market penetration of food and beverages;
o Over the next five years, the value of food consumption at consumer rates is expected to
increase by 48.12% in local currency terms, to reach RON 83.2 billion (USD 35.9 billion),
although the remainder of 2009 and into 2010 is likely to be more challenging;
o The longer-term potential of the Romanian market – in addition to the increasing saturation of
Western European markets – is one of the key reasons for continued investment in the country;
o The Bio-product market is still underdeveloped because of the lack of producers while the
demand is growing. The consume represented 1% from all products in Romania in 2008 – under
the EU average, but remains a market with great potential in the future;
o Another potential investment opportunity regards the traditional food and beverages niche
(especially the alcoholic beverages sector is now being developed for export).
o There is a high export potential for ecologic agriculture sustained thought the National Export
Strategy of Romania for 2010-14.
Food, beverages and tobacco – See
o www.traderom.ro
o www.ins.ro
o http://www.cnp.ro/user/repository/industria_alimentara.pdf
50

o http://www.factbook.net/countryreports/ro/Ro_FoodProc&Pack_MktAssess.htm
o http://www.romalimenta.ro/index.php?l=en
o http://www.fft-geneva.com/2009_country/2009_Romania_Food_Drink_Markets_Synopsis.pdf
o http://epp.eurostat.ec.europa.eu
o http://www.zf.ro/companii/industria-alimentara-in-2015-investitorii-straini-se-vor-uita-maiatent-la-romania-si-vor-iesi-la-cumparaturi
o http://www.bio-romania.org/tag/produse-bio/
o http://www.ccir.ro/
Textile and clothing
Overview
o Romania is a medium-sized textile and clothing producer and this aspect is of great importance to
our economy;
o The contribution of the light industries (textiles, clothing and leather) to the Romanian economy is
substantial (in 2004 5.5% of GDP, 9.9% of the country’s industrial production volume, and 34% of
exports);
o It integrates a high number of employees (approx. 300 000 in 2009), most of them women;
o The EU is the destination of approximately 2/3 of Romanian exports.
o Romania uses its pricely competitive workforce to supply mainly European customers with a
manufacturing and assembly service based on cut, make and trim (CMT) operations;
o BMI (Business Monitor International) ranked Romania at the end of 2009 as number 48 in the
world in terms of textiles and clothing manufacturing value added.
Issues
o The Romanian textile industry is declining. Figures show a 6–7% decline per year since 2005
(FEPAIUS). A decrease in the number of producers (approx. 9 500 in 2006 and fewer than 7 000
in 2009) illustrates the downward trend. There is also a drop in the export rates (EUR 335 million
loss between 2007 and 2008);
o Despite a long tradition, the technology is obsolete especially in the primary sector (spinning and
weaving mills, textile finishing, tanning houses) and requires investment;
o The little focus on creating an international brand image made Romania unknown to the public in
spite of the product quality and design;
o The competition coming from Asian but also from other EU countries (Czech Republic, Lithuania,
Hungary, Estonia) shows the necessity of rethinking the overall textile industry strategy.
Nowadays, Romania shares the medium-high price market as the Asian products overtook the
low price segment.
o Economic crisis challenges the light industry in Romania as the export demand decreases and
the interior tensions regarding local political and economical instability creates tensions between
employers and employees.
Opportunities
o Romania's textiles and clothing value added fall is by 13.1% in 2009 and by 4.1% in 2010,
reflecting very difficult international economic conditions and the country's weak competitive
position. A moderate recovery is considered to be setting in from 2011, with a growth of 2.2%.
The long tradition and well-trained personnel can be considered an important resource.
o A rebirth of the industry with focus on high quality and strategic marketing, with the right
investment, is possible, provided that there is little possibility to focus on the low-price segment
because of the strong competition.
o Niche small and medium size markets can be a successful target for investors;
o There is a very high potential for sector specific information, training and consulting services, as
well as for export support services;
o Local brands can become regional European players.
Textiles – See
51

o http://www.fepaius.ro/
o http://www.textileiasi.ro/
o http://www.romtextiles.ro/presa/mscarlat_DT2004.pdf
o http://www.cnp.ro/user/repository/industria_romaneasca_in_perioada_de_criza.pdf
o http://www.wall-street.ro/articol/Companii/60430/Industria-textila-din-Romania-a-scazutconstant-cu-circa-7-anual.html
o http://www.dce.gov.ro/sne/Textile_clothing_and_leather.htm
Metallurgy and metal products
Overview
o Recently, the Romanian production and foreign trade in metallic products have increased
remarkably due to the general growth of Romanian economy but also due to international trends;
o In Romania there are 31 operating enterprises in this field: 7 integrated plants, 13 manufacturers
of various rolled products, 5 manufacturers of seamless tubes, 3 manufacturers of welded tubes,
2 manufacturers of moulded articles and 1 manufacturer of ferroalloys. A study conducted by
Finpro Romania shows that there are 7 474 companies in the metal products sector;
o In terms of production, in 2007, the steel production was as follows: the liquid steel production
was: 6.2 million t, warm rolled pieces production was: 5.5 million t and pipes production was: 0.7
million t;
o It is a relatively small industry with a 2% share of the industrial output (although it employed only
3.9% of the total industrial personnel) but has a high degree of internal production integration;
o It is characterized by commercial excess: high degree of internal production integration: the
internal consumption has a value of 23% from the total production and 13% of total resources;
o In terms of competition it is characterized by a high degree of concentration; the manufacturers
are scattered all over the country; however, the most important clusters are located in Hunedoara,
GalaŃi, Caraş-Severin, Slatina and Târgovişte regions. Top 5 metal production companies gather
65% of total branch turnover, each concentrating on a different sub-branch (steel, aluminium,
special steels, and pipes);
o High export rate: 14.1% share of the total exports of the country in 2008, 11.1% steel products
and 3% non-ferrous products. As a result, a big part of internal demand is covered by imports;
o Demand: 20% from the steel resources (internal production and import) are used in the
automotive and construction sectors.
Issues
o High energy consumption industry
o existence of certain big production capacities having obsolete technologies;
o High dependency on imported raw materials.
Opportunities
o Steel production amounted to 7.5 million t in 2007 and it is forecasted to reach 8.8 million t this
year as a good asset in the value chain, to be further used in client industries;
o With a vast experience and sector specific information, Romania could offer training and
consulting services, and even improve the exporting support services.
Metallurgy and metal products – See
o http://mcir.doingbusiness.ro/en/metal.html
o http://www.sar.org.ro/files/PWR-2009-ro.pdf
o http://www.dce.gov.ro/Info_business/Metallurgical_industry.htm
o http://www.cnp.ro/user/repository/f68a53fd74393519fd98.pdf
o http://www.cnp.ro/user/repository/f68a53fd74393519fd98.pdf
o http://mcir.doingbusiness.ro/en/metal/metallurgy
o http://www.dce.gov.ro/Info_business/Metallurgical_industry.htm
o www.ins.ro
Manufacture of wood and wood products
52

Overview
o Forestry industries in Romania (exploitation, woodworking and furniture) accounted in 2005 for
3.5% of GDP and for about 7% of the manufacturing sector output produced by 10% from the
total employees in industry.
o Significant parts of the Romanian forests are located in the mountains: 51.9%, while in hilly areas
there are located 37.2% of forests and 10.9% of forests are located in plain areas. Standing wood
volume of forests from the national forest fund is 1 341 million m 3 . The average country wood
volume is 218 m 3 /ha. The unitary average growth of forests is 5.6 m 3 /year/ha.
o The total volume of exploited wood was 15 671 thousand m 3 for the year 2005 and this wood
volume had two destinations, for economic operators with forestry activity (11 783 thousand m 3 )
and for population supplying (3 888 thousand m 3 ).
o In 2005 the furniture production amounted to EUR 1 195 million, out of which around 75% was
exported.
Issues
o The illegal logging phenomenon currently occurring in Romania is estimated at an annual volume
of 100 000 m 3 ;
o Less than 27% of Romania’s territory is covered by forests, which is under the European average
and well below what researchers consider, given the country’s natural conditions; the optimal
threshold is estimated between 32-35% from the total country’s territory;
Opportunities
o The Rural Development Programme for Romania 2007-13 whose primary purpose is to facilitate
the transformation and modernisation of the forestry production and processing sectors;
o Another objective is the development of scientific research and education with focus on forest
sustainable management, economical changes of forestry sector and amelioration of the
environment on the national, regional and global level;
o Design in furniture sector
Manufacture of wood and wood products: See
o http://www.rosilva.ro/
o http://europa.eu/
o www.maap.ro
o www.insse.ro
Manufacture of machinery and equipment
Overview
o The machine building industry was created and developed in Romania after WWII and nowadays
it is one of the most important sectors of the manufacturing industry.
o The most important branches are: electric and electronic equipment, equipments and
technological aggregates (mining, oil, machines). The most important trade partners for Romania
are Germany and Italy.
o The total number of companies in this sector is 1 748.
o The turnover of the companies active in this field is EUR 1 102.8 million.
o Export of transport machinery & equipment amounted to EUR 9 235 million in 2007, which is
33.9% of the total exports.
o Export of manufactured items amounted to EUR 6 012 million in 2007 that is 22% of total exports.
o Export of manufactured products mainly classified by raw material amounted to EUR 6 040
million in 2007, that is 22.2% of the total export.
Issues
o Low productivity;
o Small percentage (2%) of research & development expenses;
o Small percentage of Internet use in the sale-purchase process;
53

o Small percentage of employees using PCs.
Manufacture of machinery and equipment: See
o http://www.uti.ro/
The Automotive Industry
Overview
o In Romania, there are two major car operators: Renault, which purchased the local company
Dacia in 1999, and Ford, which, in September 2007, acquired controlling interest in local
Automobile Craiova;
o The most important car manufacturer in Romania is Dacia; Dacia is a low-cost automobile that
competes against second-hand cars. There is no direct competitor on the same price level;
o At the moment, the Ford factory in Craiova is only assembling vehicles brought from Turkey; the
first fully locally produced automobiles are expected to be delivered this year
o Production reached in 2009, 279320 cars (25 th place) with a growth rate of 21% (3 rd place after
China and Taiwan)
Issues
o The year 2010 is still a year of crisis for the automotive industry. Investments will be low on an
international level, not only in Romania;
o Although at the moment car manufacturers choose Romania due to the lack of alternative in the
proximity of Western Europe, increasing labour costs might lead to finding another option in the
future;
o Most of the car parts producers that intend to build production facilities in Romania have put their
plans on hold, as they are waiting for macroeconomic stability;
o Dependency of the local car parts manufacturers and subcontractors on the international
automotive players.
Opportunities
o At the moment, there is no other alternative for car manufacturers in the vicinity of Western
Europe, as Romania has tradition in manufacturing car parts and still has low labour costs;
o It is reported that around 12 car parts producers are planning to build production facilities in
Romania (which leaves room for other investment opportunities);
o Production diversification of the local car parts manufacturers and subcontractors;
o Over the course of last year auto imports to Romania fell by almost 55%, to nearly 106,000 units,
while Dacia exports rose by a similar proportion, to more than 258,000 units. Considering an
average price of 8,500 euros for the exported vehicles, the value of exports amounts to EUR 2
billion, while that of vehicle imports exceeds EUR 1.4 billion (considering an average price of
EUR 13,500), resulting in an almost EUR 800 million surplus.
The Automotive Industry: See
o http://www.dacia.ro/
o http://www.zf.ro/zf-24/seful-ford-romania-incepem-productia-pe-8-septembrie-4687989/
o http://www.zf.ro/zf-english/balance-of-trade-in-auto-sector-tipped-in-favour-of-romania-5443133/
o http://www.money.ro/english-brief/aris-car-manufacturers-choose-romania-for-lack-of-alternative.html
o http://www.capital.ro/articol/primul-ford-de-romania-a-iesit-pe-poarta-fabricii-din-craiova-124754.html
o http://www.capital.ro/articol/primul-ford-de-romania-a-iesit-pe-poarta-fabricii-din-craiova-124754.html
Electricity, Gas and Water
Overview
o Electricity in Romania is primarily generated by thermal power plants (using coal, natural gas and
oil) and supplemented by hydroelectric facilities and a nuclear power plant (2 working reactors
and 2 under construction out of 5 planned);
o Total production was 64,7 TWh (2008) – 56,2% power plants (coal and hydrocarbons), 26,4%
54

Hydro, 17,3% nuclear. Export was 5,3 TWh. Romania also imported 0,9 TWh.
o Main producers: Hidroelectrica more than 25%, Nuclearelectrica 17%, Elcen, CET Rovinari, CET
Turceni.
o The country’s hydropower potential is extremely large, with an estimated additional potential of
over 9 MW. There is a total of at least 767 hydroelectric power plants;
o Wind power: For Romanian wind resources there is a vast range of small existing applications,
from small autonomous units for rural areas to large off-shore potential with an approximate
capacity of 2.5 MW (UDI – Utilities Dynamic Inc., 2009). Currently Romania has approximately
636 MW of wind capacity under construction and 5500 MW planned;
o Romania has great biomass potential, which is estimated at 88 000 GWh per year. Direct burning
in kilns, stoves for space heating, cooking and hot water preparation is about 95 % of the
biomass use;
o About 66% of the firewood and wood waste is located in the Carpathians and Sub-Carpathians;
o The potential market for solar applications is very large but specific incentives will be needed in
order to realise it. (average solar radiation ranging from 1 100 to 1 300 kWh/m 2 per year on more
than half of the country’s surface);
o With the third highest geothermal potential of European nations, Romania has a total geothermal
installed capacity of about 145.1 MWt producing 2 841 TJ per year. This energy is produced from
about 59 direct-use wells with hot water;
o About 75% of the natural gas Romania uses, is domestically produced, importing the balance
from Russia. The gas distribution infrastructure is extensive, with possible providing countries
such as Norway, Turkmenistan and the Netherlands;
o Gas is the dominant fuel source in Romania, accounting for 37.1% of Primary Energy Demand
(PED) in 2007, followed by oil, coal and hydro sources;
Issues
o Domestic supporting financial sector relatively undeveloped;
o Extensive poverty limits the domestic users to invest in energy efficiency;
o Market dysfunctionality consisting in the difficulty of increasing household electricity tariffs to costcovering
levels due to high inflation and continued depreciation of the leu;
o Political resistance to further increases in household electricity tariffs;
o The district heating company is losing customers because of continuous poor performance.
Opportunities
o Romania will account for 3.29% of Central Eastern Europe (CEE) regional power generation by
2013, and will remain a net exporter of electricity to neighbouring states. The country is expected
to provide 3.15% of regional thermal generation;
o An increase of 66% in hydro-power use during 2008-18 is a key element of generation growth;
o Thermal power generation rise by 38% between 2008 and 2018;
o Romania's commitment to the European Union is to reach the target of 33% use of renewable
energy by 2010.
• 33% of total electric power and 11% of total energy consumption by 2010
• 38% of total electric power and 24% of total energy consumption by 2020
o In the first semester of 2009 29.8% from the total energy was provided from hydropower but Law
no. 220/2008 for the promotion of renewable energy imputed also the possibility of green
certificates (until 2010).
o Cernavoda Nuclear Power Plant still has 2 reactors in different stages of constructions. These
two will increase the output with more than 100%.
o Investments in wind power
Electricity, gas and water: See
o http://www.nabucco-pipeline.com/
o http://standard.money.ro/tag/termocentrale.html
o http://www.gdfsuez-energy.ro/
o http://www.distrigazsud-retele.ro/v1/
55

o www.ins.ro
o http://www.enreg-expo.com/
o http://www.opcom.ro
Construction & Real Estate
Overview
o In 2002-2008 periods, the real estate investments were the most attractive investments for the
population, mainly due to price developments by 2008 allowing price speculations. Prices for
residential units in projects launched in the first half of the year 2007 raised an average of 20%.
For example, in 2006 the average construction price was Є600/sqm and in 2007 it rose to
Є750/sqm. The market remained at an average of Є1,500/sqm until the beginning of 2009.
o In 2007 this sector accounted for 9.1% of GDP. Until the end of 2008 it has constantly expanded.
o In 2009, the GDP dropped with 7.6% reflecting the deterioration of the local economic
environment in the context of the world economic crisis; As a result the real estate market was
affected;
o The pessimistic economic outlook and the negative general feeling of the real estate market have
generated the contraction of the office segment in 2009;
o Non-residential construction there was an externalization of commercial and industrial realms and
warehouses, especially in and close by the urban area;
o Rehabilitation and maintenance of old buildings (schools, gyms, etc.) was at its peak in 2008.
Today the phenomenon lowered although benefiting from the European and national measures
targeting the renovation and retrofitting of buildings as a means to reduce the environmental
impact of buildings and accelerate economic recovery through support to a high labour-intensive
service.
o Residential constructions: The most dynamic sector was housing construction and currently the
residential market is favourable to buyers, considering the decreases in price and the developers’
flexibility. Potential clients are almost exclusively interested in residential units in advanced
construction stages;
o Demand: It changed substantially compared to 2008, as tenants were no longer looking to
relocate based on business expansion, but were instead interested in cost savings.
Issues
o The first effects of the economic crisis were felt since early 2009 in both physical volume of
construction works and in the value of the investments volume in the sector, because the
Government failed to fulfil a series of promises including the failure to provide the 10 billion euro
for investments, non-taxation of reinvested profits, VAT collection from invoices, etc.
o There is a high competition, especially in the residential sector due to the low granting stateguaranteed
loans in the First Home programme.
o The economic recession in Romania caused a decrease in demand as the population lost its
purchasing power but kept the construction rhythm rather constant as the materials and
manpower became more affordable. This situation created an overstock of dwellings, especially
in urban areas.
o The financial crisis affected the rate of business trips and the number of functional companies.
This affected the rentals of office spaces along with the occupancy rates in hotels.
o The increase of VAT from 19% to 24% in 2010 put an extra pressure to the real estate and
construction market.
Opportunities
o The decrease in demand in 2009 will maintain the downward pressure on lease levels, but the
decrease rate will be lower compared to 2008-09 due to owners’ resistance to reaching the
profitability limit for their investment;
o Despite the negative market feeling, acquiring properties in Romania in expectation of a market
recovery on medium term is still a great opportunity.
56

o The investment in the sustainable constructions in the context of climate change is a good start
for Romania.
o The infrastructure in Romania is mainly deficitary and is still a good segment for investment.
Construction & Real Estate: See
o http://www.realinromania-blog.com/romanian-real-estate-market-spring-2010shopping-in-analmost-empty-super-market/
o http://www.cbre.be/ro_en
o http://www.colliersinternational.com/Markets/Bucharest/
o http://www.pr-inside.com/romania-real-estate-report-q-r1859104.htm
o http://www.radarfarms.com/?page_id=30&type=573&view=1
o http://www.romaniarealestate.ro/?page=acasa&lang=en
o http://domino.colliers.ro/market/2009%20Colliers%20Romania%20Market%20Report%20Mid
%20Year%20en.pdf
o http://realestate.doingbusiness.ro/en/market-overview/article.php?articleid=455
o http://feaa.ucv.ro/FPV/010-08.pdf
o http://www.bucharestherald.ro/interviews-a-analyses/56-interviews-a-analyses/7223-financialcrisis-boosts-leisure-tourism-in-bucharesto
http://econpapers.repec.org/article/raujournl/v_3a4_3ay_3a2009_3ai_3a3_3ap_3a127-
136.htm
o http://mnmk.ro/documents/2010/3NistorescuFFF.pdf
3.3. Tertiary Sector
Transport Means and Infrastructure
Overview
o Romania's transport infrastructure is fairly extensive, with 73 435 km of road, 10 981 km of rail
and 1 779 km of water routes;
o Since 1989, every government has established a road-building programme, partly in an attempt
to generate employment. The EU has helped, but the money was mainly used for improving
border posts and building the major trans-European corridor routes that run through Romania
o Railway services, meanwhile, are still provided by the state-owned loss-making rail companies
and by private operators, for both freight and passengers. There are also various private and
state owned services and rolling stock provider companies. Only a third of the tracks are
electrified, and speed restrictions are widespread. In March 2001, the Japanese government lent
Romania USD 220 million to upgrade the Bucharest-to-ConstanŃa railway;
o Romania has 6 major ports, out of which ConstanŃa is seen as the most important to the country's
future. It is located on the Black Sea coast.
o The Danube is the country's most important trade route. In 1999, it was blocked due to NATO's
military operations in Serbia. It was soon reopened; problems however remain in the area.
o Romania also has 4 international and 13 domestic airports. The dominant carrier is the country's
national airline, TAROM. It is currently state-owned, and the government has been trying to find a
strategic investor to provide financing and connect the airline into rapidly growing global alliances.
o The number of flights has considerably increased during the recent years especially due to low
cost companies.
Issues
o Most of the infrastructure is in a poor state of repair, due to decades of underinvestment.
Opportunities
o Romania has a key geographical location, at the cross-roads of the major routes which link
Western Europe to the Black Sea and the Middle East, and of the corridors which connect the
Baltic Sea area to the Balkan peninsula and to the Mediterranean basin;
57

o Three of the ten Pan-European transport corridors pass through Romania: corridor No. 4 Dresden
– Prague – Vienna – Bucharest – Salonika - Istanbul, corridor No. 9 Helsinki – Moscow –
Bucharest -Alexandropoulos and corridor No. 7, which follows the route of the navigable Danube
and, together with the Main - Rhine Canal and the Danube - Black Sea Canal (opened for traffic
in 1984), provides the routes between the North Sea and the Black Sea;
o Romania will play an important role in the context of the future oil and gas pipelines from the
Caspian Sea and Central Asia to South East Europe and Western Europe;
o The Government elaborated plans to develop a national motorway system, some of them being
under developed.
o The railway network totals 10 981 km, of which one third is electrified track;
o The public road network totals 73 435 km, of which 14 700 are modernized roads (less than
400km are motorways).
River traffic is almost exclusively conducted on the Danube, from Baziaş (at its entry point into
Romania) up to Brăila for 2 m draught ships, whereas maritime Danube, between Brăila and
Sulina, is navigable for up to 7 m draught ships;
o There are plans to improve airports infrastructure. Henri Conda (main Bucharest airport) will
develop in two phases, the first being under construction). Two more airports will be built: Brasov
and Braila)
o Successive governments have been eager to rectify the poor situation of the infrastructure,
although they have had difficulty in finding the necessary funding;
o However, most hopes rest on foreign aid, particularly from the EU, and on attracting foreign
investment;
o One of the EU projects that Romania is currently part of, is Marco Polo II, which is a 5-step water
transport programme, with a total funding of EUR 450 million. The programme has 5 sections:
modal transfer projects, catalyst actions, maritime highways, water traffic avoidance actions and
common learning activities;
o The European Bank for Reconstruction and Development continues to support Romania’s
infrastructure.
Transport Means & Infrastructure: See
o The 2008 Romanian Statistical Yearbook
o http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/EXTECAREGTOPTR
ANSPORT/0,,contentMDK:20647580~pagePK:34004173~piPK:34003707~theSitePK:57112
1,00.html
o http://www.tarom.ro/
o http://www.infotravelromania.ro/aeriene.html
o http://www.mt.ro/
o http://www.cfr.ro/
o http://www.nationsencyclopedia.com/economies/Europe/Romania-INFRASTRUCTURE-
POWER-AND-COMMUNICATIONS.html
o Romania’s Ministry of Transport website http://www.mt.ro/programe_mt/programe.html
o https://www.cia.gov/library/publications/the-world-factbook/geos/ro.html
Healthcare and Pharmaceutical Industry
Overview
o The services quality is increasingly viewed as inadequate, and the system's performance is poor
in terms of equal access. The system’s dimension is: 44 Home Insurances, almost 30 000
physicians and 5 350 pharmacies that have a contract with the regional health insurance fund,
and also the 12 000 000 insured by the health insurance system of Romania
o The number of pharmacies grew so as that in 2008 there were 7 252 units, with 1 429 units more
than in 2005, almost all being private.
o There are pharmacy chains active in Bucharest and large towns. The big five having 100 to more
than 200 pharmacies.
o The private health system has been developing due to the shortages of the public one. There are
many medical centres across the country, but only in the big cities, not in small or rural areas.
58

o The prices of prescribed drugs and medical services are rather cheap. The problem is the
insufficient amount of money paid by the public system.
Issues
o Private sector is still underdeveloped and expensive for the vast majority of population.
o An important amount of active population is not paying taxes;
o Population per physician in 2008 was 428, less than the EU average;
o There is no “full service” private hospital in Romania;
o Public and private sectors are not working together;
o The number of taxpayer is going down as proportion of total population and the life expectancy is
going up. The public sector won’t be able to manage the system;
o In many rural areas, few have access to medical services. The access of the rural population to
basic healthcare services is hindered by the poor transportation services, which mostly impedes
on the medical staff’s commuting possibilities.
o Bribing doctors is a custom in Romania. Patients use bribery to solicit the standard level of
medical care;
o Not earning enough, young medical staff decide to leave abroad so there is the risk of not having
enough doctors and dentists.
Opportunities
o By implementing the national system of electronic prescription, the Ministry intends to improve the
quality of medical service and optimise the medical services costs;
o Developments in the private sector
o In the last few years most hospitals went on to be managed by local authorities through public
budget financing, which saved the healthcare system big amounts of money
o Making healthcare insurance more accessible to the population
Health and pharmaceutical industry: See
o http://www.ms.gov.ro/
o http://rbd.doingbusiness.ro/ro/5/articole-recente/1/256/romanian-healthcare-sector
o http://www.prlog.org/10589379-private-healthcare-market-in-romania-2010-growth-to-bedriven-by-health-insurance.html
o www.mcsi.ro/Minister
o www.worldbank.org
o http://www.factbook.net/countryreports/ro/Ro_HealthServices.htm
Tourism
Overview
o There is an increase in domestic tourism, more travel within the same region, more travel by road
and rail, more direct booking and an increased use of low-cost airlines.
o Romania is one of the world’s least tourism intensive countries, ranking 162 out of 174 countries
in terms of contribution to GDP.
o Real GDP growth for the travel & tourism economy is expected to be -2.4% in 2009.
o Availability of low-cost flights: Blue Air, Wizz Air, Germanwings, Jet Tran Air, MyAir, Nouvelair,
SkyEurope.
o In 2010, the Ministry of Tourism launched an international tourism promotion campaign entitled
“Romania – Land of Choice”.
Issues
o Romania faces a number of major gaps between the rural areas and urban ones in terms of
social and physical infrastructure.
o Internet access in rural areas is very modest, because of poor development and low income of
the population.
o Accommodation: poor quality standards of services and accommodation.
59

Opportunities
o There is much potential for Romania by breaking away from its traditional tourism on the Black
Sea. The following sectors should be prioritized:
o Meetings, incentives, conferences and exhibitions;
o Mountain tourism – skiing in winter and hiking in summer;
o Heritage tourism – using gateway sites such as Braşov, Sibiu and Sighişoara;
o Rural tourism – development of wine/monasteries routes and promotion of festivals;
o Spa/wellness tourism.
Tourism: See
o http://www.wttc.org/
o http://www.nationalgeographic.com/traveler/extras/geotourism/romania.html
o http://www.romaniatourism.com/
o http://www.antrec.ro/
o http://www.turism.gov.ro/ro/
o http://www.turism.ro/
o http://www.zf.ro/zf-24/tui-turismul-romanesc-este-cu-7-8-ani-in-urma-celui-bulgaresc-
5749361/
3.4. Quaternary Sector
IT & Telecommunications
Overview
o The contribution of IT & C to GDP is estimated to 10%;
o The volume of foreign direct investment in IT&C represents 22% of the total FDI;
o The regulatory measures adopted by the National Regulatory Authority of Communications with
regard to the reduction of interconnection tariffs and the implementation of the number portability,
which are expected to trigger greater competition in the sector;
o The biggest growth was that of the mobile internet connections (a raise of 43%, reaching 2.68
million) due to the evolution of the number of the connections provided through GPRS technology.
Issues
o In general, urban users benefit from a greater diversity of service offers, in comparison to the
rural users, who face either the problem of limited choice, having to choose from one or few
providers ,or the lack of access to the communication means, as they live outside the coverage
areas of the electronic communications networks.
o The level of using e-commerce is still low in Romania, compared to the European average.
Opportunities
o The strategy for 2011–2015 foresees the introduction of the BWA (Broadband Wireless Access)
systems in the 3.5 GHz, 2.5 GHz and 800 MHz frequency bands and the implementation of the
first concrete stages of the digital switchover;
o Through the Broadband Strategy, the Ministry of Communication and Information managed to
obtain European funds of EUR 84 million for investments in broadband infrastructure;
o Bundled offers including audio-visual programmes, broadband Internet access and fixed
telephony (“triple-play”) will be the main driver for the growth of the residential segment;
o On the corporate segment, the demand for integrated services of mobile telephony, data
transmissions and fixed telephony will gain importance.
o www.anis.ro
o www.mcsi.ro/Minister
o www.anrcti.ro
o www.eurostat.com
IT & Telecommunications: See
60

Education
Overview
o Teaching staff by level of education, in 2007/2008 school academic year
o Pre-school education: 13,5%; primary and secondary education: 50,2%; high school
education: 22,3%; vocational education: 2,1%; post high school and foremen education:
0,4%; tertiary education: 11,5%;
o Education by level of education from private institutions 2007/2008 (education units)
o Pre-school education: 206; primary and secondary education: 32; high school education:
41; vocational and apprenticeship education: 8; post high school and foremen education:
58; tertiary education: 50;
o Due to the measures taken within the reform of the national system of education, during
the period 2005-08, the number of educational institutions has declined by 30,7%;
o Tertiary education is continuously extending; the number of students during the period
2005-08 increased.
Issues
o Heavy bureaucracy;
o Lack of quality, modern education
o Corruption;
o Ever-changing system;
o Although there are more schools than necessary in rural areas, the quality of education is poor,
because of the poor infrastructure and the low training level of teachers;
o Most schools need new buildings, furniture, utilities and teaching materials.
o Financing public and private education programs
Opportunities
o Due to the fact that the public system cannot cover the need for proper education, there is
enough room for private investors to create educational services that meet people’s expectations;
o Education has a very important role in creating professionals and people are ready to invest in
their own education and in that of their children in order to become competitive on the labour
market.
o http://www.edu.ro/
o www.ise.ro
Media & Communication Industry
Education: See
Overview
o The communication industry in Romania is in constant development and has undergone a visible
evolution since the communism era, when all media was state-owned; Romanian media is highly
adaptable, innovative and very receptive to new tendencies – such as new media;
o Nowadays, the media market is almost completely privately owned by major Romanian
businessmen or, in other cases, by major foreign media trusts whose products range from
television and radio networks to publishing and new media;
o The advertising and public relations industry has had a rather downward evolution in Romania
during the last years. In the early 1990s, the industry was blooming, whereas nowadays, during
the economic crisis, with marketing budgets being seriously cut, small communication agencies,
more or less experienced, disappear one by one, leaving the market to the big names – mostly
international groups, such as BBDO, Leo Burnett, GMP, McCann Erickson, etc., which offer
communication services;
o In Romania, there are a total of about 45 advertising agencies, with about 1500 employees and
an estimate turnover of EUR 300 million.
61

Issues
o The financial crisis has severely affected the media and advertising industry. Many magazines,
advertising agencies are going bankrupt, and marketing and media budgets are being seriously
cut.
Opportunities
o In such a turbulent time for the industry, a well planned investment can turn into an excellent
o The Romanian communication environment is highly creative and innovation-oriented; it is very
open to new tendencies and very experimental; it has a rather traditional audience, but the
younger public is easily attracted to all that is new.
Media & Communication industry: See
o http://www.gruprc.ro/
o http://www.f5web.ro/
o http://www.protv.ro/
o http://www.mpinteractiv.ro/
o http://www.mediapropictures.com/
o http://intactmediagroup.ro/
o http://tvr.ro
o http://sanomahearst.ro
o http://ringier.ro
o http://iqads.ro
o http://smark.ro
o http://standard.money.ro/articol_75703/2009__un_an_greu_pentru_publicitatea_romaneasca.
html
o http://www.adplayers.ro/articol/Business-6/ADVERTISING-AdPlayersREPORT-2009-Raportul-
Agentiilor-de-Publicitate-editia-2009-3253.html
3.5 Sectors with High Potential vs. Risky Investments
Sectors High Potential Risky Investment
Primary
Agriculture o BIO Foods and
Cosmetics
o BIO labels
Fishing and Fish Farming o Recreational fishing
tourism
o BIO farm fishing
Extractive Industry o Cheaper Romanian coal
o Oil – very low royalty
rates (payment to the
Gorverment)
o Salt mines – touristic
attractions
62
o High percentage of small
subsistence farms
o Lack of specialized
technology and labour
force
o Limited resources;
investment should be
directed towards
manufacturing
o Gold mining –
controversial in Romania
due to the polluting and
destructive methods
used

Secondary
Manufacturing Industry
o Highly qualified and
economically reasonable
labour force
o BIO and organic foods
niche
o Wine sector
o Medium-high quality
textiles and consultancy
services due to a long
experience
Electricity, Gas and Water o Receptiveness to new
forms of power
generation
o Great biomass potential
Construction and Real
Estate
Tertiary
Transport Means and
Infrastructure
Healthcare and
Pharmaceutical Industry
o High demand and prices,
still above real value,
especially in Bucharest;
o Niche markets.
o European Bank for
Reconstruction and
Development supports
Romanian infrastructure
development
o Private clinics and
hospitals, as an
alternative to the local
public health systems
Tourism o Potential to break away
from its traditional
tourism.
Quaternary
IT & Telecommunications o Highly qualified and
economically reasonable
labour force.
Education o Room for private
investors to create
Media & Communication
Industry
Export oriented sectors
educational services.
o Population is very
receptive to new trends.
63
o Increasing costs for
labour force
o Insufficient raw material
o Textile industry in the
low price segment, due
to competition against
Turkey, India and China
o Dysfunctional electricity
market
o Difficulty in increasing
household electricity
tariffs to cost-covering
levels
o High competitiveness
o Economic sector very
much affected by the
economic crisis
o Poor state of the
infrastructure.
o Bureaucracy, corruption
o Major gaps between the
rural areas and urban
ones in terms of the
social and physical
infrastructure
o Urban / rural gap
o Bureaucracy, corruption
o Highly affected by the
economic crisis, in terms
of traditional media
The NES 2010-2014 will focus on a limited number of sectors compared with the previous one 2005-2009,
based on following criteria:

1
• Market and consumption trends
• Current export performances
• Supply capacity
• Presence and quality of resources and factors
• market access conditions
• new international rules and norms regulating international l trade or production or
stimulating productionbased on renewable energy
Sectors
Telecommunication and Software
Technology
2 Design driven Furniture exports
3
4
5
6
7
8.
9
Designed driven Garments and
Shoes exports
Agriculture and agricultural products
with focus on organic
Machine Building, Auto and means
of transport and Components
Cooperatives and Handicrafts and
rural tourism
Professional services with focus on
design, audio visual
Plastic materials and pharmaceutical
From chemical sector
Electronic, electrotechnic, hardware
Table 6 - Selection criteria for export strategy
64
Criteria for selection
Market trends, outsourcing
Endowment with factors (Large pool of Qualified
work force;)
Foreign language skills of the work force;
Human resources with creative and innovative skills.
Market trends
Supply capacity (;
Long tradition in manufacturing)
Endowment with factors (Qualified work force
Natural resources),.
Market and consumption trends
Endowment with factors (Qualified work force;
Human resources with creative and innovative
skills);
Market and consumption trends
Endowment with factors )Soil quality, Biodiversity
Good natural conditions);
Existing clusters.
Market and consumption trends
Endowment with factors (Qualified technical
educational system; Qualified work force);
Foreign investments in the sector;
Existing support industries for this sector.
Unique cultural and traditional values;
Creative and innovative skills;
National design;
Multiple handicraft centres in the country.
Market trends;
Endowment with factors
Creativity of the human resources ,
High schools preparing designers).
Market trends;
Endowment with factor
Market trends;
Endowment with factors

As per the table new export strategy will focus on:
• fields with export traditions and high performance (clothing, footwear, furniture, vinification,
food , arts and crafts)
• fields with export traditions and technological transfers of favorable FDI delocalization
such as machinery, means of transport and components construction, electronics,
electrotechnical, military technology;
• information technology and communications, as a central vector of the new economy
which contributes decisively to national production chains in all export fields but which
also exports a large amount of its production;
In the same time, taking into consideration new trends in the world trade demand
NES is targeting creation and promotion of specific export offer in fields that have large export potential
when considering global imperatives related to environmental, health or hazardous emissions reduction
standards such as ecoagriculture, processing raw agricultural material, the low carbon emissions industry,
professional services, nanotechnology, design or those related to the capitalization of renewable energy
sources; the same category fits professional services, nanotechnology, design or those technologies
related to the capitalization of renewable energy sources.
Sectors which are not mentioned in this document will be not neglected. As above mentioned regions may
prioritise differently on specific regional high profile sectors. Secondly, the export sector may benefit form
instruments and projects which are not sector oriented in trade information, competency building, market
access, trade finance, quality management or branding.
Special attention will be given to fields where strategic investors exist (automobile, ship construction,
machine construction, electronics, IT industry). Some of them like IT or professional services are
generating positive effects in the value chain of other export sectors or are attracting related industries
and investments, increasing the value of production executed domestically (energy). FDI s are increasing
the training level of employees in said area (nanotechnology; equipment, technology and training in the oil
field) and are stimulating creation of clusters of SMEs as suppliers.
In achieving increased competitiveness for priority sectors, the 2010-2014 NES has to first take into
account the degree with which requirements globally accepted as favorable to a healthy business
environment are met at a national level, considering the following factors:
• Suply side
- institutions;
- infrastructure;
- macroeconomic stability;
- health and primary education system;
• Business environment
- training and higher education systems;
- goods market efficiency;
- labour market efficiency;
- financial market development status;
- degree of technological readiness;
- market size.
• Development
- company business development status;
- innovation.
More so, it has to take into consideration factors influencing the efficiency of the domestic goods and
services market.
The annexes present the sectoral export strategies for the strategic sectors, as developed by the NES
working groups.
65

The Strategic Consideration no. 4 - Optimizing Value Chains and Sectoral Priorities of Important Strategic
Sectors
From the point of view of national value chain size, Romania has many areas that need improvement. The
difficulties identified are located in areas related to:
• raw materials suppliers, both as regards capacity and quality;
• the nature and means of obtaining competitive advantages on a local level;
• distribution area control of international foreign networks;
• degree of development of production processes;
• extent in which marketing and design are used and integrated in the value chain;
• management approach as regards reduced delegation of authority;
• innovation and use of modern technologies.
Taking into consideration the central role of expanding and optimizing sectoral national value chains in the
NES, the document aims to identify priority initiatives meant to:
• Improve efficiency at sector level;
• Minimize value losses outside of the national value chain;
• Add value;
• Create value;
• Distribute value.
The value chain analysis, as well as other analyses for the sectors of the new strategies which were
conducted by the working groups who contributed in the drafting of this document have
Promoting Investments and Export Oriented FDIs
The activity of foreign investors but also the increase in domestic investments have significantly
contributed to the implementation and achievements of the 2005-2009 NES. Foreing investements
contributed significantly to the overall export performances of the country contributing with more then one
third to total exports. The presence of large investors was a determining factor in the modification of the
structure of exports and its increase in volume in strategic industries such as: IT, machinery, means of
transportation and components, electronics and electrotechnical. The presence of FDIs in other strategic
industries such as furniture, clothing, footwear, was also significant for exports.
The general objective for this consideration is to further stimulate highly value added export oriented
investments in the strategic sectors of NES like automotive and means of transportation, IT&C, electronics,
hardware, agriculture and food processing.
For this purpose the following actions are proposed, which are meant to encourage the continuous
accumulation of FDIs in Romania for the purpose of creating and retaining as much value as possible in
the national value chain, but which also have effects in creating influential competitiveness poles, and
ultimately effects on national competitiveness:
• stimulating local authorities to learn and use territorial marketing good practice models
and techniques when they are promoting their regional economic offers to both the
domestic and foreign business environment and to potential investors;
• a proactive local attitude and a public-private partnership to attract transnational
companies (TNCs) to delocalize part of their value chain operations to Romania;
• the stimulation of supplier SME clusters around strategic investments in the automobile,
machine construction, equipment, IT, electronics, furniture, construction, architecture and
engineering, and design industries.
From the point of view of investors, Romania continues to remain a very attractive country, but in order to
remain competitive it has to take measures to keep and attract new FDIs:
- Political stability and coherent policies are of the utmost importance to this ends.
66

- The business climate has to be improved, especially through legal improvements and the
continuation of anti-corruption actions.
- The administrative system has to become more transparent and efficient; to this ends it is
recommended that public consultation be institutionalized, especially as regards new legislative
proposals.
- Major and sustained infrastructure investments
- Better EU fund absorption
- Thorough budget control, coherent budget strategy and planning
- Creating a single point of information and support for investors, which would have resources
specialized in the fiscal and legislative areas, would support the continuation, stimulation and
attraction of FDIs very much.
- Energy and defence will be priority fields for MECMA for the future strategic cycle.
67

4. Business model & business management
Drafting team:
Ioana Adriana STEFAN (POPA) (ioanaadriana83@yahoo.com)
Denisa VINTILESCU (denisa.v@aostaimobiliare.ro)
4.1. Introductory remarks
4.2. Setting up a business
4.3. Official representative (trading partner)
4.4. Subsidiary
4.5. Franchising
4.6. Licensing
4.7. Consortium
4.8. Management contract
4.9. Ceasing a business in Romania
4.10. Business management in Romania – interview Markus Wirth
4.1. Introductory Remarks
Q&A Box
1. What are the most common types of companies in Romania?
The two most popular forms of business entities in Romania are:
• Limited liability company (SRL)
• Joint stock company (SA)
2. How fast can I incorporate a company in Romania?
The company registration in Romania takes maximum five working days after submitting
the papers to the Trade Register Office, provided that the documents are complete and
accurate.
3. Is it necessary to come personally in Romania to set up a company?
No, there is no need to come personally in Romania to purchase a ready-made company,
all the needed documents will be sent via courier service to your office address.
4. Do I need a Romanian shareholder or administrator?
No.
5. How much is the income tax in Romania?
The corporate tax in Romania is 16 % applied to the net income.
6. What are the other types of Romanian companies?
• Partnership (SNC)
• Limited Partnership (SCS)
• Company limited by shares (SCA)
7. What is the main benefit of opening a company in Romania?
The company registration in Romania is ideal for those entrepreneurs who want to reduce
their tax expenses.
8. Are there financial incentives available?
Romania offers certain financial incentives to foreign investors. These may include tax
breaks, easy access credit facility or particular benefits for investors seeking to create
employment in disadvantaged areas. (Law no. 35/1991 regarding foreign investments in
Romania)
68

Measures imposed by the Romanian National Bank
o “The Romanian National Bank can take safeguarding measures related to the monetary capital
operations, measures which will apply to both residents and non-residents.
a) Obligation of residents and non-residents to notify the Romanian National Bank with at least
10 days in advance the intention to conclude monetary capital operations on a short-time
basis.
b) Establishing limitations for monetary capital operations on a short-term basis which generate
incoming/outgoing of capital from residents/non-residents.
c) Applying a commission for the initiation of transactions regarding the monetary market, etc.” 1
4.2. Setting up a Business 2
Organisation of the commercial activities
General partnership
o Limited partnership
o Joint Stock Company
o Limited Joint Stock Company
o Limited liability company
o Branch
o Representative Offices
o Subsidiary
Nationality of Commercial Companies
A company registered under Romanian law is a company with Romanian nationality.
Registration procedures
o Registered capital:
The registered capital of limited liability companies may not be less than RON 200 and it is divided
into shares of equal value, whose value may not be less than RON 10 each.
The registered capital of joint stock companies may not be less than RON 90 000.
o Name and logo:
The registered name of a company may contain one or several words or letters followed by an
indication of the company type or its Romanian acronym.
“The company logo is the distinctive graphic, literal or figurative sign serving to distinguish a company
from another. The logo must be distinct from other logos registered in the same Trade Register
Office, for the same business, as well as from the logos of other companies acting in the market
where the company carries out its activity. Logo registration is optional” 3 . Registering a logo at the
Commerce Registry does not offer the same protection as registering a logo as a trademark.
Authorizations and permits for companies
- Fire prevention and extinction authorization
- Sanitary authorization
- Sanitary-veterinary authorization
- Environment authorization
- Labour protection authorization.
Legal Obligations of Romanian companies: payment of taxes and filing of different fiscal
statements with the fiscal authorities
o The requirement to keep a “Shareholder Registry” (limited liability company)
1 http://www.romanianlawoffice.com/dividends-profit-romania.htm
2 for detailed information see Attachment 23
3 http://www.musat.ro/pdf/capitoleeng2009/2.Forms%20of%20doing%20business.pdf - page 4
69

o The requirement to keep an “Employee General Ledger”
o The requirement to keep “Accounting Registries”
- The Register-Journal;
- The Inventory Book;
- The Ledger;
- The Fiscal Evidence Registry.
As per Law no. 359/2004, the procedure of authorizing companies has been simplified. It is only the
environmental permit that may require special procedures depending on the company's object of activity.
Other types of authorizations are granted based on an affidavit given by the company's legal
representative.
Establishing a Branch in Romania 4
o “The branch is just an extension of the parent company and therefore has no legal personality and no
independence. Law no. 105/1992 on the Regulation of the Private International Law Relationship
adopts the accepted international practice by which a branch is governed by the national law of its
parent company.
o Legally, the branch has no separate status from the foreign company itself. It is merely carrying on
business in Romania. The foreign company will be liable to the employees and creditors of the branch
for the actions of, and debts contracted by, its managers and agents on behalf of the branch.
o The formation of a branch follows the same steps as that of a subsidiary, but they do not need to
establish incorporation statutes:
- a notarized copy of the articles of incorporation of the parent company;
- evidence of registration of the parent company in its country of origin;
- documentation indicating the company's solvency;” 5
- Creating a branch in Romania provides the registration with the Trade Register Office, located in
the area where the branch will be established.
o It is possible under Romanian Law to establish branches of an existing foreign company starting its
business activities in Romania. The general term of a Romanian “branch” refers to the location where
companies create secondary quarters, locations where the company sets up entities which are either
only empowered to administer the Romanian company’s business or only empowered to represent.
Procedures 6
o Draft the following documents:
- Affidavits - these documents will have a special format according to Romanian legislation;
- Specimen Signature - this document must be signed by the future Directors of the company and
notarized by a Notary Public;
- Articles of Association and By-Laws of your future Romanian company.
o Subscribe the Share Capital in your name.
o Open the company's bank account with the bank of your choice. Please note that this account will be
active only to deposit the Share Capital.
o Provide company office for registration purposes only.
o Submit the file to the Trade Register Office.
o Time and Subscribed Capital:
- It will take 5 working days from the date the entire documentation is provided to the authorities to
register the Company.
- Necessary funds for the minimum Share Capital: EUR 70 for S.R.L. and EUR 25 000 Euros for
S.A.
- Any other cases lawfully admitted.
Tribunals
“Romanian Tribunals are Courts organized for each county and the Bucharest municipality. They are
located in the county’s capital.
4 for further information see Attachment 24 and 25
5 http://www.rolegal.com/company-branch-romania.html
6 http://www.romanianlawoffice.com/company_formation_romania.htm
70

Competence of Tribunals:
- As 1st Phase Courts:
a) Commercial Trials of over RON 100 000 as well as trials without a non-financial object;
b) Civil Trials of over RON 500 000 with certain exceptions;
c) Labour Conflicts with certain exceptions;
d) Administrative Contentious Trials with certain exceptions;
e) Intellectual and Industrial Property Trials;
f) Expropriation Trials;
g) Adoption Trials;
h) Trials arising from judicial errors in criminal trials;
i) Requests to register forced execution of decisions from foreign Courts.
- As 2 nd Phase Courts (Appeal): Appeals against 1st Phase Regional Courts decisions.
- As 3 rd Phase Courts (Final Appeals): Final Appeals against decisions of Regional Courts which
are not subject to 2nd Phase Appeal.
Specialised Tribunals
Military Courts
o Romanian Regional Courts
Romanian Regional Courts cover Romanian counties and Bucharest’s sectors. Regional Courts can
contain specialized divisions per the nature and number of the cases. Their competence is for 1st
Phase Courts, respectively all trials with the exceptions of those going directly to superior Courts.
o The Court of International Commercial Arbitration
The Court of International Commercial Arbitration has the mission to promote commercial and
civil arbitrage both on a nationwide and international level and alternative solutions to litigation.
Attributions of the Court include the following:
- Assists the parties on their request in the Arbitrage procedure;
- Elaborates models of Arbitrary Conventions and promotes them in specific business areas;
- Collaborates with Arbitrary Commissions of Chambers of Commerce;
- Maintains evidence of its specific practice;
- Collaborates with international arbitrary institutions.” 7
In order to make sure the information is up to date, see
o http://www.minind.ro/
o http://www.mfinante.gov.ro/
o http://www.mmuncii.ro/ro/
o http://www.cdep.ro/
o http://arbitration.ccir.ro/engleza/index.htm
o http://www.romanianlawoffice.com/courts-romania.htm
o http://www.rolegal.com/company-branch-romania.html
o http://www.romanianlawoffice.com/company_formation_romania.htm
Liability of Romanian Administrators
o “The administrator (Director) of the Romanian Limited Liability Company (SRL) is the main body of
the company.
o The Ltd. (SRL) company can have one or more administrators, shareholders or non-shareholders in
the company, appointed through the Articles of Associations or the General Shareholder Assembly.
o The administrators cannot receive, without authorization from the Shareholder Assembly, the
mandate to be administrator in other competitor companies or in companies having the same object
of activity. Administrators cannot perform the same kind of trade or another competing trade on their
own behalf or in behalf of another natural person or company, under the sanction of their revoking
and liability for damages.
7 http://www.romanianlawoffice.com/courts-romania.htm
71

Appointing an administrator
The administrator can be a natural person or a legal entity. Administrators are appointed initially by
the Articles of Association and afterwards, during the current activity of the company, through a
Decision of General Shareholder Assembly. This Decision shall confer one or more shareholders or
non-shareholders the mandate to administer the Romanian company.
Obligations and Attributions of the Romanian Administrators
o The main obligations of the administrators are:
- to manage the current activity of the company;
- to maintain correct accounting for the company, insuring the existence and correct filing of the
accounting records;
- to fulfil the obligations of the companies they represent (e.g. trade regulations);
- to inform the shareholders upon the company’s activity;
- Not to activate in any way as a competitor to the company and follow the company’s interests (the
administrator’s fidelity obligation to the company).
o The administrator can perform any operation necessary to fulfil the company’s activity. The
administrator is able to sign documents related to the internal management of the company as well as
fully represent the company in relations with third parties.
o Liability of the administrators constitutes of both civil and criminal liability. Civil liability refers to liability
to the company and shareholders, third parties and in case of company’s bankruptcy. Criminal liability
refers to cases of fraudulent management, breach of trust, manufacture and use of false
documentation, fraud etc. Persons having been convicted of such crimes cannot be appointed
administrators and, if currently being administrators, shall lose their position.” 8
Human Resources
Should one intend to employ personnel, one must take into account the following information:
o Employment legislation and other norms regarding employment procedures/regulations
o Labour institutions and bodies
o The Individual and Collective Labour Agreements
Employing Romanian personnel implies signing an Individual Labour Agreement and depending on
certain factors, a Collective Labour Agreement.
o “The Individual Labour Agreement is a specially regulated agreement concluded in written form
with each respective employee.
• This type of agreement is formed of 2 parts, respectively:
- A mandatory part which contains the rights and obligations expressly stipulated by the law in
effect and
- A conventional part which contains the rights and obligations established by the parties
(e.g.: confidentiality and the non-competitiveness). An Individual Labour Agreement shall
contain clauses related to the following issues:
- Duration of Contract – The rule is to conclude the Labour Agreement for an
undetermined period of time. However, signing Agreements for determined periods of
time can be done as an exception;
- Working Location – City and Unit where the actual work takes place;
- Type of Work,
- Working Conditions,
- Salary,
- Working Hours.
• Besides the above mentioned, the Individual Labour Agreement can contain specific clauses
related to professional formation of employees, mobility, confidentiality etc.
• The Individual Labour Agreement must be registered by the employer with the Romanian Local
Labour Inspectorate a day before the employee begins his/her employment.
8 http://www.romanianlawoffice.com/administrators-directors-romania.htm
72

o Collective Labour Agreement
• If an employer has at least or more than 21 employees, then the employer must start negotiations
for the signing of the Collective Labour Agreement with the employees for determining working
conditions, payment and other rights and obligations resulted from labour relationships.
• The clauses stipulated by the this Labour Agreement are regarded as minimal when compared to
those contained in the Individual Labour Agreement, in other words, the employee’s rights cannot
be established at an inferior level than the one in the Collective Agreement.
• This type of agreement concluded at Unit level must be registered with the Directorate of Labour,
Social Solidarity and Family in the respective county.
• Collective Labour Agreements concluded at a higher level (groups of Units, activity branches or
national level) shall be registered with the Ministry of Labour, Social Solidarity and Family.” 9
Dismissal of Romanian Employees
• “Labour relations can be terminated in a lawful manner (retirement, certain interdictions, etc.),
resignation or dismissal by the employer. The dismissal performed by the employer can be
disposed for reasons related to the employee or other unrelated reasons. The employer is able to
dismiss for reasons related to the respective employee in the following situations:
- when the employee has gravely or repeatedly breached the regulations of labour discipline
established through the Individual or Collective Labour Agreements or internal regulations, as
disciplinary sanction;
- when the employee is arrested for a period of time exceeding 30 days;
- when a medical authority decides that the employee is physically/mentally unfit for the
position;
- when the employee is not professionally trained for the position;
- When the employee fulfils all conditions for a pension but has not requested retirement.
• Dismissal for reasons unrelated to the employee can be disposed in the case of dissolving the
position occupied by the respective employee.
• Collective Dismissal means dismissal of personnel in a period of 30 days, for reasons not
pertaining to the employee, of a number of:
- at least 10 employees, if the employer has more than 20 and less than 100 employees;
- at least 10% of employees – if the employer has more than 100 and less than 300
employees;
- At least 30 employees – if more than 300 employees.
• It is important to be noted that the employer has the obligation to provide all relevant information
and to notify the syndicates or employees’ representatives with regard to employees’ total
number and categories, reasons for the upcoming dismissals, criteria, and measures to limit
dismissals, etc.
• For both individual and collective dismissals, the employer shall not be able to employ new
personnel for the same positions for a period of 9 months, without written notifications to the
dismissed personnel for re-hiring. Once notified, these employees will have 10 days to express
their interest for the positions.
• The employees dismissed for their own physical or mental unfitness as well as persons not
corresponding professionally to the position as well as those dismissed for motives unrelated to
the employee, beneficiate from a notification period of at least 15 days.” 10
Main legislation (Law, Government Decision)
o Labour Code or Law no. 53/2003
o Law no. 48 regarding workplace discrimination
o COR (the Romanian Occupations Code)
o The Civil Code
o Law no. 31/1990 on Trade companies, republished, subsequently amended and supplemented ("Law
no. 31/1990");
9 http://www.romanianlawoffice.com/labor-law-romania.htm
10 http://www.romanianlawoffice.com/dismissal-discharge-employees-romania.htm
73

o Law no. 26/1990 on Trade Register Office, republished ("Law no. 26/1990");
o Decree-Law no. 122/1990 on the authorization and operation, in Romania, of representative offices of
foreign entities ("Decree-Law no. 122/1990");
o Methodological Norms no. 608/773/1998 on Trade Register Office keeping and registration rules,
issued by the Chamber of Commerce and Industry and the Ministry of Justice ("Norm no.
608/733/1998");
o Government Emergency Ordinance no. 76/2001 on the simplification of administrative formalities
required for the registration and authorization of corporate entities operation, republished as
subsequently amended and supplemented ("GEO no. 76/2001");
o Government Decision no. 573/2002 on the approval of procedures for the corporate entities operation
authorization ("GD no. 573/2002");
o Law no. 507/2002 on the organization and carrying out of economic activities by individuals ("Law no.
507/2002");
o Government Decision no. 161/2006 regarding the employee general ledger;
o The Accounting Law no. 82/1991 (Accounting Law) republished in 2005 and amended by Law no.
259/2007.
In order to make sure the information is up to date, see
o www.onrc.ro – The National Trade Register Office
o www.aneir-cpce.ro – Foreign Trade Promotion Centre IR
4.3. Official representative
Importing and Exporting in Romania
o “The activity of import-export in Romania can be performed in most cases without any measure of
control or supervision. This is a particular aspect of the international commercial liberty principle in
Romania.
o The import-export of certain goods is however subject to some measures of control, if regarded as
general interest of the national economy. These are exceptions to the general rule, and as a result, if
a certain operation is not explicitly categorized as being under supervision, then it is regarded as
being allowed to be performed freely.
o In the cases where measures of control and supervision are imposed, there are 2 types of approvals
which can be granted: licenses and other authorizations.
Other Authorizations
o In some cases, internal regulations impose the issuance from public institutions of other authorizations
(different from licenses) for cross-border transit of certain categories of merchandise.
o The Romanian legislation requires, in certain special situations, import-export authorizations for
commerce with the following type of products: animal and related products; plants and related
products; drugs; alimentary and agricultural products; elements of the human body, medical and
pharmaceutical products; guns, ammunition, toxic and explosive materials and nuclear products and
technologies; waste admitted for import-export, products dangerous for the population and
environment; goods part of the national cultural patrimony; tobacco and alcohol; genetically modified
organisms; chemical products; precious metals and gems, etc.
o Granting of the authorization will be denied in the following situations: the legal entity is not in
compliance with the legal provisions, the merchandise is subject to control and supervision from the
Romanian authorities (or the authorities of the country of destination) and if the conditions for the
authorization are not fulfilled, the merchandise is forbidden to be imported or exported etc.” 11
Main legislation (Law, Government Decision)
o Romanian Company Law no. 31/1990
11 http://www.romanianlawoffice.com/import-export-romania.htm
74

4.4. Subsidiary
o “An overseas corporation can very well do business in Romania via a subsidiary. The subsidiary has
a legal personality and is regarded as a Romanian entity. According to the Law no.31/1990, a
Romanian subsidiary of a foreign company is a Romanian legal person and, consequently, it is
subject to Romanian laws. It is liable, on its own behalf, for the actions carried out. It is accountable,
on its own part, for the actions taken on. The Romanian subsidiary has its own patrimony and bank
account.
o In practice, subsidiaries are commissioned following the same steps as the registration of companies,
and registering the subsidiary with the National Trade Register Office. The formation of a subsidiary
must comply with the minimum capital requirements under the Romanian Company Law no.
31/1990.” 12
4.5. Franchising
Situated in a continuous expansion in Romania, the franchise is regarded as a legal gateway that allows
"copying" a successful business.
o Legal framework
Within the Romanian Law system the legal frame which must be followed when drawing up the
franchise contract is represented by the Government Decision no. 52/1997 regarding the legal
regime of the franchise, approved with modifications by Law no. 79 of 9 April 1998, republished in
the Official Gazette as Law no. 180 of 14 May 1998.
o The franchise contract
The law does not define the franchise contract, but only the franchise as a trading technique. The
franchise contract can be defined as the contract by which the franchiser binds to provide the
franchisor a trade name, so that the franchisor, in exchange of a royalty payment, be able to exploit or
develop a business, a product, a technology or a service under the franchiser’s mark.
The franchiser only transmits the usage right of the client commercial signs (trade name, trade marks
and know-how) and not the ownership right of the aforementioned.
Following the law’s structure, there are three contract phases
1. The pre-contract phase
2. The contract phase
3. The post-contract phase
4.6. Licensing 13
Permits required prior to company incorporation
Below are listed some important types of Romanian companies which require prior permits and
authorisations in order to be incorporated. Please note that there are also other types of commercial
activities which require obtaining permits from the authorities subsequent to their formation:
o Banking activities
Credit Institutions, Romanian legal entities, can be constituted and are able to function only on the
basis of an authorization issued by the Romanian National Bank.
The authorization granted is valid for an undetermined period and cannot be transferred to another
entity.
o Insurance and insurance brokerage
The Commission of Insurance Supervising is able to grant authorization for the companies activating
in the insurance/re-insurance market, in the case of cumulative fulfilment of the following conditions:
12 http://www.romania-company.com/romanian-branch.php
13 http://www.romanianlawoffice.com/permit-license-company-romania.htm
75

• Procedure to cover all risks in one class of activity and in the situation which the insurance
company only wishes to cover certain risks included in the respective class, a feasibility study
must be drafted which must contain the following information and documents:
a) The nature of the legal engagements or risks which the insurer wants to cover.
b) The calculations methods used for the establishment of the technical reserves.
c) The principles of the re-insurance program and the lists with the re-insurers as per the
provisions of the norms issued for the application of the Law.
d) The components of the Safety Fund, as per the legal norms.
e) The financial resources to cover the expenses and resources of the insurer for granting
the assistance;
f) The first three financial exercises, the feasibility study which will also contain:
- The estimation of the expenses pertaining to the executive management and to
management positions specific to the insurance area;
- Estimation of bonuses and damages;
- Budget of income and expenses;
- Estimation of the financial resources necessary to the constitution of technical
reserves and margin of solvency;
- An information technology system adequate for the optimal insurance activity per the
information required at point 1, as per the norms regarding the authorization of the
insurers, issued for the application of the Law.
IMPORTANT: For obtaining the authorization to function, as well as at any time during the actual
activity, an insurer or a re-insurer must be in working relations with at least one actuary and in the
case which the volume of activity requires the employment of 2 or more actuaries.
An insurer cannot be registered in the Romanian Trade Register Office without the prior permission
for registration from the Insurance Supervision Commission.
o Companies with activities in the administration of the National Commission of Movable
Valuables (CNVM)
The Law regulates the formation and functioning of the financial instruments market, with the specific
institutions and operations as well as the collective placement bodies for the purpose of the
mobilization of the financial resources through investment in financial instruments.
IMPORTANT: The National Commission of Movable Valuables (CNVM) is the competent authority
which applies the provisions of the Law through the prerogatives established in its governing
regulations.
The financial investments regulated by the Law are:
1. Main Services
a) The takeover and transmittance of the orders received from investors related to one or more
financial instruments;
b) The execution of the orders related to one or more financial instruments, other than in own name;
c) Transaction of financial instruments in own name;
d) Administration of the portfolios of the investors’ individual accounts, on a discretionary basis,
respecting the mandate given by the latter in the case when these portfolios include one or more
financial instruments;
e) The subscription of financial instruments on the basis of a firm arrangement and/or placement of
financial instruments.
2. Related Services
a) Custody and administration of financial instruments;
b) Renting of safety boxes;
c) Granting of credits or loans of financial instruments to an investor in certain conditions;
d) Consultancy given to legal entities in regards to any matter related to the capital structure, industrial
strategy, as well as consultancy and services related to company mergers and acquisitions;
76

e) Other services related to the subscription of financial instruments;
f) Investment consulting regarding financial instruments;
g) Currency exchange related to financial investment.
Companies with the following activities:
− Retail Sale
− Import
− Export
− Producing of Firearms and ammunition
The companies which wish to activate in this field are required to apply for a permit from the central
or local structure of the General Inspectorate of the Romanian Police. In order to obtain the permit
mentioned above, the persons interested will file with the Romanian police a request with the
following documents attached:
a) For all future shareholders and administrators (directors) – ID and certificates of criminal
records;
b) The persons mentioned on point a) whose activity will imply actual access to arms and
ammunition, must provide the following documents:
(i) Medical approval showing that the person in question can own, carry and use arms and
ammunition, issued with no more than 12 months before the request is filed.
(ii) A medical certificate issued by specialized unit with no more than 6 months before the
filing of the request, showing that the person is not suffering from any of the conditions
making impossible the authorization to own, carry and use firearms and lethal ammunition.
(iii) A certificate showing that the person in question has finished a practical and theoretical
training course in the field of arms and ammunition.
Romanian security and protection companies
In order to obtain the license to function, the following documents have to be provided to the police:
a) Approval from the Romanian police related to the object of activity, name of the company,
approval of the shareholder and management personnel obtained before the registration of
the company with the Trade Register Office.
b) The verifications for this approval will be extended upon the husband, wife or person
cohabitating with the associate(s) and the management, to find out more about their
activities, their interactions with the society and their criminal records.
Legal depositions: Romanian Company Law no. 31/1990 and the CAEN Romanian Code
(Classification of the Activities in the National Economy)
4.7. Consortium
A consortium represents a short-term agreement in which several firms (from the same or different
industry sectors or countries) pool their financial and human resources to undertake a large project that
benefits all members of the group. A consortium lasts for a period that is usually shorter than that of a
syndicate.
Domestic legislation allows for the conclusion of a joint venture agreement (in Romanian “contract de
asociere in participatiune”). Under this agreement, parties act together for the accomplishment of a
common business goal. This form of doing business in Romania does not create a legal entity. Generally,
one party is in charge of the bookkeeping of the joint venture.
4.8. Managing contracts 14
� Management of personnel
� Accounting
14 For further information, see the information in Attachment 26 – Signing contracts in Romania
77

� Marketing services
� Training
Main legislations
Law no. 66 of 7 October 1993
Labour Code no. 53/2003
The Civil Code
In order to make sure the information is up to date, see
o http://www.gov.ro/
o The National Union of Public Notaries from Romania: http://www.uniuneanotarilor.ro/
o Chamber of Commerce and Industry of Romania: http://www.ccir.ro/
o The Court of Accounts: http://www.rcc.ro/
o The Romanian Ministry of Justice: http://www.just.ro/
o The Official Website of the Romanian Presidency: http://www.presidency.ro/?lang=ro
o National Trade Register Office: http://www.onrc.ro/
o The information centre of the European Commission in Romania: http://www.infoeuropa.ro
4.9. Ceasing a business in Romania 15
A business in Romania can be dissolved in the following ways: Dissolution, Winding, and
Bankruptcy
o A Romanian company can be dissolved through the following methods:
• Exceeding the limited timeframe for which the company had been initially incorporated for;
• Impossibility to fulfil the company’s object of activity;
• Declaring annulment of the company;
• Decision of the General Shareholder Assembly;
• Court Decision, upon the request of each associate for well-founded reasons as well as
conflicts between associates resulting in cease of company’s activity;
• Company’s bankruptcy;
• Other reasons stipulated by Law or the Articles of Association.
• In certain cases, the shareholders of SRL companies are able to decide – at the
moment of dissolving the company – upon the winding method of the company, when
agreeing upon the assignment and winding of the company’s patrimony and when
insuring payment of debt to potential creditors. On the date when the Court decision
to dissolve the company is issued, the entity enters winding, as per the provisions of
the Law and a winder has to be either hired by the company or appointed by the
Judge.
Main legislation: Romanian Company Law no. 31/1990
15 http://www.romanianlawoffice.com/dissolving-romanian-company.htm
78

5. Choosing a local partner
Drafting team
Alexandru Cosmin TEODORESCU (acteodorescu@gmail.com)
Roxana Andreea SANDU (roxana_sandu04@yahoo.com)
5.1 Introductory remarks
5.2 Cross-cultural issues
5.3 Suggestions for a safe choice of partners
5.4 Risk and risk assessment
5.5 Experiences
5.1 Introductory remarks
The first question that comes to mind is “Why should a foreign businessman look for a Romanian
partner?” and surprisingly enough the answer is not that hard to find. First of all, Romania, as a country,
represents a point of interest when compared to its neighbours, considering the market size and the
power of purchase. If we focus on Romanian businessman profile we will find that the advantages
outweigh the disadvantages: starting with their professional experience, especially technical skills, the
willingness to become successful entrepreneurs, their innate affinity for foreign languages and going as
far as capacity to work hard in order towards profitable goals.
5.2 Cross-cultural issues
The official language of Romania is Romanian (spoken by 90% of the population), while Hungarian,
Romani and German are spoken by minorities. Romania is a secular state, therefore it does not have a
national religion and all religions have the same legal status. However, from a cultural and ceremonial
point of view, the Christian Orthodox religion may be considered the dominating one. The main religions
and denominations in Romania are Christian: Romanian Orthodox (88%), Greek-Catholic, Roman-
Catholic and Protestant. Other denominations (Islam, Judaism) and atheists are under 1%.
According to the “Culture in the Workplace Questionnaire”, the landscape looks as follows.
� Individualism
o This dimension focuses on the degree to which a society reinforces individual or collective
achievement and interpersonal relationships. The Romanian culture encourages people to have
an individual style. This is an archaic feature that the Romanian people have preserved to the
present day. All of Romania’s traditional cultural background is strongly related to this.
� Power Distance
o This measure the extent to which subordinates accept that power is unequally distributed in an
institution or organisation. In the case of Romania, one can find an accepted hierarchy which is
taught and put into practice starting from school. This is considered as the “old-school style”
dating back to the communist era, that Romanians strive to overcome.
� Certainty
o This dimension describes the level of acceptance for certainty or ambiguity within a culture.
Romanians do not accept changes easily. It is safe to say that it is a structure-oriented society.
This can be explained by the fact that the Romanian nation is very old and has gone through
numerous wars, political turmoil and economic changes.
79

� Achievement
o This dimension measures the degree to which the society values tasks and work or relationships
and quality of life. In the case of Romania, studies 16 have shown that it is a task-oriented society.
This conclusion is easily explained by the fact that Romania exhibited strong dictatorial
leaderships throughout time.
� High context environment
Romanians belongs to a high context type o society where informal, contextual communication is
important.
� Social capital
Romanians belong to the low trust type of society where capacity of trustful association is hard to
achieve between non family members. Therefore there is lack of capacity to associate and to trust, a
lack ofsocial capital which increases the transaction costs
� Time Orientation
o This dimension reveals the extent to which the members of a society can adapt themselves to
reach a desirable future or, based on past experiences, they focus on fulfilling the present needs.
In the case of the Romanian society, one will discover the focus on fulfilling present needs and
targeting especially short term results and goals
The political dimension
In the past years Romania has become an attraction for foreign investors. There are many reasons for
this, but at the same time this interest has yet to materialise in the figures that statistics show. We cannot
yet determine the exact causes for this phenomenon, but we can present some of the aspects of today’s
reality:
PROs CONs
� Flat tax 16%
� Selling products in the EU without
paying taxes
� Port to the Black Sea
� Properties at reasonable prices
� A market of 21.5 million people
� Well trained people willing to perform
80
� Bureaucracy
� Political instability
� Corruption
� Incoherent changing of the Fiscal Code
� Weak infrastructure
� Unforeseen new laws
The psychological dimension
The Romanian businessmen are not that different from other businessmen. But, at the same time, they
have their particularities that have to be mentioned:
• Points of specificity for the Romanian businessmen:
o Dress code (mostly formal mainly for old managers)
o The handshake
o The exchange of business cards
o The promptitude of the responses to their requests
o Pays attention to status symbols and to the context during negotiations
• Other points to consider while doing business with Romanians:
o Romanians have an innate talent for learning foreign languages to the extent of understanding
their interlocutors’ body language and mimics
o Romanians have a great willingness to learn and will “steal” anything as copy their auto locates
(e.g.: the way you negotiate)
16 Ingrid Aioanei, (2006) "Leadership in Romania", Journal of Organizational Change Management, Vol.
19 Iss: 6, pp. 705 - 712

o Romanians will put in 110% dedication in any project
o Romanians will ask from you more than you are willing to pay (they love to negotiate a bargain)
o To close a deal in their terms, Romanians will make promises they cannot always keep
(sometimes more than you ask for)
o The leadership styles in Romanian companies differ from the ones in Western Companies. It is
widely known the rule that any decision can only be taken by the owner/managing director of the
company, this meaning that the hierarchy is very strong.
Considering the above, we could try to draw the portrait of the ideal Romanian businessman as follows:
“He would have to be Christian Orthodox. He should be able to speak at least perfect Romanian and
English, with at least one MBA degree. He should have an intermediary position in an international
company, with some connections in the political sphere (that are not publicly admitted). He should have a
strong character, but at the same time he must be willing to accept outside ideas meant to help his
business.”
Culture and beliefs: See
o www.europa.eu
o www.mimmc.ro
o Culture in The Workplace Questionnaire
o Romanian papers
o Leadership in Romania, Ingrid Aioanei, 2006
5.3. Suggestions for a safe choice of partners
� Potential / interested partners
When it comes to choosing a local partner in Romania, a foreign businessman has several options:
• Asking own trusted contacts for a recommendation;
• Contracting the services of a consultancy company;
• Prospecting the market himself, and contacting the persons from his area of interest that may be
keen on developing a partnership;
• Attending forums and conferences organized by the Chamber of Commerce and Industry of
Romania (CCIR) or by bilateral Chambers of Commerce, such as the Chamber of Commerce
Switzerland – Romania;
• Searching through business opportunities pointed out at:
- CCIR's National Business Information Centre
- CCIR's Business Online service
- the Foreign Trade Department of the Ministry of Small and Medium Enterprises, Commerce
and Business Environment
- the different confederations and patronages
• Posting his own offer at CCIR;
• Requiring assistance from one of the European Commission’s Enterprise Europe Network
partners.
Potential / Interested partners : See
o www.ccir.ro – The Chamber of Commerce and Industry of Romania
o www.dce.gov.ro – The Foreign Trade Department of the Ministry of Small and Medium
Enterprises, Commerce and Business Environment
o www.enterprise-europe-network.ec.europa.eu – Enterprise Europe Network
� Information needed and required
After establishing contact with one or several potential business partners, the foreign businessman
should proceed with a background check of the candidate and his current business (es). Aspects that
should be verified:
81

• The businesses’ experience on the market
• The products/services offered and their prices
• The human resource fluctuation
• The local and international competition
• The business relations with other partners
• The legal situation of the company and its administrator - on the website of the Ministry of the
Public Finance; this shows information about the balance sheet - turnover, profits (where one
must pay attention to the local practice of not reporting all profits in order to avoid taxation),
assets, debts and others, as well as on the website of the National Trade Register Office
(against a small fee) - that shows even more information
• The list of insolvent companies on the electronic version of the Insolvency Procedures
Bulletin, edited by the National Trade Register Office
• The debts to the state budget, social state insurance, unemployment government tax and
health government tax - on the website of the National Agency of Fiscal Administration
• The list of inactive as well as the list of reactivated fiscal taxpayers - on the website of the
National Agency of Fiscal Administration
• The list of past payment incidents - if any - at any local bank's Payment Incident Register
• Private websites focusing on unmasking business felonies, such as www.antitepari.ro or
www.bonitate.ro. However, they rely mostly on reports done by other parties and therefore
they should not be used as unique source of information.
• The litigations where the potential business partner is the party sued and asked to pay a
certain amount of money or he is demanding his insolvency. These lawsuits are normally filed
in a court of law in the proximity of the culprit. This can be the 1 st phase court (in the first
resort) or the 2 nd phase court (for the appeal). Therefore it is advisable to search the lawsuits
in both courts of law. The search can be conducted on the website of the Ministry of Justice.
One should bear in mind however that the mere existence of litigation is not proof of guilt.
• By conducting such an investigation one can find out the potential collaborator's background
and choose to continue or cease the relations with a partner that is close to bankruptcy or
who only pays his debts when he is brought to court to do so, or who is generally not doing
correct, legal business.
Information needed and required : See
o www.mfinante.ro – Ministry of the Public Finance
o recom.onrc.ro – The National Trade Register Office
o www.buletinulinsolventei.ro – The Insolvency Procedures Bulletin
o www.anaf.ro – The National Agency of Fiscal Administration
o www.bnr.ro – The National Bank of Romania
o portal.just.ro – the Ministry of Justice
o www.antitepari.ro
o www.bonitate.ro
� Finding the appropriate information sources
Whenever possible, it is recommended to use official sources of information, such as the websites of the
different Romanian Ministries, websites of International Organizations (ITC, WTO, Eurostat etc.). The
information found on unofficial websites, newspapers and magazines, as well as the opinion of different
local businessmen may be very interesting, but also highly subjective and therefore should be considered
and used cautiously.
It is advisable to use the services of a consultancy company that is locally represented. When contracting
such services, one can choose between:
• big international companies, such as PWC, EY, KPMG, Deloitte, etc.
• small & medium local companies
If the business is large, then it may be necessary to go with one of the “Big 4”. Otherwise, it might be
better to choose a local consultancy company: not only because of the cost of the operation, but also
because the local consultant may have a better grasp of the local customs and procedures.
82

The best way to find a good consultancy company is to ask for reference from business partners, clients,
suppliers who have conducted business in Romania at some point. If this is not possible, one can turn to
the Romanian Management Consultants Association (AMCOR). All members of AMCOR are Romanian
consultancy companies that specialise in management consulting. A full list can be found here with links
to each company and its contact details. Additionally, one may also get assistance from the Romanian
Agency for Foreign Investment.
Finding the appropriate information sources : See
o www.pwc.com/RO – PricewaterhouseCoopers Romania
o www.ernst&young.ro – Ernst&Young Romania
o www.kpmg.ro – KPMG Romania
o www.deloitte.com – Deloitte
o www.amcor.ro – The Romanian Management Consultants Association
o www.arisinvest.ro – the Romanian Agency for Foreign Investment
5.4 Risks and risk assessment
Regardless of the country that he wants to invest in, the foreign businessman is aware of the side he
might have to assure. In most cases he can find help in consultancy firms, but at the same time he can
seek the advice of someone that has already taken this step.
What are the risks to be considered when entering the Romanian market with / without a
local partner?
• Enter the market with a local partner:
o He is familiar with the laws of their country and could take advantage of the fact that the
foreign businessman does not know all the details.
• Enter the market without a local partner
o Getting lost in the bureaucracy
o Necessity to learn the customers preferences by hiring a specialised company (to avoid
losing money and time)
Who can help deal with these risks?
As afore mentioned, there are several ways of dealing with these risks. For instance:
• Hire a consultancy company that you know and worked with before: most likely it will be
from your own country and you will not have the certainty that it knows the laws of Romania
• Hire a consultancy company from Romania: you have never worked with it before, but it is
familiar with the local laws and market.
• Hire a law firm: can help from a legal point of view, but not from an economic point of view
• Conduct your own research (yourself or your employees): the results will probably be the
same as in the first case
• Take the advice of a business partner that already conducts a successful business in
Romania: if he is in the same market he might give you wrong information and if he works in
another market he may not be capable of drawing a realistic picture of Romania.
o www.ey.com
o www.minind.ro
Risk and risk assessment: See
83

5.5 Experiences
For having a concrete input, we applied a short questionnaire to the Romanian Economic Associations.
The research was developed in July-August 2010 having as main sample all the companies’ members of
the Romanian Economic Associations. The response rate to the research was 10%, which is normal in
this period of the year (summer holiday).
The main information is revealed by the following questions:
1. Please specify the difficulties you encounter in managing your business.
a. Poor infrastructure.
b. Poor brand image and promotion.
c. Difficulties in accessing the European Founds.
d. Frequent price increase of marsh gas and energy.
e. Difficulties in re-qualifying current human resources skills.
f. The migration out the country of the high skilled human resources.
2. Please specify the first needs you have in order to manage successfully your business:
a. Legislative stability
b. Accessible loans to various banks
c. Eliminate the tax on the profit coming from reinvestments.
d. Encouraging the development of new techniques for increasing energetical efficiency.
e. Decreasing the price of march gas by increasing the weight of the national march gas in
the light of the reduction of the imported quantity.
f. Promoting the exporting products with public financial support.
84

6. Errors and traps
Drafting team
Hanelore Brighite BENING (hanicutzu@yahoo.com)
Elena Monica PETRESCU (elena_monica_petrescu@yahoo.com)
6.1 Introductory remarks
6.2 Cultural and behavioural gaps
6.3 The corruption Issue
6.1. Introductory remarks
Errors can be seen as actions that lead to failure because of disregard of some crucial elements and
they are neither controlled nor intended. Causes of this type of actions lay in cultural differences,
unknown specific characteristics of people and local market.
On the other hand, traps are elements, usually barely legal that create to the unadvised person a turn
from the course of its actions. Such traps regard the incompetence of certain public servants or other
collaborators, the all-level manipulation or other phenomena like corruption.
This type of elements affect local activities in every society, but it is even worse when creating
translational partnerships.
6.2. Cultural and behavioural gaps
The general cultural heritage
Romanians perceive themselves as “Europeans”. There is a strong belief that before 1944 Romania was
very well integrated into the general European practice of culture and politics. It is generally considered
that between 1964 and 1972-1975, the Ceausescu regime was relatively open towards the West. This
“historical window” was a good opportunity to create the actual leading intelligentsia and to recall some of
the major interwar Romanian heritage.
The communist and cultural heritage
� Tendency towards inefficient bureaucracy :
o In the EU list of countries with the most taxes per year, Romania ranked second with a
number of 113 taxes (PriceWaterhouseCoopers Romania);
o Regarding the time spent on paying these taxes per year, Romania totals 202 hours, while
the European average is 232 (see Attachment 27);
o Extremely dynamic changes in regulations of rules and procedures after 1989;
� Weakness of leadership and lack of the true management social techniques.
o Workers are waiting to be managed;
o Employers do not know how or do not have the culture of trust enough to empower their
managers and workers with true leadership or autonomous self-governance powers.
� Corruption
o There is a relative well spread belief that corruption increased after 1989. (See Chapter 6.3)
Prejudice and Discrimination
Broadly, Romanian society is still a “conservative” society. Here are some figures on this aspect:
85

� The main causes for discrimination in Romanian society are: 1. Ethnicity (64%); 2. Disabilities
(53%); 3. Sexual orientation (50%) (2006 Euro Barometer). However the discrimination sentiment
is not too powerful in Romania in comparison with other countries worldwide.
� Gender
o Romania is within the European average figures (Metro Media Transylvania), women being
well represented (by number) on the labour market since communism;
o Although the situation improved in the last years, the presence of women is still poor in the
Government: 12% of Ministers and 13.3% of state secretaries are women (FNUP and
MMFPS study); 72% of the population (2006 Euro Barometer) considered necessary that
women should be more present in management positions (the European average is 77%)
o Main regulation: Law no. 202/2002 regarding gender equality.
� Religion
o 85% of population declare themselves Orthodox, followed by the Roman-Catholics,
Reformed and Pentecostals.
o There are no declared tensions among Romanians caused by religious orientation;
� Ethnic
o The largest ethnic groups in Romania are: Romanians – 89.5%, Hungarians – 6.6% and
Roma – 2.5% (General Survey, 2002);
o There are some tensions over the systematic political action of UDMR (the Democratic Union
of the Magyars in Romania) to segregate labour and education according to ethnicity in
Harghita and Covasna counties;
o Roma people are the most discriminated ethnic group, also because of the international
prejudices against them that affect the image of Romania;
� Sexual orientation
o Homosexuality is not well accepted in Romania, figures being over the EU average (58% of
Romanians considered homosexuality as inappropriate behaviour whereas the EU average
was 48% - Special Euro Barometer 2007). Homosexuality is seen in opposition with the
general values of family and Christianity.
Issues: Romania had a well established social welfare system before 1989, like any European
communist country, but with a lot of shortcomings, especially in the social care system. After 1990 the
system collapsed. New radical changes came fast (for example the Pension Law) and future investors
should be aware of the rapid changes in the Social Welfare sector.
Cultural and behavioural gaps: See
o http://www.capital.ro/articol/romania-pe-al-doilea-loc-din-ue-la-birocratie-pentru-plataimpozitelor-128370.html
o http://www.wall-street.ro/articol/Economie/74562/ING-Romania-Birocratia-excesivablocheaza-finantarea-proiectelor-din-sectorul-energetic.html
o http://www.capital.ro/articol/birocratia-ingreuneaza-accesul-ong-urilor-la-bani-europeni-
129323.html
o http://ebooks.unibuc.ro/psihologie/rascanu/6-2.htm
o http://eu.gallup.com
o FNUP and MMFPS study on http://www.9am.ro/stiri-revistapresei/Social/12920/Discriminare-pe-baza-de-sex-Femeile-din-Romania-au-salarii-submedia-nationala.html
o http://www.balkan-monitor.eu
o http://www.mmt.ro/Cercetari/discriminare%202004.pdf
o http://www.insse.ro
o http://ec.europa.eu/
o http://ro-gateway.ro/node/193598/comnews/item?item_id=313195
86

6.3. The corruption issue
General overview
� Romania ranks 71 st out of 180 countries in the Corruption Perception Index 17 (See Attachment 28)
� Highest level of corruption perceived among EU countries: Romania shares the last place with
Bulgaria and Greece in the EU, according to the Corruption Perceptions Index (3.8 points at the end
of 2009)
Enabling factors
� Lack of proper control from the authorities;
� Lack of transparency from the Romanian authorities;
� Poverty and scarcity of goods;
Combating corruption
� Legislation
o Law no. 78/2000 on preventing, discovering and sanctioning of corruption acts;
o Decision no. 43/2002 regarding the National Anticorruption Directorate
o Law no. 365/2004 regarding the Ratification of the United Nations Convention against Corruption;
o 52/2003 and 544/2001 regarding decisional transparency;
o Law No. 161/2005 establishing The Anti-Corruption General Directorate;
o Law no. 54/2006 establishing The National Anticorruption Directorate;
o Law no. 144/2007 creating The National Agency for Integrity.
� Institutions
o National Anticorruption Directorate (NAD)
• Set up on the 1 September 2002;
• Carries out criminal investigation and prosecution for the offences stipulated in Law no.
78/2000 mainly for high level corruption;
• Reports 18 show a growing rate of sentences in corruption cases investigated by the NAD;
o Anti-Corruption General Directorate (AGD)
• Established by Law No. 161/2005 on regulating certain measures for preventing and
combating corruption within the Ministry of Interior and Administration
• Has the ability to :
- prevent, provide information about/and to combat corruption offences, connected
to corruption or directly linked to corruption offences of the MIA personnel;
- receive citizens complaints on the alleged corruption offences of the MIA
personnel;
- perform judicial police activities, according to law;
- organize and perform activities for testing the professional integrity of the ministry
personnel;
o The National Agency for Integrity
• Founded in 2007 made Romania the first European country to have an institution
specialised in the verification of assets, conflicts of interest and incompatibilities;
Verified by The National Council of Integrity.
� Campaigns
o Several campaigns were launched in Romania in order to raise awareness among citizens about
the corruption issue:
• “Coalition for a Clean Parliament” - before the 2004 elections, with the intention to
expose the candidates involved in corruption scandals;
17 Corruption Perception Index: a way of ranking countries by the perceived existence of corruption
among officials and politicians. The country with the highest score is perceived as the least corrupt.
18 REPORT on the Activity of the National Anticorruption Directorate carried out in 2008 on
http://www.pna.ro/
87

• “Don’t bribe”, a campaign supported by Transparency International designed to
increase the awareness level of people towards the problems generated by corruption.
Perspectives
� Since 2000 important steps were made by Romania in order to overcome the corruption issue,
especially in order to comply with the European norms.
� The 2009 report of Transparency International shows positive as well as negative aspects:
• An increase in the number of investigations completed and in the importance of individuals
investigated by the AGD.
• The activity of NAD continued and was able to gain more trust among population;
• The lack of evaluation of the National Council of Integrity activities;
• The Government, because of the financial crisis, reduced the level of transparency in using
public funds;
� As a commitment of the new mandate of President Traian Basescu, the removal of politicians’
immunity clause is to be expected.
� Overall Romania gained the necessary means to fight against corruption and stays on an ascending
course.
Risks
� Unfair competition especially in several important sectors (See Chapter 3), mostly due to oligopoly
situations generated by privatizations with strong state owned foreign entities (in Telecom, Gas and
Electricity, Water, Transportation and Banking)
� Difficulty in penetrating the Romanian market because of already consolidated “coalitions” between
local businessmen and decision makers at political level;
� Creating long term trust, communication and commitment
Corruption issue: See
o http://www.transparency.org.ro
o http://www.coe.int/t/dghl/monitoring/greco/general/about_en.asp
o http://www.nobribes.org/
o http://www.mai-dga.ro
o http://www.integritate.eu/
o http://www.fundatiaithaka.org
o http://www.just.ro/
o http://www.freedomhouse.ro
o http://www.clr.ro
o http://www.guv.ro
o http://www.onpcsb.ro
88

7. UBCG – University of Bucharest Consulting Group
7.1. The team
7.2. UBCG’s network
7.3. UBCG’s competencies
7.4. Business tools
7.5. Services offered
7.6. Website
7.1 The team
UBCG includes:
• Group Manager – Diana-Maria GEORGESCU
• Production Manager –Alexandru Cosmin TEODORESCU
• Sales Manager – Cosmin George VLAD and Ioana Maria DRAGOMIR
• Marketing and PR Manager – Andra IOANA
• Translation Coordination – Ioana Maria DRAGOMIR
• Collaborators:
o Elena Monica PETRESCU
o Mariana UDREA
o Roxana Andreea SANDU
7.2 UBCG’s network & support
� UBCG’s network (main partners)
• University of Bucharest
• Haute école de gestion (HEG-HSW Fribourg)
• Foreign Trade Department, Ministry of Economy, Commerce and Business Environment,
Romania
• Chamber of Commerce Switzerland - Romania (CCE-R)
• OSEC, Zürich
• ITC, Geneva
� UBCG’s support (main direct supports)
• Jean-Daniel CLAVEL (PhD Professor, Clavel Consulting – Switzerland)
• Paul MEYER (PhD Professor, School of Business Administration Fribourg, Switzerland)
• Rico Johannes Baldegger (PhD Professor, School of Business Administration Fribourg,
Switzerland)
• Mathias Jaques ROSSI (PhD Professor, School of Business Administration Fribourg,
Switzerland)
• Thomas STRAUB (PhD Professor, School of Business Administration Fribourg, Switzerland)
• Mihai KORKA (PhD Professor, Academy of Economic Sciences, Bucharest)
• Radu BALTASIU (PhD Professor, Faculty of Sociology and Social Work, University of Bucharest)
• Magdalena IORDACHE PLATIS (PhD Professor, Faculty of Administration and Business,
University of Bucharest)
89

7.3 UBCG’s competencies
Competencies Languages Coordinator in charge
� Market research
� Project management
and process
� Networking and cross
cultural
� Project management
� Online business
development
(webdesign, quality
assurance, marketing,
etc.)
� Sales management
� Healthcare sector
� Romanian regional
issues
� E-business (ecommerce,
marketing,
pricing, internet
applications, etc.)
� English-Romanian,
Romanian-English
translator
� Teaching and training
skills
7.4. Business tools
� English
� Italian
� French
� English
� English
� English
� French
� Spanish
� English
� Japanese
• Business reports’ analysis and synthesis
• Enquiries and interviews
• Business guide
• UBCG’s Vademecum
• GO GLOBAL (foreign market analysis tool and risk assessment)
• Databases of partners
• Traditional tools: PESTEL, SWOT, PORTER
7.5 Services offered
• Consultancy (Market intelligence)
• Establishment of contacts, search for partners, networking
• Corporate support, coaching, local assistance
• Reporting
• Translations
90
Diana-Maria GEORGESCU
diana.georgescu@ipsos.com
Alexandru Cosmin TEODORESCU
acteodorescu@gmail.com
Cosmin George VLAD
cosminvlad83@yahoo.com
Andra IOANA
andraioana_2000@yahoo.com
Ioana Maria DRAGOMIR
ioana_dragomir2001@yahoo.com

7.6 Website
www.doingbusinesswithromania.com
91

ATTACHMENTS
92

ROMANIA
Anthem: “Desteapta-te, romane!” (“Awaken, Romanian!”)
Official Language: Romanian
Capital: Bucuresti (Bucharest) – 2.1 million inhabitants
Area: 238391 km 2 (82 nd )
Population: 22.215.421 (2009 est.) (51 st )
Density: 90/ km 2 (104 th )
Ethnic groups: 89,5% Romanians; 6,6% Hungarians; 2,5% Roma; 1,4%
others
Formation: January 24, 1859 - Reunification of Wallachia and Moldavia
July 13, 1878 - Officially recognised independence from the Ottoman
Empire
December 1, 1918 - Unification with Transylvania
National Holiday: December 1
Government: Unitary semi-presidential republic
President - Traian Băsescu
Prime Minister - Emil Boc
Pres of Senate - Mircea Geoană
House Speaker - Roberta Anastase
Affiliation: EU, NATO, WTO, IMF, WB
Domestic Currency : Leu (RON)
93

1. Economic Growth Indicators
COUNTRY INDICATORS
• GDP
Subject Descriptor Units Scale 2006 2007 2008 2009
GDP, current prices U.S. dollars Billions 122.696 169.286 200.074 160.674
GDP per capita, current prices U.S. dollars Units 5.670 7.850 9.310 7.502
GDP based on (PPP) Current international dollar Billions 226.592 247.533 270.772 251.741
GDP based on (PPP) per
capita Current international dollar Units 10.471 11.478 12.600 11.755
Population Persons Millions 21.639 21.564 21.489 21.415
International Monetary Fund, World Economic Outlook Database, October 2009
http://unstats.un.org/unsd/snaama/resCountry.asp
http://www.imf.org/external/pubs/ft/weo/2009/02/weodata/weoselgr.aspx
• Economic Growth
2002 2003 2004 2005 2006 2007 2008 2009(e) 2010(f)
Economic
Growth 5,1 5,2 8,4 4,1 7,9 6,3 7,3 -7,1 1
Data from Coface International and NSI (National Statistics Institute) (e) – estimate (f) - forecast
http://www.coface.com/CofacePortal/COM_en_EN/pages/home/risks_home/country_risks/country_file//Romania?nodeUid=572
200
• Gross fixed capital formation (GFCF) as % of GDP or investment ratio
GFCF (USD) GDP (USD) GFCF as % of GDP
2004 16.499.988.433 75.794.733.525 21%
2005 23.519.134.255 99.172.613.716 23,70%
2006 31.424.892.755 122.695.850.812 25,60%
2007 51.530.934.072 169.285.963.293 30,40%
2008 69.283.054.823 203.317.150.958 34%
Data from UN Statististics Divisions
http://unstats.un.org/unsd/snaama/resCountry.asp
2. Price Stability Indicators
• Inflation
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Inflation
Rate
Data from NSI
40.7% 30.3% 17.8% 14.1% 9.3% 8.6% 4.86% 6.6% 6.3% 4.7%
94

• Change of Price – Monthly Average
Total - Rate of inflation Food Goods Non-food Goods Services
1991 10,3 12 9 9,1
1992 9,6 10,2 9,3 8,4
1993 12,1 11,6 12,9 11,8
1994 4,1 4,2 3,7 4,7
1995 2,1 1,9 2 2,9
1996 3,8 3,7 4 3,6
1997 8 7,8 7,7 9,7
1998 2,9 2 3,2 4,4
1999 3,7 2,6 4 5,7
2000 2,9 3,2 2,7 2,7
2001 2,2 2 2,3 2,6
2002 1,4 1,2 1,4 1,6
2003 1,1 1,1 1,1 1,2
2004 0,7 0,6 0,9 0,7
2005 0,7 0,5 0,8 1
2006 0,4 0,1 0,7 0,4
2007 0,5 0,7 0,3 0,7
2008 0,5 0,5 0,5 0,6
Dec
2009 0,4 0 0,6 0,6
Data from NIS
http://www.insse.ro/cms/files/arhiva_buletine2009/bsp_12.pdf
http://www.insse.ro/cms/rw/pages/arhivaBuletine2009.en.do
• GDP – Implicit Price Deflator (IPD)
GDP - IPD
RON USD
2004 267 184
2005 300 231
2006 331 265
2007 374 344
2008 427 381
Data From UN Stats
95
%

3. Use of Human Resources and Social Stability Indicators
• Urban population: 55,20%
• Population growth rate: -0,136% (2008)
• Birth rate: 10,61 birth/ 1000 population (2008)
• Death rate: 11,84 death/ 1000 population (2008)
• Life expectancy: 72,18 years (2008 est.) - male:68,69 years
- female: 75,86 years
• Fertility rate: 1,38 children born/ woman (2008 est.)
• Age structure: 0-14 years: 18%
14-65 years: 68%
Over 65 years: 14%
• Net migration rate: -0,13 migrants/ 1000 population (2006 est.)
• Talent pool : 106 universities ; 631 faculties ; 125000 univ. graduate/ yr
• Religions: Romanian Orthodox: 86,7%
Roman Catholic: 4,7%
Protestants: 5,3%
Greek Catholic: 0,9%
Islam: 0,3%
• Unemployment rate:
2002 2003 2004 2005 2006 2007 2008 2009
Unemployment rate 8,40% 7% 8% 7,20% 7,30% 6,10% 5,80% 6,80%
Unemployment
(x1000) 845 692 799 704 728 599 568 699
Data from: NIS
• Quota of active or occupied population in the total number of inhabitants
2002 2003 2004 2005 2006
Active population (x1000) 10079 9915 9957 9851 10041
Male 5525 5465 5471 5431 5526
Female 4554 4450 4486 4420 4515
96

Urban 5188 5151 5423 5361 5595
Rural 4891 4764 4534 4490 4446
Active rate (from 15-64 years total
population) 63,60% 62,40% 63,20% 62,40% 63,70%
Unemployment 845 692 799 704 728
Male 494 408 491 420 452
Female 351 284 308 284 276
Rural 581 489 517 472 480
Urban 264 203 282 232 248
Unemployment rate 8,40% 7% 8% 7,20% 7,30%
Data from: NIS
http://www.insse.ro/cms/rw/pages/indicatoriAnuali.ro.do
• Gross Average Monthly Wage
Year 2002 2003 2004 2005 2006 2007 2008 2009
EUR 174 179 204 267 326 428 474 445
Source: NIS
• Human Development Index (HDI)
HDI (2007) = 0,837 (63 rd ) Life expectancy index = 0,792
Education index = 0,915
GDP index = 0,804
Human Poverty Index (HPI-1) 20 ; 5,6%
Probability of not surviving to age 40 (%): 4,3%
Adult illiteracy rate: 2,4%
Population not using an improved water source: 12%
Population below income poverty line (2 USD/ day) 3,4%
http://hdr.undp.org/en/media/HDR_2009_EN_Complete.pdf
• Democracy Index: 7,06 (50 th )
• Press Freedom Index: 12,75 (42 nd )
• Corruption Perception Index: 3,7 (69 th )
• Index of Economic Freedom: 61,5% (68 th ) (2008)
• GINI Index (2005): 31 (21 st )
• Globalization Index (2010): 39 th (from 156 countries)
- Economic Globalization: 44 th
- Social Globalization: 77 th
- Political Globalization: 21 st
https://www.cia.gov/library/publications/the-world-factbook/geos/ro.html
http://globalization.kof.ethz.ch/static/pdf/rankings_2010.pdf
97

4. External Sector Equilibrium Indicators
• Current account imbalance as % of GDP
2002 2003 2004 2005 2006 2007 2008 2009(e) 2010(f)
Current account
balance (%GDP) -3,1 -5,2 -7,6 -7,9
98
-
11,6 -13,6 -12,6 -5 -5,4
Data from Coface International (e) estimate (f)forecast
• External debt as % of GDP
2002 2003 2004 2005 2006 2007 2008 2009(e) 2010(f)
Foreign debt (% of GDP) 39,9 39,6 41 37,4 48,1 50,8 51,3 68,6 75,4
Data from Coface International (e) estimate (f)forecast
• Foreign exchange reserves (in mouths of imports)
2002 2003 2004 2005 2006 2007 2008 2009(e) 2010(f)
3,7 3,7 4,2 4,8 5,3 5,3 4,5 8 8,2
Data from Coface International (e) estimate (f) forecast
• Inward FDI Flow
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
EUR 1147 1294 1212 1946 5183 5213 9060 7250 9496 4556
(million)
Data from NBR
• Top 10 Investing Countries
Country Share
Austria 18.8%
Netherlands 17.2%
Germany 15.4%
France 8.8%
Italy 7.3%
Greece 6.5%
Switzerland 4.7%
Cyprus 3.9%
Luxemburg 2.3%
USA 1.8%
Data from NBR
• Main Foreign Companies by Sector
Companies Sector
Renault; Ford; Delphi; Dura; Honeywell; Lear; TRW; Yazaki; Calsonic-
Kansei; Continental AG; Michelin; Pirelli; Autoliv; Ina Scheffler
Automotive
Selectron; Celestica; Nokia; Systronic; Elcoteq; Benchmark; Elbit; Selex;
Kathrein
Electronics
Microsoft; Oracle; HP; Intel; IBM; Cisco; ACI; Amazon; Siemens; Wipro;
Siveco; Ericsson
IT Service
ALPHA Bank; ING; Erste; Raiffeisen Bank; Unicredit; Societe Generale; Financial
Millenium; HVB
Services
Vodafone; Orance; UPC; OTE; ZAPP Telecom
Renault Tech.; Infineon; Alcatel-Lucent; Freescale; Microchip; Alvarion R&D Centers
DHL; TNT; Maersk; Hapag; Frans Maas Logistics
Gedeon-Richter; GSK; Zentiva (Sanofi); Sandoz; Ranbaxy Pharmaceuticals

Chapter 1
Attachment 1: Ancestors, origins of the language and people
The land of modern Romania was inhabited since immemorial times. The first organised population were
the Dacians, a Thracian tribe. Dacia developed into a regional power due to its mineral resources and
soon it became a target for the Roman Empire. After 20 years of conflicts the Romans led by Emperor
Traian conquered Dacia in 106 AD. The Romans staid here till 273 influencing decisively the culture and
language. In 273 Romans army and officials retreat from Dacia but the roman population remained and
having no influence from Rome, the local culture and language developed separately into something
similar with present Romania. In the 4-13th centuries the Romanian people had to face the waves of
migrating peoples - the Getae, the Huns, the Gepidae, the Avars, the Slavs, the Petchenegs, the
Cumanians, the Tartars - who crossed the Romanian territory but never conquering the local population
who was able to maintain its values by retreating in the mountains.
Middle ages – Romanians feudal states
Beginning with the 10 th century the local population started to organise itself into small states led by
Romanian leaders. This process ended in the 14 th century when the three Romanians feudal states
were created: Moldavia, Walachia and Transylvania.
Constraints from three empires
The next step was the fight for maintaining the independence as long as Hungarian Kingdom, than
Poland, Ottoman Empire, Hapsburg Empire and Tsarist Empire all intended to express their influence
and even conquer Romanians states. The greatest danger came from Ottoman Empire which
succeeded in imposing its influence after 3 centuries of fights. The influence was maximum in the 18 th
century when The Ottoman Empire introduced the "Phanariot regime," (until 1821), under which the
Sublime Porte appointed in the two principalities Greek voivodes recruited from the Phanar district of
Istanbul. Also Transylvania was almost continuous under Hungarian and later under Hapsburg rule.
Freedom, independence and formation of the Great Romania
The peace treaty of 1829 signed at Adrianople (today Edirne) ended the Russian-Turkish conflict of
1828-1829; this treaty greatly weakened the Ottoman suzerainty, but it increased Russia’s
"protectorate." Now that trade was freed, Romanian cereals began to penetrate European markets. In
1859 Moldavia and Walachia succeeded in uniting themselves creating Romania as a country which
independence was recognized in the Russian-Turkish peace treaty of San Stefano (March 3, 1878).
Also Romania became a kingdom ruled by the German Hohenzollern-Sigmaringen family. At the end
of WWI, due to the dissolution of Austro-Hungarian Empire, Transylvania became an independent
state and soon united with Romania creating the Great Romania.
Developing into a modern country
After WWI a lot of reforms took place and soon Romania became a rather modern and competitive
state in Europe, well-known for its cereals and oil reserves.
WWII and communism
WWII found Romania in the position of a local power with some of its leaders influenced by German
politics. Romania took part in the campaign from the east alongside with Germany. But in 1944, when
the fate of the war was obvious, the new Romanian leaders decided to fight together with the
Russians till the end of the war. After that, the soviet forces remain in Romania and help introducing
the communist regime with local rulers but with directives from Moscow. Romania remained an
independent communist country till 1989 revolution. The worst period was during the last decade
when Nicolae Ceausescu transformed its regime into a disnature which isolated Romania in foreign
relations and transformed local economy into an underperforming and unrealistic one.
Revolution, transition and EU membership
Romania decided to transform itself into a modern democracy and to become a member of EU and
NATO after the revolution. The first years war very hard due to the fact that neither the leaders nor
99

the population was prepared for democratic reforms. Only in 2000 the economy started to grow. Later
in 2004 Romania became a NATO member and than, on 1 st of January 2007, an EU one. Even
though Romania grew a lot last decade, there are still a lot of things to improve: corruption, forgetting
the old mentalities.
Historical background – see
o http://www.roembus.org/English/romanian_links/history_of_romanians.htm
o http://www.sjsu.edu/faculty/watkins/romania.htm
Attachment 2: The centrally planned system
o Communist leaders introduced after the war Stalinist reforms as nationalising the economy,
collectivisation of the agriculture and developed a secret police to persecute the population, punished
by prison or labour camp all the opponent of the regime; also the 5 years plans were established. The
population also suffered because the private initiative was banned and culture and church were
influenced in order to serve the regime. In 1965 Ceausescu came to power and first he made some
democratic moves but later he transforms Romania into a ruthless dictatorship.
o Ceausescu accelerates the process of industrialisation by building huge industrial units financed by
foreign loans. In some sectors the heavy industry was producing 8 times more than local needs but
the service sectors were underdeveloped. Due to this situation the population suffered a lot and as
long as Romania isolates itself on the global map, Romanian products became unneeded. In order to
pay foreign debts communists forced the population to work hard and decided to cut utilities like water,
electricity, heat. Also Ceausescu decided to export as much as possible cereals, fruits, vegetables
and meat without feeding the Romanians enough. To sustain agriculture Ceausescu even
demolished a lot of villages and moved the peasants into block of flats destroying their values.
o Today Romania is a fully democratic society but one can see that there are still relics from the past
regime. First of all many Romanians still have old mentalities and will never be fully prepared for
these new values and politics. Also corruption developed its methods during the communist regime
and became a national problem very hard to solve. Now Romanian economy is mostly own by private
sectors and only some enterprise especially in the energetic sector (natural gas producer, nuclear
energy producer, some big power plants, biggest hydroelectrically plants, electricity transporters,
railway transporter and other few industrial plants and only one important bank are owned by the
state.
Centrally planned system – see
o http://books.google.ro/books?id=5_Q1KadVl08C&printsec=frontcover#v=onepage&q=&f=f
alse
o Dimitri G. Demekas, Mohsin S. Khan - The Romanian economic reform program - IMF,
Washington DC , nov 1991
o Barry P. Bosworth - Reforming Planned Economies in an Integrating World Economy,
Brookings Institution, 1995. 192 pgs. - chapter 4: Central Europe
o http://www.britannica.com/EBchecked/topic/508461/Romania/42846/Economy
o http://www.cee-socialscience.net/archive/economics/romania/report1.html#jump389
http://www.sjsu.edu/faculty/watkins/romania.htm
o http://countrystudies.us/romania/27.htm
Attachment 3: The transition period
o In January 1990 Romania began a long and difficult road through democracy and capitalism. The
new leaders were former second echelon communists but it would have been almost impossible to
have non-communist in power as long as former Romanian communist party was present in every
structure of the society. The first years were difficult and the still young Romanian democracy had to
face little reforms, some communist measures and a lot of protests and social unrest. Many huge
industrial plants, most of them the pride of communism, proved to be unprofitable, with old
technologies and gained debts fast. Soon after the revolution the first private enterprises start their
100

activities but their mission was hard as long as almost no support came from authorities so their
influence in the economy was unimportant. The first step for privatisation was made through a mass
privatisations but its success was of small proportions. Foreign investors became interested in
Romanian economy only after 1999 when enough reforms were finished and Romanian ratings show
a positive direction; in that period also the market liberalisation happened. Today most of Romanian
economy is owned by multinational companies and the greatest part of production is exported. The
privatisation brought social unrest as long as new owners decided to dismiss thousands of workers in
order to optimise the production and to make the enterprise profitable; also the public opinion was
subjective and considered the selling of Romanian industry to the foreigners as a great mistake.
These days the unprofitable state owned companies represent a very small part of the GDP and they
are represented by unprofitable tourism infrastructure, small agricultural companies and few industrial
plants.
o As long as economy was growing the local consumption grew too but it also grew a lot because
Romanians desired a lot of products not available during the communist regime. That’s why imports
grew faster than exports year by year.
o As a conclusion the transition period changed Romania in all its aspects: economy, society, culture
but it would be a great mistake to say that the past was forgotten. Even today a lot of Romanians
have problems regarding their mentality and many Romanian educated by the communist regime are
not capable to think realistic. There is still a great corruption in the public sector and it can happen
that one has to pay bribe in order to have his problems solved legally.
The transition period – see:
o http://www.bbc.co.uk/worldservice/specialreports/1989.shtml
o http://www.ebrd.com/pubs/econo/lits.pdf
o http://www.ebrd.com/country/country/romania/ro/index.htm
o http://www.cee-socialscience.net/archive/economics/romania/report1.html#jump389
http://www.sjsu.edu/faculty/watkins/romania.htm
o http://www.britannica.com/EBchecked/topic/508461/Romania/42846/Economy
Attachment 4 The Romanian economy
Exports:
Romanian export dynamic grew fast during last years from a value of 6 billions USD (approx. 4.4billions
Euro) in 1994 to 11.2 billions USD (approx. 8.7 billions Euro) in 2000, 18.9 billons Euros in 2004 and 35.1
billion Euros in 2008 (data from CIA World Fact Book)
40
35
30
25
20
15
10
5
0
1994 2000 2004 2008
101

Romania’s main trading partners (1.I – 30.IX.2009)
Source: www.insse.ro - The National Institute of Statistics
Exports during 1.I-31.VIII 2009 amounted to 78638.4 million lei (18591.7 million euro). Compared with the
corresponding period of 2008, exports decreased with 5.9% at values expressed in lei (19.0% at values
expressed in euro).
The main export partners for Romania are presented in the table bellow (data for 2009) with grows
in case of: Germany, Netherlands and Spain, Austria and Norway and falls for: Ukraine, Turkey,
Moldavia, Hungary and USA
Posi
Country
1.I-31.VIII 2009
Weight in total
tion
Mil. lei Mil. euro
exports %
1 Germany 14830.5 3509.3 18.9
2 Italy 12219.9 2890.7 15.5
3 France 6174.8 1461.2 7.9
4 Turkey 4026.4 950.2 5.1
5 Hungary 3372.1 797.8 4.3
6 Bulgaria 3057.8 724.0 3.9
7 UK 2558.4 605.5 3.3
8 Netherlands 2554.8 603.8 3.2
9 Spain 2148.5 508.4 2.7
10 Austria 1945.7 460.5 2.5
11 Poland 1613.3 381.8 2.1
12 Greece 1518.8 359.3 1.9
13 Belgium 1456.3 344.7 1.9
14 Russia 1308.8 308.4 1.7
15 Czech Republic 1247.2 295.0 1.6
16 Serbia 1130.2 266.2 1.4
17 Norway 1088.1 255.7 1.4
18 Moldova 985.3 232.2 1.3
19 USA 917.6 216.1 1.2
20 Ukraine 826.6 194.8 1.1
Data from National Institute of Statistics – Period: 1.I – 31.VII. 2009
102

In the structure of exports, six sections of the Combined Nomenclature hold 74.5% of
total exports, as follows:
Section of the Combined
Nomenclature
Value
-million
lei-
Value
-million
euro-
103
Structure in %
as against total
exports
in % as against 1.I-31.VIII 2008
For values
expressed
in lei
For values
expressed
in euro
Machinery and mechanical
appliances; electrical
equipment; sound and image
recorders and reproducers
19965.1 4720.0 25.4 104.2 89.8
Vehicles and associated transport
equipment
13032.2 3082.0 16.6 133.3 114.9
Textiles and textiles articles 8397.0 1986.0 10.7 93.9 80.9
Base metals and articles of base
metals
8062.3 1904.9 10.3 61.5 53.0
Mineral products 5197.6 1227.2 6.6 61.2 52.6
Plastics, rubber and articles
thereof
Data from National Institute of Statistics
3818.2 902.9 4.9 86.3 74.3
The following table present the main export products (industries) and the most important clients:
1 Clothes EU, Russia
2 Wine EU, USA, Japan
3 Furniture EU, Russia, CIS, Midd-East
4 Glass objects EU (Germany, UK, Holland, France), Japan, USA
5 Chemicals and
petrochemicals
- fertilizers;
- tires and rubber;
- plastics;
- pharmaceuticals
EU, Transnational Corporations(TNC)
Turkey, Africa, Asia
EU, Turkey, Midd-East,
EU, TNC’s
Asia, Midd East, Emerging countries.
6 Metal products EU, Regional
7 Machinery
constructions
EU, TNC’s
8 IT&C USA, Europe, Japan
9 Services
consulting
and Developing countries
10 Organic products EU (Germany, Scandinavia)
11 Rural tourism EU (Germany, Scandinavia)
12 SPA treatment Germany, Scandinavia
13 Components
transport industry
for TNC’s, EU (Germany, Italy, France), USA, Japan
14 Crafts and handicrafts EU (Germany, Italy, others)
15 Electronics
electrics devices
and TNC’s, EU (Germany, Italy, France), USA, Japan
16 Culture (audio-visual) USA, EU
Data from the governement

Romania’s Ranking in Doing Business 2010:
Economy
Ease of Doing
Business Rank
Starting a
Business
Dealing with
Construction
Permits
Employing
Workers
104
Registering
Property
United
States 4 8 25 1 12 4 5 61 18 8 15
Switzerland 21 71 35 16 15 15 165 21 39 29 38
Germany 25 84 18 158 57 15 93 71 14 7 35
Lithuania 26 99 64 119 4 43 93 51 28 17 36
Macedonia,
FYR 32 6 137 58 63 43 20 26 62 64 115
Slovak
Republic 42 66 56 81 11 15 109 119 113 61 39
Bulgaria 44 50 119 53 56 4 41 95 106 87 78
Hungary 47 39 88 77 61 30 119 122 70 14 58
Romania 55 42 91 113 92 15 41 149 46 55 91
Poland 72 117 164 76 88 15 41 151 42 75 85
Turkey 73 56 133 145 36 71 57 75 67 27 121
Czech
Republic 74 113 76 25 62 43 93 121 53 82 116
Italy 78 75 85 99 98 87 57 136 50 156 29
Moldova 94 77 161 141 17 87 109 101 140 22 90
Greece 109 140 50 147 107 87 154 76 80 89 43
For more data visit : http://www.doingbusiness.org/economyrankings/
Attachment 5 Economic policies
Interest Rates on Monetary Policy and Standing Facilities, history:
Date
Getting Credit
Policy Rate Credit facility rate Deposit facility rate
iun. 2010 6,25 10,25 2,25
mai. 2010 6,25 10,25 2,25
apr. 2010 6,50 10,50 2,50
mar. 2010 6,50 10,50 2,50
feb. 2010 7,00 11,00 3,00
ian. 2010 7,50 11,50 3,50
oct. 2009 8,00 12,00 4,00
iul. 2009 9,00 13,00 5,00
apr. 2009 10,00 14,00 6,00
ian. 2009 10,25 14,25 6,25
iul. 2008 10,00 14,00 6,00
ian. 2008 8,00 12,00 2,00
iul. 2007 7,00 14,00 1,00
ian. 2007 8,75 14,00 1,00
Protecting
Investors
Paying Taxes
Trading Across
Borders
Enforcing
Contracts
Closing a
Business

ian. 2006 7,50 14,00 1,00
ian. 2005 16,50 25,00 5,00
ian. 2004 21,25 30,00 5,00
ian. 2003 19,25 45,00 5,00
Selected data from: NBR
For more data visit: http://www.bnro.ro/Interest-Rates-on-Monetary-Policy-and-Standing-Facilities,-history-3337.aspx
Central Bank policy & strategy Data & Statistics:
• Exchange rates: http://www.bnro.ro/Exchange-rates-1224.aspx
• Open market operations: http://www.bnro.ro/Repo-3989.aspx
• Financial Info (Average interest rates on interbank market; Interbank market deposits;
Forex market operations; Government securities): http://www.bnro.ro/Financial-Info-
3319.aspx
• NBR’s Reference Interest Rate, history: http://www.bnro.ro/NBR%27s-Reference-Interest-
Rate,-history-3338.aspx
• Interest Rates on Monetary Policy and Standing Facilities, history:
http://www.bnro.ro/Interest-Rates-on-Monetary-Policy-and-Standing-Facilities,-history-
3337.aspx
• Inflation Reports: http://www.bnro.ro/Inflation-Reports-3343.aspx
• Financial Accounts: http://www.bnro.ro/Financial-Accounts-3726.aspx
• Indicators for Credit Institutions: http://www.bnro.ro/Aggregate-Indicators-for-Credit-
Institutions-3369.aspx
• Financial Behaviour of Households and Companies by Country:
http://www.bnro.ro/Financial-Behaviour-of-Households-and-Companies-by-County-
3211.aspx#peloc
• FDI: http://www.bnro.ro/Foreign-direct-investment-3213.aspx
• Gross External Debts Statistics: http://www.bnro.ro/Gross-External-Debt-Statistics-
3209.aspx
• International Reserves and Foreign Currency Liquidity: http://www.bnro.ro/International-
Reserves-and-Foreign-Currency-Liquidity-3210.aspx
• NBR Interactive Database: http://www.bnro.ro/Interactive-database-1107.aspx#
• NBR Press Release: http://www.bnro.ro/Press-releases-1104.aspx
Inflation rate evolution 2000-2010
Source: www.insse.ro - The National Institute of Statistics
105

Comparison regarding inflation of EU Member States:
European Union (EC6-1972, EC9-1980, EC10-
1985,EC12-1994, EU15-2004, EU25-2006, EU27)
Euro area (EA11-2000, EA12-2006, EA13-
2007,EA15-2008, EA16)
106
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
1.3 1.2 1.9 2.2 2.1 2.0 2.0 2.2 2.2 2.3 3.7 1.0
1.1 1.1 2.1 2.3 2.2 2.1 2.1 2.2 2.2 2.1 3.3 0.3
Euro area (16 countries) 1.2 1.2 2.2 2.4 2.3 2.1 2.2 2.2 2.2 2.1 3.3 0.3
Belgium 0.9 1.1 2.7 2.4 1.6 1.5 1.9 2.5 2.3 1.8 4.5 0.0
Bulgaria 18.7 2.6 10.3 7.4 5.8 2.3 6.1 6.0 7.4 7.6 12.0 2.5
Czech Republic 9.7 1.8 3.9 4.5 1.4 -0.1 2.6 1.6 2.1 3.0 6.3 0.6
Denmark 1.3 2.1 2.7 2.3 2.4 2.0 0.9 1.7 1.9 1.7 3.6 1.1
Germany 0.6 0.6 1.4 1.9 1.4 1.0 1.8 1.9 1.8 2.3 2.8 0.2
Estonia 8.8 3.1 3.9 5.6 3.6 1.4 3.0 4.1 4.4 6.7 10.6 0.2
Ireland 2.1 2.5 5.3 4.0 4.7 4.0 2.3 2.2 2.7 2.9 3.1 -1.7
Greece 4.5 2.1 2.9 3.7 3.9 3.4 3.0 3.5 3.3 3.0 4.2 1.3
Spain 1.8 2.2 3.5 2.8 3.6 3.1 3.1 3.4 3.6 2.8 4.1 -0.3
France 0.7 0.6 1.8 1.8 1.9 2.2 2.3 1.9 1.9 1.6 3.2 0.1
Italy 2.0 1.7 2.6 2.3 2.6 2.8 2.3 2.2 2.2 2.0 3.5 0.8
Cyprus 2.3 1.1 4.9 2.0 2.8 4.0 1.9 2.0 2.2 2.2 4.4 0.2
Latvia 4.3 2.1 2.6 2.5 2.0 2.9 6.2 6.9 6.6 10.1 15.3 3.3
Lithuania 5.4 1.5 1.1 1.6 0.3 -1.1 1.2 2.7 3.8 5.8 11.1 4.2
Luxembourg (Grand-Duché) 1.0 1.0 3.8 2.4 2.1 2.5 3.2 3.8 3.0 2.7 4.1 0.0
Hungary 14.2 10.0 10.0 9.1 5.2 4.7 6.8 3.5 4.0 7.9 6.0 4.0
Malta 3.7 2.3 3.0 2.5 2.6 1.9 2.7 2.5 2.6 0.7 4.7 1.8
Netherlands 1.8 2.0 2.3 5.1 3.9 2.2 1.4 1.5 1.7 1.6 2.2 1.0
Austria 0.8 0.5 2.0 2.3 1.7 1.3 2.0 2.1 1.7 2.2 3.2 0.4
Poland 11.8 7.2 10.1 5.3 1.9 0.7 3.6 2.2 1.3 2.6 4.2 4.0
Portugal 2.2 2.2 2.8 4.4 3.7 3.3 2.5 2.1 3.0 2.4 2.7 -0.9
Romania 59.1 45.8 45.7 34.5 22.5 15.3 11.9 9.1 6.6 4.9 7.9 5.6
Slovenia 7.9 6.1 8.9 8.6 7.5 5.7 3.7 2.5 2.5 3.8 5.5 0.9
Slovakia 6.7 10.4 12.2 7.2 3.5 8.4 7.5 2.8 4.3 1.9 3.9 0.9
Finland 1.3 1.3 2.9 2.7 2.0 1.3 0.1 0.8 1.3 1.6 3.9 1.6
Sweden 1.0 0.5 1.3 2.7 1.9 2.3 1.0 0.8 1.5 1.7 3.3 1.9
United Kingdom 1.6 1.3 0.8 1.2 1.3 1.4 1.3 2.1 2.3 2.3 3.6 2.2
Croatia : 3.7 4.5 4.3 2.5 2.4 2.1 3.0 3.3 2.7 5.8 2.2
Former Yugoslav Republic of Macedonia, the : : : : : : : : : : : :
Turkey 82.1 61.4 53.2 56.8 47.0 25.3 10.1 8.1 9.3 8.8 10.4 6.3
Iceland 1.3 2.1 4.4 6.6 5.3 1.4 2.3 1.4 4.6 3.6 12.8 16.3
Norway 2.0 2.1 3.0 2.7 0.8 2.0 0.6 1.5 2.5 0.7 3.4 2.3
Switzerland : : : : : : : : 1.0 0.8 2.3 -0.7
United States 1.6 2.2 3.4 2.8 1.6 2.3 2.7 3.4 3.2 2.8 3.8 -0.4
Japan 0.6 -0.3 -0.7 -0.7 -0.9 -0.3 0.0 -0.3 0.3 0.0 1.4 -1.4
:=Not available=See explanatory text=Estimated value
Source of Data:: Eurostat

Direct Inflation Targeting
1. bringing the annual inflation rate to single-digit levels;
2. earning and strengthening central bank credibility;
3. strengthening both de jure (via the new NBR Statute effective 30 July 2004) and de facto
independence of the NBR;
4. lower fiscal dominance, further fiscal consolidation and improved co-ordination between fiscal and
monetary policies;
5. a relatively more flexible exchange rate of the domestic currency and diminishing the Romanian
economy's vulnerability to exchange rate movements;
6. the soundness and strengthening of the banking system and a relatively higher degree of banking
intermediation;
7. greater transparency and accountability of the central bank and more effective communication
with the public and financial markets, including the presentation of various aspects related to the
inflation targeting approach and the preparatory steps for its adoption;
8. better insight into macroeconomic behaviour patterns and economic mechanisms in order to
identify and enhance the effectiveness of monetary policy transmission channels.
Attachment 6 International commitments
Purpose and positioning of Romania
� Economic diplomacy
The Ministry of Foreign Affairs created the Economic Diplomacy Directorate as a link between
Romania’s diplomatic missions abroad, the business environment and other institutions with economic
responsibilities. It is in charge of:
o Promoting Romanian economic interests abroad;
o Cooperation with international economic organizations;
o Inter-institutional cooperation on economic issues;
o Offering economic expertise within the Ministry of Foreign Affairs.
� External policy priorities
o Consolidation of Romania’s role as an active and influential EU member
o Supporting the integration of the Moldova Republic in the EU
o Assuring a democratic and prosperous regional stability
o Promoting the US Strategic Partnership
o Promoting Romania’s bilateral and multilateral cooperation partnerships
o Promoting Romania’s security interests
o Promoting the economic and commercial interests of Romania and Romanian companies
o Supporting and promoting the rights and interests of Romanian citizens on a global scale.
Purpose and positioning of Romania: Sources of information
o http://www.mae.ro/index.php?unde=doc&id=26644&idlnk=1&cat=3
o http://www.mae.ro/index.php?unde=doc&id=38538&idlnk=1&cat=3
o http://www.ccir.ro/ccirweb/menuIntEU/PageIntEU.aspx?submenu_id=362
o http://www.crpe.ro/eng/pagini/index.php
o http://ec.europa.eu/economy_finance/eu_economic_situation/member_state8616_en.ht
m
o http://www.dae.gov.ro/
o http://www.mae.ro/index.php?unde=doc&id=5031&idlnk=1&cat=3
107

Strategic alliances of Romania
� Bilateral relations
The long lasting desire to maintain a permanent and active involvement in international affairs led to the
fact that today Romania develops bilateral diplomatic relations with 182 out of 192 UN member states,
plus the Holy See and the Sovereign Military Order of Malta.
� Parliamentary friendship groups
Parliamentary collaboration on the friendship groups plane is an important component of the external
relations of the Romanian parliament. These friendship groups have the role to further bilateral
cooperation in all common interest domains.
Strategic alliances of Romania: Sources of information
o http://www.mae.ro/index.php?unde=doc&id=5772&idlnk=1&cat=3
o http://www.mae.ro/index.php?unde=doc&id=5772&idlnk=1&cat=3
o http://www.senat.ro/pagini/rel_int/UIP/grui/gpp%20ie%202008-2012/Prez.gen.gpp.htm
o http://www.mae.ro/index.php?unde=doc&id=5772&idlnk=1&cat=3
o http://www.senat.ro/pagini/rel_int/UIP/grui/gpp%20ie%202008-2012/Prez.gen.gpp.htm
Attachment 7 List of international Treaties, Agreements and Conventions
www.mae.ro/index.php?unde=doc&id=5090&idlnk=1&cat=3
List of IO memberships
Romania is a part of the following International Organizations:
o United Nations
o Organization for Security and Cooperation in Europe
o Council of Europe
o Japan Bank for International Cooperation – JBIC
o World Bank Group
o International Monetary Fund – IMF
o European Bank for Reconstruction and Development – EBRD
o Organization for Economic Cooperation and Development
o Asia-Europe Meeting
o International Organization La Francophonie
List of IO memberships: Sources of information
o http://www.mae.ro/index.php?unde=doc&id=34&idlnk=1&cat=3
o http://www.bnr.ro/Relatii-cu-organismele-internationale-1399.aspx
o http://www.mae.ro/index.php?unde=doc&id=34&idlnk=1&cat=3
o http://www.senat.ro/Start.aspx
108

Chapter 3
Attachment 8 Agriculture
Source: Romanian Statistical Yearbook 2008
109

Attachment 9 Fishing and Farming – Extra Information
Overview
Romania has a large diversity of landscapes and inland waters representing 3% of the total area. There
are 40 000 ha of natural lakes and ponds, man-made reservoirs, including the Danube Delta; 84 500 ha
of fish farms; 15 000 of fish nursery areas; 66 000 km of rivers of which 18 200 km are in the mountain
area; 1 075 km are located in the lower part of Danube. Romania has a coastline along the Black Sea of
around 250 km, while the exclusive economic zone covers 25 000 square kilometres. However, most of
the fisheries activities are carried out within the 12 mile-zone and in inland waters.
The fishery sector makes a marginal contribution to the Gross Domestic Product and is continuously
decreasing because of the decline in the distant-water fleet and the decline in fish farming. The demand
and consumption of fish have changed significantly since the early 1990s. Fish consumption has fallen,
largely because of the reduction in availability of the domestically produced fish and the increase in the
price of fish relative to other animal protein products. In 2001, the average consumption of fish and fish
products per caput was 3.4 kg, while the yearly average consumption of meat and meat products was 48
kg per caput. There are an estimated 10 600 persons working in the Romanian fisheries sector, of which
46% are subsistence fishers, 18% are involved in fish farming, 27% are active in inland fisheries and 9%
in marine fisheries. This estimate does not include those working in the fish processing industry. Fishery
has great socio-economic importance in the Danube Delta, where alternative occupations (agriculture or
industry) are not feasible.
Important gap between imports and exports – the main cause is a poor diversity of valuable aquaculture
species, as well as a narrow range of processed products. (In 2007, exports valued EUR 1 million,
whereas imports valued EUR 13 million).
Issues
o Sea fishing
� As there are no specialized fishing ports in Romania, the marine fishing vessels have to use
the commercial ports of Mangalia, ConstanŃa and Sulina for docking. None of these ports has
specific facilities for docking, storage and sale of fishery products.
� Infrastructure such as quays, warehouses and locations for first sale is missing in Romania.
� An important fishing area is the Danube Delta Biosphere Reserve, where fishing activities are
forbidden for trawlers. In addition, the area near the Black Sea Coast up to the 20 m isobaths
is also forbidden for fishing vessels using towed gears. The only fishing activity allowed is
fishing by fixed rods and nets.
o Inland fishing
� Fishing is practiced with fixed or towed gears, using small wooden boats. No mechanized
fishing is used in inland waters.
� Inland fishing is an important activity, but the landing sites in the Danube River and in
Danube Delta are scarce and not equipped. The total number of landing sites is 83 located as
follows: 36 in Danube Delta and 47 along the Danube River. Only 16 landing sites in the
Danube Delta and 5 along the Danube River comply with the veterinary standards. All the
other 62 need to be modernized and equipped.
� Fisherman doesn’t have facilities to transport their catches. In consequence, these services
are performed by those who market the fisheries products.
o Aquaculture
� The area used for aquaculture activities in Romania is of 100 000 ha, structured as follows:
84 500 ha of fish farms, 15 500 ha of hatcheries, and 25 ha of trout farms.
� Currently, there is not marine aquaculture in Romania.
� One isolated private company is active on mussel culture. 4 areas along the Romanian Black
Sea coast were identified by the Romanian Marine Research Institute as being suitable for
mussel culture.
110

� The best area for aquaculture is the one situated between South Agigea and Mangalia. One
can find here plots of land on the coast, suitable to build aquaculture facilities with easy
access to clean water that can be used in aquaculture.
o Processing
� Currently, there are 56 enterprises in the fish processing industry, and 33 supermarkets
providing primary fish processing.
� The main species for processing are imported sea species, especially mackerel, and herring.
� Imports consist mostly of frozen fish (mackerel, herring, sprat, Alaska cod, whiting, sardines
and anchovies).
� Local species that are processed are carp (90% of the local fish processed), trout, zander,
pike, European catfish and perch.
o Marketing
� There are no first sale points and the distribution channels are not developed.
� Fishery products are mainly delivered through producers and importers, and to a lesser
extent through specialized intermediaries.
� Fishery products reach final consumers through supermarkets and specialized shops.
o Recreational fishing
� Given the landscape diversity, there are suitable conditions in Romania for performing
recreational fishing activities in mountain or plain waters.
Opportunities
o With the help of The European Fisheries Fund which is designed to promote the sustainable
development of fisheries in the European Union, Romania adopted a National Strategic Plan so as to
define the objectives. For the period running from 1 January 2007 to 31 December 2013, total aid for
Romania is estimated at EUR 231 million;
o Modernisation of fishing vessels;
o Development of inland water fishing;
o Modernisation of existing aquaculture and processing units;
o Encouraging intensive aquaculture;
o Organize fishery ports;
o Organize first-sale centres;
o The Black Sea fishing – a modern fishing port is needed, endowed with the necessary facilities for
product storage, processing, marketing, loading. Taking into account the marine resources potential
in the Black Sea that has been estimated by the Romanian Marine Research Institute at about 20 000
tons, it is important to upgrade the existing fishing vessels;
Coastal fishing – has a long tradition in Romania. It includes small-scale fishing. The support to smallscale
fishing will contribute to maintaining employment in coastal areas and to reconvert the fishery
activities into activities in other sectors (for example tourism).
Farming
http://rbd.doingbusiness.ro/ro/1/articole-recente/1/226/raport-agricultura-2009-potential-oportunitatisupravietuire
http://rbd.doingbusiness.ro/ro/1/articole-recente/1/102/romanian-agriculture-potential-vs-reality
111

Attachment 10 Manufacture of wood and wood products
Overview
o Less than 27% of Romania’s territory is covered by forests, which is under the European average and
well below what researchers consider, given the country’s natural conditions, the optimal threshold
estimated between 32-35% from the total country’s territory.
o Significant part of the Romanian forests are located in the mountains, 51.9%, while in hilly areas there
are located 37.2% of forests and 10.9% of forest are located in plain areas. Standing wood volume of
forests from the national forest fund is 1 341 million m 3 . The average wood volume is 218 m 3 /ha. The
unitary average growth of forests is 5.6 m 3 /year/ha.
o The total volume of wood exploited was 15.671 thousand m 3 for the year 2005 and this wood volume
had two destinations, for economic operators having forestry activity (11.783 thousand m 3 ) and for
population supplying (3 888 thousand m 3 ). The wood harvested from the state forests is being sold by
public auctions, while the forest owners could commercialize independently their wood. In both cases
the wood logging is fulfilled by authorized economic operators.
o Regarding illegal logging Romania is facing this phenomenon, estimated at 100 000 m 3 /year.
o Romania is one of few European countries that still have virgin forests – approx. 300 000 ha, mainly
located in the mountain areas. All forests have multiple environmental and social values, e.g. wild life
habitats, assuring the protection of torrential hydrographic basins, fulfilling the most diverse protection
functions and assuring, also important social nature services for human communities. In the cases
were these values are considered to be of high or critical importance, the forests may be classified as
forests with high conservation value. Until the end of the year 2005, 1119.7 thousand ha of Romanian
forest have been certified.
o According to national legislation, Romanian forests are divided in two functional groups, as follows:
o 53.3% forest with special protection functions (water protection, soil protection, climatic protection,
wildlife and recreation)
o 46.7% forest with both production and protection functions.
o Forestry industries in Romania (exploitation, woodworking and furniture) accounted in 2005 for 3.5%
of GDP and for about 7% of the manufacturing sector output produced by 10% from the total
employees in industry.
Opportunities
The Rural Development Programme for Romania 2007-13 includes the following objectives:
o facilitate the transformation and modernisation of the forestry production and
processing sectors, improving competitiveness and ensuring environmental
sustainability
o development of scientific research and education with purpose on forest
sustainable management, economical changes of forestry sector and
amelioration of the environment on the national, regional and global level.
Other high potential areas within the furniture industry:
o Clustering
o Further general specialization within the industry
o Introducing and using design in furniture, at product and process level
o Information, training and consulting services for the furniture sector have very
high growth potential
112

Attachment 11 Electric, gas and water
Primary energy resources, in 2007
Source: Romanian Statistical Yearbook 2008
ENERGY INDEPENDENCE DEGREE
Percentage
2002 2003 2004 2005 2006 2007
Total 1) 75.8 72.2 71.8 71.4 68,7 2) 69.7
Coal (including coke) 69.4 68.7 67.5 66.3 67.9 68.1
Crude oil 48.5 52.0 43.4 37.8 35.9 35.4
Natural gas 3) 77.9 68.7 74.1 69.0 65,7 2) 70.6
1)
Inclusiv produsele energetice obŃinute şi consumate în gospodăriile populaŃiei. / Including energy products obtained and consumed in
households.
2)
Date rectificate faŃă de cele publicate anterior. / Rectified data as against those previously published.
3) Exclusiv gazolina şi etanul din schelele de extracŃie care sunt cuprinse la ŃiŃei. / Excluding gasoline and ethane from extraction oil-
wells which are included in crude oil.
113

Attachment 12 Food, beverages and tobacco
Production of Main Agro-Food Products, 2000-2004
Products M.U. 2000 2001 2002 2003 2004
Wheat and rye thou tones 4456.2 7763.8 4441.1 2496.4 7644.0
Barley and tworow
barley
thou tones 867.0 1580.0 1160.4 540.8 1553.0
Maize thou tones 4897.6 9119.2 8399.8 9577.0 14891.0
Sunflower thou tones 720.9 823.5 1002.8 1506.4 1727.0
Sugar beet thou tones 666.9 875.5 954.6 764.4 568.0
Potatoes thou tones 3469.8 3997.1 4077.6 3947.2 4655.0
Edible vegetables thou tones 2527.8 2877.4 2863.5 3358.3 3679.0
Edible fruit thou tones 1301.0 1352.8 952.0 2088.5 1444.0
Grapes thou tones 1295.3 1121.7 1076.7 1078.0 1153.0
Meat thou tones 1414 1415 1604 1699 1550
live-weight
Source: National Institute of Statistics - Romanian Statistical Yearbook 2004, Crop Production in 2004
Livestock and animal production in 2004
Attachment 13 Food, beverages and tobacco
Foreign Trade with Main Agro-Food Products, 2000 – 2004 - US$ million –
HS Code and Chapter 2000 2001 2002 2003 2004
02 Meat and edible meat offal Export 3.2 5.4 7.0 14.3 22.3
Import 75.3 165.8 190.6 187.5 343.4
04 Dairy produce; birds’ eggs, Export 15.1 17.0 20.9 37.4 39.3
natural honey Import 26.3 29.1 29.2 34.1 39.3
07 Edible vegetables and certain
roots and tubers
Export
Import
17.8
20.6
35.7
22.9
35.3
26.0
37.7
47.9
48.2
50.8
08 Edible fruit and nuts, peel of
citrus or melons
Export
Import
21.1
60.4
25.5
55.9
24.8
70.2
35.6
89.3
47.5
117.4
10 Cereals
Export 33.8 67.5 76.0 19.7 54.6
Import 57.5 115.1 30.4 351.1 273.5
15 Animal or vegetable fats and
oils
Export
Import
21.0
34.6
24.8
33.8
9.5
66.4
31.8
62.1
79.2
64.6
17 Sugar beet and
Export 3.1 3.4 4.9 3.3 5.4
sugar confectionery Import 113.5 151.3 102.0 133.6 145.4
22 Beverages,
vinegar
spirits and Export
Import
21.1
16.9
24.0
20.3
28.8
25.0
32.2
38.5
35.3
58.1
Source: Romanian Trade Promotion Center - Database for foreign trade
114

Attachment 14 Construction & Real Estate
Construction works, by manner of performing and by type of ownership
Attachment 15 Transport Means and Infrastructure
Railway:
The railway system as a whole is affected by long term bad management from the state in:
• Maintaining the infrastructure in a good condition (10 981 km of rail, very dense network).
• Maintaining the clients portfolio of CFR Marfa freight transport company
• Ensuring the population’s demands in passenger traffic are met.
• Keeping the competitive advantage high, from the former state owned national railway company
115

Passenger’s transport is assured by one state-owned company CFR Calatori, and a handful of private
operators.
Romania has significant flows of traffic suitable for movement in trainloads and many of these flows
continue despite the poor economic situation, albeit subject to some reduction in overall size. These flows
are likely to continue at least into the medium term; in the longer term, issues such as problems with
extraction and climate change may affect coal traffic. Other flows seem likely to continue, but it is unlikely
to be a significant growth above the traffic levels of 2007, a boom year. By contrast, flows of consumer
goods, (and motor vehicles in particular), are likely to build up and become a very promising traffic for rail
once the Romanian economy improves. Flows of containers moving by sea have also increased rapidly
because of the strength of Asian manufacturing; although it may be that much of this has run its course
and there will not be so much growth in the future.
By contrast, whilst smaller domestic flows are still available for movement, the growth of road competition,
offering flexibility, door-to-door services and attractive transit times has taken a lot of this traffic. Whilst the
state of Romanian roads and the size of the country have meant this process has not been rapid so far, it
is likely to continue, representing a direct threat to the Marfa wagon load service.
Market share (%) 2005 2006 2007 2008 H1 2009
Rail 17.0 15.8 15.2 14.5 17.2
Road 75.6 77.7 78.8 79.5 70.9
River 4.1 3.5 3.3 3.3 8.6
Pipeline 3.3 2.9 2.7 2.7 3.3
Table courtesy of CFR Marfa Activity Report Sept. 2009
From the above overview, it is our belief that there are two concurrent trends affecting Marfa carryings.
The first is a long-term and irreversible decline in wagonload traffics mainly caused by road competition
being able to offer more appropriate services. This decline must call the provision of an everywhere-toeverywhere
wagonload freight service into question. The second trend is the movement in the economy
away from a “producer-centric” one with its emphasis on production and movement of basic (bulk) goods
towards a “lighter” service-based economy.
A new restructuring of the sector involves high unemployment rates within the sector, especially with CFR
Marfa.
It is a high potential for sector specific training and consulting services.
Infrastructure (tourism perspective)
Roads
o Romania faces a number of major gaps between the rural areas and urban ones in terms of the
social and physical infrastructure
o In rural areas, the roads are the most important transportation routes, but the development of rural
roads and traffic is far from the European standards. Only half of the communes have direct access
to the road network, meaning that the current road network only serves 3/5 of the total rural
population. More than 25% of the communes cannot use the roads in case of snow or rain.
o Public roads in Romania cover 73 435 km, and 80% of these are country and commune roads
o In 2007, the urban streets’ length was 26 168 km of which 15 757 km have been modernized
Airports
o Availability of low-cost flights: Blue Air, Wizz Air, Germanwings, Jet Tran Air, MyAir, Nouvelair,
SkyEurope
o Currently there are 16 commercial airports (13 international airports and 4 national airports as
classified by the Government)
o The development of regional airports should be prioritised, so that visitors do not have to connect
via Bucharest.
Railway: 10,981 kilometres of rail
116

Attachment 16 TOURISM – Extra Information
Overview
There is an increase in domestic tourism, more travel within the same region, more travel by road and rail,
more direct booking and an increased use of low-cost airlines.
Accommodation: poor quality standards regarding services & accommodation
o Seaside (excluding the city of ConstanŃa): 117 864 places
o Mountain resorts: 31 448 places
o Spas: 38 404 places
o Danube Delta (including Tulcea Municipality): 3 266 places
o County residence towns: 53 987 places
o Other localities: 38 741 places
There are more than 20 five stars hotels (9 in Bucharest only)
Economic impact
o According to Global Economic Forum Travel and Tourism rankings, Romania was the 69 th
country in 2008 and the 66 th in 2009.
o The contribution of travel & tourism to GDP is expected to be 5.7% in 2009. Directly, the tourism
industry is expected to contribute 2.1% to GDP in 2009
o The contribution of travel & tourism economy to employment is expected to be 582 000 jobs in
2009, 6.8% of total employment.
o Real GDP growth for the Travel & Tourism Economy is expected to be -2.4% in 2009
o Export earnings from international visitors and tourism goods are expected to generate 4.6% of
total exports in 2009
o Government Travel & Tourism operating expenditures in Romania in 2009 are expected to total
RON 1.4 billion (USD 479.5 million), or 4.4% of total government spending.
Telecommunications
o The rural infrastructure in telecommunications is poor by all standards.
o Internet access in rural areas is very modest, because of poor development and income of the
population.
o For more details, please see chapter 3.4.G
Promotion & marketing: In 2009, the Ministry of Tourism launched an international promotion campaign
entitled “Romania – Land of Choice”).
o 550 video commercials will be broadcast on Eurosport, 475 on Eurosport 2, 529 on CNN
o 9 000 000 banners on the internet.
o there is also a sponsorship campaign on Eurosport TV for 325 billboards of 6 seconds.
o the advertising campaign “Romania – Land of Choice” will run on two TV stations, CNN and
Eurosport, between August – December 2009.
o the main characters of the video clips are three Romanian champions: Nadia Comaneci, Ilie
Nastase and Gheorghe Hagi.
o New country logo project was launched at the end of 2009.
o Government funds for promotion and marketing were entirely cut by the Prime Minister through a
decision taken in February 2010.
Opportunities:
o Rural and agro-tourism development is a priority
o Sustainable development (product diversification): Romania’s travel & tourism is characterized by
a high level of seasonality. A focus on new types of tourism will encourage the development of an
industry diverse in opportunities as well as seasons.
o There is much potential for Romania to break away from its traditional tourism on the Black Sea
and the following sectors should be prioritized:
o meetings, incentives, conferences and exhibitions
o mountain tourism – skiing in winter and hiking in summer
117

o heritage tourism – using gateway sites such as Braşov, Sibiu and Sighişoara
o Rural tourism – development of wine/monasteries routes and promotion of festivals
o Spa/wellness tourism
Potential touristic resources
o Mountains
� Eco & agro tourism
- mountain areas are mostly suitable for mixed economic activities: agriculture with cattle
raising and orchards, forestry and lumber production, various small companies in industry
and crafts, agro-tourism and ecotourism.
- products which are mostly organic, game and flora resources, as well as the picturesque
natural landscape are elements of support for the development of agro and ecotourism in the
mountains
� The Carpathians
- due to their width, easy access, rich mineral waters and many possibilities for winter sports,
they represent the largest and most complex tourism area of the country
- numerous mountain resorts: Poiana Brasov, Sinaia, Predeal, Busteni, Borsa, Stana de Vale,
Balea (for more information, please visit www.romaniatourism.ro)
o Culture and heritage
- encouraging rural tourism and agro tourism (beautiful and original ethnographical and folklore
elements) wine tours and monasteries
- There is an important potential which is not exploited because there are no tourist centres to
inform and promote it at the local level
- Physical and access infrastructure is poor and this is a major drawback for the development
of tourism activities in rural areas
- The development of rural tourism in pensions depends on the specific traits of each region,
folklore, ethnographic regions and agricultural or wine products
- The specific tourism for Bucovina (North East) is religious tourism, in Maramureş (North
West) is the architecture or ethnography tourism, in Transylvania (Centre) recreational and
cultural tourism, food and wine, and in the Carpathian foothills – fishing
- Probably the best indicator that shows the growing interest in rural tourists is the expand of
rural pensions stimulated in a certain manner by the availability of SAPARD funds
o UNESCO World Heritage Sites: Sighişoara Historic Centre, Dacian Fortresses, Monastery of
Horezu, Danube Delta, Maramureş Churches, Moldavian Monasteries, Transylvania Fortified
Churches
o Danube Delta
- A high natural value due to biodiversity which allows for many types of tourism to be
developed (recreational, fishing, food).
- It is the richest fauna park in Europe, with over 300 species, 60 fish species of great
economic value
o Spa/wellness tourism
- There are approximately 1 300 registered sources of mineral water in Romania – a third of all
mineral spas in Europe, both potable and curative.
- There are already between 2 500 and 8 500 spas which cater mainly to domestic tourists but
currently only two (Băile Felix and Eforie Nord) have been modernized to international
standard
- High potential in Băile Herculane, other sulphurous water spas: lovrin in Timiş, Căciulata, etc.
- Development of further spas for higher-spending international and domestic visitors would not
only increase income and create jobs but would also help to conserve an important aspect of
the country’s heritage.
o MICE (meetings, incentives, conferences, exhibitions): Bucharest, the capital of Romania
o Sun & beach
- the Romanian seaside at the Black Sea stretches on 245 km, with the Danube Delta and the
lagoon complex Razim-Sinoe in the North and about 70 km of beach to the South.
118

- The seaside resorts which are well known at international level Mamaia, Techirghiol,
Costineşti, Mangalia, Olimp, Neptun, Venus, all have modern accommodation, treatment
centres and various entertainment opportunities (for more information, please visit
www.romaniatourism.ro); the threat here is the beach condition in Mamaia, the best know
resort, because of the works in ConstanŃa port
o Geo-tourism: in September 2005, Romania became only the 3rd country in the world to sign a
Geo-tourism Charter with National Geographic.
Attachment 17 Health and pharmaceutical industry – Extra Information
Overview
o Due to the development of the private sector the number of pharmacies increased so as that, in 2008
there were 7 252 units, 1 429 units more than in 2005
o Medical sanitary staff (population per physician) in 2008: was 428, very low, and the trend is
constituted by a decrease in present as well
o The private healthcare system has been developing due to the defective public system. There are
many medical centres across the country, but only in big cities, not in small towns or rural areas.
Issues
o Bribing doctors is common in Romania. Patients use bribery to solicit the standard expected level of
medical care.
o These so-called informal payments are estimated at USD 360 million annually.
o When hospitalization is needed, the Romanian patient typically pays 3 or 4 bribes equivalent to 3/4 of
a family’s monthly income.
o The cost of bribes depends on the treatment, ranging from EUR 100 for an uncomplicated appendixremoval
operation to up to EUR 5 000 for brain surgery. The suggested bribery rates are passed on
by word of mouth, and are publicized on blogs and Internet sites.
o The Ministry of Health is trying to root out the practice, and recently set up a free phone line for
patients to report abuses. Within an hour, the telephone line was jammed.
o Many patients (who can afford) are going to private hospitals or medical centres in order to get
treatment, because here they find the proper level of quality and also the respect towards the patient.
o The problem is that there are patients who cannot afford state medical services because of the bribe
rate, but they cannot afford to go to a private medical centre either, because of the high costs.
o There are difficulties in many rural areas in accessing healthcare services. The access of the rural
population to basic healthcare services is hindered by the poor transportation services, which mostly
impedes on the medical staff’s commuting opportunities.
o Rural areas have poorer medical services than urban areas. In most communes, only basic medical
services are provided. For specialised services, rural inhabitants must go to town to find treatment.
o The quality of medical services is also affected by the training of the medical staff, mostly nurses,
while the number of doctors is not enough to provide high quality medical services in rural areas.
o Limited applicability of the e-health project to the areas with PC machines and internet/ network
connection.
o Specialists deciding to go for better pay abroad.
See also: http://rbd.doingbusiness.ro/ro/5/articole-ultima-editie/1/256/romanian-healthcare-sector
119

Attachment 18 IT & Telecommunications – Extra Information
By boosting economic growth, information and communication technologies present great potential for
creating new and better jobs, and generating greater prosperity.
Overview
Telecommunications
The telecommunications market has reached its maturity. The main players in the market are:
Romtelecom, Vodafone, Orange, Cosmote, Rcs&Rds, Upc. Romtelecom’s market share diminished,
mainly because of the aggressive competition of the cable operators that launched integrated service
bundles combining television, telephone and Internet access. To counteract the competitors’ two/ threeservice
bundles, Romtelecom launched the satellite TV service (DTH – Direct to Home), whose success
was proven by the fast increase of the number of subscribers. In the mobile sector, Cosmote significantly
improved its position on the market by promoting an aggressive price policy while extending its network
coverage, whereas Rcs&Rds has already launched mobile telephony services in one region of Romania
and committed to developing the network to reach national coverage within the next 4 years, which will
enable this operator to integrate all four main services (TV, fixed telephony, mobile telephony and Internet
access) within one bundle.
o For the first time in the last years, the fixed telephony experienced an important increase in the
number of access lines, which has risen by 18.3% compared to the end of 2007.
o The penetration rate of mobile telephony services, calculated upon the number of valid prepaid SIM
cards, has risen in 2008 with almost 20.7%, reaching 133%. The mobile telephony generates the
largest share of the revenues from electronic communications services in Romania, featuring annual
average growth rates of 35.3% over the last 4 years.
o The total number of broadband internet connections at fixed points registered at 31 December 2008
was of 2.51 million connections, the penetration rate reaching the value of almost 11,7%
o The number of Wi-Fi connections has doubled and that of XDSL has increased by 78%
o The biggest increase was that of the mobile internet connections (an increase of 43%, reaching 2.68
million) due to the evolution of the number of the connections provided through GPRS technology.
o In 2007, in 255 communities with no access to knowledge have been developed electronic networks
of local communities, connected to broadband internet, acting as “knowledge centres”, information
provider
o 91% of the Romanian companies are connected to the Internet, but only 59% of these have a
connection with a bandwidth larger than 256 kbps)
o The volume of foreign direct investment in IT&C represents 22% of the total foreign direct
investments.
o The contribution of IT&C to the GDP is estimated to represent 10%.
o The regulatory measures adopted by the competent Authority concerned the reduction of
interconnection tariffs and the implementation of the number portability. These are expected to trigger
more competition in the sector.
IT Industry
o today almost everybody agrees on a clear decline in the software and IT services market; the majority
of IT suppliers have considerably re-evaluated their annual targets, and for many achieving the same
level of turnover as in 2008 seems highly ambitious.
o the IT suppliers that sell licenses and products are hit the worst, with adoption substantially lower
than the previous year. Poor utilisation rates among IT services suppliers move competition in the
price arena, with suppliers sometimes bidding on the zero margin or even dumping prices in hope of
rebound in profitability in the medium term. The fight on pricing may sharpen towards the third quarter
of 2009, as demand tends to shrink seasonally in this quarter, followed by a price relaxation towards
the end of the year, when part of the companies will flush pieces of unconsumed budgets. The buy
side also exerts price pressure - largely in the commoditized areas, as IT end users are much more
careful with the money they have been allocated.
o During times of economic turmoil, outsourcing finds good premises to get adopted. The
externalization of selected IT functions tends to find better resonance because companies are looking
120

to cut costs and reduce non-strategic assets from their balance sheets. However, this is valid for
mature IT markets.
o The economic crisis will definitely accelerate the consolidation of the software and IT services sector
in Romania.
121

Issues and opportunities
Telecommunications
o Electronic commerce use is still low in Romania, compared to the European average, but was one of
the few sectors growing in 2009 at a peace of 20%.
o Internet usage level in 2008 was 26% of the population, compared to the European average that is
56% of population (people using the Internet at least once a week).
o With regard to the electronic commerce (e-commerce) in Romania, only 12% of the companies’ total
income comes from electronic commerce.
o Romania has the lowest percentage of businesses with broadband connections in the European
Union, with only 44% of enterprises having a broadband connection as compared to a EU27 average
of 81%.
o The above levels reflect in the household area, with only 13% of households (the second lowest level
in the EU) having a broadband connection compared to a EU27 average of 48%.
o Lowest percentage of enterprises owning a website: 27% compared to a EU27 average of 64%.
o 91% of the population with no coverage live in rural areas.
o In general, urban users benefit from a greater diversity of the service offer, as compared to the rural
users, who face either the problem of limited choice, having only one or few service providers to
choose from, or the problem of no access to the means of communications, as they live outside the
coverage areas of the electronic communications networks.
IT Industry
o Acquisition opportunities: According to PAC (Pierre Audoin Consultants)'s research, about 70% of the
mid-tier companies in the software and IT services industry in Romania are, potentially, for sale. The
most interesting companies for financial investors are those with software products developed in
house, but with no financial support for further development and sales & marketing push outside
Romania.
Objectives
Telecommunications
o The strategy for 2011–15 regards the introduction of the BWA (Broadband Wireless Access) systems
in the 3.5 GHz, 2.5 GHz and 800 MHz frequency bands and the implementation of the first concrete
steps of the digital switchover.
o Through the Broadband Strategy, the Ministry of Communication and Information Society managed to
unlock European funds amounting to EUR 84 million for investments in broadband infrastructure.
o Raising the percent of households with Internet access to 45%
o Increasing the number of rural communities with access to broadband networks facilities
o Raising the percent of companies using the internet as primary communication tool with the public
institutions to 60%
o Promoting e-commerce and offering financial and technical assistance for SMEs to adopt innovative
solutions by offering irredeemable financing
o Since the transition to digital television is likely to accrue, the fixed telephony is expected to decline
as a service provided separately.
o Bundled offers including audio-visual programmes, broadband Internet access and fixed telephony
(“triple-play”) will be the main driver for the growth in the residential segment
o In the corporate segment, the demand for integrated services of mobile telephony, data transmissions
and fixed telephony will gain importance.
See also:
http://rbd.doingbusiness.ro/ro/5/articole-ultima-editie/1/258/the-impact-of-the-economic-crisis-on-theromanian-software-and-it-services-market
http://rbd.doingbusiness.ro/ro/5/articole-ultima-editie/1/257/romanian-telecom-market-overview
122

Attachment 19 Education – Extra Information
Overview
o The diversification of rural economic activities depends on education, knowledge and skills.
o Education and training are essential for rural communities, but there are noticeable gaps in the school
infrastructure. Although there are more schools than necessary in rural areas, the quality of education
is poor, because of the poor infrastructure and low training level of teachers.
o Most schools need new buildings, furniture, utilities and teaching materials
o Vocational and primary education is important for the conversion of the agricultural workforce to nonagricultural
skills.
o Rural school units do not have enough IT equipment.
o Generally speaking, the quality of education in rural areas is poorer than that in the cities, because of
the difficulties in attracting skilled staff in those areas, and also funding issues.
o The higher-educated population in rural areas represent 1.8% of the total population because of poor
access and low income.
o At university level and professional training areas there are multiple areas of
improvement/opportunities:
- Introducing new specialisation and new subjects (shoe design, presentation, communication
skills, branding, etc)
- Adapting curricula to market demands and conditions (e.g. IT, design, textiles, furniture,
agriculture)
- More collaborations and cluster initiatives in the research field, together with the business
environment and the research institutions.
Country IQ (2002) IQ (2006) QHC
Romania 94 94 53
Hungary 99 98 64,1
Germany 102 99 78
UK 100 100 76,7
France 98 98 78,1
Russia 96 97 64,5
USA 98 98 86,6
Switzerland 101 101 82,2
Bulgaria 93 93 59,1
Moldova 95 96 46,2
China 100 105 39,7
Greece 92 92 76,1
Denmark 98 98 85,4
Turkey 90 90 50,2
QHC = quality of human condition
Data from: Richard Lynn and Tatu Vanhanen (2006) - IQ and Global Inequality
Rank Country Value
1 Finland 0,993
10 Greece 0,98
19 USA 0,968
26 Hungary 0,96
31 Germany 0,954
32 Poland 0,952
38 Czech Republic 0,938
39 Switzerland 0,936
40 Russia 0,933
123

41 Bulgaria 0,93
48 Romania 0,914
55 Moldova 0,9
61 Serbia 0,891
92 China 0,849
105 Turkey 0,824
UN Global Education Index 2008 (Part of HDI)
EU Indicators Regarding
Education (Lisbon Agenda)
Romania EU EU Target
Prematurely leaving education
system* 23,60% 14,90% 10%
Highschool graduate 66,50% 77,30% 85%
Students under lowest level of
performance 41% 19,40% 15%
Adults involvement in
permanent education 1,60% 10,80% 12,50%
*for 18-24 years of age population
Data from: PIRLS (Progress in International Reading
Literacy Study) for 4 th grade students
International Average
Lietva
Lithuania
Hungary
Bulgaria
Romania
500
512
124
545
543
543
550
470 480 490 500 510 520 530 540 550 560

520
500
480
460
440
420
400
380
Data from: OECD program for evaluateing students -
PISA
426
500 500 500
125
441
428
Mathematics Science Reading
Romania International average
Data from: TIMSS (Trend in International
Mathematics and Science Study) - for students in 8th
grade
Science
Mathematic
45
48
48
Romania International Average
Attachment 20 Communication Industry – Extra Information
o The Realitatea-CaŃavencu Group - http://www.gruprc.ro/ - owns, among many others, a news channel
(the first one of its type), Realitatea TV, which holds a top position in the Romanian audience’s
preferences; the group was founded in 2001 and is owned by Sorin Ovidiu Vântu, a controversial
Romanian businessman, which makes the group’s media products less trustworthy to some viewers;
the group also includes more niche-oriented products, such as The Money Channel, addressed to
viewers interested in the Romanian business market; the group’s products and projects are
addressed to well differentiated targets and has recently suffered a very visible tendency towards new
media – the F5 division - http://www.f5web.ro/ ;
o The Mediapro Group, also associated with a somewhat controversial businessman, Adrian Sârbu; the
group owns one of the most famous and watched Romanian TV channels, PRO TV, which was
52

launched in 1994; the TV Channel continues to launch popular show formats, such as “Dansez pentru
tine” / “Dancing with the Stars”, which has reached its 8 th edition; the group also has several niche TV
channels and publications, as well as new media products – through the Mediapro Interactiv Group;
Mediapro also produces its own TV series (some sitcoms and soap operas promoted on Acasă TV, a
channel dedicated exclusively to the female audience) and movies, under the Mediapro Pictures label
– with a moderate success;
o The other important player on the media market is INTACT Group, financed by Dan Voiculescu,
another controversial Romanian businessman; Antena 1, the group’s most important media product,
was the first privately owned national Romanian TV channel; Antena 1 focuses on light entertainment
TV shows, just like PRO TV, its long time rating adversary, while the news channel Antena 3 is a
direct competitor to Realitatea TV; the group also owns several newspapers – among which the daily
Jurnalul NaŃional is one of the most known, along with other niche publications, other TV and radio
channels, as well as new media;
o TVR1 is the national TV channel and the oldest; it is state-owned and it was the only available TV
channel during the communist era; it is therefore associated with that period and, being state-owned,
is not regarded as equidistant;
o Other publications on the Romanian media market are the glossy magazines which are shared
between Ringier, Sanoma Hearst, Burda, Attica Media, as well as MediaPro or Intact. Some of the
glossy magazines are international brands (Elle, Cosmopolitan, Maxim, etc.), while others are local
brands, such as Tabu, The One, Bolero, etc.;
Attachment 21 Romanian top companies according to Deloitte CE
Top 500 (top 500 companies from Central Europe)
Rank
Name Sector Subsector
126
Revenue
from
Sales in
2008
Net
Income
in 2008
16 Petrom Energy and resources Oil and Gas 4551,3 277,8
39 Rompetrol Energy and resources Oil and Gas 3029,8 -196,2
77 Automobile Dacia Manufacturing Automotive 2076,5 60,3
89 Arcelor Mittal Manufacturing Process industry 1841,1 154,2
Consumer Business and
Transportation
Wholesale and
distribution 1658,5 N/A
100 Metro
110 Electrica Energy and resources Power and Utilities 1557,2 N/A
113 Rompetrol Downstream Energy and resources Oil and Gas 1528,3 -57,7
139 Petrotel LukOil Energy and resources
Technology, Media and
Oil and Gas 1301,7 N/A
142 Orange
Telecommunication Telecommunication 1280,1 437,9
144 LukOil Energy and resources
Technology, Media and
Oil and Gas 1255,6 2,8
157 Vodafone
Telecommunication Telecommunication 1188,6 306,6
Consumer Business and Consumer Products
174 Interagro
Transportation
Consumer Business and
Companies 1099,9 N/A
184 Carrefour
GDF Suez Energy
Transportation Retail 1032,6 20,1
189 Romania Energy and resources Oil and Gas 1015,6 34,9
193 Porche Manufacturing Automotive 999,9 N/A
Transilvania General Consumer Business and Wholesale and
194 Import-Export
Transportation
distribution 999,9 N/A
British American Consumer Business and Consumer Products
201 Tabacco
Transportation
Companies 979,8 N/A
221 Romgaz Energy and resources Oil and Gas 891,2 146

233 Selgros
Consumer Business and
Transportation
Technology, Media and
Retail 858,5 N/A
237 Romtelecom
Telecommunication
Consumer Business and
Telecommunication 845 1,1
272 Kaufland
Transportation Retail 778,5 3,7
331 Hidroelectrica Energy and resources Power and Utilities 663,9 17,7
367 OMV Romania Energy and resources Oil and Gas 612,6 16,5
383 MOL Romania Energy and resources Oil and Gas 591,9 12
385 Electrocentrale Energy and resources
Consumer Business and
Power and Utilities 587,9 -93,9
393 CFR Calatori
Transportation Transportation 579,2 -70,7
404 Alro Manufacturing Process industry 563,8 56,2
Consumer Business and Consumer Products
414 Coca Cola
Renault Industrie
Transportation
Companies 551,2 66,2
418 Roumanie Manufacturing Automotive 546,9 0
Consumer Business and Consumer Products
420 Philip Morris
Transportation
Companies 543,4 N/A
432 Oltchim Manufacturing
Consumer Business and
Process industry 529 -63,6
492 CFR Marfa
Transportation Transportation 468,2 -46
Attachment 22 Global Innovation Index 2009 – BCG
Country Overall Innovation Inputs Innovation Performance Sum
1 Singapore 2,45 2,74 1,92 7,11
3 Switzerland 2,23 1,51 2,74 6,48
8 US 1,8 1,28 2,16 5,24
9 Japan 1,79 1,16 2,25 5,2
19 Germany 1,12 1,05 1,09 3,26
20 France 1,12 1,17 0,96 3,25
27 China 0,73 0,07 1,32 2,12
31 Hungary
Czech
0,51 0,8 0,18 1,49
32 Republic 0,41 0,88 -0,1 1,19
42 Greece 0,12 0,01 0,23 0,36
49 Russia -0,09 -0,02 -0,16 -0,27
52 Poland -0,12 0,22 -0,44 -0,34
53 Bulgaria -0,13 0,23 -0,48 -0,38
58 Turkey -0,21 0,15 -0,55 -0,61
61 Romania -0,29 0,22 -0,77 -0,84
64 Ukraine -0,45 -0,13 -0,73 -1,31
72 Brazil -0,59 -0,62 -0,51 -1,72
83 Moldova -0,8 -0,24 -1,28 -2,32
Global Innovation Index 2009 - BCG (Boston Consulting Group) & NAM (National Association of
Manufacturers)
http://www.nam.org/innovationreport.pdf
127

Chapter 4
Attachment 23 Registering a Romanian company
Buying shares in a Romanian Company
o The purchase of shares in a Romanian company is performed through the Share Assignment
Agreement concluded between the two parties, namely the actual shareholder who is going to assign
the shares in question and the future shareholder who will take over the shares in the Romanian
company.
o The share assignment can be performed at the shares' nominal value, mentioned in the company’s
articles of incorporation, or it can be performed at a higher value than the nominal one. In the latter
case, the new shareholder has the obligation to discharge to the state the tax in amount of 16%. This
percentage applies to the difference between the nominal value and the purchase value. The share
assignment, in the case of limited liability companies, must be registered with the Trade Register
Office for opposability to third parties.
The share assignment and their rights over the dividends
o The dividends which are incumbent after the share transfer data belong to the purchaser, excepting
the case where the parties have agreed otherwise. Although the law refers to Romanian joint stock
companies, this also applies to Romanian limited liability companies. As a result, the shares
assignment agreement can contain a provision on the right of the purchaser to obtain the dividends
for the period prior to the assignment.
o If the parties have not regulated the legal situation of the dividends, the practice inclines to assign
them to the purchaser for the period of time prior to the conclusion of assignment. Therefore, the right
to dividends, being a fundamental social right of each shareholder, cannot be alienated only through
the party’s convention. The company is forced to pay to its shareholders the agreed dividends.
Share assignment to a foreign legal entity
8. The Procedure:
• Between the Romanian company (as a purchaser) and the foreign company (as a seller) a share
assignment agreement shall be concluded.
• All the shareholders of the Romanian limited liability companies adopt the Decision of the General
Meeting of Shareholders by which the following are approved:
• the share assignments
• the modification of the Articles of Association as a result of the assignments.
• The updated version of the Articles of Association of the Romanian Limited Liability Company
(SRL) showing the new shareholding structure and new amendments (if applicable).
• In the case where the share cession by the Romanian limited liability company’s shareholders is
concluded at a higher value than the nominal one, it is necessary to pay the investment income
tax. This tax amounts to 16% of the income computed as the difference between the assignment
price and the nominal value of the assigned shares. The investment income tax in this case
entails the following problems:
o the investment income tax is withheld (i.e. the seller will pay to the purchaser the
assignment price reduced with the investment income tax value);
o payment of the income tax depends on the following aspects: if the seller is Romanian legal
person (PJ) or natural person (PF) and the purchaser is non-resident PF or PJ (see article
67 of the Fiscal Code)
o in the case of the foreign legal entities without permanent office in Romania (without a fiscal
registration number), the foreign legal entity must designate a fiscal representative.
• The foreign legal entity which becomes shareholder in the Romanian limited liability company will
need a series of documents for registering the share assignment with the Romanian Trade
Registry Office.
128

Romanian Shelf Companies
d) There are a significant number of investors interested in purchasing an already registered company
rather than incorporating a new one. This could be intended for a number of reasons, ranging from
offering additional confidence to business partners or a presumed easier procedure for entering the
Romanian market.
e) The procedure of purchasing shares in a Romanian company, even if this company did not have any
activity in the past (a so-called “shelf company”) has its specifics when compared to the same
procedure abroad, respectively:
• The procedure implies a larger number of paperwork and takes more time and is more expensive
than incorporating a new company.
• The procedure automatically implies the following changes in the company structure: change of
shareholders, change of company headquarters, change of directors (administrators), and
issuance of a new Certificate of Registration.
• The procedure requires a Share Assignment Agreement which has to be signed by both actual
shareholders and future ones.
• All changes in the company must be registered with the Trade Register Office in order to be
considered valid.
• The procedure requires the following documents: the Shareholders Decision drafted in a certain
format, the updated Articles of Association, a Share Assignment Agreement, Affidavits and
Specimen Signatures for the future shareholders and directors and documents necessary for the
new company headquarters.
f) There are also the following aspects to be taken into consideration when interested in purchasing a
Romanian ready-made company:
• There is no such concept as nominee directors as per the Romanian legislation;
• There is no real method to verify in what type of transactions/operations the company was
involved in the past; therefore a diligent approach is recommended.
Romanian Non-Profit Organizations and Associations
o Romanian Associations
The Association is the legal entity constituted of 3 or more persons who have brought together their
financial contribution, knowledge or labour for a general interest, or the interest of a specific group or their
own non-patrimonial interest. It must be underlined that an Association cannot conduct commercial
operation or perform activities in order to obtain profit as a main activity. However, an Association can
perform commercial operation as secondary activity if related to their main non-profit activity.
The patrimony of an Association cannot be less than the equivalent of the minimum gross salary in
Romania and may comprise both in kind and monetary contributions.
For the registration of the Association, the associates will have to provide the Articles of Association,
drafted per the specific regulations as well as the statute, proof of headquarters and social capital and
availability of the chosen name of the Association. The file containing the aforementioned documents is
subject to approval of the regional court of competent jurisdiction in the area where the headquarters are
located. According to the Government Ordinance no. 26/2000, within 3 days the judge will either approve
the registration or request further documentation. Nonetheless in practice it takes approximately one
month until the decision is rendered.
The Association shall consist in the following organizational bodies:
• General Assembly;
• Management Council;
• Censor or Censor Committee.
It is important to note that an Association is able to be shareholder in a Romanian commercial company.
The dividends obtained from the activities of these companies, unless reinvested, must be used for the
purpose stipulated in the Articles of Association.
o Romanian Foundations
The Foundation is the legal entity constituted by one or more persons assigning a certain patrimony –
permanently and irrevocably – to the fulfilment of a general interest purpose or the interest of a specific
group.
129

The patrimony of the Foundation must include assets (in kind or monetary) in value of at least 100 x the
minimum gross salary in Romania on the date of its incorporation.
The founders shall provide the following documents for the registration of the Foundation: Articles of
Association and statute, proof of headquarters and initial capital and availability of the chosen name.
The organizational bodies of the Foundation are the following:
• Management Council, formed of at least 3 members appointed by the founder(s) at the moment
of its creation;
• Censor or Censor Committee, formed of an uneven number of members.
Foundations can become shareholders in commercial companies in a manner similar to that of an
Association (described above).
� Differences between Romanian Associations and Foundations
� The Object of the two entities: unlike the Association, the Foundation cannot act in the interest of
its founders.
� The number of founders: whereas for an Association the number of founders must be of at least 3,
the Foundation is able to have one or more founders.
� The minimum social capital: it is one minimum gross salary for an Association and 100 x the
minimum gross salary for a Foundation;
� Organization bodies – for an Association: General Assembly, Management Council, Censor or
Censor Committee; for a Foundation: Management Council and Censor or Censor Committee.
� Termination of the entities: unlike the Association, the Foundation cannot be dissolved through
the Decision of the General Assembly.
Attachment 24 Legal Types of Trade Companies
o General partnership
A general partnership can involve two or more partners. The partnership relationship is based upon a
contract and any person who is capable of entering a binding contract may enter a partnership. Following
this agreement, the parties must register their partnership with the National Trade Register Office.
In a general partnership, partners are jointly liable for the debts and obligations of the partnership and
each partner can be personally liable for the overall debts and liabilities, which are not satisfied by the
assets of the partnership.
The capital of the partnership is formed of the partners' contributions. These contributions can include
cash, real estate, equipment, or other property. Contributions become assets of the partnership and
comprise its registered capital. Romanian laws do not set maximum or minimum limits on capital, nor do
they indicate how much of the capital must be in cash or other assets. These decisions are left with the
partners.
o Limited partnership
A limited partnership consists of one or more general partners who manage the business of a partnership
and one or more limited partners who contribute capital (money or other property) to the partnership but
do not participate in its management. Generally, limited partners are not liable for the debts and
obligations of the partnership beyond their contributions to the registered capital. The liability of the
general partner is the same as the liability of partners in a general partnership. For an investor, therefore,
being a limited partner is similar to having an investment in a corporation.
Limited partners share the profits or other compensations by way of income in proportion to their
partnership contributions.
A limited partnership must use in its name the specific words “limited partnership”.
o Joint Stock Company
A joint stock company is a corporation with registered capital of a minimum of RON 90 000 and at least
two shareholders. When an SA is established, at least 30% of the share capital, or 100% in respect of
contributions in kind, must be immediately contributed upon formation of the company and all registered
130

share capital must be fully paid up within twelve months of formation. Shares could be nominative shares
or bearer shares and can be freely traded or pledged. A joint stock company may be set up privately or
by public subscription.
The management of a joint stock company is managed by a Council of Administration (Board of Directors),
although it is possible to have only one Administrator. The Directors do not necessarily need to be
shareholders. The Directors are appointed for a maximum mandate of four years by the General Meeting
of Shareholders, which also decides their powers. Directors may be re-elected.
A joint stock corporation is normally recognized by the use of the words “limited incorporated” or
“corporation” in its name.
o Limited Joint Stock Company
A limited joint stock company is a rare form of limited partnership. It has characteristics of both a joint
stock company and a limited partnership.
o Similarly to a limited partnership, there are general and limited partners.
o Similarly to a joint stock company, the registered capital of the limited joint stock company is
represented by shares.
o Similarly to a partnership, the general partners may be liable for the debts and obligations of the
company beyond the amounts they have contributed.
o The limited partners, not active in the management of the company, have their liability limited to
their share stake.
o A limited joint stock corporation is normally recognized by use of the words SCA in its name.
o Limited liability company
A limited liability company is a company formed by a limited number of partners (no more than 50). It is
based on the constitutive documents. The registered capital of a limited liability company cannot be less
than RON 200. The registered share capital of a limited liability company is normally divided into social
parts/shares with a registered value of not less than RON 10. Shares cannot be freely traded, making
limited liability companies similar to what are known as private companies in other legal systems. Shares
of these companies cannot be pledged as collateral for loans.
The Articles of Incorporation of the limited liability company will include:
- the full name, place and date of birth, residence and citizenship of individuals;
- the name, registered office and nationality of the shareholder, as legal person;
- the type, name, headquarters and, if any, the company logo;
- the object of the company, specifying the main domain of activity;
- the subscribed and paid in registered capital, the shareholders’ contribution in cash or in kind, the
value of the contribution in kind and its valuation method as well as the date of the full payment of
the subscribed share capital; the number and nominal value of shares as well as the number of
shares subscribed to each associate for his/her contribution;
- the shareholders in charge with the representation and administration of the company or the nonshareholder
administrators, natural or legal persons, and their powers which are to be exercised
jointly or separately;
- the share of profits and losses for each shareholder;
- the secondary offices (branches, agencies, representative offices or other such entities with no
legal personality) whether or not established as the same time with the company, or the
conditions of their subsequent establishment if such establishment is taken into account;
- the duration of the company;
- the methods of dissolution and liquidation of the company.
Decisions are made by majority vote in the General Meeting of the Shareholders (1 share = 1 vote).
Decisions involving changes in the constitutive documents must be agreed by all shareholders, if these
documents do not state otherwise. One or more Directors/Managers are appointed in the constitutive
documents or by the General Meeting and are put in charge of the management of the company.
Limited liability companies may also be formed by a sole associate.
131

Currently, the majority of companies registered in Romania whether domestic or foreign-owned, are
limited liability companies. A limited liability company is known as a SRL.
o Other Types of Companies
� Branch
o Foreign firms are allowed to establish a branch office in Romania;
o Branches can operate only in the same activities of their parent company;
o Branches must have a general manager, who can be a Romanian or a foreign citizen;
o Branches do not have legal personality.
� Representative Offices
o Can be set up by a foreign company in Romania;
o Function as first steps for checking future activities in Romania;
o Are not allowed to commit in legal engagements, as separate legal entities.
� Subsidiary
o Commercial company with legal personality;
o Separate and distinct entity regarded as a Romanian one;
o The Romanian subsidiary has its own patrimony and bank account.
Nationality of Trade Companies
According to Law no. 31 of the Fiscal Code, a company registered in Romania is a Romanian legal
person.
Attachment 25 Practical advices
Registering a Trademark in Romania
A trademark registration gives the holder an exclusive right to use the trademark for products and/or
services for which registration was made, for a term of 10 years from the date of the deposit, and the right
to prohibit third parties to use its trademark or fraudulent imitation.
On request, the registration of a trademark can be renewed at the end of each term of protection of 10
years. For the registration of a trademark it is required to file an application for registration with the State
Office for Inventions and Marks (OSIM) by filling a standard form provided by OSIM comprising of:
- for a Romanian applicant: name and address of the applicant, including telephone and fax;
- for foreign applicants: country, name of country of residence, name of the country where the
activity takes place;
- for a legal entity applicant: the respective country whose legislation served as a framework
for establishing the legal person;
- name and address;
- statement to invoke the right of priority, indicating the state and the first deposit, if the priority
is claimed from an earlier application;
- statement to invoke the priority of exhibition, indicating the location and name of exhibition
and the dates of the products or services in that exhibition;
- indication of colour or colours claimed to indicate the main parts of the brand;
- statement on the three-dimensional shape of the brand;
- the trademark characters (letters or figures) other than those used in Romania;
- a translation of the words constituting the trademark if they are not in Romanian;
- identifying the goods or services for which trademark registration is required, grouped
according to "Classification of Nice";
- signature of the applicant or his representative, as applicable.
The application shall be accompanied by graphic or photographic reproduction of the mark in sizes up to
6 x 6 cm, as follows:
- 5 reproductions of the trademark in black and white when colour is not claimed as a
distinctive element;
- 5 reproductions of the trademark in black and white and 5 colour reproductions of the
trademark when claiming at least one colour as a distinctive feature.
132

Duration of protection is 10 years; trademark may be renewed at the end of each period of 10 years, at
the request of the proprietor, the tax provided by law.
OSIM trademarks are protected only in Romania.
Romanian Trade Register Office
o The Romanian Trade Register Office is an institution organized by the Romanian Ministry of Justice.
The Trade Register in Romania has the following responsibilities: keep records on the legal and
financial status of all Romanian companies, provide economic and statistical information, provide
commercial information, simplify the procedures concerning incorporation and companies, inform and
assist business people on issues related to the Trade Register activity.
o Legal registration operations such as the incorporation of new Romanian companies, change of the
social headquarters of the company, amendment of any clause in the Articles of Association, transfer
of social shares, require the verification of the file and documents by a clerk and a Trade Registry
(see GEO no. 116/2009)
o Beginning with the date of approval of the registration, the Romanian Trade Register usually requires
around 3 - 5 business days to issue the Certificate of Incorporation.
o Other useful information about the Trade Register and its activities throughout Romania:
• The Trade Register is a public institution and is obliged under law to issue, on the expense of the
person requesting it, official copies of the documents registered in its database as well as
information regarding the registered data and to provide information in regards to the existence of
certain documents in the records of the Romanian Trade Register.
• The Romanian Trade Register has branches in 42 counties, representing the National Trade
Register which is coordinated by the Ministry of Justice.
The Romanian Public Notaries
o The activity of Public Notaries in Romania provides the official recognition of the civil or commercial
relations as well as the exercise of rights and protection of interests. The Public Notary is invested to
perform a service of public interest and has an autonomous statute. Notaries activate through
individual offices or associative structures, much like attorneys.
� Romanian Public Notaries have the following attributions:
� drafting legal documents, on the request of the parties involved in the proceedings;
� authentication of documents drafted by the Notary, the party or the attorney (the Notary verifies
the identity of the parties, their approval and is present while the parties sign the respective
document);
� inheritance procedures (started by any party with interest in the case);
� certification of certain facts, according to the Law (e.g. the fact that a person is alive, that is
located in a certain place, that a person has shown up at a specific time and date, etc);
� notarization of signatures, specimen signature as well as seals/stamps;
� certification of documents presented by the parties;
� maintaining records of documents presented by the parties (the Notary will have to mention a
date, identify the documents with all relevant information, mention the name of the person to
whom the records must be released, etc.);
� notarization of copies;
� notarization of translations.
o All Notary procedures are performed upon request. The documents drafted by the parties or their
representatives, shall be verified to fulfil the conditions related to form or content, the Public Notary
being able to bring modifications or addendums, with the approval of the parties.
The documents are drafted in accordance with the disposition of the parties and under the conditions
of the law.
o The services provided by the Romanian Public Notaries are used on much broader scale than in
other countries, especially if comparing to Anglo-Saxon or Northern European countries.
133

Overview of the Romanian Courts
Romanian legislation stipulates the following Courts of Law:
o High Court of Cassation and Justice
The High Court of Cassation and Justice is organized in 6 divisions: Civil and Intellectual Property
section, Criminal section, Commercial section, Fiscal and Administrative section, the Panel of 9
judges and the Joint section (which renders decisions for the interest of law in order to harmonize the
application of law by the lower courts). The High Court solves the following litigations:
o Final appeals against the Decisions of the Courts of Appeal;
o Final appeals “in the interest of the Law”;
o Any other areas of competence (by Law).
o Courts of Appeal
Each Court of Appeal has jurisdiction in an area where a number of Tribunals operate. The Courts of
Appeal are organized in specialized sections such as: civil criminal, commercial, minor and family
section, administrative and fiscal section, labour and insurance conflicts section etc.
The Courts of Appeal rule in:
o As a 1st phase Court: administrative litigations concerning administrative acts issued by
central public authorities and institutions;
o As 2nd phase (Appeal): appeals against decisions rendered by the Tribunal as 1st Phase
Court Decisions;
o As 3rd Phase (Final Appeal): final appeals against decisions of Tribunals rendered as 2nd
phase courts or against decisions of Tribunals rendered as 1st Phase courts which according
to the law are not subject to 2nd Phase Appeal.
o Any other cases provide by law.
o Tribunals
Romanian Tribunals are Courts organized in each county and the Bucharest municipality. They are
located in the county’s main city.
Competence of Tribunals:
o As 1st Phase Courts:
a) Commercial Trials of over RON 100 000 as well as trials without a non-financial object;
b) Civil Trials of over RON 500000 with certain exceptions;
c) Labour Conflicts with certain exceptions;
d) Administrative Litigations with certain exceptions;
e) Intellectual and Industrial Property Trials;
f) Expropriation Trails;
g) Adoption Trails;
h) Claims arising from damages caused by judicial errors in criminal trials;
i) recognition and enforcement of a foreign judgment in Romania.
o As 2nd Phase Courts (Appeal): Appeals against 1st Phase Regional Courts decisions.
o As 3rd Phase Courts (Final Appeals): Final Appeals against decisions of Regional Courts which
are not subject to 2nd Phase Appeal.
o Specialized Tribunals
o Military Courts
� Romanian Regional Courts
Romanian Regional Courts cover Romanian counties and Bucharest’s sectors. Regional Courts
can contain specialized divisions per the nature and number of the cases. Their competence is
for 1st Phase Courts, respectively all trials with the exceptions of those going directly to superior
Courts.
134

� The Court of International Commercial Arbitration
The Romanian Arbitration Court has the mission to promote commercial and civil arbitrage both
on a nationwide and international level and alternative solutions to litigation. Attributions of the
Arbitration Court include the following:
- Assists the parties on their request in the Arbitrage procedure;
- Elaborates models of Arbitrary Conventions and promotes them in specific business areas;
- Collaborates with Arbitrary Commissions of Chambers of Commerce;
- Maintains evidence of its specific practice;
- Collaborates with international arbitrary institutions.
Attachment 26 Signing Contracts in Romania
o In the case where Romanian laws are applicable to the specific Contract (any litigation between the
parties are to be solved by a Romanian Court), entering into contractual relations with a Romanian
party requires knowing more about the respective Romanian regulations. The requirements listed
below are to be taken into account when concluding commercial contracts as per the Romanian Law
such as: sale/purchase pre-contracts and final contracts, rental/lease agreements, mortgage
contracts, cession contracts, leasing, services agreements, construction contracts, insurance
contracts, commission agreements, transportation contracts, etc.
o As per the stipulations of the Romanian law, a contract should comprise certain elements: obligations
incumbent to each party for the fulfilment of the contract, delivery and quality conditions of goods
and/or services, terms, payment methods and payment guarantees, payment instruments and price
insurance, contractual risk, as well as the jurisdiction applicable to potential litigations arising out or in
relation with the interpretation, execution or breaching of any term or condition within the respective
contract. Other required elements include the complete name and identification details of the parties
(for legal entities these include headquarters address and registration number with the Trade Register
Office) and name of the person signing the contract (when representing a legal entity).
o In case of partial or total non-fulfilment of any obligation stipulated in the contract, besides the
penalties established by the parties in the contract, the party which has fulfilled its obligations can
claim damages in an amount already anticipated and set forth in the contract as of the moment of its
execution or established by court decision.
o The following payment methods are acceptable: payment order (bank transfer), check, bills of
exchange (in certain conditions expressly mentioned by the Law), factoring.
o In case of non-fulfilment, the contracting parties are able to begin debt recovery procedure for
claiming in court their amounts due by the other party along with all the accrued penalties to the
outstanding amounts... The creditor will be able (after a final decision rendered by the court of
competent jurisdiction) to enforce the court decision against the debtor’s assets such as: liquidities
(including funds in bank accounts), dues, products, receivables or other patrimonial values. The
enforcement procedure is carried out by the services of a receiver having jurisdiction.
o Romanian Law contains vast legislative dispositions concerning the form of certain contracts in order
to be valid and binding. There are an important number of exceptional requirements (e.g. authentic
form for sale purchase of real estate properties, written form, accordance with dispositions regarding
each separate type of contract, etc.) and important general dispositions that directly influence
business relationships with Romanian partners.
Governing Law of Contracts signed with a Romanian party
9. Considering that the Romanian Civil Code allows the parties to establish the content of a contract, it
is obvious that in the case of an international contract, they could choose the applicable law of the
contract.
10. The Law stipulates that the applicable law must be expressly mentioned or result in a clear manner
from its content or circumstances. There are two methods for the parties to express their will: an
explicit choice (through the actual mentioning of this information in the contract or annex) or a tacit
agreement. The elements used for deducting an eventual tacit agreement of the parties are the
following:
• Using legal notions or institutions specific only to a certain Legal System.
135

• Reference to a procedure used only in a certain country can place the contract in that Legal
System.
• Signing the Contract in a certain language can indicate a choice of the parties; however this is not
regarded as highly relevant.
• Choosing a specific Court of Law in a state is not regarded as highly relevant.
o If the parties have not expressly or tacitly designated an applicable jurisdiction governing the contract,
the Court will have to make a decision in this sense, based on objective criteria. (see Law no.
105/1992)
o The main criterion is applying the law of the state which the contract has stronger ties with. This is a
more recent solution, an influence of the Anglo-Saxon law (the notion regarded as “proper law”). For
example, a contract is stronger related to the law of the state where the debtor has – on the date the
contract is enforced – his/her/its legal domicile/headquarters.
o The secondary criteria will be applying the law of the location where the contract is signed. In the
case the contract is signed by parties through correspondence, it is considered to be signed in the
state of the party which has initiated the offer to contract, offer which was accepted.
136

Chapter 6
Attachment 27 Tax payments
Tax / Contribution Payments Time needed Tax quota Tax base
/ year (hours)
Social insurance
contribution
12 110 19.50% gross salary
Profit tax 4 32 16.00% Taxable profits
Health insurance
contribution
12 - 6.00% gross salary
Unemployment
contribution
12 - 2.00% gross salary
Risk fund contributions 12 - 0.4% - 3.6% gross salary
Fuel tax 1 - 1.00% Included in fuel
price
Building tax 2 - 0.90% gross salary
Medical leave 12 - 0.25% - 0.75% gross salary
Guarantee fund tax 12 - 0.30% gross salary
Auto vehicle tax 2 - Fixed tax(140 lei)
Land tax 2 - 0.3 lei per sq.
meter
land area
Company tax 4 - Tax is computed in
dependency to the
area of lighted
billboards
Urbanism tax 1 - Fixed tax The surface of the
project
Contract stamp duty 0 - Different rates Depends on the
tax
type of contract
Environment tax 1 - 1 leu/ kg of Weight of the
packaging packaging
VAT 12 60 24.00% Added value
TOTAL 113 202
Source: http://www.capital.ro/articol/romania-pe-al-doilea-loc-din-ue-la-birocratie-pentru-plata-impozitelor-128370.html
137

Attachment 28 Corruption Perception Index
Rank Country/Territory CPI 2009
Score
138
Surveys
Used
1 New Zealand 9.4 6 9.1 - 9.5
Confidence Range
2 Denmark 9.3 6 9.1 - 9.5
3 Singapore 9.2 9 9.0 - 9.4
3 Sweden 9.2 6 9.0 - 9.3
5 Switzerland 9 6 8.9 - 9.1
71 Bulgaria 3.8 8 3.2 - 4.5
71 FYR Macedonia 3.8 6 3.4 - 4.2
71 Greece 3.8 6 3.2 - 4.3
71 Romania 3.8 8 3.2 - 4.3
176 Iraq 1.5 3 1.2 - 1.8
176 Sudan 1.5 5 1.4 - 1.7
178 Myanmar 1.4 3 0.9 - 1.8
179 Afghanistan 1.3 4 1.0 - 1.5
180 Somalia 1.1 3 0.9 - 1.4
Source: http://www.transparency.org/policy_research/surveys_indices/cpi/2009/cpi_2009_table

Chapter 7
Attachment 29 Tax payments
139

140