OECD - OECD Competition Assessment Reviews: Romania
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OECD (2016), OECD Competition Assessment Reviews: Romania, OECD Publishing, Paris, http://dx.doi.org/10.1787/9789264257450-en.
Since joining the European Union (EU) in 2007, Romanias economy has made remarkable progress. In 2015, the country achieved one of the highest growth rates of all EU Member States, at 3.7%. This growth is supported byexports, mainly to the EU and strong domestic demand. Local consumption has been significantly strengthened by rising wages, low interest rates, low fuel prices and VAT reductions on food items. Meanwhile, the deficit reduction is contributing to greater macroeconomic stability.
In comparison to many countries, Romania has recovered well from the global financial crisis.Yet the rate of Romanian GDP growth has not returned to the high levels achieved from 2000 to 2008, which peaked at over 8%, while the country continues to confront important economic and social challenges. A quarter of the population is still living below the national poverty line and in rural areas this reaches 70% of the population. Important challenges remain in eliminating the gaps betweenRomania and other economies, in particular structural problems, such as weak competitiveness. Enhancing competition is essential to improving economic performance.
Against this backdrop, the Romanian government asked the OECD to conduct an assessment of regulatory constraints on competition in three key sectors of the Romanian economy: construction, freight transport andfood processing. Together, these three sectors account for just over 12% of GDP and almost 10% of employment.
By scrutinising 895 pieces of legislation, the OECD Competition Assessment Project identified 227 problematic regulations and 152 provisions where changes could be made to foster competition. It is never possible to quantify entirely the benefits arising fromenhanced competition, but OECD calculations estimate that the total effect from rising expenditure, increased turnover and lower prices for the Romanian consumer could be in the region of EUR 434 million per year, equivalent to 0.27% of GDP.
Full implementation of the recommendations resulting from the assessment would do much to enhance the competitiveness of theRomanian economy, stimulate productivity and promote economic growth and job creation.
I congratulate the Romanian Competition Council and the Romanian Chancellery on the efforts they have undertaken to reinforce competition law. These are courageous, necessary steps towards building a better future for all Romanians.
Angel Gurra
Secretary-General, OECD
This report is the result of a collective effort which started several months ago, but came to fruition when the Competition Assessment of Laws and Regulations inRomania project was formally launched in October 2014 in Bucharest, Romania under the auspices of the President of the Romanian Competition Council (RCC), Bogdan Chiritoiu, and the Secretary of State of the Romanian Chancellery Radu Puchiu.
Our particular thanks go to the RCC which supported the project from its inception, contributed staff to work part-time withthe project team and provided us with office space for the duration of the project.
We would like to thank the members of the High-Level Committee who participated in meetings to discuss the findings of the report: Iulian Matache, former Minister, Ministry of Transport; Marius Humelnicu, Secretary of State, Ministry of Transport; Mihai Busuioc, Deputy GeneralSecretary, Ministry of Regional Development and Public Administration; Daniel Botnoiu, Secretary of State, Ministry of Agriculture and Rural Development, Elena Tatomir, General Director, Ministry of Agriculture and Rural Development; Viorel Morarescu, previously General Director, Ministry of Agriculture and Rural Development; Attila Gyorgy, Secretary of State, Ministry of PublicFinance, Dragos Ungureanu, Counsellor, Ministry of Public Finance; Mariana Voicu, Director for Industrial Policies and Environment, Ministry of Economy, Commerce and Relations with the Business Environment; Elena Mehedintu, Director, National Environmental Protection Agency; Nicusor Ciocanea, exDeputy General Director, National Sanitary Veterinary and Food Safety Authority; Mrs. LenutaIchim, Vice-president, National Sanitary Veterinary and Food Safety Authority; Paul Silviu Anghel, General Director, National Authority for Consumer Protection; Laura Maria Radut, Chief of Service, National Authority for Consumer Protection; Ctlin Homor, Acting General Director, National Company of Motorways and Roads; Anghel Tanasescu, Counsellor of the General Director, NationalCompany of Motorways and Roads; Laszlo Ladanyi, General Secretary, National Agency for Public Procurement; Iuliana Chilea, Director, Directorate for Standardization, Romanian Standards Association; Adina Silvia Ionescu, Director, Directorate for Monitoring the Market of Products for Construction, State Inspectorate for Construction; Elena Sava, Chief of Service, National Authority forMineral Resources; Mircea Costineanu, Minister Counsellor, Ministry of Foreign Affairs. The membersof the High-Level Committee will be responsible for the dissemination and advocacy of the recommendations in this report.
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