|
HOME
P-ta Victoriei nr. 3, Timisoara, 300030
Tel:
+40-256-219173
+40-256-219172
E-mail:
euroinfo@cciat.ro
Visitors (1 July 2003) |
Chapter 1 STATISTICAL DATA
1. General data
Location: Southeast of Central Europe, bordering in the East with the Black Sea
Area: 237,500 sq. km
Time: GMT + 2
Population: 21,680,974; Urban population: 52.7% (2002)
Population growth: -0.3% annual
Capital: Bucharest (population: 1,921,751)
State organisation: Republic with bicameral Parliament
Administrative division: 41 counties and Bucharest Municipality
Currency: ROL - Romanian Leu (plural Lei) average exchange rates 2003: 1 EUR = 36,694.60 ROL
1 USD = 33,204.78 ROL
2. Economical data (2002)
GDP : 44.4 billion $
GNI : 41.3 billion $
GNI per capita : 1,850 $
PPP (Purchasing Power Parity): 6,290 $
Agriculture: 11.7% of GDP
Industry: 29.1% of GDP
Services: 44.7% of GDP
Exports: 34.9% of GDP
Total 2002: 13.8 billion $
Structure: 2.8% food products, livestock, drinks and tobacco
5.5% raw materials, non-food, exclusiv fuels
7.9% mineral fiels, oils and related
4.7% chemicals and related
18.8% processed products clasified by raw materials
21.2% machinery and transport equipment
39.0% other processed products
Imports: 42.3% of GDP
Total 2002: 17.8 billion $
Import-export balance: - 4 billion $
Inflation: 16.2% (2002 annual); 1.4% (2002 monthly)
3. Social data
Unemployment: 8.1% (2002 December)
Average salary: approx. 160$ (average 2002)
University graduates: 6.3% (of total population)
4. Prices
Currently, price regulations apply to eighteen goods, ten of which are included in the con-sumption basket accounting for a share of 20.4%. The responsibility for price administration is entrusted to the Competition Office and the energy regulators. Most notably, since mid-2001 the prices for electricity, heating and natural gas have been brought progressively closer to international and cost recovery levels. To protect this achievement, electricity and heating tariffs were tied to the US dollar in July 2002.
Chapter 2 ESTABLISHMENT AND FUNCTIONNING OF A COMPANY
1. Legal forms
Joint-stock company SA (societatea pe actiuni)
private (through complete subscription);
public (through the prospectus of share)
registered capital minimum 25,000,000 lei
minimum 30% of the subscribed registered capital, by every shareholder or partner, in case of private joint-stock companies;
minimum 50 % from the value of subscribed shares, by every acceptor, in case of public joint-stock companies
number of shareholders in a joint-stock company is minimum 5
minimum nominal value of one share is 1000 lei. The shares can be registered and to bearer.
Limited liability company - SRL (societatea cu raspundere limitata)
the minimum share capital for limited liability company is 2,000,000 lei.
minimum number of associates is one and maximum 50; associates may be natural or legal persons.
nominal value of a share cannot be less than 100,000 lei.
General partnership SNC (societatea in nume colectiv)
minimum number of partners: 2 persons
Limited partnership SCS (societatea in comandita simpla)
minimum number of partners: 2 persons
Partnership limited by shares SCA (societatea in comandita pe actiuni)
minimum number of partners: 5 persons
minimum nominal value of a registered share is of 1,000 lei
Branches
they are not legal persons
before beginning their activity they are incorporated in the Commercial Register of the county where they will operate
the legal system of the branch shall be applied to any other secondary office, to which the founding company gives the statute of a branch
they have the same object of activity as that of the mother company.
Subsidiaries
represent commercial companies with legal personality.
are set up in one of the forms of commercial companies specified by the Law No.31/1990.
legal treatment of the form of company in which they are set up is applicable.
Representative offices
foreign commercial companies and economic organisations may have representations in
Romania on the basis of an authorisation issued, on request, by the Ministry of Foreign Affairs. According to Decree-law 122/1990 - representations are subject to income tax.
2. Establishment of each legal form
The Company Law (Law No. 31/17 November 1990, republished on January 29, 1998)
states how to set up a company and what kinds of companies are possible, and
Government Emergency Ordinance No.76/2001 (republished on June 14, 2002) provides some simplification of administrative procedures for registration and authorisation of companies.
Registration formalities are stated by Law No 26/1990 Regarding Trade Registry,
republished on February 4, 1998.
Other relevant legislation: Ordinance No. 94/1998 regarding stimulation of direct investment, Law 133/23 July 1999 on stimulating the private entrepreneurs.
Bantcruptcy is regulated by Law 31/1990.
3. Additional authorisations and approvals necessary for the functioning of each legal form
Government Emergency Ordinance No.76/2001 republished on June 14, 2002 - central and local public authorities have drawn up policies and measures to support and protect the entrepreneurs in their relation to the State, mainly by simplifying the administrative procedures, prevention of unjustified raising of costs faced to legislation in force all basic authorisations and approvals are included in Single Office procedure. Special authorisation are still required for some activities.
4. Competition
Competition is regulated by:
- Law11/1991 and Law 21/1996 regarding unfair competition;
- Government Decision 228/ 1992 regarding anti-dumping;
- Law143/1999 regarding state aid.
5. Duties and taxes, conditions for the goods
Direct Taxes - The profit tax (Law 414/2002), modified by Government Ordinance no.36/30.01.2003:
The taxation quota is of 25% with the exceptions mentioned below:
economic agents, who received in a bank account from Romania, revenues in hard currency from the export of goods obtained from own activity, directly or through a commission contract or from services, pay a tax on profit quota of 6% from those revenues, starting with 1 st of January 2003 the tax on profit quota for export activities is
12.5%, starting with 1 st of January 2004 is 25%;
economic agents carrying activities in free zones pay a tax on profit of 5% until 1 st of December 2004;
tax payers who obtain revenues from bars, night clubs, and casinos pay a tax on profit >=5% of the revenues from these activities;
The National Bank of Romania for which the tax on profit quota is 80%.
Revenues which are not taxed:
dividends received by a Romanian legal entity from another Romanian legal entity
positive balance of the share value, recorded in the companys reserves, also the benefits, the share premium or, by compensation of some debts of the company that ownes the shares
incomes generated by the cancellation of debts that could not be fiscally deducted, the cancellation of provisions for which the deductions were not granted, as well as of the incomes generated by recovering the unrecognised fiscal expenses;
Global Income Tax
Government Ordinance 7/2001, approved and modified by Law 493/2002 on tax annual income, regulates the taxation of the sums owed by a natural person, for the incomes realised within a fiscal year, set up by applying the taxation quotas on the taxable annual global income.
The maximum marginal tax rate for salary income, income from independent activities and transfer of usage rights over goods and other rights is 40% for income higher than mROL 60 per annum (approximately Eur 3,750).
The law is applied to the incomes from independent activities, incomes from salaries, incomes from the transfer of the use of the goods, incomes from dividends and from interests, incomes from pensions or agricultural activities, any other incomes. The taxable period is the fiscal year, which corresponds to the calendar year.
Non-taxable incomes:
aids, allowances and other forms of support with special destination, granted from the State budget, health insurance budget, local budgets, special funds;
bonus offered to employees on 1 st of June (children day) and 8 th of march (women day)
sums received from the goods, accidents, professional risk insurance;
sums received as compensation for the damages caused by natural calamities;
pensions others than social securities;
value tickets for natural persons;
sums or goods received as sponsorship;
meal ticket integrally supported by the employer;
aids for transfer of job (transport and installation);
sums received by students and whilst in national service (legal right);
scholarship and training grants as part of institutionalised education;
sums and goods received as an inheritance or a donation;
incomes from agriculture and forestry.
Indirect Taxes
A VAT rate of 19% applies to all products and services with the exception of:
1) Internal activities:
General interest activities:
medical care (human and animal) and related activities;
services of dental technicians;
home care by medical staff;
supply of human organs, blood and milk;
education activities in authorised institutions;
supply of goods/services related to social assistance;
supply of goods/services related to children and youth protection;
services related to sports and culture;
production and dissemination of radio/TV programmes (except advertising);
selling of movies or movie licences;
transport of ill or injured persons with special vehicles;
Other activities:
R&D and innovation activities related to programs and projects part of the National
Programme for Scientific Research and Technologic Development;
supply of goods/services by private agricultural producers;
financial and banks activities: loans for companies, banking activities (except leasing, precious metals transactions, expertise for feasibility studies, consulting activities, patrimonial evaluations), specific activities of National Bank, financial investments and financial intermediaries;
administration of placement funds;
insurance and re-insurance activities;
organisation of games by National Company;
supply of goods/services by convicted persons in state prisons;
maintenance of monuments, museums;
taxes for museums, exhibitions, zoo, libraries;
publishing of education books for schools;
supply of prostheses of any type;
river transport of inhabitants of Danube Delta;
trading in religious goods and garments;
transfer of propriety to Agency for Valorification of Bank Assets.
. activities of natural persons with taxable income, up to 1.5 bill. lei (2002); 1.7 bill. lei (2003); 2 bill. lei (2004).
2) Import activities:
goods for trade in duty-free regime;
goods brought into the country without custom duties according to the applicable custom regime for the natural persons
repairs of Romanian ships and aircraft carried abroad, supply of fuel abroad;
import of goods exempted from VAT;
movies and programme licences, transmission rights;
import of goods received as humanitarian aid or donations;
import of samples with no trading value, promotion materials and documentation.
3) Export and international transport:
export of goods, transport and services for export, trading in duty-free shops;
international transport of passengers and related services;
cargo and passenger transport in Romanian ports and airports, by Romanian ships and aircraft;
river transport between Romania and neighbouring states;
supply for ships and aircrafts;
services in international airports and ports;
repairs for transport means and other services contracted abroad;
services for ships and ship supply;
supply of goods and services for diplomatic missions and consular offices, and for international representative offices in Romania;
goods from Romanian exhibitions and shops shipped abroad by foreigners;
supply of goods and services as international aids or grants;
construction and maintenance of religious sites;
supply of equipment and services for oil activities by foreigners;
supply of equipment and services for development of the international airport Otopeni (Bucharest);
4) International trade:
import of goods exempted from custom duties;
import of goods in free zones for storage or transit; services related.
Law 345/2002 regarding the Value Added Tax regulates VAT rates, institution, activities, products and services that are VAT exempted.
Excise Taxes
They are established according to Government Ordinance No. 27/30.01.2000 regarding the regime of goods subjected to excises, modified by Gov. Em. Ord. 134/2000. These taxes are levied on alcoholic drinks, tobacco products, oil products, and other goods such as coffee, natural fur clothes, crystal goods, gold/platinum jewels, automobiles, video sets, microwave ovens, hunting guns etc.
6. Measures for business support
Incentives for SMEs:
According to Government Emmergency Ordinance 76/2001 regarding simplification of administrative procedures for registration and authorisation of companies, there is a new First Stop Shop procedure : filling a simple form and submission to Biroul unic (Single Office) in Trade Registry. The final Certificate will be issued in 20 working days and will include the fiscal code and all necessary authirisations for functioning of the new firm.
According to Law 133/1999, the SMEs have access to purchasing assets of former State own (public) companies, or can participate (only SMEs) to the first public procurement procedure (Government Emmergency ordinance. 297/2000) for: - goods/services under 500.000.000 lei;
- equipments under 1.000.000.000 lei;
- repairs under 2.000.000.000 lei;
- constructions under 3.000.000.000 lei.
Based on art. 17 of Law 345/2002 regarding VAT, SMEs may ask for late payment relief for industrial equimpent, transport means for productive activities, machinery, installations, measurement equipment, automatisation and software products.
Based on art. 11 alin. (1) of Law 414/2002 regarding tax on profit, SMEs may include assets amortisation rate in general expenses before profit .
7. Services for companies support
A database with suppliers of business support is published by ANIMMC (National Agency for SMEs and Cooperatives): http://www.mimmc.ro/consultanta/lista.php
8. Environment legislation
During 2002 Romania has made progress with transposition of the environmental acquis - although much of the new legislation appears to have been adopted without due consideration for the administrative and financial resources necessary for its implementation.
Integration of the environment into other policies is hardly progressing, although the Inter-Ministerial Committee, which is responsible for co-ordination between ministries to ensure that environment is taken into account by all concerned sectors met in February 2002 for the first time since 1999. Recent medium-term and long-term energy strategies, which concentrate on increasing energy production without giving due attention to either the environmental effects of increased energy production or the potentials for improving energy efficiency, are cases in point. Romania has ratified the Kyoto Protocol.
Relevant legislation: Law 137/1995 regarding environment protection.
Basic requirements:
- import in Romania of any type of waste is forbidden, except for some raw materials
- transit and export of any type of waste must comply with international agreements signed by Romania
- fertilizers, pesticide and other related must be produced only by authorised technologies; producers or traders of such products must comply with special requirements regarding production, supply, transport, packaging, etc.
Chapter 3 INVESTMENTS
1. Country rating:
Standard&Poors 17.09.2003 long-term rating raised from BB FC to BB+ LC
Freedom House 2,2 F
2. Investment law and incentives, profit repatriation, investments protection
The Government Emergency Ordinance No. 92/1997 (approved by Law No. 241/1998) for the stimulation of direct investments:
any investment in any field of activity and in any legal form as stipulated by the Romanian legislation
equality of treatment among foreign and Romanian investors, residents and non-residents to Romania
guarantees against nationalisation, expropriation or other measures of this kind
assistance in fulfilling the administrative procedures
right of investors to choose the judiciary or commercial arbitration to solve the litigation
the right to transfer the amounts in lei resulting from the investment into the currency of the investment, as well as to transfer the currency into the country of origin.
The Law No. 332/2001 for the promotion of direct investments with major impact to economy - for investments over 1 million USD, the machinery, equipment, software imported for current activities are exempted from custom duties.
The Law No. 219/1998 regulates the concession regime for public or private state properties and for public activities and services:
list of goods, activities, services that can be concessioned;
period - maximum 49 years;
procedures - public auction (open or open with prior selection) or direct negotiations
elements of concession contract
The concession system for the building and exploitation of sections of ways of communication on land - freeways and railways - the Government Ordinance no. 30/1995, approved and modified by the Law no. 136/1996:
the concession of the sections of ways of communication on land - freeways and railways for a period of up to 49 years
the exemption of the land necessary for the building of freeways and sections of railways, from the taxes for the exclusion from the agricultural and forestry circuit
the exemption from the payment of the construction authorisation tax
the exemption from the payment of the customs duties for the import of the materials, equipment and tools necessary for the building and exploitation.
the exemption from the payment of the royalty rent for a period equal with half of the duration of the concession in the following cases:
the modernisation, development, exploitation, management and maintenance of existing sections
The Oil Law no.134/1995:
the granting of a concession for a period of maximum 30 years or the granting of oil resources for management on the basis of an oil agreement concluded with the National Agency for Mineral Resources
The Law no. 187/1998 on Rural Tourism:
placing at the disposal of the investor of land areas necessary for the building, development and exploitation of tourist and agro-tourist boarding houses by the local councils
granting of priorities for the installation of telecommunications lines, the connection to the electricity network, water and sewage, methane gas ducts
payment of electric power and methane gas at a household consumption tariff.
The Law 414/2002 regarding the tax on profit, modified by Gov.Ord. no.36/2003:
regulates: rates, activities, products, services and institutions exempted from the payment of the tax on profit
applicable quota: 25% with some exceptions
The Disadvantaged zones are regulated by Emergency Ordinance 24/1998, republished on 8.11.2000, and modified by Gov. Em. Ord. 75/2000 and Law 621/2001:
exemption from the customs duties for the imported raw materials, spare parts and/or constituent parts, necessary for the achievement of own production in the zone;
exemption from the payment of the taxes levied for the change of the destination or for the exclusion from the agricultural circuit of land intended for the achievement of the investment;
grants from the Special Fund for Development placed at the disposal of the Government of Romania, for the stimulation of the export activity, the guaranteeing of foreign credits, the financing of special programs, the financing of investment projects in which the state is a co-participant to the registered share capital.
According to Government Decisions, the disadvantaged zones, are:
Mining zone Comanesti, county Bacau
Mining zones Stei-Nucet, Borod, Popesti, county Bihor
Mining zone Rodna, county Bistrita-Nasaud
Mining zones Rusca, Bocsa, Moldova Noua, county Caras-Severin
Mining zone Baraolt, county Covasna
Mining zones Albeni, Schela, Motru, county Gorj
Mining zone Balan, county Harghita
Mining zones Brad, Valea Jiului, county Hunedoara
Mining zones Baia Mare, Borsa, county Maramures
Mining zones Filipesti, Ceptura, county Prahova
Mining zones Ip, Hida, Sarmasag, county Salaj
Mining zone Bucovina, county Suceava
Mining zone Altan-Tepe, county Tulcea
Mining zone Apuseni, county Alba
Zone Hunedoara, county Hunedoara
Town Cugir, county Alba
Zone Zimnicea, county Teleorman
Zone Copsa Mica, county Sibiu
Zone Mizil, county Prahova
Zone Nadrag, county Timis
Zone Marasesti, county Vrancea
Zone Nehoiu, county Buzau
Zone Negresti, county Vaslui
Town Harsova, county Constanta
Zone Pascani, county Iasi
Zone Roman, county Neamt
Town Turda, county Cluj
3. Protection of the property rights
- Intellectual property
Romanian Copyright Office (ORDA) is the only specialized governmental body (with the sole competence on the territory of Romania) provided with the authority to keep record, observance and monitoring of the application of copyright and neighboring rights legislation.
In the area of intellectual property rights, Romania passed a modern copyright law in 1996 (- Law on Copyright and Neighboring Rights*No. 8 of March 14, 1996) and has acceded to a number of WIPO Conventions (Rome, Paris and Bern).
- Industrial property
OSIM (State Office for Inventions and Trade Marks) carries out its activity as a specialized government body having sole authority over the territory of Romania in ensuring the protection of industrial property. The main activities of OSIM are:
it ensures the protection of industrial property according to the special laws and international agreements where Romania is a party; it is the depositary of the national registers of filed patent applications and titles of protection granted to inventions, trademarks, appellations of origin, industrial designs, topographies of integrated circuits;
it administers, preserves and develops the national patent collection, by international exchange, and generates the database in the field of industrial property;
it edits and publishes the patent specifications;
it edits and publishes the Official Industrial Property Bulletin with its sections on patents, trademarks, industrial designs;
it edits and publishes, regularly, the Romanian Industrial Property Review as well as other publications designed for the promotion of the object of its activity;
it renders specialized services in the field of industrial property, upon request;
it examines and authorizes the industrial property attorneys;
it lends assistance in the field of industrial property and organizes training courses, seminars and symposia on industrial property topics, upon request;
it fulfils any other tasks deriving from the legal provisions and the international agreements where Romania is a party.
Romania is a member of the World Intellectual Property Organization (WIPO). Romania has concluded a Cooperation Agreement with the European Patent Organization on the extension to Romania of the effects of the European Patents.
Relevant legislation: Patent Law no.64/1991 ; Law no.84/1998 on Marks and Geographical Indications ; Law No. 129 of December 29, 1992.on Industrial Design, republished ; Law on the Protection of Topographies of Integrated Circuits (No 16 of March 6, 1995) ; Law no.255/1998 on the protection of the new plant varieties (full texts in English and other related legislation available at www.osim.ro)
- Real estate property private property is guaranteed by the new Constitution of Romania (October 2003)
Chapter 4 IMPORT EXPORT
1. Import and export regime
There are no restrictions, besides those in international conventions, on exporting or importing from/to Romania as the Romanian legislation respects the principle of free trade. As an exception to this principle, some goods require a license, issued by the Ministry of Economy and Commerce.
Since Romania is a member of the World Trade Organisation, WTO, import customs duties have been fully consolidated. In 2000, import customs duties for industrial products were at levels ranging between 3% (unroasted iron pyrite) and 90% (gelatine and its derivatives), and for agricultural products at levels between 3% (live animals for reproduction) and 329% (offal for pharmaceutical products). The customs duties for agricultural products are going to be reduced.
Import and export is regulated by Order of the Ministry of Foreign Affairs No.106/2000 modified by Order MFA 105/2002 regarding export/import licence regime. Only companies having stipulated such transactions as their object of activity may carry out export and import transactions.
No special import documents are required, besides those normally included in a business transaction. Exceptions only for transactions involving sanitary and safety regulations, also for import of guns, ammunition, drugs and environmentally dangerous products.
There are three categories of licences: Import licences, export licence, and transaction
licence. Romanian Centre of Foreign Trade receives and registers the applications for issuing of licenses. In case of import-export transactions, all licence applications referring to the respective transaction must be forwarded at the same time. Some characteristics of the licences: they are usually issued with a validity term until the end of the year of their issue; they cannot be transferred; a licence can be changed/cancelled only by the Licence Department of the Ministry of Foreign Affairs on the written request of the holder.
Restrictions to certain export and import quotas, export and import goods subjected to
control or prohibited the list of earmarked products, as well as enforcement terms of such measures are public. Commodities, which are subject to import tariff contingents, are denominated only through Decisions of the Romanian Government. Export contingent commodities are established by Government Decisions or by the Order of the Minister of Foreign Affairs, on the case.
Customs duties are applied on an ad valorem basis. The value is based on the external price of the transaction (converted into lei at current exchange rate), and charges not included in the price (freight, handling, insurance).
2. Free trade areas
Legal framework: law 84/1992 of free zones, Governmental decision 682/1994 - methodology for land concession and constructions in free zones, Order of Ministry of Transport , Constructions and Tourism 105/1996 on instructions regarding assignment of working licences.
The Free Zones - Main features (the activity of a free zone is co-ordinated by the Agency of Free Zones under the Ministry of Transport, Constructions and Tourism):
land and constructions in free zones may be leased or rented to Romanian or foreign natural or legal persons, for a period of maximum 50 years;
transportation means, goods and other assets, coming from abroad or intended for other countries, introduced or taken out of the free zones, are exempted from the payment of customs duties and other taxes;
upon the liquidation or restriction of the activity carried on in the free zones, the foreign natural or legal persons may transfer abroad the capital and the profit, after the payment of all their obligations to the Romanian state and to their contractual partners;
the domestic materials and accessories introduced into the free zones and used for the manufacturing of certain goods are exempted from the customs duties, with the compliance of the export formalities;
the domestic goods used for constructions, repairs and maintenance of objectives in the free zones are exempted from custom duties;
. goods from a free zone can be transported to another free zone without the payment of customs duties.
Curtici-Arad Free Zone Administration
Phone +40 257 285 848
Fax +40 257 282 434
Constanta-South Free Zone Administration
Phone/ fax: +40 241 639 000 / 741 378 / 693 913
Braila Free Zone Administration
Phone/fax: +40 239 611 655 / 615 700
Galati Free Zone Administration
Phone: +40 236 411 222
Fax: +40 236 414 929 / 412.430
Giurgiu Free Zone Administration
Phone/fax: +40 246 217 541 / 217 598
Sulina Free Zone Administration
Phone: +40 240 543 664
Fax: +40 240 543 294
Chapter. 5 FUNDING SOURCES FOR PROJECTS
1. European sources
PHARE is one of the three pre-accession instruments financed by the European Union to assist Central and Eastern Europe, in their preparations for accession to the European Union.
Established in early 1989 for Poland and Hungary for helping them to undertake the change from communist regimes to democracy (hence the acronym), the programme has since then gradually extended, including today 10 partner countries from the region (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia). The other 3 candidates, Cyprus, Malta and Turkey, benefit from separate pre-accession funding. By end of 2000 the countries of the Western Balkans (Albania, Bosnia & Herzegovina and The Former Yugoslav Republic of Macedonia) were also beneficiaries of PHARE assistance. Starting with 2001, they benefit from the EU financial assistance under the CARDS programme (Community Assistance to Reconstruction, Development and Stability in the Balkans).
Currently, PHARE funds focus entirely on supporting the candidate countries efforts in the pre-accession period, in accordance with the Accession Partnerships (which provide an assessment of the priority areas in which each candidate country needs to make progress in order to prepare for accession).
PHARE's aim is threefold:
1. to strengthen candidate countries public administrations and institutions to function effectively inside the Union (institution building);
2. to help candidate countries in bringing their industries and major infrastructure up to EU standards by mobilizing the investment required (investment for supporting the implementation of the EU acquis);
3. to promote economic and social cohesion (investment in economic and social cohesion).
Between 1990-2000, Romania has received over 1.5 billion EURO through the PHARE programme. During 2000 - 2006 (or better presently), Romania receives around 260 million Euro annually through the PHARE programme, being the second candidate state, after Poland, as to the amount of funds allocated.
ISPA - Instrument for Structural Policies for pre-Accession is the second non-reimbursable financial instruments to assist the candidate countries in the preparation for the EU accession. ISPA provides financial support for investment in the areas of environment and transport in order to speed up compliance in accession countries with European legislation in these two sectors.
Romania will be granted between 240-270 million euro per year, Romania being the second largest recipient, after Poland.
For ISPA-transport, the priority is given to investments related to the integration of the Romanian transport system with that of the EU and the future Trans European Network (TEN). Priority is also given to improve transport links with other candidate countries, as well as to improve the national transport system by eliminating missing links.
The main priority for the ISPA-environment is to assist Romania to comply with European environmental legislation. Priorities are in particular given to drinking water, waste water treatment and solid waste disposal.
SAPARD - The Special pre-Accession Programme for Agriculture and Rural Development is the third non-reimbursable financial instrument which aims at helping candidate countries deal with the structural reform in their agricultural sectors and rural areas, as well as in the implementation of the acquis communautaire concerning the CAP (Common Agricultural Policy) and related legislation.
For the period 2000-2006, Romania is to receive 150 million euro/year, being the second largest recipient after Poland. Additionally, 50 million euro is provided by the Romanian government.
SAPARD finances major agricultural and rural development projects. Romania has identified four priority measures to be financed under this programme:
- Improving processing and marketing of the agricultural and fishery products;
- Development and improvement of rural infrastructure;
- Development of the rural economy (Investment in agricultural holdings; Economic diversification; Forestry);
- Development of human resources (Improving of the vocational training; Technical assistance, including studies to assist with the preparation and monitoring of the programme, information and publicity campaigns).
"Community programmes" are defined by the European Union in order to promote co-operation between its Member States in different specific fields related to Community policies, over a period of several years. They have been extended consequently to the candidate countries in view of supporting their preparation for accession, in addition to the three financial instruments designed exclusively for them (PHARE, ISPA and SAPARD).
These programmes are characterised by the following principles:
- same conditions and criteria for project selection apply to EU member states and candidate countries;
- participation in a community programme requires financial contribution from the participating country, as well as legislative compatibility in the sector concerned;
Romania participates in a number of community programmes such as FP6 for research and development, LIFE for environment, Leonardo da Vinci, Socrates and Youth - in the field of education, and Culture 2000.
2. Sources from bi-lateral programmes
THE NETHERLANDS : Starting with 90s the Dutch Government granted to East European Countries by programmes MATRA and PSO, helping the economic transition and activities related to accession. For Romania, the Memorandum covers the following cooperation fields: agriculture, industry and technology; transport and infrastructure, small and medium-sized enterprises; Romanias preparation for accession to the EU.
GERMANY is one of the most important bilateral donors, among the economic assistance granted to Romania by the developed countries group G-24, the total amount of its non-reimbursable financial assistance exceeding DM 330 million over the period 1990 2000.
This assistance aims at creating the internal framework for the market economy in Romania (fight against inflation, privatization, limiting the state participation in economy, decrease of budgetary deficit, establishment of an efficient taxation system, investment promotion and cut of consumption expenditures), as well as at adapting the transition economies at the international market requirements (monetary convertibility, external economic balance, international competitiveness).
AUSTRIA : In 1991, the Austrian Government adopted a program of supporting the CEEC, coordinated by the Austrian Federal Chancellor. Projects of bilateral assistance are running in the frame of this program, financed in non-reimbursable terms by the Austrian Government. The projects envisage humanitarian assistance and support for: the improvement of the economic and social infrastructure (through investment projects, multi-disciplinary measures, technical assistance), Austrian export and investment credits guarantees in this countries, professional training for some experts etc. As far as Romania is concerned, the program is focused at the beginning on humanitarian aid and improvement of the situation of the German minority. In the last years, the finalised or in course of finalization programs in Romania have overcome the preponderantly humanitarian character, and are now directed also to the following fields: economic (small and medium sized enterprises), ecologic (delivering of apparatus and expertise), energetic (improving the water and energy supply), social (construction of hospitals, clinics, programs of conversion of labour force) etc.
UNITED KINGDOM : Starting with May 1991, Romania benefits from non-reimbursable economic assistance, provided by the UK trough the Know How Fund (KHF) programme. Know How Fund represents the British bilateral assistance program de for the CEE and Asia countries. The UK allocates annually about 90 mil. pounds sterling for KHF. Romania received more than 30 mil. pounds sterling starting with May 1991, within this bilateral assistance. The goal of KHF in Romania is to support the transition to the market economy and the functioning of the public administration in order to efficiently manage the reform process. KHF focuses its activity in those fields in which the British experience is considered useful for Romania, for governmental and non-governmental institutions and for private enterprises, taking also into account the programs of other donors. The following key-fields are covered by this assistance: energy, finance and public administration, encouraging at the same time the British investments in Romania.
Besides the assistance described above, the UK carries out other types of assistance in Romania, through: the Action Plan between Romania and UK, since March 2001, by which a financing of 125 000 pounds sterling/year. By this type of assistance almost every type of activities could be financed: equipment procurement, training, consultancy a.s.o.; budget for conflict prevention, covering activities related to the Ministry of Interior (working methods specific to police, fight against drugs and person trafficking a.s.o); the British Council, which organizes English courses or other actions in the social fields.
ITALY : The Italian Government grants assistance to the countries of the Central and East Europe based on the Italian law no.212/1992. Under this law, the Agreement concerning the general framework of the technical bilateral Italian-Romanian collaboration, for promotion of some projects for technical assistance, consultancy, professional training, feasibility and pre-feasibility studies was signed in 1992. The main envisaged fields are those related to the economic reform in Romania, the bank-financial and insurance service development, privatization and restructuring of the enterprises, training and re-training of the personnel, the efficient management of the enterprises, development of the small and medium enterprises, establishment of the Romanian-Italian joint ventures etc. being emphasized.
DENMARK: In 1990, Denmarks Government laid down the following programmes of cooperation with the countries of Central and Eastern Europe : Democracy Fund; Programme for preparation of accession to the European Union; Investments Fund; The Fund for support of environment protection; Sectoral Programme; Programme for technical and administrative assistance; Projects Fund. Through the years, Romanias Government has been given access to all these programmes beginning with the Democracy Fund in 1990 and ending with the Fund for preparation of accession to the European Union in 1998. Allocations of the Danish Government for financing the cooperation projects in Romania in 1990-1998 period amount to 24.25 million euro, focused in the following sectors : civil society, European integration, agriculture and food industry, environment protection, energy, human resources development, informatization, public health. Since 1998, Denmarks Government has redirected its cooperation with the countries in the Central and Eastern Europe towards supporting exclusively the environment protection and preparation for the accession to the European Union. Therefore, only the Fund for supporting environment protection and the Programme for preparation of accession to the European Union have been kept up.
BELGIUM : The economic bilateral assistance granted by Belgium was concentrated first of all on training in the management field and consultancy in the sanitary, medical, tourism and environment protection sectors. According to the Agreement with the Flemish Government, mutual cooperation will be intensified in the following fields: economy, science, technology, culture, education, social policy, environment and territorial administration, infrastructure, transportation, agriculture and agro-industries, education and employment, tourism, sport, communications and mass media.
According to the Agreement with the French Community Government and the Walloon Government cooperation programs will be developed in the following fields: inter-universitary programs, science, education, culture, audiovisual, health (prevention, promotion and education), social issues (early childhood, social aid for young people), sport policy.
The Agreement with the Walloon Government also stipulates cooperation in the following fields: economy, industries restructuring, investments and establishment of mixed companies, agriculture, food, environment and natural resources, public administration at regional and local levels, research and development in high-tech, territorial administration, tourism, education, sport infrastructure, health, social problems and transportation.
GREECE: Between 1991 and 2000, the cooperation between the Romanian Government and the Greek Government took place on an ad-hoc basis and projects were implemented in the human resources, European integration and transportation sectors. For period 2002-2006 the assistance granted ammounts 70 millions Eur and aims at modernisation of infrastructure, promotion of productive investments, modernisation of public administration, education.
FRANCE : The bilateral cooperation between Romania and France has been continuously developing at multiple levels. France has acted in Romania within the R&D cooperation. Besides the economic assistance projects, promoted at central level, there are also the so-called decentralized projects, initiated by French districts, towns and communes, whose financing is ensured by both the local communities and by the French state.
IRELAND: The Republic of Ireland grants assistance to the countries of Central and Eastern Europe within the framework of the Irish Bilateral Aid Programme. The Irish assistance to Romania was given in the following fields: humanitarian aid , organization of seminars in Romania, financing of training fellowships, organization of training courses cycles for Romanian specialists.
FINLAND : The non-reimbursable bilateral assistance granted by Finland took the form of humanitarian aid that amounted 1.5 mil USD. We can add here the reimbursable assistance that consists of two loans of 12 mil USD together, granted to Romania during 1992 and 1993 in order to realize the equilibrium of the balance of payments, along with another export commercial credit of 1 mil USD. Since 1992 Romania also beneficiates of the program offered by the Finnish Fond for Industrial Cooperation (FINNFUND) whose objective is to promote Finish investments all over the world, recently in Central and Eastern Europe.
SPAIN : The economic assistance granted by Spain has materialized through the supply of technical assistance in the form of fellowships and study tours, training in various fields (i.e. international trade, management, marketing), consultancy and expertise in the cultural, scientific and linguistic (Spanish language) fields, as well as donation of books and audio-video equipment.
SWEDEN: The assistance given by Sweden has aimed at granting technical assistance and humanitarian aid. The AT given mainly through the Swedish Agency for International Development (SIDA), has been primarily oriented to productive sectors, but also to services and social infrastructure. The funds have been generally used to finance investment projects, sectoral assistance, technical cooperation and training. The total non-refundable assistance granted by Sweden over the period 1990-2000 exceeds 8.770 mil. SEK.
|
