RRI Live!

Listen to Radio Romania International Live

The need for a new economic growth model

According to experts with the European Bank for Reconstruction and Development (EBRD), Romania needs a new economic growth model.

The need for a new economic growth model
The need for a new economic growth model

, 13.06.2018, 13:31

According to the
latest report on transition, drawn up by experts with the European Bank for
Reconstruction and Development, Romania needs a new economic growth model,
based on innovation, in order to be able to catch up the developed countries in
the West. The report was presented on Tuesday at a conference held at the
headquarters of the Romanian Central Bank.




The regional EBRD
director Matteo Patrone said that the GDP has been growing above its potential,
based on consumption and salary increases, without being correlated with an
increase in the country’s productivity. To accelerate on the convergence path,
Romania, like many other countries in the region, needs a new growth model
based on innovation and integration in the global value chain, Matteo Patrone
also said, while also voicing his conviction that Romania is on the right path,
due in particular to its human resources and high technology, in fields such as
the IT and the aerospace industry. Still, as the EBRD director also stressed,
many ingredients are still missing or need to be supported, in terms of
structural reforms. Patrone believes that infrastructure is a crucial
ingredient, as it stimulates social inclusion and geographical integration,
increases productivity and paves the way for trade and foreign direct
investments in the country.




According to the
EBRD official, within the next five years, the need for infrastructure
investment in the region will have reached 40% of the total investment
required, accounting for 1.9 billion Euros. He also referred to Romania’s
motorway network, saying that with its only 747 km, Romania ranks quite low as
compared to other countries in the region in terms of infrastructure network
density and geographic expansion. Still, as Matteo Patrone stated, there are
sectors where progress has been made, such as water and energy, pointing at the
interconnection of the Romanian gas network with those of Bulgaria and Hungary.




The chief economist
of the Romanian Central Bank Valentin Lazea, who attended the presentation of
the EBRD report, said that a country cannot expect a high rate of economic
growth indefinitely if it’s a democracy and doesn’t make the necessary
structural reforms. Valentin Lazea drew attention to the fact that one of the
costs of democracy is that decisions are made at a slower pace, things take
longer and the growth is not as high as in dictatorial regimes. He mentioned a
few issues that Romania is still faced with and needs to resolve, such as the
gaps existing between regions, between youth and the elderly in terms of access
to the labour market and between men and women as regards salaries.

Tags:
European Commission (photo: © European Union - Source: EC - Audiovisual Service / Photographer: Christophe Licoppe)
Today in the News Thursday, 21 November 2024

Political agreement on the new European Commission

    The leaders of the three major political groups in the European Parliament have given the green light to the members of the next...

Political agreement on the new European Commission
Photo: aep.ro
Today in the News Thursday, 21 November 2024

13 for Romania

    In Romania, presidential elections usually spark the greatest interest and emotions. Even more so this year, when the two rounds of the...

13 for Romania
Gas consumption in the EU (Credits: magnascan-pixabay-com)
Today in the News Wednesday, 20 November 2024

Romania’s natural gas, available for trading

On Tuesday, the Romanian company Romgaz launched its first issue of bonds on the Bucharest Stock Exchange, worth 500 million EUR. Romgaz is the...

Romania’s natural gas, available for trading
Photo: roaep.ro
Today in the News Tuesday, 19 November 2024

Romania ahead of the presidential election

Next month, President Klaus Iohannis will end his second and last five-year term in office according to the Romanian Constitution. The so-called...

Romania ahead of the presidential election
Today in the News Tuesday, 19 November 2024

Romania’s Prime Minister on a visit to Brussels

NATO welcomes Romania’s continuous efforts and its significant contribution to strengthening the Alliance and Euro-Atlantic security, NATO...

Romania’s Prime Minister on a visit to Brussels
Today in the News Monday, 18 November 2024

Downward forecast from the European Commission

Romania’s economic growth estimate has been recalculated by the European Commission (EC), at a value well below the initially established...

Downward forecast from the European Commission
Today in the News Monday, 18 November 2024

35 years since the fall of the Berlin Wall

The fall of the Berlin Wall, 35 years ago, represented for Romanians an encouragement in their fight for freedom, and the removal of the Iron Curtain...

35 years since the fall of the Berlin Wall
Today in the News Friday, 15 November 2024

European minimum wage in Romania

The law on the introduction of the European minimum wage in Romania was promulgated by President Klaus Iohannis. Prime Minister Marcel Ciolacu has...

European minimum wage in Romania

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company