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ROMANIA
Year of EU entry 2007
Political system Republic
Capital city Bucharest
Total area 238,000 km2
Population 21.8 million
Currency Leu |
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Overview
Romania, in southeast Europe, is mountainous in the north while the main feature in the south is the vast Danube valley. The river forms a delta as it approaches the Black Sea, which is a wildlife reserve for countless native and migratory birds.
The Romanian parliament consists of two chambers, the Senat (Senate), which has 140 members, and the Camera Deputatilor (Chamber of Deputies), which has 345 members. The members of both chambers are chosen in elections held every four years.
Ethnically, the population is 90% Romanian and 7% Hungarian. The Romanian language, like a number of others in southern Europe, is directly descended from Latin, although Romania is separated from other Romance-language countries by Slav speakers. Romania has considerable natural resources - oil, natural gas, coal, iron, copper and bauxite. Metal-working, petrochemicals and mechanical engineering are the main industries.
Romanian specialities include grilled meatballs, pork stew with garlic and onions and doughnuts made with cream and cheese.
The spine-chilling tale of Dracula is based on the 15th century Romanian Count Vlad Dracul whose son was famous in wartime for impaling captured enemies. Well-known Romanians include the writer Eugene Ionesco, the gymnast Nadia Comaneci and the composer George Enesco.
Economy
Romania began the transition from Communism in 1989, with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets. Despite the global slowdown in 2001-02, strong domestic activity in construction, agriculture, and consumption have kept GDP growth above 4%. An IMF standby agreement, signed in 2001, has been accompanied by slow but palpable gains in privatisation, deficit reduction, and the curbing of inflation. The IMF Board approved Romania's completion of the standby agreement in October 2003, the first time Romania has successfully concluded an IMF agreement since the 1989 revolution. In July 2004, the executive board of the IMF approved a 24-month standby agreement for €280.5m. IMF concerns about Romania's tax policy and budget deficit led to a breakdown of this agreement in 2005. In the past, the IMF has criticised the government's fiscal, wage, and monetary policies. Meanwhile, macroeconomic gains have only recently started to spur creation of a middle class and address Romania's widespread poverty, while corruption and red tape continue to handicap the business environment. Romanian government confidence in continuing disinflation was underscored by its currency revaluation in 2005, making 10,000 'old' lei equal 1 'new' leu.
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