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EC's Vice President Dombrovskis: We are concerned with Romania losing competitiveness, current account deficit
Romania loses on the competitiveness front and we are also concerned with the country's current account deficit which might affect the convergence efforts, European Commission's Vice President in charge of Euro and Social Dialogue, Financial Stability, Financial Services and Capital Markets Union Valdis Dombrovskis told a conference on Thursday.
The analysis regarding Romania shows that it's important that the economy and the people's living standard have increased. Romania's GDP increased from 39 percent of the European average to 66 percent in 2017. This trend will continue only if efforts are put in. We are concerned with Romania losing competitiveness and the current account deficit which might affect the country's convergence efforts. Because of these imbalances, Romania enters in a procedure of macro-economic imbalances, a procedure which it had left behind two years ago. Even after years of strong economic growth difficulties emerged. It was found that last year Romania didn't adopt correction measures. In the same way, the limitations of introducing reforms have said their word. Romania recorded only limited progress or even no progress in relation to the recommendations passed last year, from the fiscal framework to the social dialogue, the integration of Roma citizens and the consolidation of the public administration, the European official said.
He added that the programme on social rights totalises a number of 40 projects, in the context in which the European Semester is becoming increasingly more social.
The European Semester is becoming more social. The social rights pillar will continue to be strengthened toward convergence. Our goal should be that of ensuring a growth which will bring advantages to all citizens, for the entire society. Romania has one of the levels which should increase in the European Union and the implementation of reforms. The support programmes should be backed up. In Romania, the programme meant 40 projects, the promotion of the the National Bank, services for building dwellings, children from underprivileged families should not abandon school. We are talking with all the countries about the structural and cohesion funds. Infrastructure, research and development investments, public policies and rural and urban development projects have been identified, Valdis Dombrovskis stated.
Dombrovskis underscored that, for the European Semester to enjoy success, all the countries of the EU should be really committed to this process.
All the political factors of Europe realised that the single market should be endorsed by economic policies. The Economic and Monetary Union brings us even closer, but there are risks of some side effects. When Romania joined the European Union, in 2017, imbalances already emerged in many member states. The European Union adopted a series of measures in order to counteract the crisis and in view of preventing similar situations through sustainable fiscal and macro-economic policies. In this context, we developed the European Semester which imposes the drafting, at European level, allowing us to identify the warning signs in due time. Three priorities of the European Semester are important, namely investments, structural reforms and fiscal policies adopted with responsibility. I and other commissioners, too, who have visited various countries, committed in dialogues with governments, parliaments and social partners. The countries should really be committed for the European Semester to enjoy success. The countries' commitment at all levels is paramount. The semester works even is it is not always properly appreciated. Since the European Semester was launched, a series of progresses at fiscal level have been recorded. The deficit stood at 2.9 percent, now it stands at 0.8 percent. At the same time, we have to admit that the pace is pretty slow and some countries return to the reforms they started and the economic momentum is not fully exploited, the EC Vice-President mentioned.
European Commission Vice President Valdis Dombrovskis and Romania's Deputy Prime Minister Viorel Stefan are participating on Thursday in the conference called "The coordination of economic policies at EU level, a renewed role for the European Semester," organised by Romania in the context of holding the Presidency at the European Union Council.
(Source photo: audiovisual.ec.europa.eu)