Auraș Marinescu

Bogdan-Tiberius Paşca

European affairs advisers

Directorate for Employment and Equal Opportunities Ministry of Labour, Family, Social Protection and Elderly

2

Romania the largest market in South Eastern Europe

Bucharest

1000 km radius

1500 km radius

Bucharest BLACK SEA

Area: 238,391 km2

(9th largest in EU)

Population: Over 20 million

(7th largest in EU)

Capital city: Bucharest

2 million

European

Union status

Member since

January1st,2007

Affiliation: EU,NATO,WTO,

WB, IMF.

Domestic

currency:

LEU (RON)

1EUR=4.4190 RON

1USD=3.279 RON

(Annual average -

2013)

Official

language: Romanian

Administ.

division:

41 counties and

Bucharest

5,2%

8.5%

4,2%

7,9%6,3%

7,3%

-6,6%

-1.1%

2.2%0.7%

3,5%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

3

Significant Potential for Growth

2013

IMF: Romania among the first 10 EU countries with the highest GDP growth in 2014;

Sourc

e: E

UR

OS

TA

T

Source: National Institute of Statistics; GDP EU 28

Source: Eurostat

GDP Growth Rate

Romania 3.5%

Poland 1.6%

Hungary 1.1%

Slovakia 0.9%

Bulgaria 0.9%

Czech Rep -0.9%

Slovenia -1.1%

EU 28 0.1%

GDP 2013: 3.5% - the highest in EU

4

Inflation Rate

Inflation Rate in Romania

Source: Eurostat

Target: 2014: 2.5%

1946

5183 5213

9059

7250

9496

3488

2220

18152138

2700

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

5

Annual Inward FDI

Inward FDI Flows

2013

2013: EUR 2.7 bill.

Stock: EUR 60.0 bill. (1990–2013);

Source:

Vienna Institute for International Economic Studies

¹ National Bank of Poland

Source: National Bank of Romania

EU

R m

illio

n

Czech Republic 3760

Romania 2725

Hungary 1768

Bulgaria 1092

Serbia 779

Slovakia 445

Croatia 437

Poland¹ -2200

6

Netherlands Austria Germany France Italy

22.4%

13229

18.5%

10920

11.0%

6499

8.9%

5272

5.0%

2930

Cyprus Greece Switzerland USA Luxemburg

4.5%

2687

4.3%

2529

3.7%

2194

3.1%

1809

2.3%

1368

Top 10 Investing Countries

1

Source: National Bank of Romania

STOCK 1990-2012: 59126 mill euro

2 3 4 5

6 7 8 9 10

7

Human Capital

Demographics

Talent pool

Cities with more than 100,000 inhabitants

more than 1,000,000 inhabitants

300,000 – 400,000 inhabitants

200,000 – 300,000 inhabitants

100,000 – 200,000 inhabitants

Source: National Institute of Statistics

Young population (more than 50%

under 40 years old)

Over 20 million people

108 universities, 629 faculties

214,800 university graduates/yr

Availability of technical engineers

High industrial experience

Flexibility

Foreign language skills

8

Labor Cost

Gross average monthly wages

EUR

Source: Vienna Institute for International Economic Studies

Romania will hold on its competitive advantage related to labor cost;

The employers enjoy a flexible labor code

Romania has the second-lowest average wage in EU

Romania still offers goods and utilities at a lower price in comparison

with European average

179204

267

326

428 474 445 460 471 479

0

50

100

150

200

250

300

350

400

450

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

1525

993

846800 771

479383

0

200

400

600

800

1000

1200

1400

1600

Slovenia Czech Rep. Poland Slovakia Hungary Romania Bulgaria

Source: National Institute of Statistics;

Gross average monthly wages

2012 - EUR

9

BUCURESTI

222 thou

State: 67% Private: 33%

CLUJ-NAPOCA

SIBIU

TIMISOARA

BRASOV

IASI

CRAIOVA

GALATI

57 thou

S: 93% P: 7%

55 thou

S: 90% P: 10%

40 thou

S: 89% P: 11%

46 thou

S: 69% P: 31%

30 thou

S: 89% P: 11%

22 thou

S: 92% P: 8%

18 thou

S: 87% P: 13%

12 thou

S: 86% P: 14%

PITESTI

12 thou

S: 79% P: 21%

TARGU - MURES

BUCURESTI

10 Major University Centers

CONCLUSIONS

Romania’s accession to the EU improved the Romanian business environment, improvement felt by means of a more stable legal framework and the existence of more transparent business practices.

The obstacles from the free movement of goods and services were removed or in process of removal. A common legal framework provided by the Single Market will increase the overall efficiency of the Romanian economy by improving the resources allocation, increasing of specialisation degree and the competitiveness stimulation.

By improving the business environment, Romania is already an attractive target for foreign investments. Attracting a huge inflow of foreign investments will directly and rapidly ensure the access to an effective management, modern technologies, as well as to the labor market segmentation.