Romanian President Emil Constantinescu is trying to discourage such developments. With more than 100 police reportedly injured in yesterday's clashes, Bucharest has cleared the way to impose a state of emergency. The crisis is the worst to hit Romania since Cozma's miners set fire to government headquarters and forced the resignation of Prime Minister Petre Roman in 1991. Reforms endorsed by international institutions like the World Bank are based on the premise that private investment fosters economic growth. That isn't reassuring for miners.
Few investors are willing to put money into Eastern Europe's long neglected coal industries.
Enormous funds are needed for new equipment. Mine closures and massive layoffs are also necessary in order to reduce inefficiency and increase competitiveness. Even then, with the region turning more to natural gas, oil, and nuclear power to meet its energy needs, there is no guarantee that the low-grade brown coal found across much of Eastern Europe can bring profit. The United Nations Economic Commission for Europe notes that Europe's only successfully privatized coal industry is in the United Kingdom. The high productivity achieved there has come only at great social expense.