COMMISSION STAFF WORKING DOCUMENT Assessment of the 2012 national reform programme and convergence programme for ROMANIA Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on Romania's 2012 national reform programme and delivering a Council opinion on Romania's updated convergence programme, 2012-2015
Date: 2012-05-30
Institutions: European Commission
Subjects: EU aid, EU financing, EU programme, Romania, balance of payments, budget deficit, budgetary equilibrium, economic convergence, economic reform, public finance

EUROPEAN COMMISSION 

Brussels, 30.5.2012  
SWD(2012) 325 final 

COMMISSION STAFF WORKING DOCUMENT 

Assessment of the 2012 national reform programme and convergence programme for 
ROMANIA 

Accompanying the document 

Recommendation for a  

COUNCIL RECOMMENDATION 

on Romania's 2012 national reform programme and delivering a Council opinion on 
Romania's updated convergence programme, 2012-2015 

{COM(2012) 325 final} 

EN 

   EN 

 
 
 
 
  
 
 
CONTENTS 

1.  Executive summary ............................................................................................................ 3 
Introduction ........................................................................................................................ 4 
2. 
3.  
Economic situation and outlook..................................................................................... 4 
4.  Programme implementation ............................................................................................... 5 
5.  Conclusion........................................................................................................................ 14 
6.  Annex ............................................................................................................................... 16 

2 

 
 
  
 
 
 
1. 

EXECUTIVE SUMMARY 

After two years of decline, real GDP in Romania is estimated to have grown in 2011 by 2½%. 
For 2012, on the back of a slowdown in Europe, growth is expected to slowdown to 1.4 %; 
domestic demand is forecast to be the major driver of growth and investment, supported by 
improving EU funds absorption, is expected to play a key role in 2012.  

In the context of the EU's precautionary medium-term financial assistance agreed in 2011 for 
two  years,  Romania  has  undertaken  to  implement  a  comprehensive  economic-policy 
programme  with  a  particular  focus  on  structural  reform  measures  aimed  at  improving  the 
functioning  of  labour  and  product  markets  and  at  increasing  the  resilience  and  growth 
potential  of  the  Romanian  economy.  In  parallel,  the  programme  ensures  the  continuation  of 
fiscal consolidation, the reform of the tax administration and improvements in public financial 
management and control as well as financial-stability and financial-market reform.  

The results of the second  formal programme review that took place in late  April-early  May 
2012  are  satisfactory  and  the  current  precautionary  financial  assistance  programme  remains 
on track. The cash fiscal target for 2011 was met, while the ESA target would have been met 
had  there  not  been  a  sizeable  one-off  measure  linked  to  court  decisions  obliging  the 
government  to  pay  compensation  to  certain  categories  of  employees.  The  2012  budget 
remains on track to achieve a deficit below 3 % of GDP in ESA terms. The authorities will 
also have to continue implementing sound fiscal policies. The Romanian banking sector has 
remained  resilient,  in  spite  of  the  on-going  deterioration  in  asset  quality.  Progress  in  key 
structural reform areas has been uneven but overall satisfactory. In particular, reforms in the 
energy  sector  have  recently  gathered  momentum.  Programme  implementation  could, 
however, be improved in several areas. 

Concerning  the  national  targets  under  the  Europe  2020  strategy,  Romania  has  made  limited 
progress in 2011. Some of the targets remain difficult to reach. This is the case in particular 
for investments in R&D, the employment rate, the early school leaving rate and the number of 
people  at  risk  of  poverty  or  exclusion.  Romania  should  step  up  efforts  to  accelerate  the 
delivery of the Europe 2020 strategy as the basis for any new growth initiative.    

3 

 
 
  
2. 

INTRODUCTION 

Following  a  request  by  Romania  on  17  February  2011,  the  European  Commission  and  the 
IMF  negotiated  a  precautionary  Economic  Adjustment  Programme  with  the  Romanian 
authorities.  These  were  agreed  by  the  European  Council  on  12  May  2011  and  by  the  IMF 
board on 25 March 2011. The programme covers a two-year period until 31 March 2013. Its 
financial package covers up to EUR 4.9 billion, comprising EUR 1.4 billion from the EU and 
EUR  3.5 billion  from  the  IMF.  Both  the  EU  and  the  IMF  programme  are  treated  as 
precautionary and no disbursements have taken place so far. The World Bank will continue 
providing  previously  committed  support  of  EUR  400 million  under  its  development  loan 
programme  and  EUR  750 million  of  results-based  financing  for  social-assistance  and  health 
reforms. 

In  the  context  of  the  EU’s  precautionary  assistance,  Romania  undertook  to  implement  a 
comprehensive  economic-policy  programme  with  a  particular  focus  on  structural  reform 
measures aimed at improving the functioning of labour and product markets and at increasing 
the  resilience  and  growth  potential  of  the  Romanian  economy.  In  parallel,  the  programme 
ensures  the  continuation  of  fiscal  consolidation,  the  reform  of  the  tax  administration  and 
improvements  in  public  financial  management  and  control,  as  well  as  external,  monetary, 
financial-stability,  and  financial-market  reform.  In  its  totality,  the  programme  is  geared 
towards the achievement of three main objectives: (i) eliminating the excessive budget deficit 
by 2012; (ii) improving growth potential; and (iii) decreasing the future likelihood of renewed 
excessive imbalances in the Romanian economy. 

As  for  all  Member  States  benefiting  from  a  financial  assistance  programme,  progress  in 
implementing the accompanying policy programme is monitored in a dedicated, regular and 
specific manner, in line with the provisions of the Memorandum of Understanding. Given the 
reporting  requirements  under  financial  assistance  programmes,  as  well  as  the  much  more 
extensive  monitoring  and  enforcement  involved,  in  2012,  programme  countries  have  been 
exempted from the obligation to submit full-scale national reform programmes and stability or 
convergence programmes, but they were asked to submit certain information on key fiscal and 
structural issues. The Staff Working Document under the 2012 European Semester provides a 
summary of the recent progress on implementation. More details can be found in the reports 
on the state of implementation that the European Commission publishes following programme 
review missions1. 

3.  

ECONOMIC SITUATION AND OUTLOOK 

After  two  years  of  decline  and  a  cumulated  GDP  contraction  of  more  than  8%,  real 
GDP  grew  by  2.5%  in  2011.  Growth  was  mainly  driven  by  a  robust  increase  in  industrial 
output and an exceptional agricultural harvest. GDP growth is expected to slow down to 1.4 % 
in  2012;  domestic  demand  is  forecast  to  be  the  driver  of  growth  with  public  investment, 
supported by better absorption of EU funds playing a key role. External demand is expected 
to contribute negatively to GDP growth in 2012 due to the worsening economic outlook for 
the EU (which accounts for about 70% of Romania's exports). The current account deficit is 
expected  to  increase  from  4.1%  in  2011  to  5%2  in  2012,  mainly  on  account  of  a  widening 
trade deficit. For 2013, GDP growth is currently estimated to accelerate to 2.9% as domestic 

1  These  reports,  along  with  other  information  related  to  the  financial-assistance  programme,  can  be  found  on 
http://ec.europa.eu/economy_finance/eu_borrower/balance_of_payments/romania/romania_en.htm. 
2 Current account balance calculated based on national accounts data. 

4 

 
 
  
                                                 
demand recovers. Risks to growth for 2012 are tilted to the downside while they become more 
balanced over the medium term. 

Upside  risks  to  the  inflation  outlook  remain,  although  price  pressures  receded 
significantly in the second half of 2011 and the first quarter of 2012. Inflation, which has 
been high for a prolonged period (above 8 % in the second quarter of 2011), fell sharply to 
3.2%  in  December  2011,  close  to  the  mid-point  of  the  NBR's  target  range  of  3.0%  ±1 
percentage point set for end-2011, against the background of a favourable VAT-related base 
effect  and  easing  food  prices.  HICP  inflation  continued  to  recede  and  fell  close  to  the  euro 
area level in early 2012 (averaging 2.7% in the first quarter of 2012), partly on account of a 
favourable base effect from higher food prices a year ago. The temporary downward pressure 
on  headline  price  indices  stemming  from  volatile  commodity  prices  will  gradually  reverse 
from  now  on,  but  inflation  is  forecast  to  remain  in  the  upper  range  of  the  NBR's  target  for 
end-2012 and end-2013. Over the medium term, risks to the inflation outlook are tilted to the 
upside due to the planned increases in administered energy prices. 

Financial markets recovered in early 2012 after having suffered from the deterioration 
in  the  second  half  of  2011  in  the  market  sentiment  towards  emerging  markets.  Credit 
default swap (CDS) spreads on Romanian government debt declined to about 350 basis points 
at the beginning of May 2012, down from a high of just below 500 basis points in November 
2011. 

4. 

PROGRAMME IMPLEMENTATION 

Budget execution for 2011 shows that Romania reached a cash deficit of 4.2 % of GDP, 
remaining  below  the  programme  target  of  4.4 %  of  GDP.  The  better-than-expected 
performance concerning the deficit target in the last months of 2011 allowed the government 
to  allocate  additional  resources  to  clear  arrears  and  unpaid  bills  for  state-owned  enterprises 
(SOEs)  and  the  health  sector.  On  the  revenue  side,  tax  revenue  was  higher  than  forecast, 
thanks  to  VAT,  social-security  contributions  and  personal  income  tax.  In  contrast,  excise 
revenue  was  lower  than  expected  following  a  renewed  increase  in  tax  evasion.  Moreover, 
revenue from EU funds was lower than planned because of delays in reimbursing funds for 
two  operational  programmes.  On  the  expenditure  side,  there  were  significant  savings  in 
current expenditure following lower spending on personnel, interest and other transfers. Total 
spending on personnel for 2011 was RON 38.5 billion, within the programme target of RON 
39 billion, following a faster-than-expected reduction in public-sector employment. Spending 
on  goods  and  services  was  higher  than  planned  at  the  levels  of  local  government  and  self-
financed  institutions.  The  higher  spending  at  the  level  of  local  government  was  partly  the 
result  of  several  reforms  that  have  taken  place  since  2010:  the  decentralisation  of  370 
hospitals  from  the  central  to  the  local  level  and  the  enforcement  of  staffing  norms.  Other 
factors that led to higher spending were new infrastructure-maintenance requirements and the 
purchase of more and costlier goods and services from suppliers. Capital expenditure was also 
substantially  higher  than  planned.  The  efficiency  of  capital  spending  can  be  enhanced  by 
improving  the  capital-budgeting  process  through  a  genuine  prioritisation  of  investment 
projects across the general-government sector. Moreover, more needs to be done to improve 
the  capital-budgeting  process,  in  particular  by  including  the  National  Programme  for 
Infrastructure Development (PNDI) in the medium-term fiscal strategy and in the investment 
database of the Ministry of Finance3. The authorities have issued legislation to stop the PNDI 

3  The  National Programme  for  Infrastructure  Development  (PNDI)  consists  of  a  series  of  infrastructure  works 
mainly related to water and sewage systems. The programme is scheduled to start in 2012 and finish in 
2020.  The  total  value  of  the  programme  is  around  RON  21  bn.  A  notable  feature  is  that  private 
contractors  would  start  works  in  2012  but  would  only  receive  the  payment  related  to  these  works  in 

5 

 
 
  
                                                 
programme,  but  will  continue  to  ensure  the  necessary  financing  for  the  contracts  that  have 
already been signed as part of the programme. 

Due  to  a  sizeable  one-off  payment  obligation,  the  2011  general  government  deficit  in 
ESA  terms  was  5.2 %  of  GDP,  above  the  original  programme  target  of  5 %  of  GDP. 
However,  without  this  item,  the  deficit  would  be  at  4.1 %  of  GDP,  significantly  below  the 
original  target.  As  the  policy  effort  remains  in  line  with  programme  requirements,  the 
financial  assistance  programme  can  be  regarded  as  still  being  on  track.  Moreover,  since  the 
payments resulting from the court decisions are considered a one-off item, they do not affect 
Romania’s  structural  balance  or  its  fiscal-consolidation  effort  and  the  country  remains  on 
track  to  reach  the  3 %  of  GDP  deficit  target  in  2012,  in  line  with  the  Council 
recommendations under the EDP procedure. Domestic payment arrears decreased (from RON 
3.5 billion at the end of January 2011 to RON 2.9 billion at the end of 2011).  

Budget execution for the first four months of 2012 shows that Romania remains on track 
to  reach  a  deficit  below  3%  of  GDP  in  ESA  terms,  but  increased  vigilance  is  needed 
especially  in  capital  spending.  On  the  revenue  side,  tax  revenue  was  lower  than  expected 
due to an underperformance in VAT and the profit tax, while non-tax revenue was better than 
expected as the government collected dividends from state owned enterprises. There has been 
significant  over-spending  on  the  expenditure  side,  particularly  in  capital,  interest,  subsidies 
and, to a lesser extent, goods and services. The higher spending on subsidies was due to an 
earlier  payment  of  agricultural  subsidies  which  was  made  in  April  instead  of  June.  While 
over-spending  on  capital  is  partly  explained  by  the  authorities'  attempt  to  bring  spending 
forward  within  the  year,  there  is  a  heightened  risk  of  slippage,  particularly  at  local 
government level which is not well controlled by the central government. For this reason, the 
authorities decided to set aside an additional buffer for capital spending equivalent to 0.1% of 
GDP,  while  at  the  same  time  strengthening  the  monitoring  of  the  capital  budget  and 
eliminating low performing investment projects. 

During the April/May programme review mission, an additional fiscal space of 0.3% of 
GDP was identified which the authorities can use while remaining safely below the 3% 
of  GDP  programme  target  in  ESA  terms  for  2012.  The  fiscal  space  will  be  used  by  the 
authorities to grant an 8% wage increase in June, which is part of the restoration of the 25% 
wage  cut  implemented  in  2010.  It  would  be  followed  by  a  second  increase  by  7.4%  in 
December  (which  would  complete  the  restoration  of  the  wage  cut  as  ordered  by  the 
Constitutional  Court).  The  remainder  of  the  fiscal  space  will  be  used  to  compensate 
pensioners  for  the  additional  5.5%  health  insurance  contribution  levied  on  pensions  below 
RON  740  in  2011  and  the  beginning  of  2012,  thereby  abiding  by  the  Constitutional  Court 
rulings on this issue. 

Arrears have started to increase again, particularly at local government level. The stock 
of arrears between 0-360 days has increased from RON 3.1 billion at end-February to RON 
3.2 bn at end-March, of which the arrears at local government level grew from RON 1.4 bn at 
end-February to RON 1.5 bn at end-March. Arrears over 90 days have continued to increase 

future  years (from  2013 onwards,  with ‘big’  payments  starting  in  2015).  Given  the way  in  which  the 
programme  was  designed,  there  is  no  cash  flow  related  to  the  PNDI  in  2012  and  therefore  the  cash 
deficit as such is not affected. However, according to ESA95 rules the recording of the PNDI should be 
made on an accrual basis (i.e. following progress in construction) and not when the cash payment will 
be made. Moreover, the progress in construction should be valued on the basis of the costs incurred by 
the  constructor,  independently  of  any  certification.  The  expenditure  related  to  the  PNDI  programme, 
which is estimated at 0.2 % of GDP for 2012 is included in the 2012 ESA definition of the budget. In 
order to adequately monitor the programme and not increase the discrepancy further between the cash 
and ESA definitions of the budget deficit, the expenditure related to the PNDI programme has also been 
included in the cash-deficit target monitored under the EU/IMF programme. 

6 

 
 
  
                                                                                                                                                         
since the beginning of the year, reaching RON 914 million at end-March, of which RON 794 
mn  are  at  local  government  level.  The  rise  in  the  stock  of  arrears  is  due  in  part  to  low 
enforcement of the local public finance law by local authorities. While the central government 
has allocated additional funds to local governments to help pay back the arrears, an in-depth 
analysis of the causes of these arrears is necessary and will be undertaken by the authorities in 
the coming months. Arrears over 90 days in the health sector have been eliminated, but the 
authorities need to monitor and limit overdue bills from the National Health Insurance House 
to  hospitals  in  order  to  prevent  a  renewed  accumulation.  The  clawback  tax,  which  yielded 
revenue of RON 282 million in the first quarter of 2012 is also expected to help prevent a new 
accumulation of arrears in the sector.  

Romania  submitted  the  national  reform  programme  on  23  April  2012  and  the 
convergence  programme  on  11  May  2012.  Both  programmes  reflect  the  objectives  and 
actions  required  under  the  economic  reform  programme  agreed  with  the  Romanian 
government for the purposes of the EU financial assistance. 

The  macroeconomic  assumptions  on  which  the  convergence  programme  is  based  are 
plausible.  Both  the  Commission  Spring  2012  forecast  and  the  CP  assume  a  slowdown  in 
GDP growth this year to 1.4%-1.7%. The main driver of growth in the forecasting period is 
domestic  demand,  while  net  exports  contribute  negatively  to  GDP  growth.  GDP  growth  for 
2013-15  is  expected  to  accelerate  and  be  above  the  potential  GDP  estimated  by  the 
Commission.  The  forecast  inflation  path  for  2011-12  is  similar  for  the  CP  and  the 
Commission. For 2013, the Commission foresees a slight acceleration in inflation, while the 
CP foresees a stagnation. The CP foresees a slight decrease in inflation for 2014-2015. 

The convergence programme aims to reach a budget deficit  below 3% of  GDP, in  line 
with the Council recommendations given to Romania in the EDP procedure. It plans to 
reach  this  objective  through  a  combination  of  a  decrease  in  spending  and  an  increase  in 
revenue.  On  the  spending  side,  the  main  measures  taken  by  the  government  include: 
employment cuts in the public sector through the continued application of the 1 in 7 rule, a 
pension freeze, the introduction of a new social assistance code which streamlines the number 
of  social  assistance  programmes  and  targets  them  towards  the  most  vulnerable  and  the 
termination  of  pre-accession  programmes  following  the  end  of  the  extension  period  for 
finishing  them.  On  the  revenue  side,  measures  include  excise  rate  hikes  for  cigarettes  and 
diesel,  an  increase  in  royalties  for  the  use  of  resources  necessary  to  produce  construction 
material,  as  well  as  measures  aimed  at  improving  tax  collection.  The  deficit  is  expected  to 
decrease further to 2.2% of GDP in 2013, 1.2% of GDP in 2014 and 0.9% of GDP in 2015. In 
terms of the structural balance4, this implies an improvement in the deficit by 1.5% in 2012, 
0.5% in 2013 and 0.7% in 2014, in line with the 0.5% of GDP benchmark of the Stability and 
Growth  Pact.  The  growth  rate  of  government  expenditure  is  in  line  with  the  expenditure 
benchmark  of  the  Stability  and  Growth  Pact  over  the  2012-2015  period.  The  programme 
foresees the achievement of the MTO of a (recalculated) structural deficit of 0.7% of GDP in 
2014.  Overall,  the  adjustment  path  towards  the  medium  term  budgetary  objective  is 
appropriate over the 2012-2015 period. The main risks to the budgetary targets are the arrears 
of state owned enterprises, as well as potential re-accumulation of arrears at local government 
level and in the health sector. As regards public debt, it was below 34% of GDP by end 2011 
thus remaining substantially below 60% of GDP 

The  Romanian  banking  sector  has  remained  resilient,  in  spite  of  the  ongoing 
deterioration  in  asset  quality,  which  has  continued  to  adversely  impact  banking-sector 
profitability. Notwithstanding the negative return on equity (-1.4 %) at the end of 2011, the 

4 Cyclically adjusted balance net of one-off and temporary measures, recalculated by the Commission services 

on the basis of the information provided in the programme, using the commonly agreed methodology. 

7 

 
 
  
                                                 
capitalisation of the banking sector improved by roughly one percentage point (to 14.5 %) at 
the end of 2011 compared to the previous quarter. Banking-sector capitalisation has remained 
at reassuring levels due to the support provided by shareholders, in particular euro-area parent 
banks.  However,  further  market  pressures  on  banking-sector  capitalisation,  particularly 
regarding smaller credit institutions without a strong shareholder base, are likely in the future. 
As to programme conditionality, the authorities adopted, with some delay, the legislation on 
bridge-bank powers and other resolution measures as well as the amendments to the deposit 
guarantee  fund  legislation  aiming  at  enhancing  the  fund’s  resources.  Furthermore,  there  has 
also been some delay in aligning the legislation on the winding up of insurance undertakings 
with the general law on bankruptcy. It had been agreed that the amended legislation would be 
sent to Parliament before the end of 2011 but this did not happen until January 2012. It has to 
be enacted by the end of October 2012 in order to meet the deadline in the programme. 

Progress  in  the  energy  area  was  uneven  at  the  beginning  of  the  programme  but  lately 
has been more encouraging. The authorities missed the January 2012 programme deadline 
for  the  presentation  of  the  roadmap  for  phasing  out  regulated  electricity  and  gas  prices. 
However, certain progress on price deregulation in the electricity sector was achieved during 
the  January/February  2012  mission.  The  share  of  electricity  sourced  from  the  competitive 
market will be progressively increased to reach complete deregulation in the non-residential 
segment  by  the  end  of  2013.  For  households,  starting  from  2013,  prices  will  be  adjusted 
gradually to reach market levels by 2017. Moreover, the electricity roadmap adopted in March 
2012  outlines  individual  steps  of  this  reform  and  provides  deadlines  for  the  adoption  of 
further measures to protect vulnerable households. The second formal programme review in 
late April – early May also agreed on a roadmap for gas price deregulation which is essential 
to  ensure  proper  market  functioning  in  line  with  EU  legislation  and  to  attract  the  urgently 
needed investments. Regulated gas prices for companies will be phased out by end 2014. For 
households,  prices  will  be  adjusted  to  reach  market  levels  by  end  2018.  The  impact  of  the 
price  adjustment  will  be  mitigated  for  vulnerable  consumers.  To  start  the  long-overdue 
transposition of the Third EU Energy Package into Romanian law, a draft electricity law was 
sent to the Parliament in March 2012; a draft gas law still needs to be submitted to Parliament. 

Progress with structural reforms in transport has been limited. A government decision of 
2012 denies the right of the rail regulator to take decisions on the charges for infrastructure. 
Moreover,  it  does  not  place  incentives  on  the  infrastructure  manager  CFR  SA  to  reduce  its 
unit costs and charges. In addition, the charging system does not currently provide incentives 
to  reduce  delays  and  traffic  disruption  in  the  form  of  a  performance  scheme.  Furthermore, 
Romania does not use competitive tendering for passenger services. The direct-award system 
and the lack of performance incentives risk perpetuating the decline of Romanian passenger 
transport. 

Arrears of state-owned enterprises in both the transport and energy sectors continued to 
decline  and  preparations  for  restructuring  as  well  as  partial  or  full  privatisation 
continue. Additional measures are being implemented to achieve efficiency gains in a number 
of  large  SOEs,  to  further  reduce  arrears  and  to  keep  the  operating  loss  in  check.  The 
authorities  also  undertook  to  offer  for  sale  equity  stakes  in  a  number  of  major  SOEs.  Steps 
have  been  taken  to  improve  corporate  governance  and  the  quality  of  management.  A  new 
corporate governance law was adopted in December 2011; it should facilitate the introduction 
of private management in companies with more than 20 employees or a turnover of more than 
RON 1 mn. 

The legal provisions requiring economic-needs tests and the involvement of competitors 
in  the  authorisation  procedure  for  large-surface  retail  shops  were  not  removed  by  the 
end of January 2012, as foreseen under the programme. With the appointment of a new 
government in May 2012, these provisions are set to be abolished by the end of May 2012. 

8 

 
 
  
The Point of Single Contact, while technically operational, should be further developed 
in  terms  of  the  quantity  of  information  and  the  possibility  to  complete  procedures  by 
electronic  means.  To  this  end,  the  authorities  have  committed  to  appoint  a  coordinating 
authority  to  speed  up  the  implementation  process  by  the  end  of  June  2012  and  make  fully 
operational  the  electronic  completion  of  procedures  in  all  services  sectors  covered  by  the 
Services Directive by the end of December 2012. 

The  government  continues  its  efforts  to  reform  the  healthcare  sector,  despite  the 
political difficulties encountered at the beginning of 2012. A draft framework law will be 
ready  for  public  debate  by  the  end  of  June  2012  and  it  is  expected  to  be  approved  in 
Parliament by the end of October 2012. Meanwhile, specific reform measures are underway, 
including implementation of a negative list of reimbursed drugs, introduction of the electronic 
prescription and the electronic health card, as well as a revision of the draft co-payment law, 
that now foresees co-payment as a flat fee. Arrears over 90 days have been brought close to 
zero  while  the  revenues  from  the  clawback  tax  will  be  used  to  prevent  a  renewed 
accumulation of arrears. 

The second set of quarterly progress reports on the implementation of the action plans 
(based  on  the  functional  reviews'  recommendations)  was  submitted  to  the  Commission 
in mid-April 2012 by all the relevant Ministries. The Commission is now consolidating the 
feedback  received  from  the  various  DGs  on  the  actions  plans'  implementation  status. 
Although  overall  no  substantial  progress  is  visible  so  far,  the  quarterly  reports  allow  for  a 
closer follow up of the implementation and for a strengthening of the coordination process. As 
the initial deadline was not met for a number of actions, a new template for monitoring the 
action  plans'  implementation  status  was  designed  by  the  General  Secretariat  of  the 
Government  with  advice  from  the  World  Bank;  these  more  detailed  implementation  tables 
should  help  identify  progress  and  spot  bottlenecks  quicker  than  now.  Besides  the  new 
template  for  monitoring  progress  with  the  action  plans,  the  Romanian  government  is  also 
introducing a new monitoring structure under the supervision of the General Secretariat of the 
Government.  However,  due  to  the  government  change  in  May,  this  process  has  been 
somewhat delayed. 

The end-2011 EU funds absorption target of EUR 2.1 bn was met, since the cumulative 
EU-funds  absorption  for  the  structural  and  cohesion  funds  and  for  the  agricultural 
funds  amounted  to  EUR  3.275 bn  at  31  December  2011.  However,  significant  efforts  are 
still required to meet the end-2012 target (i.e. EUR 8 bn on a cumulative basis). A number of 
measures  have  already  been  taken  and/or  will  be  put  in  place.  These  include  an  adjusted 
Priority  Action  Plan,  European  Social  Fund  specific  Road  Maps,  a  Code  of  Conduct  for 
personnel  working  on/with  EU  funds,  a  limit  of  45  working  days  for  processing  the 
reimbursement  of  claims,  enhancement  of  administrative  capacity  and  the  signature  of 
Memoranda of Understanding for receiving technical assistance from specialised institutions 
(European Investment Bank, the World Bank and the European Bank for Reconstruction and 
Development). 

The implementation of the joint EU-IMF-World Bank programme contributed in many 
ways  to  the  attainment  of  Europe  2020  targets,  in  particular  in  the  areas  of  R&D, 
employment and poverty/social exclusion. Firstly, the programme conditionality introduced 
functional  reviews  in  a  number  of  public  administration  branches.  Action  Plans  adopted  in 
this context are being monitored under the current programme. They help establish priorities 
and provide better monitoring of policy reforms, in particular in the R&D sector. Secondly, 
the amendments to the labour legislation, in particular those related to a wider use of fixed-
term contracts, are expected to help make labour markets more flexible, thus contributing to a 
potentially higher employment rate over the medium term. Thirdly, a number of programme 
policy  measures  are  expected  to  help  reduce  the  number  of  people  at  risk  of  poverty  or 

9 

 
 
  
exclusion.  For  example,  the  conditionality  of  the  programme  includes  policy  commitments 
related to the introduction of a means-tested social assistance system that could better target 
the  most  vulnerable  parts  of  the  population.  The  law,  in  force  since  January  2012,  seeks  to 
streamline  social  benefits  and  improve  the  efficiency  of  social  protection.  Fourthly,  the 
European  Commission  was  also  consulted  on  the  increase  in  the  minimum  wage  that  took 
place  during  the  programme.  Finally,  the  programme  supports  the  phasing-out  of  regulated 
energy prices allowing proper market functioning in line with EU legislation. To facilitate the 
transition,  a  much  longer  period  has  been  given  to  households  (in  comparison  to  non-
residential energy consumers) to phase out regulated energy prices.  

R&D 
investment  
(% of GDP) 

challenge 

Current situation  
0.47 %  of  GDP  in  2010. 
Romania currently has the 
lowest  R&D  intensity  in 
the  EU.  The  low  R&D 
budget is a direct result of 
the  economic  crisis,  with 
cuts  in  many  areas.  A 
major 
for 
Romania 
the  poor 
is 
awareness  among  leading 
political  figures  of 
the 
value  added  of  R&D  and 
innovation for growth and 
competitiveness  and  of 
the  fact  that  a  substantial 
increase 
R&D 
spending, in both absolute 
and relative terms, is vital 
if  Romania  is  to  increase 
economic 
its 
competitiveness 
and 
secure high-quality jobs. 

in 

the 

Development over the last year  
A  Reform  Action  Plan  was  adopted  in 
August  2011,  as  a  result  of  the  functional 
review  of  the  R&I  system  performed  in  the 
context  of  the  previous  loan  received  by 
Romania  from 
the  EU.  A  number  of 
measures  have  been  taken,  such  as  the 
ongoing  certification  of  national  R&D 
institutes, a reform of universities to provide 
greater  autonomy  and  better  profiling  of 
research  universities,  as  well  as 
the 
introduction  of  a  new  financing  instrument 
the 
in 
National  Plan.  Better  coordination  of  these 
measures  within  an  overarching  reform  is 
needed  in  order  to  improve  the  overall 
efficiency  of  the  R&I  system.  The  major 
the  overall 
challenges  continue 
fragmentation  of 
the  R&I  system,  as 
reflected in the large number of researchers, 
combined  with  a  lack  of  critical  mass  in 
terms of the quality of research results, poor 
governance  and  weak  coordination  between 
research  and  innovation  policy  and  other 
policies, as well as very weak links between 
education, research and the business sector. 

Innovation  Programme  of 

to  be 

the 

reach,  given 

Europe 2020 targets  
2 % of GDP 
Recent  trends  show  that  the 
2 %  R&D  intensity  target  is 
very  ambitious  and  difficult 
to 
low 
commitment  of  government 
and  the  very  low  level  of 
business  R&D 
activities 
(business  R&D  expenditure 
is 0.18 % of GDP, one of the 
lowest rates in the EU). This 
target could be achieved only 
if the country prioritises R&I 
in  a  context  of  smart  fiscal 
consolidation, 
whilst 
implementing  without  delay 
key  reforms  as  outlined  in 
the Action Plan for Research 
and Innovation. 

10 

 
 
  
 
 
Employment 
rate (%) 

in  2010 

(non-
adjusted), 

Current situation  
63.3 % 
seasonally 
63.3 % for Q3 2011. 
The  government’s  policy 
measures,  as  presented  in 
the 
current  National 
Programme,  
Reform 
focus  on  four  fields  of 
action:  making  the  labour 
market 
function  better, 
facilitating  the  transition 
from  unemployment  or 
inactivity  to  employment, 
up-skilling 
labour 
force and integrating rural 
residents,  young  people 
and  women  in  the  labour 
market. 

the 

Early 
leaving (%) 

school 

17.7 % in 2011 (tbc) 
Early school leaving rates 
peaked 
in  2010  but 
remained  well  above  the 
in  2011. 
EU  average 
Early  school  leaving  is 
higher  in  rural  areas  and 
among 
Roma 
the 
community. 

Europe 2020 targets  
70 % 
Achieving  an  employment 
rate of 70% by 2020 remains 
a  very  ambitious  target  and 
sustained  efforts  are  needed 
in  the  following  years  in 
order to reach it. 

11.3 % 

is 

the 

law 

that 

finalised.  The 

Development over the last year  
The  employment  rate  slightly  decreased 
between 2009 and the third quarter of 2011. 
While the yearly gap was positive yet in the 
first  quarter  of  2011  (0.9  pps),  it  widened 
very  significantly  to  1.7  pps  in  the  second 
half of 2011. At 63.3% in the third quarter, 
the  employment  rate  was  down  by  1.3  pps 
compared  to the  third  quarter  of  2010.  This 
deterioration  suggests 
the  annual 
employment  figure  for  2011  will  be  lower 
than in 2010. 
In terms of policy measures, the new Labour 
Code and the new Social Dialogue Code has 
brought an increase in flexibility, as regards 
labour  relations.  A  national  strategy  for 
under 
undeclared  work 
reducing 
implementation  and  the  law  on  occasional 
work of daily labourers was adopted in order 
to combat undeclared work. The amendment 
of  the  legal  framework  concerning  the 
unemployment  insurance  system  will  be 
legislation 
soon 
on 
the  workplace  was 
apprenticeship  at 
the 
amended  and 
regarding 
vocational 
is  being 
training  of  adults 
modified  with  the  aim  of  up-skilling  the 
labour force. 
Increasing  labour  market  participation  still 
remains  a  challenge  in  Romania.  Greater 
involvement of young people, women, older 
workers, rural residents and other vulnerable 
groups (e.g. Roma) should remain one of the 
primary  objectives  for  the  Government  in 
order  to  reach  the  national  employment 
target. 
The new education law introduces a number 
of  policies  which  in  time  will  have  a 
positive  impact  on  preventing  early  school 
leaving.  However,  there  is  no  coherent 
strategy  for  preventing  early  school  leaving 
and  existing  data  is  not  used  to  target 
measures. There is a need to consolidate all 
existing  programmes  in  order  to  identify 
priority  measures 
that  are  adequately 
budgeted  and  based  on  clear  identification 
and monitoring of the groups at risk of early 
school 
the 
European  Social  Fund  have  so  far  been 
insufficiently used. 
The  education  budget  has  decreased 
considerably 
three  years, 
the 
becoming  one  of  the  smallest  in  the  EU. 
Romania introduced an ambitious education 
reform  early 
in  2012,  which  requires 
sustained  efforts  for  implementation.  This, 
in  turn,  requires  a  larger  education  budget 
without 
Romania’s 
commitments  made  in  the  context  of  the 
Stability  and  Growth  Pact  and  the  current 
IMF/EU  precautionary  financial  assistance 
programme. 

leaving.  The 

resources  of 

jeopardising 

last 

in 

11 

 
 
  
 
 
 
Tertiary 
education 
attainment (%) 

of 
Reduction 
of 
number 
people  at    risk 
of  poverty  or 
exclusion 
indicator 
(This 
three 
has 
components: at-
risk  of  poverty 
after 
social 
transfers, 
material 
deprivation  and 
households 
with  zero  or 
very 
low 
employment 
intensity). 

Energy 
efficiency  — 
reduction 
in 
primary  energy 
consumption by 
2020  in  million 
tonnes  of  oil 
equivalent 
(Mtoe): 

(tbc). 

Current situation  
19.9 % 
in  2011 
Higher-education 
attainment 
rapidly 
increasing but remains the 
lowest in the EU. 

is 

latest 

The 
available 
Eurostat  data  show  that 
the  headline  indicator  "at 
risk  of  poverty  or  social 
exclusion"  for  the  total 
decreased 
population 
to 
from  44.2%  (2008) 
41.4%  (2010).  The  same 
trend  is  registered  for  the 
three  components  of  the 
headline 
indicator:  -"At 
risk  of  poverty  rate  after 
social 
from 
transfers" 
23,4%  (2008)  to  21,1% 
(2010);  "Severe  material 
deprivation"  from  32,9% 
(2008)  to  31%  (2010); 
"People 
in  households 
with  zero  or  very  low 
employment"  from    8,2% 
(2008)  to  6,8%  (2010). 
if  all 
However,  even 
components 
the 
of 
indicator  were 
headline 
on  a  decreasing 
trend, 
their  values  are  still  high 
the  EU 
to 
compared 
average  (except  for  the 
indicator 
in 
households  with  zero  or 
employment 
low 
very 
intensity"). 
n.a. 
efficiency 
The 
set 
are 
objectives 
national 
to 
according 
circumstances 
and 
national  formulations.  As 
the  methodology 
for 
expressing  in  the  same 
format  the  2020  energy-
consumption 
impact  of 
these  objectives  was  only 
recently 
the 
Commission  is  not  yet 
this 
to 
able 
overview. 

"people 

agreed, 

present 

energy 

Europe 2020 targets  
26.7 % 

Reduce  by  15%  (580.000) 
the  number  of  people  at-risk 
social 
of 
exclusion 
as 
compared to 2008.  

or 
2020, 

poverty 

by 

from 

students 

Development over the last year  
Romania  introduced  in  2012  an  ambitious 
reform  of  higher  education.  However, 
attracting 
lower-income 
families,  in  particular  from  rural  areas, 
remains  a  big  challenge.  While  improving 
attainment levels, the government also needs 
to continue its efforts to improve the quality 
of  tertiary  education  and  align  it  with  the 
needs of the labour market. 
A new social assistance law was adopted in 
December  2011.  It  introduces  a  new  and 
systematic  approach  to  social  benefits  and 
plans  to  give  more  responsibility  at  local 
level,  where  most  of  these  benefits  are 
granted. Poverty should decrease as a result 
of  better  targeting  the  social  assistance  to 
people  in need. It  is expected  to  have  some 
positive  effects  starting  in  2013.  Another 
positive  development  is  represented  by  the 
adoption in  December  2011  of the  National 
Strategy  for  Roma  Inclusion,  including  six 
sectorial  actions  plans  on  education, 
employment,  health,  housing,  culture  and 
social  infrastructure.  The  first  results  of  its 
implementation are expected in two to three 
years. 

Romania  is  the  only  Member  State  not  to 
have  yet  submitted 
its  second  Energy 
Efficiency  Action  Plan,  due  by  June  2011 
under Article 14 of Directive 2006/32/EC on 
energy  end-use  efficiency  and  energy 
services. 

Reduction in primary energy 
consumption:  10.0  MToe  by 
2020. 

12 

 
 
  
 
 
 
Greenhouse  gas 
emission 
in 
reduction 
sectors 
not 
covered  by  the 
Emission 
Trading  System 
(ETS) 
(compared 
2005 levels) 
Renewable 
energy  (%  of 
total 
energy 
use)  

to 

Current situation  
Greenhouse gas emissions 
sectors 
in 
reduced by 4.4 % by 2010 
(compared to 2005). 

non-ETS 

Development over the last year  
Non-ETS GHG emissions slightly increased 
between  2009  and  2010.  It  should  be  noted 
that  emissions  had  significantly  decreased 
between  2008  and  2009  and  that  a  slight 
increase  of  GHG  emissions  in  2009  was 
recorded  in  most  Member  States  and  partly 
corresponds to better economic conditions. 

Europe 2020 targets  
Increase  of  greenhouse  gas 
non-ETS 
in 
emissions 
to  19 % 
sectors 
limited 
5
. 
(compared to 2005)

shares 

The  share  of  renewable 
energy 
final 
in  gross 
energy  consumption  was 
6
22.4 % 
.  The 
in  2009
sectoral 
of 
renewable energy in 2009 
were:  30.7 % 
the 
electricity  sector,  26.7 % 
in  heating  and  cooling, 
7
and  1.6 %  in  transport
, 
respectively.  By  2009, 
Romania 
already 
had 
reached 
its  2011/2012 
interim target. 

in 

Romania  submitted  in  September  2010  its 
National  Renewable  Energy  Action  Plan 
which  sets  sectoral  targets  and  describes 
current  and  future  measures  to  develop 
renewable  energy  sources.  In  2011,  the 
support  scheme 
the  promotion  of 
electricity  produced  from  renewable  energy 
was  finally  put  into  place.  New  legislation 
was  adopted  in  the  field  of  renewable 
Directive 
transposition 
energy; 
2009/28/EC was notified as complete. 

for 

of 

2020 

24 %  of  gross  final  energy 
consumption from renewable 
sources. 
Romania’s  achievement  of 
its 
should 
generate  144 800  renewable-
energy 
to 
84 000  if  the  EU  were  to 
abandon 
for 
renewables. 

jobs,  compared 

support 

target 

its 

increases 

Euro Plus Pact  (national commitments and progress)  
1. Foster competitiveness 
Decreasing the share of public wage bill with view of avoiding 
the 
large 
institutional  capacity  and  performance  of  the  RDI  sector, 
developing a national Lifelong Learning Strategy and curricula 
focussed  on  skill  upgrading,  a  better  prioritisation  of  public 
investments, selling stakes in state owned enterprises.  

labour  cost,  strengthening 

in  unit 

Commitments  regarding  competitiveness  have  been 
partially  implemented.  So  far,  the  public  wage  bill  has 
been  held  in  check.  In  the  field  of  R&D,  national 
research institutes have been certified. 
Selling  stakes  in  state  companies  has  been  slow,  while 
the  authorities  still  need  to  step  up  their  efforts  in 
prioritising public investments. 

2. Foster employment 
Create a unitary wage framework in the public sector;  
render  flexible  the  system  of  collective  wage  bargaining; 
amend the labour code and unemployment benefits system to 
promote flexicurity and job creation; take measures to reduce 
undeclared  work;  introduce  legislation  on  day  workers; 
amend legislation on apprenticeship and on adult professional 
training; implement the EU framework on mutual recognition 
of professional qualifications; start ranking universities. 

Commitments  regarding  fostering  employment  have 
been  partially  implemented.  The  unitary  wage  law  has 
been  adopted  as  well  as  the  new  labour  code  rendering 
collective  bargaining  system  more  flexible.  The  law  on 
occasional work of daily labourers was adopted, while a 
national strategy for reducing undeclared work is under 
implementation.  A university reform has been launched 
to  provide  greater  autonomy  and  better  profiling  of 
research universities. 

5 Current projections based on existing measures imply an increase of 10.1 % (compared to 2005) by 2020. 
6 Starting from 17.8 % in 2005, the share of renewable energy in gross final energy consumption decreased to 17.2 % in 2006. 
7 Source: Eurostat. 

13 

 
 
  
 
 
 
 
                                                 
Commitments regarding sustainability of public finances 
have been partially implemented. Due to a sizeable one-
off  payment  obligation,  the  2011  general  government 
deficit  in  ESA  terms  was  5.2 %  of  GDP,  but  it  would 
have  been  4.1%  of  GDP  without  the  one-off  item.  For 
2012,  a  budget  deficit  of  2,8%  of  GDP  in  ESA  is 
forecasted.  General  government  arrears  had  gone  down 
but  have  recently  started  to  increase  again,  particularly 
at local government level.  

to 

Commitments  regarding  the  reinforcement  of  financial 
stability were met, although in certain cases with delays 
compared 
the  envisaged  deadlines.  Authorities 
adopted  with  some  delay  the  amendments  to  the  Bank 
Deposit  Guarantee  Fund 
legislation.  Furthermore, 
authorities  took  more  time  than  initially  foreseen  to 
complete the proposals on prudential filters necessary to 
ensure  under  IFRS  a  prudent  stance  on  loan-loss 
provisions. 

level 

through 

retirement; 

(iii)  gradually 

local  authorities' 

Euro Plus Pact  (national commitments and progress)  
3. Enhance the sustainability of public finances 
Implement the law on the unitary pension system which:  (i) 
gradually  increases  the  retirement  age  to  65  for  men  and  63 
for  women  until  2030  and  gradually  increases  the  full 
contribution  period  to  35  years  for  men  and  women  until 
2030;  (ii)  introduces  more  restrictive  criteria  for  accessing 
introduces  an 
partial  early 
indexation  mechanism  for  pensions  based  only  on  inflation. 
Introduce  numerical  rules  for  the  general  government  deficit 
in line with the provisions of the Maastricht Treaty; continue 
fiscal  consolidation  with  a  view  to  reaching  a  deficit  below 
5% of GDP in ESA terms in 2011 and below 3% of GDP in 
2012;  cut  down  on  general  government  arrears  by 
restructuring  the  health  sector  and  strengthening  budget 
discipline  at 
recently 
introduced  amendments  to  the  local  public  finance  law; 
implement the programme on child care allowances; improve 
flexibility  of  the  pre-university  education  system;  finalize 
legal framework on social assistance including social benefits 
and services. 
4. Reinforce financial stability 
Undertake steps to secure adequate implementation of IFRS by 
the  banking  system  starting  with  2012;  by  end-June  2011  the 
NBR  is  set  to  make  recommendations  on  prudential  filters  to 
further  secure  a  prudent  policy  stance  on  solvency,  bank 
reserves  and  provisions;  amending  the  legislation  so  that  the 
resources of the Bank Deposit Guarantee Fund (FGDB) may be 
used to finance the resolution measures authorised by the NBR. 
Prepare the necessary procedures for the implementation of the 
new tasks of the central bank and FGDB in the  area of credit 
institution  restructuring  as  well  as  securing  immediate  access 
of  FGDB  to  government  funds  where  necessary.  Reassess  the 
provisions  of  the  normative  acts  included  in  the  legal 
framework regarding the winding-up of credit institutions with 
a view to ensuring their consistency. Expand the list of eligible 
collateral  for  the  NBR  refinancing  operations.  Establish 
prudential treatment of debt-to-equity swaps as a result of loan 
restructuring in order not to weaken banks’ financial position. 
Monitor  foreign-currency  denominated  loans  and  take  the 
necessary  steps  for  their  price  to  reflect  the  risk  of  granting 
such  loans  to  unhedged  borrowers  in  an  accurate  and 
transparent  manner.  Refrain 
legislative 
initiatives  that  could  undermine  debtor  discipline.  Further 
measures  adopted  by  NBR  related  to  the  contingency  plan  in 
order  to  preclude  the  materialisation  of  systemic  risk  in  the 
banking system. 

from  adopting 

5. 

CONCLUSION 

The results of the second programme review are satisfactory. The implementation of the 
programme remains on track. The cash fiscal target for 2011 was met, while the ESA target 
would have been met had there not been a sizeable one-off measure linked to court decisions 
obliging  the  government  to  pay  compensation  to  certain  categories  of  employees.  The  2012 
budget remains on track to achieve a deficit below 3 % of GDP in ESA terms. The Romanian 
banking sector has remained resilient, in spite of the on-going deterioration in asset quality, 
which  has  continued  to  adversely  impact  banking-sector  profitability.  The  programme 
conditionality  in  the  financial  sector  was  met,  albeit  with  some  delays  in  certain  cases. 
Progress in key structural reform areas has been uneven but satisfactory overall. Significant 
progress  was  achieved  on  price  deregulation 
the 
January/February mission, while the second formal programme review that took place in late 
April – early May agreed on a roadmap for gas price deregulation. In contrast, little progress 
has  so  far  been  achieved  in  the  transport  sector.  Also,  more  time  will  be  allocated  to  the 

the  electricity  sector  during 

in 

14 

 
 
  
 
 
 
reform of the health sector, given political difficulties. Finally, while the authorities met the 
EU-funds  absorption  target  for  the  end  of  2011,  meeting  the  2012  programme  absorption 
target will be a challenge. 

In  the  future,  the  authorities  will  need  to  step  up  efforts  to  reform  the  energy  sector, 
accelerate the restructuring of SOEs and increase the absorption of EU funds. They will 
also have to continue implementing sound fiscal policies. 

The next review mission will take place in late July - early August 2012. 

15 

 
 
  
 
6. 

ANNEX 

Table I. Macroeconomic indicators 

Core indicators
GDP growth rate
Output gap 1
HICP (annual % change)
Domestic demand (annual % change) 2
Unemployment rate (% of labour force) 3
Gross fixed capital formation (% of GDP)
Gross national saving (% of GDP)
General Government (%  of GDP)
Net lending (+) or net borrowing (-)
Gross debt
Net financial assets 
Total revenue 
Total expenditure
  of which: Interest
Corporations (%  of GDP)
Net lending (+) or net borrowing (-)

1995-
1999

2000-
2004

2005-
2008

2009

2010

2011

2012

2013

0.4
-4.2
74.6
2.0
5.6
20.1
14.0

-3.5
14.1
42.8
31.8
35.3
3.4

5.4
-2.8
26.0
7.5
7.1
20.8
17.6

-2.6
22.7
29.9
32.8
35.4
2.6

6.4
7.2
7.1
10.6
6.7
27.9
16.9

-3.0
13.6
10.0
33.7
36.7
0.9

-6.6
0.4
5.6
-12.0
6.9
24.4
21.2

-9.0
23.6
-2.2
32.1
41.1
1.5

-1.6
-3.2
6.1
-1.5
7.3
24.0
20.9

-6.8
30.5
-7.3
33.4
40.2
1.5

2.5
-2.8
5.8
3.1
7.4
24.6
24.7

-5.2
33.3
n.a
32.5
37.7
1.6

1.4
-3.7
3.1
1.9
7.2
25.9
25.1

-2.8
34.6
n.a
33.4
36.2
1.7

2.9
-3.3
3.4
3.8
7.1
26.6
25.7

-2.2
34.6
n.a
33.2
35.4
1.7

-0.8

-5.4

-5.3

4.9

6.6

n.a

n.a

n.a

n.a
n.a
n.a
n.a

n.a
n.a
n.a
n.a

n.a
n.a
n.a
n.a
n.a
n.a

-85.1
0.3
17.0
23.3

-85.4
-0.9
10.3
26.6

-109.3
-0.9
21.4
26.7

-121.6
4.5
17.7
29.2

-158.3
7.1
13.1
25.8

-5.1
92.2
34.0
0.0
17.5
-1.5

0.0
46.1
34.3
0.7
17.0
-0.8

-2.4
56.2
33.6
1.0
15.1
-5.9

-1.2
35.7
28.6
5.0
20.9
2.5

4.1
33.9
32.0
3.5
15.9
-1.9

Net financial assets; non-financial corporations
Net financial assets; financial corporations
Gross capital formation
Gross operating surplus
Households and NPISH (%  of GDP)
Net lending (+) or net borrowing (-)
Net financial assets
Gross wages and salaries
Net property income
Current transfers received
Gross saving
Rest of the world (%  of GDP)
Net lending (+) or net borrowing (-)
Net financial assets
Net exports of goods and services
Net primary income from the rest of the world
Net capital transactions 
Tradable sector
Non tradable sector
  of which: Building and construction sector
Real effective exchange rate (index, 2000=100)
Terms of trade goods and services (index, 2000=100)
Market performance of exports (index, 2000=100)
Notes:
1 The output gap constitutes the gap between the actual and potential gross domestic product at 2000 market prices.
2 The indicator on domestic demand includes stocks.
3  Unemployed persons are all persons who were not employed, had actively sought work and were ready to begin working immediately or within two 
weeks. The labour force is the total number of people employed and unemployed. The unemployment rate covers the age group 15-74.

-3.6
76.1
-6.0
-1.4
0.5
53.2
36.7
10.5
141.3
134.7
169.6

-4.0
n.a
-5.1
-1.3
0.1
55.2
32.8
9.8
152.5
140.2
182.8

-3.7
69.8
-5.2
-1.2
0.2
55.1
35.2
10.0
150.4
138.1
173.9

-10.6
45.8
-12.3
-3.2
0.6
54.5
34.2
8.6
138.7
122.7
148.8

-4.9
n.a
-6.2
-1.4
0.1
n.a
n.a
n.a
147.3
139.2
186.1

-3.8
23.4
-7.0
-1.8
0.4
59.2
30.6
5.6
95.8
102.7
123.3

-5.6
10.8
-6.4
-1.1
0.3
65.0
27.3
5.6
71.4
92.1
92.4

n.a
n.a
n.a
n.a
n.a
n.a

n.a
n.a
n.a
n.a

n.a
n.a
n.a
n.a
n.a
n.a

-4.9
n.a
-5.9
-1.5
0.1
n.a
n.a
n.a
148.8
143.0
188.8

Source :
Commission services' spring 2012 forecast

16 

 
 
  
 
Table II. Comparison of macroeconomic developments and forecasts 
2013
COM CP
3.1
3.2
7.4
5.8
7.7

2011
COM CP
2.5
1.3
6.3
9.9
10.5

2012
COM CP
1.7
1.8
7.2
4.0
7.9

2.5
1.3
6.3
9.9
10.5

2.9
2.6
6.4
5.8
7.4

1.4
1.3
4.7
2.9
4.0

Real GDP (% change)
Private consumption (% change)
Gross fixed capital formation (% change)
Exports of goods and services (% change)
Imports of goods and services (% change)
Contributions to real GDP growth:
- Final domestic demand
- Change in inventories
- Net exports
Output gap1
Employment (% change)
Unemployment rate (%)
Labour productivity (% change)
HICP inflation (%)
GDP deflator (% change)
Comp. of employees (per head, % change)
Net lending/borrowing vis-à-vis the rest of the 
world (% of GDP)

1.8
1.4
-0.8
-2.8
0.4
7.4
2.0
5.8
8.1
3.7
-4.0

1.9
1.4
-0.8
-3.0
0.4
7.4
2.0
5.8
8.1
3.7
-4.1

2.1
-0.1
-0.6
-3.7
0.4
7.2
0.9
3.1
3.5
3.2
-4.9

3.2
0.4
-1.9
-3.6
0.3
7.1
1.3
3.0
3.3
3.8
-3.7

3.6
0.4
-1.1
-3.3
1.1
7.1
1.7
3.4
3.9
4.2
-4.9

4.2
0.2
-1.3
-3.1
0.4
6.9
2.7
2.9
3.7
5.3
-3.4

2014
CP
3.6
3.6
7.5
7.3
8.6

4.6
0.1
-1.1
-2.2
0.5
6.7
3.0
2.8
3.3
5.9
-3.5

2015
CP
3.9
3.6
7.8
8.7
9.3

4.8
0.1
-1.0
-1.1
0.5
6.5
3.3
2.5
2.5
5.9
-3.3

Note:
1In percent of potential GDP, with potential GDP growth according to the programme as recalculated by Commission services.

Source :

Commission services’ spring 2012 forecasts (COM); Convergence programme (CP).

17 

 
 
  
 
Table III. Composition of the budgetary adjustment 

(% of GDP)

2011

2012

2013

2014

2015

Change: 
2011-2015

Revenue
of which:
- Taxes on production and imports
- Current taxes on income, wealth, etc.
- Social contributions
- Other (residual)
Expenditure
of which:
- Primary expenditure

of which:

COM
32.5

COM
33.4

12.6
5.8
8.8
5.3
37.7

12.7
6.0
8.8
6.0
36.2

CP
33.3

12.8
6.0
8.6
5.9
36.1

COM
33.2

12.6
6.3
8.6
5.7
35.4

CP
33.7

12.5
6.1
9.2
5.9
35.9

CP
34.1

n.a.
n.a.

CP
34.0

n.a.
n.a.

optional optional

n.a.
35.3

n.a.
34.9

36.1

34.5

34.4

33.6

34.2

33.6

33.2

CP
1.5

n.a.
n.a.
n.a.
n.a.
-2.8

-2.9

1.7

-1.7

-2.8

-4.4

-0.5

-0.5

-1.2

-1.2

-1.6

-1.7

-1.1

-2.2

-3.1

-3.3

-3.6

-3.7

-3.3

-1.7
1.5

-1.8
1.5

-1.2
0.6

-0.1
-1.4
-0.3
-0.2
0.1
-0.9
0.1
4.3
4.5
1.1
3.2

7.0
6.5
11.4
0.2
5.2
3.4
1.7
-2.2
-0.4
0.0
-2.2

7.2
6.2
11.8
0.3
5.5
3.5
1.7
-2.8
-1.1
0.0
-2.9

7.7
5.6
12.1
0.3
5.0
3.7
1.7
-2.8
-1.1
0.1
-2.9

7.5
6.0
12.6
0.4
5.2
4.3
1.6
-5.2
-3.7
-1.1
-4.1

7.8
5.4
11.8
0.2
5.1
3.9
1.7
-2.2
-0.5
0.0
-2.2

7.4
5.6
11.9
0.2
5.1
3.4
1.7
-1.2
0.5
0.0
-1.2

7.4
4.6
12.3
0.2
5.3
3.4
1.7
-0.9
0.8
0.0
-0.9

Compensation of employees
Intermediate consumption
Social payments
Subsidies
Gross fixed capital formation
Other (residual)
- Interest expenditure
General government balance (GGB)
Primary balance
One-off and other temporary measures
GGB excl. one-offs
Output gap2
Cyclically-adjusted balance2
Structural balance3
Change in structural balance
Structural primary balance3
Change in structural primary balance
Expenditure benchmark
Public expenditure growth4 (real)
Reference rate5,6
Lower reference rate5,7
Deviation in % GDP 
   against applicable reference rate
Two-year average deviation in % GDP 
   against applicable reference rate
Notes:
1On a no-policy-change basis.
2Output gap (in % of potential GDP) and cyclically-adjusted balance according to the programme as recalculated by Commission services on 
the basis of the information in the programme.
3Structural (primary) balance = cyclically-adjusted (primary) balance excluding one-off and other temporary measures.
4M odified expenditure aggregate used for the expenditure benchmark, growth rates net of non-discretionary changes in unemployment benefit 
and of discretionary measures.
5The reference rates applicable to 2014 onwards will be available from mid-2012. For illustrative purposes, the current reference rates have 
also been applied to the years 2014 onwards.
6The (standard) reference rate applies starting in the year following which the country has reached its M TO.
7The lower reference rate applies as long as the country is adjusting towards its M TO, including the year in which it reaches the M TO.

1.44
-0.01

1.44
-0.25

1.44
-0.31

1.44
-2.36

1.44
-2.04

1.44
0.03

-0.5
0.0

-0.5
0.7

-1.2
0.5

0.5
0.5

0.0
1.7

0.6
0.6

0.0
1.7

1.2
0.0

1.2
0.7

-0.13

-4.25

-1.01

-1.34

-5.14

0.01

2.81

2.81

1.41

2.01

2.81

2.81

2.81

2.81

0.50

1.53

n.a.

n.a.

2.7

2.9

3.9

-
-

-

-

-

Source :
Convergence programme (CP); Commission services’ spring 2012 forecasts (COM); Commission services’ calculations.

18 

 
 
  
 
average 
2006-10

18.5
2.9

4.3
-0.4

1.1
-0.2
-1.3
-0.8

2011

33.3
2.8

3.7
-1.3

1.6
-0.7
-2.2
0.5

Table IV. Debt dynamics 

(% of GDP)

Gross debt ratio1
Change in the ratio
Contributions 2 :

1. Primary balance
2. “S now-ball” effect

Of which:
Interest expenditure
Growth effect
Inflation effect

3. S tock-flow adjustment

Of which:
Cash/accruals diff.
Acc. financial assets
Privatisation

Val. effect & residual

2012

2013

COM

34.6
0.0

0.4
-0.4

1.7
-0.9
-1.3
0.0

COM

34.6
1.3

1.1
0.2

1.7
-0.4
-1.1
0.0

CP

34.2
0.9

1.1
0.1

1.7
-0.5
-1.0
-0.3

0.0
0.6
0.6
-2.5

2014
CP

32.8
-0.9

2015
CP

31.8
-1.0

-0.5
-0.5

1.7
-1.1
-1.0
0.1

0.0
0.0
0.0
-2.1

-0.8
-0.2

1.7
-1.2
-0.7
0.1

0.0
0.0
0.0
-1.9

CP

33.7
-0.5

0.5
-0.4

1.7
-1.0
-1.1
-0.5

0.0
0.0
0.0
-2.7

Notes:
1End of period.
2The snow-ball effect captures the impact of interest expenditure on accumulated debt, as well as the impact of real GDP 
growth and inflation on the debt ratio (through the denominator). The stock-flow adjustment includes differences in cash 
and accrual accounting, accumulation of financial assets and valuation and other residual effects. 

Source :
Convergence programme (CP); Commission services’ spring 2012 forecasts (COM); Commission services’ calculations.

19 

 
 
  
 
 
Table V. Long-term sustainability indicators 

RO

EU27

no-policy 
change 
scenario 

SCPs 
scenario

no-policy 
change 
scenario 

SCPs 
scenario

S2
of which:

Initial budgetary position (IBP)
Long-term change in the primary balance (LTC)
 of which:
Pension
Health care and long-term care
Others

S1 (required adjustment)*

Debt,  % of GDP (2011)
Age-related expenditure, % of GDP (2011)

3.6

0.1
3.5

2.3
1.3
-0.1
-1.5

3.2

-0.4
3.6

2.4
1.2
-0.1
-2.3

2.9

0.7
2.3

1.1
1.5
-0.3
2.2

0.7

-1.6
2.4

1.2
1.5
-0.3
-0.1

33.3
17.0

82.8
25.8

Source: Commission, 2012 stability and convergence programmes.  
Note: The ‘no policy change’ scenario depicts the sustainability gap under the assumption that the budgetary position evolves 
according to the spring 2012 forecast until 2013. The ‘stability programme’ scenario depicts the sustainability gap under the 
assumption that the budgetary plans in the programme are fully implemented  
* The required adjustment of the primary balance until 2020 to reach a public debt of 60% of GDP by 2030. 
Figure. Medium-term debt projection 

(% of GDP)

40

Gross debt as % of GDP - RO - Medium term debt projections

35

30

25

20

15

10

5

0

0
0
0
2

2
0
0
2

4
0
0
2

6
0
0
2

8
0
0
2

0
1
0
2

2
1
0
2

4
1
0
2

6
1
0
2

8
1
0
2

0
2
0
2

COM no-policy change scenario
COM + Shock ( -1p.p. in the short-term/long-term interest rate on maturing and new debt from 2014)
COM + Shock (+1p.p. in the short-term/long-term interest rate on maturing and new debt from 2014)
COM consolidation scenario (0.5% per year on SB) in order to achieve MTO
COM consolidation scenario (1% per year on SB) in order to achieve MTO
SP scenario

Source: Commission, 2012 stability and convergence programmes.  

20 

 
 
  
 
 
Table VI: Taxation indicators 

21 

 
 
  
 
Table VII: Selected macrofinancial stability indicators 

2007

2008

2009

2010

2011

57.8
56.3
88.9

60.5
54.0
86.8

Total assets of the banking sector (% of GDP)
Share of assets of the five largest banks (% of total assets)
Foreign ownership of banking system (% of total assets)
Financial soundness indicators:
              - non-performing loans (% of total loans) 1)
              - capital adequacy ratio (%) 1) ,2)
              - return on equity (%) 1), 3)
Bank loans to the private sector (year-on-year % change)
Lending for house purchase (year-on-year % change)
Loan to deposit ratio
CB liquidity as % of liabilities
Banks' exposure to countries receiving official financial assistance  (% of GDP)4)
Private debt (% of GDP)4)
Gross external debt (% of GDP) 5)
            - Public
            - Private
Long term interest rates spread versus Bund (basis points)*
Credit default swap spreads for sovereign securities (5-year)*
Notes: 
1) Latest September 2011
2) The capital adequacy ratio is defined as total capital divided by risk weighted assets.   
3) Net income to equity ratio. After extraordinary items and taxes.
4) Due to data gaps on debt securities in 2007, 2008 and 2009, only the loans to GDP ratio is provided for these years.
5) Latest data 2011Q3.
* M easured in basis points.

2.6
13.8
9.4
50.2
77.3
113.3
0.0
…
32.9

2.8
13.8
17.0
20.2
33.3
129.7
0.5
…
35.3

7.7
27.6
371.3
593.9

…
…
291.8
…

73.1
52.4
76.1

7.9
14.7
2.9
-4.5
9.6
118.3
2.9
…
40.1

11.3
33.5
647.2
387.8

73.5
52.7
…

11.9
15.0
-1.7
4.2
19.3
117.2
1.0
…
40.3

14.7
33.0
459.3
299.0

69.8
…
…

14.2
13.4
-3.4
5.1
13.2
118.6
0.0
…
…

…
…
463.2
310.6

Source :
Bank for International Settlements and Eurostat (exposure to macro-financially vulnerable countries), IMF (financial soundness indicators), 
Commission (long-term interest rates), World Bank (gross external debt), ECB (all other indicators).

22 

 
 
  
Table VIII: Labour markets and social indicators 

Labour market indicators
Employment rate 
(% of population aged 20-64)
Employment growth 
(% change from previous year)
Employment rate of women 
(% of female population aged 20-64)
Employment rate of men 
(% of male population aged 20-64)
Employment rate of older workers 
(% of population aged 55-64)
Part-time employment 
(% of total employment)
Part-time employment of women  
(% of women employment)
Part-time employment of men  
(% of men employment)
Fixed term employment 
(% of employees with a fixed term contract)
Unemployment rate1 (% of labour force)
Long-term unemployment2  (% of labour force)
Youth unemployment rate 
(% of youth labour force aged 15-24)

2006

2007

2008

2009

2010

2011

64.8

64.4

64.4

63.5

63.3

62.8

1.9

0.7

0.2

-1.3

0.0

-1.1

58.5

57.9

57.3

56.3

55.9

55.7

71.2

71.0

71.6

70.7

70.8

69.9

41.7

41.4

43.1

42.6

41.1

40.0

10.2

10.3

10.4

10.3

11.5

10.9

10.4

11.0

11.5

11.2

12.1

12.1

9.9

1.8

7.3

4.2

9.7

1.6

6.4

3.2

9.6

1.3

5.8

2.4

9.5

1.0

6.9

2.2

11.0

10.0

1.1

7.3

2.5

1.5

7.4

3.1

21.0

20.1

18.6

20.8

22.1

23.7

Youth NEET3 rate (% of population aged 15-24)

14.8

13.3

11.6

13.9

16.4

:

:

:

2.0

-0.3

2.3

-4.0

1.7

-5.9

Early leavers from education and training (% of 
pop. 18-24 with at most lower sec. educ. and not 
in further education or training)
Tertiary educational attainment (% of population 
30-34 having successfully completed tertiary 
education)
Labour productivity per person employed 
(annual % change )
Hours worked per person employed  (annual % 
change)
Labour productivity per hour worked (annual % 
change; constant prices)
Compensation per employee (annual % change; 
constant prices)
Nominal unit labour cost growth (annual % 
change)

17.9

17.3

15.9

16.6

18.4

14.8

16.6

18.8

19.5

20.6

7.1

0.9

6.2

1.7

4.9

5.9

0.5

5.4

7.5

7.3

0.0

7.3

14.5

15.2

22.9

-4.7

0.4

-5.1

-5.9

2.9

-1.2

-0.2

-0.2

-0.1

1.5

7.9

1.8

Real unit labour cost growth (annual % change)

-5.1

1.5

6.6

Notes:

1 According to ILO definition, age group 15-74)
2 Share of persons in the labour force who have been unemployed for at least 12 months.
3 NEET are persons that are neither in employment nor in any education or training.

Sources: 
Commission (EU Labour Force Survey and European National Accounts) 

23 

 
 
  
 
 
Expenditure on social protection 
benefits (% of GDP)
Sickness/Health care
Invalidity
Old age and survivors
Family/Children
Unemployment
Housing and Social exclusion n.e.c.
Total
of which:  Means tested benefits
Social inclusion indicators
Risk-of-poverty or exclusion1 (% of total 
population)
Risk-of-poverty or exclusion of children (% of 
people aged 0-17)
Risk-of-poverty or exclusion of elderly (% of 
people aged 65+)
At-risk-of-poverty rate2 (% of total population)
Value of relative poverty threshold (single 
household per year) - in PPS
Severe material deprivation3  (% of total 
population)
Share of people living in low work intensity 
households 4 (% of people aged 0-59 not 
student)
In-work at-risk-of poverty rate (% of persons 
employed)

Notes:

2005

2006

2007

2008

2009

3.75
1.09
5.27
1.84
0.41
0.00
13.4
0.92

3.25
1.09
5.17
1.76
0.33
0.00
12.8
0.80

3.53
1.27
5.50
1.67
0.27
0.00
13.6
0.84

3.54
1.38
6.50
1.49
0.20
0.02
14.3
0.68

4.15
1.62
8.00
1.70
0.40
0.02
17.1
0.91

2006

2007

2008

2009

2010

0.0

0.0

0.0

0.0

0

0.0

45.9

44.2

43.1

41.4

50.5

51.2

52.0

48.7

57.7

24.8

49.2

23.4

43.1

22.4

39.9

21.1

1726

1838

2065

2122

36.5

32.9

32.2

31.0

0.0

8.4

8.2

7.7

6.8

0.0

18.5

17.7

17.9

17.3

1 People at risk of poverty or social exclusion (AROPE): individuals who are at risk of poverty (AROP) 
and/or suffering from severe material deprivation (SM D) and/or living in households with zero or very low 
work intensity (LWI).

2 At-risk-of poverty rate: share of people with an equivalised disposable income below 60% of the national 
equivalised median income. 

3 Share of people who experience at least 4 out of 9 deprivations: people cannot afford to i) pay their rent or 
utility bills, ii) keep their home adequately warm, iii) face unexpected expenses, iv) eat meat, fish, or a protein 
equivalent every second day, v) enjoy a week of holiday away from home once a year, vi) have a car, vii) have 
a washing machine, viii) have a colour TV, or ix) have a telephone.

4 People living in households with very low work intensity: share of people aged 0-59 living in households 
where the adults work less than 20% of their total work-time potential during the previous 12 months.

Sources: 
For expenditure on social protection benefits ESSPROS; for social inclusion EU-SILC.

24 

 
 
  
 
Table IX: Product market performance and policy indicators 

Performance indicators

Labour productivity1 total economy (annual 
growth in %)
Labour productivity1 in manufacturing (annual 
growth in %)
Labour productivity1 in electricity, gas, water 
(annual growth in %)
Labour productivity1 in the construction sector 
(annual growth in %)
Patent intensity in manufacturing2 (patents of the 
EPO divided by gross value added of the sector)

2002-
2006

1.3

3.0

2007

2008

2009

2010

2011

1.3

3.0

-0.5

-2.5

-2.4

-8.0

2.4

9.9

1.4

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

-0.2

-2.0

-1.3

-1.6

1.1

n.a.

3.2

2.9

2.5

n.a.

n.a.

n.a.

Policy indicators

Enforcing contracts 3 (days)
Time to start a business 3 (days)
R&D expenditure (% of GDP)
Tertiary educational attainment 
(% of 30-34 years old population)
Total public expenditure on education 
(% of GDP)

Product market regulation4, Overall
(Index; 0=not regulated; 6=most regulated)
Product market regulation4, Retail
(Index; 0=not regulated; 6=most regulated)
Product market regulation4, Network Industries 5
(Index; 0=not regulated; 6=most regulated)

2002-
2006

n.a.

n.a.
1.8

2007

2008

2009

2010

2011

535

20
1.8

542

17
1.9

548

15
2.0

549

15
2.0

26.5

30.0

31.1

32.3

33.6

556

14
n.a.

n.a.

5.1

5.0

5.1

n.a.

n.a.

n.a.

2005

2006

2008

2009

2010

2011

n.a.

n.a.

n.a.

n.a.

2

4

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

3

3

3*

n.a.

n.a.

n.a.

Notes:
1Labour productivity is defined as gross value added (in constant prices) divided by the number of persons employed.
2 Patent data refer to applications to the European Patent Office (EPO). They are counted according to the year in which 
they were filed at the EPO. They are broken down according to the inventor's place of residence, using fractional counting if 
multiple inventors or IPC classes are provided to avoid double counting. 
3 The methodologies, including the assumptions, for this indicator are presented in detail on the website 
http://www.doingbusiness.org/methodology. 
4 The methodologies for the product market regulation indicators are presented in detail on the website 
http://www.oecd.org/document/1/0,3746,en_2649_34323_2367297_1_1_1_1,00.html. The latest available product market 
regulation indicators refer to 2003 and 2008, except for Network Industries.

5 Aggregate ET CR.

*figure for 2007.

Source :

Commission, World Bank - Doing Business  (for enforcing contracts and time to start a business) and OECD (for the 
product market regulation indicators). 

25 

 
 
  
 
Table X: Green Growth performance 

Romania

Green Growth performance

Macroeconomic
Energy intensity 
Carbon intensity 
Resource intensity (reciprocal of resource productivity)
Waste intensity 
Energy balance of trade 
Energy weight in HICP
Difference between change energy price and inflation 
Environmental taxes over labour taxes
Environmental taxes over total taxes

Sectoral 

Industry energy intensity 
Share of energy-intensive industries in the economy
Electricity prices for medium-sized industrial users 
Public R&D for energy 
Public R&D for the environment
Recycling rate of municipal waste
Share of GHG emissions covered by ETS
Transport energy intensity
Transport carbon intensity
Change in the ratio of passenger transport and GDP

Security of energy supply
Energy import dependency
Diversification of oil import sources 
Diversification of energy mix
Share of renewable energy in energy mix

kgoe / €
kg / €
kg / €
kg / €
% GDP
%
%
ratio
ratio

kgoe / € 
% GDP
€ / kWh
% GDP
% GDP
ratio
%
kgoe / €
kg / €
%

%
HHI
HHI
%

2001-
2005

0.81
3.25
6.08
n.a.
-2.6%
18
n.a.
19.5%
8.1%

0.70

11.0
n.a.
n.a.
n.a.
1.4%
n.a.
0.79
2.28
-2.7%

26.8%
n.a.
0.27
10.6%

2006

2007

2008

2009

2010

0.70
2.77
6.23
5.95
-3.0%
18
7.3
16.8%
6.8%

0.40

10.4
0.08
0.01%
0.02%
0.5%

0.45
1.25
-3.7%

29.2%
0.38
0.27
11.7%

0.66
2.54
6.96
4.33
-2.6%
19
2.8
17.4%
7.1%

0.30

10.3
0.08
0.03%
0.01%
0.4%
44.6%
0.36
0.99
-2.3%

31.5%
0.39
0.25
11.7%

0.61
2.32
8.34
2.86
-2.9%
18
1.3
15.4%
6.3%

0.27
9.8
0.09
0.03%
0.02%
0.9%
41.8%
0.38
1.05
-2.2%

27.7%
0.51
0.24
13.2%

0.58
2.12
7.01
n.a.
-1.6%
17
-0.5
15.9%
7.0%

0.22

27.2
0.08
0.02%
0.02%
0.9%
37.5%
0.48
1.31
n.a.

20.3%
0.50
0.23
14.9%

0.59
n.a.
n.a.
n.a.
-2.2%
17
-2
n.a.
n.a.

n.a.

n.a.
0.09
n.a.
n.a.
n.a.
n.a.

n.a.
n.a.

n.a.

n.a.
n.a.
n.a.
n.a.

Country-specific notes: 
The year 2011 is not included in the table due to lack of data.
General explanation of the table items:
Source: Eurostat unless indicated otherwise; ECFIN explanations given below
All macro intensity indicators are expressed as a ratio of a physical quantity to GDP (in 2000 prices)
          Energy intensity: gross inland energy consumption (in kgoe) divided by GDP (in EUR)
          Carbon intensity: Greenhouse gas emissions (in kg CO2 equivalents) divided by GDP (in EUR)
          Resource intensity: Domestic M aterial Consumption (in kg) divided by GDP (in EUR)
          Waste intensity: waste (in kg) divided by GDP (in EUR)
Energy balance of trade: the balance of energy exports and imports, expressed as % of GDP  
Energy weight in HICP: the share of the "energy" items in the consumption basket used in the construction of the HICP
Difference between energy price change and inflation: energy component of HICP, and total HICP inflation (annual %-change)
Environmental taxes over labour or total taxes: from DG TAXUD's database "Taxation trends in the European Union"
Industry energy intensity: final energy consumption of industry (in kgoe) divided by gross value added of industry (in EUR) 
Share of energy-intensive industries in the economy: share of gross value added of the energy-intensive industries in GDP
Recycling rate of municipal waste: ratio of municipal waste recycled over total municipal waste
Public R&D for energy or for the environment: government spending on R&D (GBAORD) for these categories as % of GDP
Share of GHG emissions covered by ETS: based on greenhouse gas emissions as reported by M ember States to EEA (excl LULUCF)
Transport energy intensity: final energy consumption of transport (in kgoe) divided by gross value added of industry (in EUR) 
Transport carbon intensity:  greenhouse gas emissions in transport divided by gross value added of the transport sector
Passenger transport growth : measured in %-change in passenger kilometres
Energy import dependency: net energy imports divided by gross inland energy consumption incl. of international bunkers

Diversification of oil import sources: Herfindahl index (HHI), calculated as the sum of the squared market shares of countries of origin 

Diversification of the energy mix: Herfindahl Index over natural gas, total petrol products, nuclear heat, renewable energies and solid fuels

Share of renewable energy in energy mix: percentage-share in  gross inland energy consumption, expressed in tonne oil equivalents

26