In July 2010, the Romanian Minister of Economy, Trade and Business Environment launched for public debate the document entitled “Romania’s reindustrialization”. This strategy was elaborated by the Group of Applied Economics (GEA), in collaboration with the Association for Economic-Social Studies and Prognosis.
The study analyses Romania’s governmental policies for reindustrialization as an EU member state. In the last 20 years, Romania suffered a strong process of deindustrialization, many plants having been closed down, in the context in which EU’s 2020 Strategy promotes the industry and Romania is in need of an industrial policy to boost the economy.
“Romania’s reindustrialization is necessary in order to increase the production and entrepreneurship potential and especially to radically change the economic development model. Romania’s reindustrialization cannot be done by the state alone. We need an integrated vision in terms of public policy. It takes more than infrastructure investments. We also need to coordinate the foreign investments with the reindustrialization objective; we need coherence in the decision-making process”, shows the document.
Therefore, a new law on investments has to be elaborated, in order to provide facilities and attract both Romanian and foreign investors. As for the quality of the transport infrastructure, Romania presents a highly competitive disadvantage compared to the other EU member states. In this context, the project outlines the importance of allocating investments for the development of the transport sector and especially for reindustrialization. Transport development should also lead to the modernisation of the communication infrastructure and utilities, without which large private investments cannot be made or they become too expensive. The 172 pages of the document analyse Romania’s business environment, regional competitiveness and industrial performance and set out a series of short-medium and long-term recommendations. However, in order to properly finance the reindustrialization policies, European funding is the most important condition.
Adriean Videanu, Romanian Minister of Economy:
“The government has to focus all its efforts on the key areas to provide the basis for a solid growth. The poor state of the infrastructure has a negative effect on the entire economy, increasing the costs of economic agents”
by Pamela Luică
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