FFI 72 February 2015

Page 64

Special

Rumania

same powers. This means laws can be passed only by a majority vote in both chambers, but the procedure doesn’t specify the sequence for doing this. If a proposed new law is passed by one chamber and rejected by the other, the chamber which has accepted the proposed new law has to vote on it again. If the proposed new law is rejected by the other chamber for the second time, the proposed new law is withdrawn definitively.

Separation of powers Since 1990, the legislature, executive, and judiciary have been separated. The president and the government in Rumania together form the executive and the constitution states that the country is a semi-presidential republic. Presidential elections are held every four years. If none of the presidential candidates gains over 50% of the votes in the first round of the presidential elections, a second round is held. The candidate who gains the most votes in the second round is elected president. The president can be elected for a maximum of two terms in office.

From 1998 to 2000 inclusive, the Rumanian economy fell into severe recession. From 2001 onwards, the economy picked up with growth of 5.3%. Rumania became a member of the European Union in 2007 and since then the country has received support from the EU and the IMF (International Monetary Fund) to help boost its economy. Gross national product per head of the population in 2013 was 13,200 US dollars. Gross national product in 2013 per sector was as follows: agriculture 10.8%, industry 37.4%, and trade and services 51.8%.

Prospects Unemployment has hovered around 5% in recent years. Inflation in Rumania, compared to other countries in this region, is at a historic low. In 2013, average inflation was 1.6% (in 2000 this was still 45.6%). Spending power in Rumania will increase in the coming years as a result of economic growth and government plans to raise the incomes of the poorest people groups. At present, a quarter of all Rumanians still live below the poverty line.

Power of the president

Trade

The Rumanian president enjoys considerable power. The government is led by a prime minister, but it is the president who appoints and dismisses ministers. The president can also dissolve parliament within 60 days if this institute has passed a motion of no confidence in the government. Furthermore, the president is also the commander of the army and chairman of the Supreme Council for National Security or Supreme Defence Council.

The European Union accounts for about two thirds of all trade with Rumania and is thereby the major trading partner. The country exports chemical and petroleum products, machines, artificial fertiliser, raw materials for the food industry, and textiles. The chief clients at the moment are Germany, Italy, France, Turkey, and Hungary. The following items are imported: raw materials, machines, means of transport, and consumption goods. At the moment, the chief suppliers are Germany, Italy, Hungary, France, Russia, and Poland. The total value of exports came to over 62 billion US dollars in 2013, whilst the same figure for imports was 69 billion US dollars. And so, Rumania does have a trade deficit.

Rumania – the economy Before 1945, Rumania was a farming nation dominated by land ownership. After 1945, radical land reforms were implemented and land ownership came to an end. Before the revolution, Rumania enjoyed a strong and centrally managed economy. The means of production before then were largely in the hands of the state or were collective property. In the 1950s, small farming companies, heavy industries, and the banks were also nationalised. This situation prevailed until the revolution when a process of privatisation was set in motion. By the mid 1990s, the Agricultural industry was the furthest ahead with privatisation.

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Moderate success

Floor Forum international 72

Environmental issues Environmental issues weight heavily on Rumania, yet protecting the environment is not yet one of the Rumanian government’s top priorities. The EU and the world bank estimate that about 50 billion euros are needed between now and 2020 to counteract environmental pollution. Waste storage, conservation, and measures to protect the ozone layer are the highest priority. The zones most under threat from an ecological point of view are the regions with a lot of metal industry (e.g. Baia Mare, Zlatna,


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