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March 4, 2021

Gov’t strategy draft: 10 economic sectors to boost competitiveness by 2020

Until 2020 Romania will focus on developing ten economic sectors as part of a competitiveness strategy whose goal is to fall in line with advanced nations. The ten economic sectors are: tourism and ecotourism, textiles and leather, wood and furniture, creative industries, auto and auto parts, IT and communications technology, food processing and beverages, health and pharmaceutical products, energy, environment management and bio-economy (agriculture, forestry, fisheries and aquaculture), biopharmacy and biotechnologies.
Through this strategy the government plans to make Romania one of the top ten economies at European level by 2020, and by developing the aforementioned sectors Romania should have “a significant contribution at global level.”
The way in which the government plans to make Romania part of the group of advanced countries consists of restructuring the economic sectors “in the direction of superior competitive positions,” creating a critical mass of competitive SMEs by creating an attractive, transparent and innovative environment, and integrating large companies in a coherent economic development project.
“The next seven years will be critical for Romania’s economic development, and the country’s strategic priorities, established in this document, are meant to create the propitious conditions for Romania to be able to efficiently compete with the rest of the European countries,” the strategy draft reads.
The competitiveness strategy entails that every law will have to bear in mind its impact on SMEs, as well as the introduction of a six-month period from the issuance of a new law that affects the business sector and the moment it comes into force.
Likewise, the government wants to lower the number of tax payments from 39 this year to 13 in 2020, to improve Romania’s position within the Corruption Perception Index from 69th to 40th place, to lower the underground economy from 30 per cent of GDP this year to 15 per cent of GDP at most (the EU average) by 2020.
Other measures proposed consist of hiking the GDP share of creative industries from 7 to 10 per cent, the construction of 500 kilometers of highway (of which 250 kilometers from European funds and 250 kilometers from national funds), and 600 kilometers of regional infrastructure, the lowering of primary energy consumption by 19 per cent in 2020 compared to a 16.6 per cent drop in 2012.
In the agriculture sector the government seeks to lower the surface of land used for subsistence farming, to hike investments in non-agricultural activities in the rural areas, and to double the labor productivity in the agriculture sector by 2020 from its current level of EUR 4,328 (VAB/UAM – indicator on labor productivity in the agriculture sector).
In what concerns European funds, the rate of absorption of European funds stood at 11.5 per cent at the end of 2012. For the 2014-2020 period Romania has received a supplementation of European funds (the available sum stands at EUR 39.3 bln, of which EUR 21.8 bln consists of structural and cohesion funds).

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