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February 6, 2023
DIPLOMACYECONOMY

OECD Secretary General Cormann: Romania’s economic performance in recent years has been very impressive

Romania’s economic performance in recent years has been very impressive, OECD Secretary General Matthias Cormann told a joint press release with Prime Minister Nicolae Ciuca on Thursday.

The statements were made after the Romanian Prime Minister submitted to the Organization for Economic Cooperation and Development the initial memorandum regarding Romania’s accession to the OECD.

“Romania has been a close friend and a valued partner to the OECD for many years. Our cooperation began in the 1990s, we have worked together on many different economic and social policy areas ranging from capital market reforms to competition policies, education, health and, of course, our cooperation on the OECD/G20 project on tax base erosion and profit shifting. Romania’s economic performance in recent years has been very impressive,” Matthias Cormann said.

He mentioned that Romania quickly approached the OECD average per capita income, reducing the difference from 70% to approximately 35% in less than 20 years.

“The percentage of the Romanian population at risk of poverty or social exclusion has decreased, and Romania has made important progress in terms of the internal reform agenda,” said the Secretary General of the OECD.

He mentioned that, after Romania submitted the initial memorandum regarding the accession to the OECD, 26 technical committees would assess Romanian legislation, policies and practices,” covering almost every field” of government policies. Recommendations will be made to help Romania align, further, with OECD standards and practices.

“As we have seen with previous accession candidate countries, the accession process is a transformation, which will help catalyze further reforms that benefit Romania and most importantly its citizens,” said the Secretary General of the OECD.

Matthias Cormann also stated that, in the context of Russia’s war of aggression against Ukraine, the global economic outlook has worsened in recent months.

“I think we can all agree that a swift end to the war, with a just peace for Ukraine, consistent with international law, would be in everyone’s best interest. In these profoundly challenging and disruptive period globally, we need more – not less – cooperation. We need more – not less – multilateralism. And institutions like the OECD will be important partners in defining, pursuing and implementing multilateral solutions to common challenges,” he said.

At the same time, he showed that Romania continues to make efforts to support OECD values and to promote reforms, including outside its borders.

“Romania’s priorities are well aligned with the OECD agenda, promoting more inclusive growth, optimizing trade and investment, fostering innovation, protecting the environment and fighting corruption, as well as optimizing education, health and market policies. Prime Minister Ciuca and I had an opportunity to discuss these priorities when we launched the 2022 OECD Economic Survey of Romania earlier this year. Since my visit to Romania, the OECD members have adopted the roadmap for Romania’s accession to the OECD,” said Matthias Cormann.

 

PM Ciuca: Romania sees OECD accession as catalyst for reforms an engine of changes at the entire level of society

 

Romania doesn’t see the accession to the Organisation for Economic Co-operation and Development (OECD) as a purpose in itself, but as a catalyst for reforms, an engine of changes at the entire level of society, Prime Minister Nicolae Ciuca stated on Thursday, within the meeting of the OECD Council.

“As it is highlighted in the Economic Survey of the OECD regarding Romania, in less than 20 years, Romania has halved the difference from the OECD average regarding the GDP per capita, from almost 70 percent to approximately 35 percent. The population exposed to poverty or social exclusion dropped to 30 percent in 2020, from almost 50 percent, 13 years ago. I can provide other numbers: in the last 30 years, Romania’s Gross Domestic Product increased nine times, the highest increase in the European Union. The growth continues, despite the crises we are confronted with. Most recent economic forecast of the OECD anticipates an increase of Romania’s GDP of 6.5 percent for 2022, which reflects a strong recovery following the economic impact of the COVID-19 pandemic,” PM Ciuca stated.

In this context, the Executive head highlighted the good collaboration with the OECD so far.

“I know that this process doesn’t start from scratch. Throughout the years, the Romanian institutions have collaborated with the OECD structures and your expertise was of great help in many areas, of which I can mention several, namely: corporate and public governance, competition, investments, state-owned enterprises, fiscal policy, education, environment, assistance for development,” Ciuca stated.

Moreover, he added that for Romania, the accession to the OECD doesn’t only mean joining the group of countries where 70pct of global trade and 90pct of global direct investments take place, but also new opportunities.

“The opportunity to share experiences with similar countries from North and South America, Asia, Oceania, as well as with our European partners. The accession means joining the group of countries that believe in the same values. We will work together with the 26 committees, with the Secretariat (…) and with you, the member states – so that the accession process unfolds in the best possible conditions. In times of crisis, more than ever, it’s important that countries with a similar vision, be united and support each other. Romania offers a concrete proof that it is such a country. Our democratic path, of the last 30 years, has proven this thing, our action since the beginning of the war in Ukraine, for defending the fundamental values, confirmed it. After joining NATO and the integration in the EU, the accession to the OECD represents a benchmark in further accelerate Romania’s adaptation to the 21st century,” PM Ciuca stated.

The PM mentioned that there are still matters which require close attention, such as “the growth of inflation” and reviewed the measures taken by the Government in order to protect “the most vulnerable persons” and help them overcome “these hard times,” as well as the earmark in 2022 of the highest investment budget in the last 30 years of almost 18 billion EUR, aiming to relaunch the Romanian economy and to support of the business milieu.

He also added that the Romanian Government is determined to use every Euro of the almost 90 billion provided by the EU though the National Recovery and Resilience Plan (PNRR) and the Multiannual Financial Framework (MFF).

In this context, the Executive head emphasized the efforts which Romania made to support the Ukrainian refugees, as well as the alignment to international efforts to prevent the deepening of the global food crisis caused by Russia’s invasion in Ukraine, by facilitating the transport and transit of Ukrainian grains to international markets.

He also mentioned the support for the Republic of Moldova.

“We are carefully watching what is happening in the Republic of Moldova. In order to help the Republic of Moldova, Romania has set up a Support Platform, together with Germany and France, whom we are grateful to for this thing. At bilateral level, today, Romania ensures almost 90 percent of the energy consumption necessary of the Republic of Moldova, Romania’s Gas Infrastructure also provides to the Republic of Moldova an alternative route for alternative supply,” Ciuca stated.

PM Ciuca also conveyed that Romania supports a decisive collective action, with the involvement of all relevant interested parties, in order to meet the goals of the 2030 Agenda and that of the Paris Agreement.

 

Compiled from Agerpres

Photo: www.gov.ro

 

Read also:

Romania files, through Prime Minister Ciuca, memorandum on accession to OECD

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