European Institute of Romania Representation of the European Commission in Romania

CONFERENCE

European Economic Governance: the Place and Role of Public Policies

December 13th, 2011, Bucharest

Welcome address

Professor Gabriela Drăgan, PhD. Director General of the European Institute of Romania

Thank you for joining the European Institute of Romania (EIR) at the conference on the topic “The European Economic Governance: the Place and the Role of Public Policies”, an event organised in partnership with the Representation of the European Commission in Romania.

Our event has a triple significance: launching the volume Policy-making in the European Union, celebrating the 10th anniversary of the Romanian Journal of European Affairs (RJEA), as well as awarding the EIR Excellence Prizes, the second edition.

We are pleased to launch today the volume Policy-making in the European Union, coordinated by Helen Wallace, Mark A. Pollack and Alasdair A. Young, a useful tool in deciphering the architecture of the policies of the European Union. On this occasion, we salute the presence in Bucharest of Professor Helen Wallace and of the scientific adviser of the Romanian version – Professor Vasile Puşcaş, PhD. Our initiative began six years ago, when EIR published the fifth edition of this work, intended not only for teachers and researchers, students, MA and PhD students, but also for the representatives of public administration and everyone interested in better understanding European mechanisms. At the time, we did not expect that the interest in such a work would be so high and that the published copies would sell so quickly. Therefore, when the sixth edition of this book was published in Great Britain, the decision to resume its translation and to publish was taken rather quickly. Thus, the Romanian edition appears shortly after the English edition, the new volume in Romanian being the result of the joint efforts made by our colleagues from the European Affairs Unit of EIR. Thanks should be given to all of them for the abnegation and diligence that they showed, allowing for the book to be published in time and in good graphic conditions. We hope that reading this book will allow you, even to a small extent, to identify solutions for overcoming the crisis and creating a new development paradigm in the EU.

The 10th anniversary of the publication Romanian Journal of European Affairs (RJEA) is not only a moment of celebration, but also a moment of reflection on the future and the goal of the journal. Launched a decade ago, with the purpose of publishing documented opinions and analyses on current topics in the European Union, the EIR quarterly journal has concentrated on debates concerning the EU, has gradually become popular and has gained scientific recognition in the field of political and social sciences and European studies. The editorial staff intends to enter, step by step, the league of the major journals, a goal which requires more efforts and dedication from the entire staff. The journal could not have become what it is today without its initial team, the founding director – Nicolae Idu, former Director General of EIR, now the Head of the Representation of the European Commission in Romania; Jacques Pelkmans – Jan Tinbergen Chair for European Economics, Director of European Economic Studies, College of Europe, Bruges; Lucian Branea, Executive Secretary of Epsilon III Association – the first editor-in-chief of RJEA and the initiator of the concept of a Romanian journal focused on European affairs.

RJEA has grown in time thanks to the valuable contribution made by the authors of the published articles, the support of the members of the Editorial Council, its dedicated scientific experts, the efforts of the members of the editorial staff who, through their activity, have constantly sought to improve the publication in the last ten years. We also must thank the current editor-in-chief of the journal, Oana Mocanu, and the team coordinated by her for the steps undertaken in order to gain the recognition of the role that RJEA has in the field of research on European studies, which made the journal be accepted in various specialised scientific databases, such as ProQuest, SCOPUS, EBSCO, DOAJ, Index Copernicus, HeinOnline etc. The December anniversary issue welcomes you with a fresh design and the desire to start anew on the path of consolidating RJEA as a necessary tool for the academic environment, public administration and any reader interested in European affairs.

Regarding the EIR Excellence Prizes, the second edition is held in the context of the European Year of Volunteering and it is dedicated to non-governmental organizations that carry out activities for the promotion of the European spirit and values among the Romanian public. Thus, over 60 NGOs were evaluated within Welcome address

the Communication and Marketing Unit. The two essential components taken into consideration were volunteering and public policies, and the intervention areas of the targeted organisations were: fundamental rights, participatory democracy, social inclusion, education and environmental protection. The results of the evaluation were presented to a Group of selection made up of the members of the Administrative Board and of the Consultative Scientific Board of EIR, respectively. The awarded organisations are:AIESEC Romania; A.N.P.C.P.P.S.R. (The National Association for Consumers’ Protection and Promotion of Programs and Strategies from Romania); Civil Society Development Foundation; The European Institute for Participatory Democracy QVORUM; Junior Achievement Romania; The National Organisation of Disabled People in Romania; Paneuropa Foundation; Pro Democracy Association; Pro Vobis; The Romanian Academic Society; The Romanian Centre for European Policies; Save the Children Romania; Terra Mileniul III Association; World Vision. Also, Mr. Lucian Branea, Executive Secretary of the Epsilon III Association, founder of romania_eu_list, the first editor‑in‑chief of the Romanian Journal of European Affairs, will receive an award for the activity carried out.

We express our full appreciation to the other representatives of civil society, who, at local, national and/ or European level, are struggling so that our country can strengthen its status of EU Member State and its citizens really become Europeans!

Professor Gabriela Drăgan, PhD. Director General of the European Institute of Romania Agenda

CONFERENCE

European Economic Governance: the Place and Role of Public Policies

Conference on the occasion of the book release „Policy-making in the European Union” and the second edition of EIR Excellence Awards

Bucharest, December 13th, 2011, Intercontinental Hotel, Rapsodia Hall

− Agenda −

8:30 — 9:00 Registration of participants (welcome coffee)

9:00 — 9:30 The importance of public policies in the European Union

Gabriela Drăgan, Professor, PhD., Director General of the European Institute of Romania Leonard Orban, Minister for European Affairs Niculae Idu, Head of the Representation of the European Commission in Romania

Moderator: Gabriela Drăgan, Professor, PhD., Director General of the European Institute of Romania

9:30 — 9:45 Coffee break

9:45 — 11:30 Policy-Making in the European Union

Helen Wallace, Professor Emeritus, European Institute, London School of Economics and Political Science (LSEPS), United Kingdom Daniel Dăianu, Professor, member of the Romanian Academy, former member of the European Parliament

Moderator: Vasile Pușcaș, Professor, PhD., Director of the Institute for International Studies, Faculty of History and Phylosophy, Babeş‑Bolyai University, Cluj-Napoca, former Chief Negotiator of Romania with the EU

Remarks, comments, debates Agenda

11:30 — 12:00 Meeting of Professor Wallace with readers from Romania, interviews and autograph session

12:00 — 13:00 Buffet lunch

13:00 - 14:15 European Economic Governance

Valentin Lazea, Chief Economist, National Bank of Romania Florin Pogonaru, Chairman of EIR Administration Board, President of the Businessmen’s Association of Romania Dragos Pîslaru, General Manager, GEA Strategy & Consulting Cristian Ghinea, Director, Romanian Centre for European Policy

Moderator: Agnes Nicolescu, Head a.i., Studies and Analyses Unit, European Institute of Romania

Remarks, comments, debates

14:15 – 14:30 Coffee break

14:30 - 15:30 EIR Excellence Awards, second edition, 2011

Speeches Gabriela Drăgan, Professor, PhD., Director General of the European Institute of Romania Leonard Orban, Minister for European Affairs (tbc) Florin Pogonaru, Chairman of EIR Administration Board and President of the Businessmen’s Association of Romania

Moderator: Gabriela Drăgan, Professor, PhD., Director General of the European Institute of Romania

15:30 Conference closing

* Working languages: Romanian and English, simultaneous translation is provided Speakers

Gabriela Drăgan Director General of the European Institute of Romania

Gabriela Drăgan is professor and deputy dean of the International Business and Economics Faculty (Academy and Economic Studies, Bucharest) and since January 2008, she has also been the Director General of the European Institute of Romania. She has worked as an economist and scientific researcher for the Research Institute in Electrotehnics, as a scientific researcher for the Institute of National Economy and, during 2002-2006, as director of European Studies Unit at the European Institute of Romania. She is a J. Monnet professor and an expert in the field of European Integration. She has published, as author or co-author, a significant number of books and studies, is a member of Romanian Association for European Integration Studies, European Regional Studies Association (ERSA), Romanian Association of Regional Studies, since January 2008 - Director of the Romanian Journal of European Affairs, edited by the European Institute of Romania, member of the Editorial Board of the Romanian Economic Journal – Faculty of International Business and Economics (since 2008), of the Bulletin of the Petroleum-Gas University of Ploiesti, Economic Studies Series (since 2008) etc. She has participated as a speaker or moderator in many national and international debates, workshops, conferences (organized by the Romanian Academy, Vienna University, Institute for World Economics - Budapest, European Institute of Japan, Kobe and Tokyo, Centre for Security Cooperation – Croatia, European Forum Wachau - Austria, Hebrew University – Tel Aviv etc).

Leonard Orban Minister for European Affairs

Starting September 2011 Leonard Orban is Minister for European Affairs. Between 2010 and September 2011 he was Presidential Adviser for European Affairs within the Romanian Presidential Administration. In October 2006 Leonard Orban was nominated as Romania’s candidate for the position of European Commissioner and in January 2007 he became the first Romanian Commissioner in the European Commission. Between January 2007 and February 2010, Leonard Orban has been Member of the European Commission, responsible for Multilingualism. Between 1993 and 2001, Leonard Orban has been Parliamentary Counsellor for European and International Affairs in the Chamber of Deputies, Parliament of Romania. Starting from May 2001 and until the end of the accession negotiations of Romania to the European Union and the signing of the Accession Treaty to the European Union, in April 2005, Leonard Orban has been Deputy Chief Negotiator and Chief Negotiator with the European Union in the Ministry of European Integration. Leonard Orban has kept coordinating the preparation process for Romania’s accession to the European Union as Secretary of State in the Ministry of European Integration during December 2004 – December 2006. Leonard Orban has graduated the Faculty of Mechanics, University of Braşov and the Faculty of Management, Academy of Economic Studies, Bucharest. Speakers

Niculae Idu Head of the Representation of the European Commission in Romania

An economist by professional background, Dr Niculae Idu worked for a number of years as a researcher in the field of international economic relationships. He set up the European Institute of Romania and was its director general from 2000 to 2007. For a number of years he also served as Director and State Secretary in charge of European Affairs in the Government of Romania. Prior to taking up duties as a Head of the Representation of the European Commission in Romania, he authored a number of publications focusing on European topics. In his current position, Dr Idu manages the Representation of the European Commission in Romania and its resources. He also stimulates informed debates, provides political intelligence and guidance, and represents and assists the Commission.

Helen Wallace Professor Dame Helen Wallace DBE CMG FBA

Professor Wallace is a Professor in the European Institute at the London School of Economics and Political Science and an Honorary Professor at the University of Sussex. She holds various advisory appointments. From 2001 to 2006 she was Director of the Robert Schuman Centre for Advanced Studies, European University Institute, Florence. Previously she was Director of the ESRC “One Europe or Several?” Programme, and held posts at the Sussex European Institute, the Royal Institute of International Affairs, and the College of Europe. She has written extensively on the politics of European integration. Recent books include: Policy‑Making in the European Union, 6th edn., coeditor with Mark Pollack and Alasdair Young, OUP, 2010; Visions, Votes and Vetoes: Reassessing the Luxembourg Compromise 40 Years On, co-editor with Jean- Marie Palayret and Pascaline Winand, P.I.E. Peter Lang, Brussels, 2006; The Council of Ministers of the European Union, co-author with Fiona Hayes-Renshaw, 2nd edition, Palgrave, 2006. Speakers

Daniel Dăianu Professor of economics, School of Political and Administrative Studies in Bucharest

Daniel Dăianu was member of the European Parliament during 2007-2009 (co-author of the EP report on the reform of regulation and supervision of financial markets; author of “Which Way Goes Capitalism?”, CEU Press, Budapest/ New York, 2009); Chairman of the Supervisory Board of Banca Comerciala Romana (2005-2007); Finance Minister of Romania, 1997/1998; Chief Economist of the National Bank of Romania, 1992-1997; Deputy Minister of Finance, 1992; Chairman of the OSCE Economic Forum, 2001; Chairman of The Romanian Economic Society; member of the Romanian Academy; member of the European Council on Foreign Relations; fellowships at Harvard University, The Wilson Center (Washington DC), IMF (Washington DC), NATO Defense College (Rome), etc; visiting professorships at Berkeley, UCLA, Bologna University, etc; President of Junior Achievement, Romania; Honorary President of the Romanian Association of European Studies; member of the advisory board of several foreign journals; Member of the Black Sea Region Commission. Other writings: ‘The Macroeconomics of EU Integration: The Case of Romania”, Rosetti Educational, Bucharest, 2008; “South East Europe and The World We Live In”, Bucharest, The Romanian Diplomatic Institute, 2008; with Radu Vranceanu (ed.), Ethical Boundaries of Capitalism”, Ashgate (UK), 2005; with Thanos Veremis (ed.), “Balkan Reconstruction”, London, Frank Cass, 2001; “Transformation As A Real Process”, Aldershot (UK), Ashgate, 1998; “Economic Vitality and Viability. A Dual Challenge for European Security” Frankfurt, Peter Lang, 1996. Contributor to European Voice and Europe’sWorld.

Vasile Puşcaş Professor of International Relations and Negotiations, Babeş‑Bolyai University, Cluj-Napoca

Vasile Puşcaş was a Minister, the Head of the Department for European Affairs in the Government of Romania (December 2008 – October 2009). The name of Vasile Puşcaş is linked with the fact of regranting the most- favoured-nation clause. He is the Romanian diplomat who negotiated in Washington DC (1992 - 1994) with a view to regranting this commercial privilege to Romania, in a period when the country was considered to be democratically unstable. From December 2000 until December 2004, Vasile Puşcaş was a Minister- Delegate in the Government of Romania and the Romanian Chief Negotiator with the European Union. Under his coordination, the National Delegation conducting the negotiations for the accession of Romania to the European Union concluded all the negotiation chapters (8 December 2004), completing the negotiations for the accession to the EU on 17 December 2004 at the European Council in Brussels. Based on the results of the accession negotiations carried out by the staff led by Vasile Puşcaş, the President Traian Băsescu and the Prime Minister Călin Popescu Tăriceanu signed, on 25 April 2005, the Treaty concerning the accession of Romania to the European Union. During 2000 – 2008 he was a member of the Romanian Parliament. Speakers

Valentin Lazea Chief Economist, National Bank of Romania

Since 1999 Valentin Lazea has been Chief Economist of the National Bank of Romania and since November 2004 Chairman of the Board of Directors of TransFond S.A., the company technically operating the electronic system for payments. Between 1997-1998 and August-December 2000 he was State Secretary in the Ministry of Finance. Mr. Lazea is Member of the Scientific Advisory Board of the European Institute of Romania. Valentin Lazea is a graduate of the Sussex University in Brighton and of the IMF Institute in Washington DC.

Florin Pogonaru Chairman, Businessmen’s Association of Romania

Florin Pogonaru is Chairman of the Businessmen’s Association of Romania, President of the ‘Central European Financial Services’ (CEFS), member of the Supervisory Board of BCR, member of the Economic Advisory Council of the Prime Minister. Since 1997 he has been a member of the Balkan Stability Pact (former SECI) where he has been involved in evaluating and monitoring the critical aspects of the business environment in South-Eastern Europe. The activity of Florin Pogonaru is mainly focused on investment banking and he has been the coordinator of the operations for Romania of some important financial groups like Creditanstalt (CAIB), Bank Austria (IBA) and Alphabank (BIG). Mr. Pogonaru is, also, the President of the Administration Board of the European Institute of Romania. Florin Pogonaru has graduated the Academy of Economic Studies, Bucharest, where he has also obtained the title of PhD in economics. He has also graduated the Law School, University of Bucharest. Speakers

Dragoş Pîslaru General Manager, GEA Strategy & Consulting

Dragoş Pîslaru is a Romanian economist, with both academic and consultancy background, working since 2000 in the area of institutional building and development. He has graduated a BA in International Economics at the Academy of Economic Studies of Bucharest followed by a MSc. degree at the London School of Economics. Between 1998-2006, Mr. Pislaru has joined the Chair of International Business and Economics at the Academy of Economic Studies Bucharest, teaching several courses on European Economy and International Trade and Economics. As an expert for the Romanian Centre for Economics and later as the executive director of the Group of Applied Economics, between 2000 – 2006 Mr. Pislaru was involved in several research projects concerning economic growth, regional development and competitiveness, enterpreneurship & SMEs and Research Development and Innovation (RDI). Since December 2006, Mr. Pislaru has started his consultancy career as the General Manager of GEA Strategy & Consulting, a dynamic and high growth enterprise focused on strategic development. In 2009, Mr Pislaru was appointed Board Member of the Romanian Economists Society (SOREC), a not-for-profit association promoting the excellence in scientific economic thinking.

Cristian Ghinea Director, Romanian Center for European Policies

Cristian Ghinea has been Director of the Romanian Center for European Policies since its establishment, in 2009. In 2007-2008, after eight years of writing for the Romanian media, he went abroad to study EU Governance at London School of Economics. He was previously involved in civic projects with the Romanian Academic Society, the Center for Independent Journalism, Helsinki Committee and Freedom House Romania. Upon his return to Romania he set out to combine academic approaches and new-found connections to shape a credible and influential public discourse on EU-related issues. He has written chapters on Romania in prestigious international reports such as “Media Sustainability Index” (IREX), “Nations in Transit” (Freedom House), he has participated as EU policies expert and consultant in a plethora of international projects. Mr. Ghinea’s areas of expertise include EU institutional design, democratization, media studies, transparency and accountability in public administration, Republic of Moldova. Speakers

Agnes Nicolescu Head a.i., Studies and Analyses Unit, European Institute of Romania

Agnes Nicolescu has a Master’s degree in International relations (Faculty of Political Sciences, English section, University of Bucharest) and a Bachelor’s degree in Political Sciences, English section from the same faculty. After undertaking an internship with NATO’s Public Diplomacy Division, she has acquired experience in the elaboration and implementation of projects while extensively working in the non-governmental sector (for „NATO House” Association - Euro- Atlantic Council of Romania and ARDOR association) as well as in the private sector (Raabe Romania Publishing house). Her interest areas include the European foreign and neighbourhood policy, the cohesion policy, EU’s institutional transformation and BRICS group. Interview

Helen Wallace, Emeritus Professor, European Institute, London School of Economics and Political Science

Professor Wallace, given the current turbulent economic framework in EU, how would you qualify the reactions of the European institutions and leaders towards the accelerating crisis? Have they done enough to repair the damages and to prevent potential disasters within the Member States?

Indeed we are facing a turbulent situation and one which is, as I write, still far from being resolved. No one comes out of the story so far with much to claim by way of success. Initially the leading politicians and policy-makers have taken some short-term steps, but at each stage the dimensions of what was required have been underestimated and the steps taken have been inadequate. We suffer from a threefold challenge: the wider problems of the international economy; some design flaws in the operating system for the euro-zone; and the contingent problems of individual countries. Tougher action and more funding are both surely needed. However, the better performing countries, notably Germany, should acknowledge that they have been long-run beneficiaries of the euro and hence that their success has been the reverse side of the coin of poor performance by other partners. It is not enough for the Germans to keep arguing for more and more discipline from already suffering countries. And then we also need to turn our attention to medium- term changes, which for the moment remain under-specified.

In this context, what chances for survival would you confer to the euro-zone? Given the recent debates in the “French-German couple” and the challenges the euro-zone is confronted with, will we assist to a two-speed Europe, with differentiated integration levels?

We are still some way off knowing whether the euro-zone will survive intact. Better that it should but provided that it can be stabilised. As for the Franco-German couple, these two partners are far from having a jointly agreed set of remedies. So we still do not really know what the shape and content of a fiscal union would look like. So it is a bit of an illusion to think that the Franco-German couple can lead us out of the trouble. However, it does seem pretty clear that the euro-zone members need to invest in firmer arrangements among themselves, and of course ever since the Maastricht Treaty we have been accustomed to a degree of separation between euro-ins and euro-outs. But it remains vital to safeguard the vitality and cohesion of the EU27 for the rest of the Union’s activities and to safeguard the acquis communautaire. Every effort must be made, for example to maintain the single market, the four freedoms and so forth as the collective property of all 27 member states.

Regarding the Lisbon Treaty, what is your opinion on the effectiveness of the adjustments brought by the Treaty to the EU institutional system? Was the Lisbon Treaty enough to really reform the institutional mechanisms at EU level? What is the missing link to an authentic success of a reformed treaty?

I was always unimpressed by the institutional reform package contained in the Lisbon Treaty and its predecessor Constitutional Treaty. The prescription was always muddled and lacking a clear design blueprint. On the one hand the prior system did not work so badly – and indeed the detailed research done on the impacts of the 2004 and 2007 enlargements shows that the institutional system was holding up pretty well. What the Lisbon Treaty did inter alia was to alter relationships among the institutions so as to make them more competitive rather than better synchronised. Lisbon has also pushed the EU into spending a disproportionate amount of energy on procedural and process issues which have distracted attention from the core policy activities. This is clearest in the way that the foreign policy arrangements have been taken forward. Over the years the institutional innovations that have been most successful have been those devised with very clear policy goals in sight. Interview

Having in mind the sixth edition of your book on Policy-making in the EU, that we are about to release (the Romanian translation carried out by EIR) on the Romanian academic market, which would be the most important areas and policies that EU needs to address more carefully in the near future?

Successive editions of the volume Policy-Making in the European Union have sought to include always the recurrent core policy issues and also to introduce policy areas that have become more important – and it is always a hard call as to what to include and what to omit without the book getting too long! My view is that the policy areas covered in the sixth edition remain pretty much the right ones. Maybe in the next edition there should be more of a focus on the implementation side of EU policy-making, since there is a kind of ‘delivery deficit’ in a number of areas.

Interview by Oana Mocanu Partner

Representation of the European Commission in Romania

Media partners