Auraș Marinescu Bogdan-Tiberius Paşca European Affairs Advisers

Auraș Marinescu Bogdan-Tiberius Paşca

European affairs advisers

Directorate for Employment and Equal Opportunities Ministry of Labour, Family, Social Protection and Elderly

Romania the largest market in South Eastern Europe

238,391 km2 Area: (9th largest in EU)

Over 20 million Population: 1000 km radius (7th largest in EU) 1500 km radius Bucharest Capital city: 2 million

European Member since st Union status January1 ,2007

EU,NATO,WTO, Affiliation: WB, IMF.

LEU (RON) 1EUR=4.4190 RON Domestic 1USD=3.279 RON Bucharest BLACK SEA Bucharest currency: (Annual average - 2013)

Official Romanian language:

Administ. 41 counties and division: Bucharest 2 Significant Potential for Growth

2013 Romania 3.5% GDP 2013: 3.5% - the highest in EU

Poland 1.6% 8.5%

7,9% 7,3% Hungary 1.1% 6,3% GDP Growth Rate 5,2% Slovakia 0.9% 4,2% 3,5% 2.2%

Bulgaria 0.9% 0.7% Source: EUROSTAT EUROSTAT Source: Czech Rep -0.9% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 -1.1% Slovenia -1.1% Source: National Institute of Statistics; GDP EU 28

EU 28 0.1% -6,6% Source: Eurostat

IMF: Romania among the first 10 EU countries with the highest GDP growth in 2014;

3 Inflation Rate

Inflation Rate in Romania

Target: 2014: 2.5%

4 Source: Eurostat Inward FDI Flows

2013 9496 9059 Annual Inward FDI Czech Republic 3760

Romania 2725 7250

Hungary 1768 5183 Bulgaria 1092 5213

3488 Serbia 779 million EUR 2700 2220 Slovakia 445 2138 1946 1815 Croatia 437 Poland¹ -2200

Source: 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Source: National Bank of Romania Vienna Institute for International Economic Studies ¹ National Bank of Poland

2013: EUR 2.7 bill. Stock: EUR 60.0 bill. (1990–2013);

5 Top 10 Investing Countries STOCK 1990-2012: 59126 mill euro

Netherlands Austria Germany France Italy 22.4% 1 18.5% 2 11.0% 3 8.9% 4 5.0% 5 13229 10920 6499 5272 2930

Cyprus Greece Switzerland USA Luxemburg 6 7 8 9 10 4.5% 4.3% 3.7% 3.1% 2.3% 2687 2529 2194 1809 1368 Source: National Bank of Romania 6 Human Capital

Demographics

Young population (more than 50% under 40 years old) Over 20 million people

Talent pool

108 universities, 629 faculties 214,800 university graduates/yr

Cities with more than 100,000 inhabitants Availability of technical engineers more than 1,000,000 inhabitants High industrial experience 300,000 – 400,000 inhabitants 200,000 – 300,000 inhabitants Flexibility 100,000 – 200,000 inhabitants Foreign language skills Source: National Institute of Statistics 7 Labor Cost

Gross average monthly wages Gross average monthly wages 1600 1525 2012 - EUR EUR 1400 428 474 445 460 471 479 1200 450 993 400 326 1000 846 350 800 771 267 800 300 250 204 179 600 479 200 383 150 400 100 200 50 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Slovenia Czech Rep. Poland Slovakia Hungary Romania Bulgaria Source: Vienna Institute for International Economic Studies Source: National Institute of Statistics; Romania will hold on its competitive advantage related to labor cost; The employers enjoy a flexible labor code Romania has the second-lowest average wage in EU Romania still offers goods and utilities at a lower price in comparison with European average 8

10 Major University Centers

TARGU - MURES CLUJ-NAPOCA 12 thou IASI 57 thou S: 79% P: 21% 55 thou S: 93% P: 7% S: 90% P: 10%

SIBIU BRASOV

22 thou 46 thou S: 92% P: 8% S: 69% P: 31%

GALATI

18 thou S: 87% P: 13%

TIMISOARA

40 thou S: 89% P: 11% PITESTI

CRAIOVA BUCURESTI BUCURESTI 12 thou S: 86% P: 14% 30 thou S: 89% P: 11% 222 thou State: 67% Private: 33% 9 CONCLUSIONS

. Romania’s accession to the EU improved the Romanian business environment, improvement felt by means of a more stable legal framework and the existence of more transparent business practices. . The obstacles from the free movement of goods and services were removed or in process of removal. A common legal framework provided by the Single Market will increase the overall efficiency of the Romanian economy by improving the resources allocation, increasing of specialisation degree and the competitiveness stimulation. . By improving the business environment, Romania is already an attractive target for foreign investments. Attracting a huge inflow of foreign investments will directly and rapidly ensure the access to an effective management, modern technologies, as well as to the labor market segmentation.