Zestrea imobiliara a bancilor din Romania

Imobile din toate categoriile ( apartamente, complexe rezidentiale, hoteluri, cladiri comerciale si industriale, terenuri si paduri, etc. ) s-au strans si se strang permanent in portofoliile bancilor. Mare parte din aceasta zestre a dus credite neperformante si ajunge la executare silita. Prelungirea recesiunii a generat si va genera inca, falimente si disponibilizari de personal. Clientii bancilor, fie ei persoane fizice sau juridice, fara posibilitatea onorarii obligatiilor asumate prin contractele de credit pun in bratele acestora pachete imobiliare pe care piata le absoarbe cu greu chiar la preturi reduse. Executarea silita a acestei zestre imobiliare are mai multe incoveniente:
- alte insitutii, ca administratiile fiscale, casele de insolventa, etc, ingusteaza si mai mult posibilitatea bancilor de a valorifica prin executare silita zestrea imobiliara in vederea recuperarii banilor imprumutati, deoarece si acestia au imobile care ajung din diverse motive in aceeasi piata a executarilor;
- termene de asteptare mari, primele licitatii nu se concretizeaza de regula intr-o tranzactie ( preturile de pornire fiind cele din rapoartele de evaluare intocmite la acordarea creditelor, sau a celor de reevaluare, care "nu pot" crea provizioane bancilor );
- preturile obtinute ca urmare a unei tranzactii concretizate nu mai acopera valoarea creditelor ramase de recuperat;
- departamentele juridice si de executori bancari sunt inecate in birocratia specifica si mai mult incurca putinii clienti interesati de aceasta zestre;
- clientii care isi adjudeca bunuri imobile intra cu greu in posesia acestora, deoarece executorii bancari nu au autoritatea efectuarii evacuarilor fortate; etc.
" Executarea silita in acest moment... este din ce in ce mai greoaie... Bancile trebuie sa gaseasca solutii pentru salvarea clientilor. " a spus presedintele Asociatiei Romane a Bancilor.
Cine salveaza bancile? Cat vor mai rezista bancile cu credite neperformante din ce in ce mai mari? Cand aceasta zestre povara va fii aruncata pe piata imobiliara?
Pesimismul din aceasta piata, chiar daca este justificat, nu este deloc constructiv. Piata imobiliara, mai devreme sau mai tarziu, va depasi criza.
Este nevoie ca cineva bine pregatit si informat, realist, cu metode simple si eficiente, sa convinga aceasta piata sa depaseasca frica fata de recesiune si sa ocupe locul pe care il merita.

Bulgaria, Romania to Set Up JV to Run New Danube Bridge

The second Bulgaria-Romania bridge should be completed by the end of 2012. Photo by danubebridge2.co

Bulgaria's government has approved a draft agreement with Romania for the creation of a joint venture to operate the future "Danube Bridge 2", the second bridge to link the two Balkan states over the Danube river.
The Cabinet in Sofia has granted a mandate to Transport Minister Ivaylo Moskovski to negotiate the signing of the JV agreement with the Romanian side on the bridge linking Bulgaria's Vidin and Romania's Calafat, the government press service said.
Bulgaria and Romania will have 50/50 shares in the future joint venture that is to maintain Danube Bridge 2 and its adjacent infrastructure along the banks of the Danube.
Sofia and Bucharest are still to agree on the registration and central office of the future company as well as the dispute resolution procedure and the tax rules that it will abide by.
"The agreement for a joint Bulgarian-Romanian venture to manage the new bridge will provide for the necessary legal base and conditions for the efficient management of the international transport infrastructure and reduction of the investment return period," the Bulgarian Cabinet said.
It further stressed that the future Bulgarian-Romanian joint venture is supposed to be formed by the end of 2012, and to take over the Danube bridge, which is being built by Spanish construction company FCC, in 2013.
The construction of the Vidin-Calafat bridge was set to be completed by October 2010, but has been significantly delayed due to technical difficulties and claims by Spanish firm FCC.
The original push for the construction of a second Danube Bridge between Bulgaria and Romania came as a result of the NATO bombing of Milosevic's Yugoslavia in 1999.
After the campaign subsided, however, the procedures for the bridge dragged on. It was supposed to be ready by 2010 but land expropriation procedures and disputes between the Spanish firm FCC and the governments of Bulgaria and Romania obviously delayed the construction.
When finally completed, Danube Bridge 2 will be third ever bridge in the Bulgarian-Romanian section of the Danube in the past 2000 years.
In the 4th century Roman Emperor Constantine I the Great built the largest river bridge in ancient times, Constantine's Bridge on the Danube, which was 2.5 km long, 6 meters wide, and existed in 328 AD - ca. 355 AD.
The "next" bridge (today's Ruse-Giurgiu Bridge) on the Lower Danube, in the Bulgarian-Romanian section of the river was built only in 1954, about 1 600 years later, at the initiative of the Soviet dictator Joseph Stalin. (novinite.com)

Living in Romania

INDIVIDUAL TAXATION

Residents are taxed on their worldwide income. Married couples are assessed and taxed separately; joint taxation is not permitted.

INCOME TAX

Income is classified into the following categories: (1) income from independent activities, including royalties, (2) salaries, (3) income from trading activities, (4) income from investments, (5) pensions, (6) agricultural activities, (7) income from gambling and prizes, and (8) capital gains.

Income is aggregated and taxed at a standard flat rate of 16%.

Residents may deduct personal allowances, and the actual amount is regularly adjusted. The current personal allowance is RON250 (€58) but individuals earning more than RON3,000 (€696) are not entitled to the personal allowance. An additional allowance can be claimed for the taxpayer’s dependants (spouse and children) at RON125 (€29) for each dependant. The total amount of the personal and additional allowances may not exceed RON650 (€151).

RENTAL INCOME
Rental income earned by residents is taxed at a flat rate of 16%. A fixed deduction of 25% of the gross income is allowed to account for income-generating expenses. Taxpayers may also opt for itemized deductions of all expenses.
As of 01 January 2008, taxpayers who earn rental income from more than five simultaneous rental contracts can only be taxed under the direct method (gross income less itemized deductible expenses).
CAPITAL GAINS
No tax is levied on the capital gains realized by individuals from selling real property; however transfer tax is levied on the transfer of immovable property in Romania.

Transfer Tax

Individuals who sell Romanian property are liable to pay transfer tax, levied on the sales proceeds. The applicable tax rate depends on how long the property was held by the owner and how much the actual sales proceeds are.

TRANSFER TAX FOR PROPERTY OWNED FOR LESS THAN 3 YEARS
SALES PROCEEDS, RON (€)	TAX RATE
Up to 200,000 (€46,387)	3%
Over 200,000 (€46,387)	2%

TRANSFER TAX FOR PROPERTY OWNED FOR AT LEAST 3 YEARS
SALES PROCEEDS, RON (€)	TAX RATE
Up to 200,000 (€46,387)	2%
Over 200,000 (€46,387)	1%

An exemption from paying the transfer tax on the transfer of Romanian immovable property is allowed under the following circumstances:

• The property transfer was made through the state restitution process
• The property transfer was by inheritance, only if the inheritance was processed within two years after the death of the benefactor. If the inheritance was processed over two years, a 1% inheritance tax is payable by the beneficiaries
• The property transfer was by gift from a spouse or a relative up to the third degree of kinship

PROPERTY TAX

Property Tax

A local tax is levied on buildings, payable by the owner. The tax is generally levied at 0.1%. The applicable tax rate varies between 0.25% and 1.50% for legal entities, depending on the building’s location and property value.

Land Tax

A local tax is levied on land in located in urban areas in Romania, payable by the owner. The tax rate for urban land ranges from RON0.052 (€0.012) and RON89.21 (€20.70) per square metre for land in urban areas. The tax rate for land outside urban areas ranges from RON0.01 (€0.002) and RON0.48 (€0.11) (globalpropertyguide)

Where to buy property in Romania

Bram’s Stoker’s Dracula is set in Romania full of crumbling castles and vampires prowling the night. Though the image is etched into our collective consciousness, Romania packs a different punch for travellers and property investors. Its dramatic, romantic capital is a good indication of how beautiful and interesting the country really is.

Romanians are among the friendliest people in Europe, hospitable and eager to share stories. Foreigners will also be pleasantly surprised to find that although Hungarian is the main foreign language, many Romanians speak English and German or French.

A quarter of the country is covered in forests, and is home to a vibrant variety of fauna considered to be one of the richest in Europe. The Carpathian Mountains cross the centre of Romania, and create a magnificent panorama.
The famed Danube River passes right through Romania after its eight-country trip across Europe, spilling out into the Black Sea, enriching the surrounding hills and plateaus. This accounts for the many fruit orchards, vineyards and farmlands that dot the countryside, harking back to Romania’s historical reputation as Europe’s bread basket in the 1930s. In autumn, the countryside is awash in the warm colours of autumnal foliage, the scenery reminiscent of New England’s.
Romania has four distinct seasons. Spring is delightful, with comfortably warm days and cool mornings and nights, ideal for al fresco dining or evening walks. Summer can be hot, especially in the lowlands (with temperatures reaching 100°F from July to August), but one may always visit the surrounding mountain towns for a cool getaway. In summer, the place to be is Mamaia, the Riviera of Romania, along the Black Sea Coast. Though heavy snow during winter is not a constant occurrence in the areas surrounding the Carpathian Mountains, temperatures do tend to drop from December to the middle of March. These make for ideal holidays in the skiing resorts of Valea Prahovei and Proiana Braşov.
Scattered along the Carpathian Mountains are many medieval towns, home to various landmarks in different historic architectural styles. These include numerous castles (such as Bran Castle, the supposed home of Count Dracula); pre-war buildings; Gothic and Saxon fortified churches, as well those in the Maramures Region, which are remarkably made from wood. All these are amazingly preserved, and several are even included in the UNESCO Heritage Site list.
Romania joined the European Union in 2007, and foreign property investment has been on the rise since then. Economic funding to improve infrastructure and to build a more viable business environment has made buying property easier and more accessible. It remains a notable overseas property destination, with its abundant and rustic landscape, its friendly people, and richly tangible historical culture. (globalpropertyguide)

Romanian housing catastrophe continues

After two years of severe house price declines, Romania’s housing market is still in deep trouble.  There are no official house price figures, but local property experts agree - house prices have have continued to plunge in 2010 and in the first half of 2011.

      •Average house price in Romania fell by about 10% in 2010, according to the        evaluation firm Darian, whose  survey included 27 Romanian cities. The        average price of used apartments was RON3,317 (€774) per square meter (sq.        m.), while new flats cost about RON3,625 (€846) per sq. m.

      •The average asking price for old homes in Bucharest slid 20% in 2010, based        on the latest report released by Radio Romania International. Three to        four-bedroom apartments registered the sharpest drop of all, at 25%.

      •The average asking price of newly built houses and villas all across the        country was 42% lower in 2010 compared to the peak levels seen in 2008,        according to the real estate firm imobiliare.ro. In Bucharest, the average price        of townhouses and villas dropped by 19% to RON5,999 (€1,400) per sq. m. in        2010.

      •According to Marketbeat: Romanian Real Estate Report, Spring 2011, house        prices plunged by around 15%-20% y-o-y in 2010 and were approximately        55%-60% of the levels registered in Q1 2008.

“Due to the current declining market, customers are waiting for prices to reach a new low before they make a final decision”, says Razvan Munteanu, director at Imopedia.

From 2002 to early-2007, property prices and demand for Romanian properties rose in anticipation of EU accession in January 2007. But investors were disappointed, not least by non-implementation of promised economic and political reforms. Corruption is rife in Romania, and largely ignored (or tolerated) by the government.

Recently, the Bank of Romania cut the benchmark interest rate by 25 basis points to 6.25%. The key rate has been cut several times since June 2010.

There are no restrictions on foreign nationals acquiring dwellings in Romania, but ownership of land is tricky. Companies incorporated in Romania as well as resident foreign nationals can acquire land. Non-resident EU citizens will be able to own land starting 2012. (globalpropertyguide.com)

Cat mai costa un apartament in marile orase

Preturile apartamentelor vechi au scazut in noiembrie fata de luna precedenta, in timp ce locuintele noi s-au scumpit usor."Pe segmentul vechi, preturile au evoluat in scadere in absolut toate orasele analizate, conform asteptarilor pentru acest final de an. Cele mai evidente diferente de pret au fost inregistrate in Bucuresti (-1,5%), Constanta (-1,7%) si Timisoara (-2%), procentele fiind destul de mari pentru o perioada de 30 de zile", subliniaza Adrian Erimescu, directorul general imobiliare.ro, intr-un comunicat remis luni Ziare.com.

Datele pentru Bucuresti arata, pentru luna noiembrie, o evolutie generala in scadere, trendul manifestandu-se atat pe segmentul vechi, cat si pe cel nou. Pretul apartamentelor vechi din Capitala isi continua evolutia descendenta si a inregistrat o scadere de 1,5% in ultimele treizeci de zile.

Mai mult, si pe segmentul apartamentelor noi a fost inregistrata o scadere de 0,5% in luna noiembrie.

Pretul mediu cerut pentru apartamentele noi din Bucuresti a ajuns, in luna noiembrie, la valoarea de 1.371 euro/mp util, in scadere cu 0,5% fata de luna octombrie. Valoarea actuala este insa cu 3,2% peste pretul mediu inregistrat pe acest segment in urma cu un an.

Pe categorii de apartamente se observa, insa, tendinte diferite. In aceasta luna, cea mai interesanta evolutie au avut-o garsonierele, care s-au scumpit cu 2,6%. Apartamentele cu trei camere s-au ieftinit in acelasi interval cu 1,6%, iar unitatile cu doua camere au inregistrat o scadere de 0,6% in ultimele 30 de zile.

In noiembrie, apartamentele vechi din Capitala s-au ieftinit cu 1,5%. Fata de aceeasi perioada a anului trecut, apartamentele vechi sunt mai ieftine cu 1,8%. Garsonierele s-au ieftinit cel mai mult, cu 2,7% in ultimele 30 de zile, aceasta fiind in continuare categoria care inregistreaza cea mai mare scadere de pret.

Unitatile cu trei camere s-au ieftinit cu 2,1% in intervalul analizat, iar pretul apartamentelor cu doua camere a inregistrat o scadere de 0,7%.





Dupa doua luni in care au inregistrat scaderi, preturile apartamentelor din Brasov au stagnat in luna noiembrie, deoarece, pe de-o parte cele vechi s-au ieftinit usor, pe de alta parte, cele noi au inregistrat o scumpire.

Pretul mediu cerut pentru apartamentele scoase la vanzare in acest oras are valoarea de 852 euro/mp de suprafata utila. In comparatie cu aceeasi perioada a anului trecut, apartamentele sunt cu 2,9% mai ieftine. Pretul solicitat pentru apartamentele noi din ansamblurile rezidentiale brasovene a atins valoarea medie de 868 euro/mp, cu 6% mai putin decat in aceeasi perioada a anului trecut.

In ceea ce priveste apartamentele vechi, pretul mediu a inregistrat o scadere de 0,1%.

In noiembrie, in Brasov, apartamentele vechi s-au ieftinit cu doar 0,1%, pretul acestora coborand de la 851 euro/mp util pana la o valoare medie de 850 euro/mp util. Cele mai mari scaderi de pret au fost inregistrate in cazul garsonierelor (-1,5%). Unitatile cu patru camere s-au ieftinit cu 0,3%.

Pretul cerut pentru apartamentele cu doua si trei camere au inregistrat o crestere in noiembrie, de 0,2%, respectiv 0,1%. In comparatie cu luna noiembrie 2010, preturile apartamentelor vechi din Brasov sunt in prezent cu pana la 3,3% mai mici, cea mai mare diferenta de pret fiind intalnita in cazul unitatilor cu doua camere.





Pretul mediu pentru apartamentele scoase la vanzare in Cluj-Napoca are in prezent valoarea de 951 euro/mp util, care este cu 3,9% mai mica decat cea inregistrata in urma cu 12 luni.

Pretul mediu cerut pentru apartamentele vechi scoase la vanzare in acest oras a inregistrat totusi o usoara scadere de 0,3% in noiembrie, coborand de la 977 euro/mp la 974 euro/mp. Cea mai mare variatie de pret este intalnita in cazul garsonierelor, unde a fost constatata o crestere de 0,6%.

Pretul apartamentelor cu doua camere a stagnat in ultimele treizeci de zile (0,1%), iar unitatile cu trei camere au inregistrat o scadere de pret de 0,4%. Preturile solicitate in prezent pentru apartamentele vechi sunt cu pana la 4,2% mai mici in comparatie cu luna noiembrie 2010, cea mai mare diferenta fiind inregistrata in cazul unitatilor cu trei camere.





Pretul mediu cerut pentru apartamentele scoase la vanzare in Constanta a scazut in ultimele treizeci de zile, continuand evolutia din luna octombrie. Aceasta tendinta s-a manifestat in special pe segmentul apartamentelor vechi. Pretul mediu solicitat pentru unitatile noi are, in noiembrie, valoarea de 960 euro/mp util, apropiata de cea inregistrata in urma cu 12 luni.

Pretul mediu de strigare pentru apartamentele din blocurile vechi din Constanta a inregistrat o scadere de 1,7% in luna noiembrie, atingand valoarea de 921 euro/mp util. Apartamentele cu trei camere s-au ieftinit in acest interval cu 2,4%, iar unitatile cu doua camere si garsonierele s-au ieftinit cu 2,3%, respectiv 0,8%.

In comparatie cu aceeasi perioada a anului trecut, diferentele s-au atenuat considerabil, fiind cuprinse intre -1,3% in cazul garsonierelor sI +1,3% in cazul apartamentelor cu trei camere.





Pretul apartamentelor scoase la vanzare in Timisoara a inregistrat cea mai mare scadere in noiembrie, de 2%. Fata de aceeasi perioada a anului trecut, in prezent, apartamentele scoase la vanzare in Timisoara sunt cu 0,3% mai scumpe. Apartamentele noi s-au ieftinit in intervalul analizat cu 0,9%. Pretul mediu pentru aceasta categorie este de 871 euro/mp util, totusi, aceasta valoare este cu 1,4% mai mare decat cea inregistrata pe acest segment in urma cu un an.

In noiembrie, pretul pentru un metru patrat de suprafata utila in cazul apartamentelor vechi a fost de 780 euro, cu 2% mai putin decat in octombrie. Apartamentele vechi cu doua si trei camere s-au ieftinit cu 1,7%. In acelasi timp, pretul unitatilor cu patru camere a inregistrat o crestere de 0,6%.

Pretul garsonierelor, pe de alta parte, a crescut cu 2,1%. Analizand evolutia la 12 luni, constatam ca preturile medii cerute in prezent pe toate categoriile sunt egale sau mai ridicate decat cele inregistrate cu un an in urma. Cea mai mare diferenta de pret in acest sens se regaseste in cazul garsonierelor care sunt mai scumpe in prezent cu 4,7% decat in noiembrie 2010.





Preturile pentru apartamentele din Ploiesti in ultimele treizeci de zile au fost cu 1% mai mici decat in octombrie. In comparatie cu luna noiembrie 2010, preturile solicitate in prezent sunt cu 6 mai mici, aceasta fiind si cea mai mare diferenta inregistrata la nivel de oras, la 12 luni. (ziare.com)

Partii ca in Elvetia in Romania? Afla ce se constuieste la Vidra

Perla turismului din Romania se construieste departe de ochii curiosilor, in Inima Muntilor Lotru.
La doi pasi de statiunea Vidra, intr-un ritm nebunesc, se lucreaza la ceea ce va fi cel mai mare domeniu schiabil din Romania, Vidra-Transalpina- Voineasa, adica viitorul St. Moritz romanesc.

Paradisul montan se construieste la Vidra. Nu sunt vorbe mari, iar cei care nu cred pot vedea cu ochii lor ce se intampla acolo.

Ca si comparatie, in inima Munitilor Lotru se lucreaza intr-un ritm asemanator vremurilor cand dictatorul Nicolae Ceausescu construia canalul Dunare-Mare Neagra. Un furnicar de oameni si masini robotesc la amenajarea domeniului schiabil, atentie: PRIVAT, Vidra-Transalpina-Voineasa. Este visul omului de afaceri hunedorean Dan Faur.

Dupa ce a construit de la zero kilometri de partie in toata tara si a amenajat domenii schiabile, ori a montat telegondole si instalatii de transport pe cablu, omul de afaceri Dan Faur a ales un loc desprins parca din Rai, unde construieste un paradis montan.

"In 5 ani de zile domeniul schiabil Vidra-Transalpina-Voineasa va fi numarul 1 in Romania in turismul montan. Se intampla aici, pentru cunoscatori, va fi apropiat de St. Moritz din Elvetia. Iarna partiile de schi ce se intind pe kilometri, vor fi legate intre ele cu teleschiuri, ori telegondole. Un peisaj de vis, partii de schi, conditii deosebite, un lac amenajat unde vara turistii vor putea sa se plimbe cu barcutele, sa se scalde, ori sa faca scufundari", declara Dan Faur.

Si intr-adevar, prima partie de schi, care se va inaugura oficial in martie 2012, este de vis.

Se intinde pe o distanta de peste 3 kilometri, iar pe toata lungimea ei schiorii au parte de un peisaj de vis, cu brazi semeti si o natura de o frumusete naucitoare, cu creste muntoase virgine, care se oglindesc ca intr-un glob de cristal in lacul Vidra.

Construirea domeniului schiabil Vidra-Transalpina-Voineasa a demarat in luna septembrie si in cele trei luni care s-au scurs, in munte, la Vidra, s-au intamplat lucruri miraculoase.

Practic, versantul unui munte, pe o lungime de cativa kilometri si o latime de cateva sute de metri, a luat forma unei partii de schii la standarde olimpice.

Aici s-au montat stalpi de telegondola si altii pentru cateva instalatii de teleschi.

S-au turnat metri cubi de betoane, chiar si noaptea la focuri, iar specialistii sustin ca ceea ce s-a intamplat aici este comparabil cu ce au facut nemtii in cel de-Al Doilea Razboi Mondial in Siberia.

Statiunea Vidra este una din cele mai frumoase statiuni montane din Romania, este situata pe Valea Lotrului, mai precis in Muntii Puru, pe malul lacului cu acelasi nume, la o inaltime de 1.370 m, cu aer deosebit de ozonat bogat in ioni negativi si esente volatile de brad si grad de poluare zero in anotimpul de iarna.

Zapada se mentine in jur de sase luni pe an, iar drumul este accesibil tot anul.

Aici, fostul dictator Nicolae Ceausescu ar fi dorit sa organizeze o olimpiada de iarna. Vidra beneficiaza de un potential insemnat atat pentru sporturile de iarna, cat si pentru cele de vara.

De altfel, campionul Ivan Pataichin si canotorii olimpici ai Romaniei se antrenau aici, inainte de 1989, pe lacul Vidra, unde amatorii de sporturi nautice cu vele pot sa isi dovedeasca maiestria in navigatie.

Potentialul turistic din Vidra este foarte mare. Pornind din aceasta statiune, turistii ar putea face excursii prin Muntii Parangului, Lotrului sau Capatanii.

Mai mult, statiunea Vidra se afla la doar 50 de kilometri departare de Petrosani si de Valea Jiului, acolo unde autoritatile locale au de asemenea investitii inportante in domeniile schiabile, menite sa transforme zona intr-o paradis turistic montan. (ziare.com)

Auchan buys 2.7-ha former industrial platform plot in Bucharest

French retailer Auchan has bought half of the former industrial platform Tricodava in the Western part of Bucharest from Spanish Pryconsa in a multi-million euro transaction, according to law firm Popovici Nitu & Asociatii, which assisted Auchan in this deal. Auchan took over a 2.7-hectare plot and negotiated the deal for six months.
The retailer is yet to announce its development plans for the recently acquired plot. Auchan is already developing retail projects in Craiova – Electroputere Craiova, as well as in Polus Constana and Coresi Brasov. Auchan, which entered the Romanian market in 2005, had its most recent openings in Constanta and Craiova. Auchan already has two stores in Bucharest.
Spanish companies Gran Via and Pryconsa bought the former Tricodava industrial platform in the Ghencea neighborhood of Bucharest for EUR 42 million from investment fund Broadhurst. The Spanish companies initially planned a 2,000-apartment project for the 5.4-hectare land plot, but the economic crisis delayed the project. The land plot is opposite an existing Billa store and close to a Carrefour Market unit. (Romania-insider.com)

Romania country profile

Romania country profile

The largest of the Balkan countries, Romania has dramatic mountain scenery and a coastline on the Black Sea.

It has seen numerous empires come and go from the Roman, to the Ottoman, to the Austro-Hungarian.

After World War II the country was under communist rule although the leadership pursued a foreign policy independent of that of the Soviet Union.

Romania, a slower developer than other former communist countries of eastern Europe, took a major step away from its past when it was one of seven countries to join Nato in late March 2004. Its strategic location and Black Sea air and naval bases make it attractive to the alliance.

There have been several complex exchanges of territory over the years, not least when the area formerly known as Bessarabia went to the USSR following a pact between Hitler and Stalin. That region now forms a large part of the Republic of Moldova. Romanian, a Romance language, is essentially the same as Moldovan although the latter has undergone more influence from Russian.

The legacy of communist-era leader Nicolae Ceausescu, who was feared and loathed in approximately equal measure, lingered long after the uprising which brought his execution on Christmas Day 1989.

Former communists dominated politics until 1996 when a centrist government came to power. It became involved in prolonged political feuding which did little or nothing to promote economic reform. The left returned in 2000 when Ion Iliescu was re-elected president.

Failure to push ahead sufficiently with reforms meant that the country was not on the list of new EU members four years later. However, in April 2005 Bucharest signed the EU accession treaty, paving the way for Romania to join the union in January 2007.

Facts

• Full name: Romania
• Population: 21.2 million (UN, 2010)
• Capital: Bucharest
• Area: 238,391 sq km (92,043 sq miles)
• Major language: Romanian
• Major religion: Christianity
• Life expectancy: 70 years (men), 77 years (women) (UN)
• Monetary unit: 1 new leu = 100 bani
• Main exports: Textiles and footwear, metal products, machinery, minerals
• GNI per capita: US $8,330 (World Bank, 2009)
• Internet domain: .ro
• International dialling code: +40

BBC News

Romania could register ‘mini economic boom’ in election year 2012

With elections approaching, The Vienna Institute for International Economic Studies (WIIW) estimates GDP will rise by 2 pc this year and by 4 pc next year.
Romania will enter a process of economic recovery and a ‘mini economic boom’ is expected in the election year 2012, says the Vienna Institute for International Economic Studies (WIIW) who anticipates that the Government will renounce fiscal and wage austerity policies ahead of election.


The Gross Domestic Product (GDP) in Romania will grow by 2 per cent this year and by 4 per cent in 2012, according to the WIIW report, Mediafax informs. In 2013, the pace of economic growth would slow down to 3 per cent. At the end of 2010, WIIW analysts were anticipating 1 per cent growth in 2011 and 2.5 per cent in 2012.


‘A return of the boom in the years prior to the crisis is impossible because of the difficult foreign financing conditions; however, a mini-boom can be expected in the election year 2012. Most likely, it will be followed by a new wave of tax stabilization and growth deceleration. Factors that determine this cycle are already visible in the current plans of the Government, however the actual economic growth will depend on the economic policies and capital markets’ response,’ says Gábor Hunya, senior economist WIIW.

The economic contraction registered in Romania in the last two years has been one of the longest and deepest in Europe. The austerity measures taken at the middle of 2010 caused an additional decrease of local demand and had a negative impact of over 1 per cent of the GDP for the entire year. The wage cuts operated in the public sector and the VAT hike triggered a decline in consumption. The financial security offered by the agreement with the International Monetary Fund allowed for structural adjustments to be postponed, reads the report, and the tax adjustments last year were extremely tough and inadequately prepared.


FISCAL STABILITY GROWING, UNCERTAINTY ABOUT ECONOMIC TREND


The confidence in Romania’s fiscal stability as a wh*** has grown in the last few months, Hunya notes. The programme Romania had with the IMF was considered as a successful one and the 2011-2012 fiscal plan is regarded as sustainable. On the other hand, there is a lot of uncertainty about the future economic trend. None of the three governments of the last two years could offer a credible tax programme that could be really implemented. The precautionary agreement with the IMF that is currently being contemplated could give a certain amount of security, but will impose less limitations on the tax policy than the existing stand-by agreement.


This year’s forecast, more optimistic than the views of most analysts, is supported by the recovery of the economy from a very low level, the report states. Both consumption and investment are beginning to recover. This evolution will be inevitably followed by corrections in 2013, the result being a smaller GDP growth.


In addition, the WIIW specialists do not see a medium-term potential for extraordinary improvements of productivity and competitiveness. Any growth of consumption demand by over 3 per cent will lead to a deterioration of the current account deficit which, in turn, will have a negative impact on the GDP and financing.