The Economy of Romania
Slow Transition and Reform
Privatisation and market reforms were slow and messy in the 1990s, with high inflation and corruption, but accelerated with EU accession talks.
A bumpy road.
1990s
State firms were privatised unevenly, and inflation was high.
2000s
Growth picked up as banks were privatised and foreign investment came in.
Flat tax
A 16 per cent flat tax was introduced in 2005.
EU
Accession in 2007 brought funds and discipline.
A bank sale
A state bank was sold to a foreign investor, bringing new capital and management.
Assuming all reforms were smooth
Many were delayed.
Key takeaways
- Transition was slow.
- Banks were privatised.
- A flat tax began in 2005.
- EU accession helped.
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