ABOUT REAL CONVERGENCE IN ROMANIA
Autor (i): Bogdan Daniel, Floroiu
JEL: O47
Cuvinte cheie: real convergence; EU; GDP; regional; PPS;
Abstract:
Regional convergence is one of the fundamental objectives of the EU Cohesion Policy, through assistance from the Structural Funds, the underlying economic efficient drawing up a strategy to support disadvantaged countries and regions. Thus, a high degree of convergence leads to a lower level of support for bridging economic. Romania meets the convergence criteria set by the Maastricht Treaty in June 2014 but still this is not enough. The nominal convergence criteria can not be met in a sustainable manner without competitiveness, financial stability and fiscal balance. Even if the real convergence criteria are not so clear and measurable indicators have not as if nominal convergence does not mean that this indicator is less important. The goal is to reduce structural differences between regions and countries, and social and territorial cohesion In terms of real convergence, assessed by discrepancies with the EU average GDP per capita expressed in purchasing power standard (PPS), Romania has progressed significantly in the last two years, currently standing at about 55% of the average EU-28. Experience the new Member States which joined the euro underlines that such a goal is realistic insofar as the report of the EU average GDP per capita exceeds 60%. In such conditions, the chance of countries like Romania to achieve real convergence with the EU is closely linked not only by increasing the stock of physical capital, but also stimulate the development of the two factors - knowledge and human capital - their increasing contribution to achieving higher growth rates. Should not be neglected dimension of development disparities between regions, as Romania is the EU country with the greatest disparity between regions. Membership of the EU has acted as a catalyst for real convergence in Romania, but GDP per capita in PPS is still below levels in other Member States when adopting the single currency. In these circumstances, Romania must develop macroeconomic policies to stimulate economic competitiveness, develop all regions, to attract foreign direct investment and external grants.
Regional convergence is one of the fundamental objectives of the EU Cohesion Policy, through assistance from the Structural Funds, the underlying economic efficient drawing up a strategy to support disadvantaged countries and regions. Thus, a high degree of convergence leads to a lower level of support for bridging economic. Romania meets the convergence criteria set by the Maastricht Treaty in June 2014 but still this is not enough. The nominal convergence criteria can not be met in a sustainable manner without competitiveness, financial stability and fiscal balance. Even if the real convergence criteria are not so clear and measurable indicators have not as if nominal convergence does not mean that this indicator is less important. The goal is to reduce structural differences between regions and countries, and social and territorial cohesion In terms of real convergence, assessed by discrepancies with the EU average GDP per capita expressed in purchasing power standard (PPS), Romania has progressed significantly in the last two years, currently standing at about 55% of the average EU-28. Experience the new Member States which joined the euro underlines that such a goal is realistic insofar as the report of the EU average GDP per capita exceeds 60%. In such conditions, the chance of countries like Romania to achieve real convergence with the EU is closely linked not only by increasing the stock of physical capital, but also stimulate the development of the two factors - knowledge and human capital - their increasing contribution to achieving higher growth rates. Should not be neglected dimension of development disparities between regions, as Romania is the EU country with the greatest disparity between regions. Membership of the EU has acted as a catalyst for real convergence in Romania, but GDP per capita in PPS is still below levels in other Member States when adopting the single currency. In these circumstances, Romania must develop macroeconomic policies to stimulate economic competitiveness, develop all regions, to attract foreign direct investment and external grants.
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