assistant professor nicoleta sirghi assistant professor ioana vadasan 1

Assistant Professor Nicoleta SIRGHI

Assistant Professor Ioana VADASAN

1

West University of Timisoara, Romania

Faculty of Economics and Business Administration

Master Program: European Studies and International Relations

2

Motivation of our paperRomania’s road to the EUThe advantages of being a member of the European UnionStructural fundsPersons’ freedom of movement

3

Structure of the paperShort history of Romania’s relations with the EU

Structural fundsThe persons’ freedom of movement

Conclusions4

Short history of Romania’s relations with the EU

1974 - commercial relations with the EEC countries

1980 - official recognition of the EEC1991 – Trade and Cooperation agreement1995 - Demand1997 – Commission response1999, December – decision to start de

negotiations2000, February – start of the negotiations

5

Short history of Romania’s relations with the EU

2004, December – temporary closing of the negotiations

2005, April the 25th – Signature of the Adhesion Treaty

2006, September – Announcement of the adhesion date

2007, January the 1st – Romania is the 27th EU member

6

Advantages. Structural funds2007-2013: more than 30 billions of Euros

7

Romania’s level of development

8

Disadvantages Structural funds

The contribution to the EU budget1.1 billions Euros in 20071.4 billions Euros in 20081.5 billions Euros in 2009

Insufficient absorption of structural funds21% in 200760% in 2008????? in 2009

9

Absorption degree in other EU countries, 2004-2006

10

Advantages. The persons’ freedom of movement

The possibility of travelling (the Schengen Area)

The possibility of studying abroadThe possibility of working abroad (2 + 3

+ 2)2007-20082009-20112012-2013

11

2+3+2No more restrictions: Estonia, Finland,

Poland, Slovakia, Czech Republic, Cyprus, Sweden, Slovenia, Latvia, Lithuania, Bulgaria, Spain, Denmark, Greece, Hungary and Portugal

Netherland (until July the 1st 2009), Belgium and the United Kingdom (until 2011), Ireland (until 2012), Germany, France, Austria, Italy, Luxembourg,

Malta (until 2013). The member states of European Economic

Area (Liechtenstein, Island and Norway) have also maintained the restrictions until 2013.

Switzerland (2016?)12

Disadvantages. The persons’ freedom of movement

External migration: reasonsThe price differences (wage differences, profit rates differences, interest rates differences)

Income differenceDifferences in the level of economic development

13

Medium wage

14

Disadvantages. The persons’ freedom of movement

External migration: consequencesAbout 2-2.5 millions Romanians work abroadLake of qualified labor force in Romania In the destination countries:

the wages have dropped by only 0.08% due to immigration

the unemployment has raised by only 0.04%.

15

Labor force productivity, %

16

100104.5

111.9

29.1

100104.4

111.4

31.1

100104.2

110.9

34.3

100104

110.7

36.2

100103.8

110.4

39.9

100103.7

110.2

42

100103.6109.7

44

0

20

40

60

80

100

120

2002 2003 2004 2005 2006 2007 2008

UE 27

UE 25

UE 15

Romania

The crisis. ConsequencesStructural funds

Labor forceUnemployment increaseHome return

17

CONCLUSIONEU membership could be an opportunity, but it depends on each member state to take advantage of it

18

Thank you for your attention

nicoleta.sirghi@yahoo.com

ioanacaz@yahoo.com19