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Structural Reforms and Property: Back to the Origins

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We should admit that, even if it is a European state through institutional adoption, nowadays Romania does not truly demonstrate that it made the decisive step towards the principles of a market economy, which would bring Romanians the so-longed good life and prosperity. Currently, the Romanian economy is almost entirely built through and around the state budget. It is a deep, structural situation that explains why people wait for so many things to come from the state or, anyway, through the state.

After more than two decades of transition, prophetically prescribed, there still exist various economic and institutional shortcomings. For instance, the property restitution problem became imperative only through a transplant of priorities – having the nature of an ultimatum – at the level of the European Commission. Gas and electricity prices have only recently been set on the free market level, after many years of tariff protectionism. Which, even in the nick of time, imposes the improvement of SOEs’ losses and arrears. Regarding the arrears, government finances were also, recently, an intense subject debated at the negotiations with the international financial and political “troika”.

Cosmin Marinescu