Institute of International Relations and Economic Cooperation

News & Articles

ROMANIA IS HIT BY FINANCIAL CRISIS AND ECONOMIC DOWNTURN

Posted by Institute of International Relations and Economic Cooperation on March 12, 2017 at 12:05 PM

Friday, 10 March 2017, The Institute of International Relations and Economic Cooperation hosted a debate on the dire situation of the Romanian economy as revealed in the latest United Nations Expert Philip Alston report.



Romanian authorities are in denial over the poverty and crisis in the country-Philip Alston.


The regular economic study conference has united economical experts from Romania, European Parliament, managers and personalities of political, economical and academic life of Romania.


 

The most important topic was highlighting the negative effects of publicising doctored reports about Romanian economic development, reports that are having no bases in real economy and are reminiscent of the communist like distortions of economic figures.

 


Romanian economy is in deep crisis and poverty, and no amount of lies and propaganda can change this fact, and the latest popular revolt of January 2017 was triggered by these politic of economic lies, was the conclusion of the debate.


 


2009- 2016 –the world crisis and the long-lasting impact on Romanian economy.

 

 

 


Three hundred economists, bankers and economic journalists attended the economic conference.

 


The conference started with an evaluation of the first wave of impact of economic crisis in the recent period: 2009-2016.

 


Between 2009-2016 the economic crisis has affected the vital areas of economic life: the collapse has started with construction industry and construction material factories and collapse continued with huge levels of unemployment ad poverty.

 


Others affected sectors where: insurance, banking and stock exchange and in all the financial sector was also strongly shaken.


In total the economic output of Romanian economy has gone down by 35%, unemployment around 40% of the working force and forced below poverty line over 65% of country population.

 

 

 



Romania: the most poverty striken country in Europe.

No economic growth, no jobs, no hope!



The consumer confidence has fallen sharply and the Gross Domestic Product (GDP) has being reduced with 10% in 2010 and 8% in 2011 to decrease further with margins between 2-3% in 2013 to 2016.


The decrease in Romanian economy has being so devastating, today we are below the 1996 level-the record law of Romanian economy.


Unfortunately, the economic collapse of 2012-2016 has laid the foundation for a crisis without equivalent in Romanian history that will affect the country in 2017.



2012-2016: The period of economic disaggregation of Romanian economy.


2012 and 2016 period will be remembered as the worst time of recent economic turmoil in Romania, was the conclusion voiced by all the experts at the gathering.

 


In 2015 and 2016 the Romanian economy had started to show signs of deep financial crisis.


The banking and insurance system has being especially hard hit and this had made the fragile Romanian economy to reach the breaking point.


The inflation had resurfaced from January 2017 and the experts appreciate that a 20% percent yearly inflation is unavoidable.


The resurgence of inflation had put a dramatic pressure on population economy and had made any recovery unthinkable for the next 4-8 years.


The collapse in economic system, the fact that internal and external investments had being reduced to minimum, the credit on internal market has being practically suspended, and this year the GDP will shrink by 3 to 6%.


A factor not to be neglected in amplification of the crisis is the governmental incompetence that by increasing the taxes, legislative chaos and a deliberate politics of destroying the middle class investors in the favor of big companies succeeded only to aggravate the economic crisis.



Vox populi 2017: Hunger and poverty had engulfed Romania.

2017 – Maximum point of Romanian economic crisis.



The most worrisome factor in January 2017 is the information that: almost 700.000 Romanians are in financial bankruptcy according to National Bank estimate.


 

The 2017 will be a decisive year when Romanian society with almost 60% of population living below poverty line will be confronted by the ripple effects of European meltdown and world stagnant economy.


Until now the Romanian economy was hit hard by his own faults like: reduced productivity and competitiveness, chaos in the governmental policy, crippling inflation etc.

 


In 2017 Romania will be affected by inflation rise, economic gaping deficit and in practice an economic shut down.


In January 2017 the number of economic actors and private factories registration has gone down by a whopping 33,94% announced National Council of Small and Middle Enterprises.

 


Practically we are speaking about economic shut down and devastating economic crisis that will see probably 1 to 2 million Romanians leaving the country in the next two years.

 


The spiraling down of economy will be affected by the decay in European economic activity, effects of anti-Russian sanction and the redraw of investors from the Eastern Europe markets in the aftermath of Greece and Hungary crisis.


Crisis hit Spain, Greece, and Ireland and slowing down economy of Germany, France and Great Britain exit, will impact negative on Romanian chances to get access to European funds and foreign investments.


The negative impact of European Union financial and confidence crisis will account for a 3-6% percent reduction in Romanian GDP this year.


2017 will be without a doubt a period of a new catastrophic decline.


It must be very clear, all economic experts underlined, that the present economic decline will last for at least a decade at European level.


Any statements about a Romanian economic growth are unsubstantiated or bluntly laying.


On European level the forecasts are speaking about the lost decade of Europe between 2010 and 2020 , term referring to the blocking of economic development at continental level and the frozen of present situation for a decade.


Those that are declaring that Romania will surpass the period of recovering of France or Great Britain economy , are telling stories that are unbelievable , closed the argument the chief economist Mihail Raceanu.


It will be a miracle if we have in 2017 a decrease in real economy of less than 10% and in the interval between 2017 and 2022 to stop the decline and in 2025 to start the recovery.



2017 budget-A budget that will trigger a deeper economic crisis.


In 2017 the Romanian economy is coming to the fore not only with the negatives trends of the last years and a crippling luck of funding and investment but also with a budget of incredible largesse that will direct Romania to plunge into a new economic meltdown.


The 2017 budget is impacting Romanian economic stability and is giving a sign of chaos in the government economic policy.


The 2017 budget expected huge deficit is not offering any chance for a real economic recovery, inflation will destroy the country financial reserves and the individual savings as well and the decline in the economy is estimated by independent economists around 3-6% percent of the GDP by the year’s end.

 


Reduced foreign investment and dramatically shrinking internal private investment means that Romania will have now more that 2 billion euro (in an optimistic assessment) for direct economic investment programs.


The country needs at least 20 billion per year to modernize the economy and to have a decent growth rate of 1-2% percent per year.

 


The present day budget of 2017 is not only of severe economic chaos, but of severe contraction, stated the economists present at the meeting.



Romanian economic recovery: postponed to 2050.


This assessment was a strong one, keeping in mind that the pre-crisis governmental statistic declared that in 2025 Romania will succeed in recuperating the gap and reach the level of industrial activity prior to 1989 Revolution.


This perspective is no longer feasible, a new perspective is appearing after the crisis and after the lost decade and a cumulative GDP decrease of more than 60% from 2007 economy level.


The economic recession will make it hard for Romanian economy to recuperate the last loses in the context of negative governmental involvement, high inflation, drastic increase in country debt, the general economic climate of recession and finally the worst factor of all: the burden of external debt.


The collapse in economic system, the internal and external investments will be reduced to minimum, the credit on internal market will be suspended and all this will provoke this year an economic decrease of more than 5% of GDP or even 8% of GDP after others opinions.

 


External debt risk can plunge Romania into financial meltdown.


The fear factor that will suffocate Romanian economy in the next period will be, after 2017, the foreign debt crisis.


The government has careless accepted more than 36 billion dollars credit and in total: the private and state debt of Romania is reaching the unbelievable sum of 105 billion dollars, this only if the government will no longer accept new loans.


Despite the writing on the wall, in all of cases like: Greece, Spain and Ireland, Romania is accepting new loans from private banks, loans that will not be invested in developing and modernizing the economy but in salaries and pensions.


This consumer invested loans at extortionate interest rates, will suffocate completely an ailing and failed economy as Romanian economy is.


Another gloomy factor is the unemployment: with a rate of registered unemployment of more than 15% of the active population and with another 35% percent of the population already left out of the governmental unemployment aid, Romania tops many EU member countries with a real unemployment figure of more than 50% of the population.


This figure must be put in perspective with more than 60% of the population below the poverty line and the full picture of the economic meltdown and social tragedy could be analyzed.


Romania economy is in crisis and no plans for a future development had being adopted.



2017: The financial and banking crisis.

 


The conclusion of the most important economic experts in Romania was clear: the crisis is not over by far, but has entered in a more difficult phase that will affect financial and banking system and economic fundament`s.


The economic crisis will continue until 2020 at the earliest and a coming back cycle that will last until 2025.


This decade will be, without a doubt, the lost decade of Romania, but if the necessary measures are not rapidly taken to re-establish control on economic decline than we risk that Romania economy will not come back not even in 2025.

 


The situation is made even worst by the fact that: Romanian leaders are in denial in regard to the social and economic crisis of the country as UN rapporteur Philip Alston stated.

Categories: Foreign Policy, News, Culture&Education

PARTENERS OF IRICE

 CASA PANCIU


 CASA PANCIU este creatorul VINULUI DIPLOMATILOR PENTRU 2016 si partenerul oficial al diplomatiei Institutului de Relatii Internationale si Cooperare Economica (IRICE) pentru anul 2016.

CASA PANCIU a mai fost partenerul oficial al IRICE si in anii 2013/2014.

CASA PANCIU produce vinuri linistite si vinuri spumante de o calitate extraordinara, recomandate pentru evenimente de tinuta.

 

HOUSE OF PANCIU



PANCIU HOUSE is the creator of the DIPLOMATIC WINE FOR 2016 and the official diplomatic partner of Institute of International Relations and Economic Cooperation (IRICE) for 2016.

HOUSE OF PANCIU was the official partner of IRICE during 2013 and 2014.

THE HOUSE OF PANCIU is producing silent and sparkling wines of irreproachable qualities, highly recommended for quality events.


CASA DE VINURI-COTNARI


CASA DE VINURI COTNARI este creatoarea CELUI MAI BUN VIN AL ROMANIEI PENTRU ANUL 2015-VINUL DIPLOMATILOR.

Vinurile produse la Cotnari, de echipa condusa de Directorul Victor Deleanu, vor reprezenta tot ce are mai bun tara noastra in domeniul vinurilor in anul 2015 

Casa de Vinuri Cotnari este partenerul oficial diplomatic al IRICE pentru anul 2015.

COTNARI-HOUSE OF WINES


COTNARI HOUSE OF WINES is the creator of ROMANIAN DIPLOMATIC WINE-THE BEST ROMANIAN WINE FOR 2015.

The wines produced at Cotnari by the talented team lead by Director Victor Deleanu are representing the best of Romanian wines for 2015.  

Cotnari House of Wine is the official diplomatic partner of IRICE for 2015.

 


CASA PANCIU


CASA PANCIU este partenerul oficial al diplomatiei Institutului de Relatii Internationale si Cooperare Economica pentru anii 2013/2014. CASA PANCIU produce vinuri linistite si vinuri spumante de o calitate extraordinara, recomandate pentru evenimente de tinuta.

PANCIU HOUSE


PANCIU HOUSE is the official diplomatic partner for Institute of International Relations and Economic Cooperation for 2013/2014. PANCIU HOUSE is producing silent and sparkling wines of irreproachable qualities, highly recommended for quality events. 

EXOTIQUE 

 

EXOTIQUE este partenerul oficial pentru 2010 si pentru 2011  al activitatilor de reprezentare culturala internationala desfasurate de Institutul de Relatii Internationale si Cooperare Economica. EXOTIQUE sub conducerea doamnei Pusa Hack demonstrat constanta in promovarea imaginii internationale a Romaniei 

 

EXOTIQUE is the official partner for public diplomacy for 2010 and 2011 at Institute of International Relations and Economic Cooperation. EXOTIQUE under the leadership of Mrs. Pusa Hack had demonstrated a long commitment to promote ROMANIAN image abroad 

DIRECT DE LA FERMA


DIRECT DE LA FERMA va aduce ingredientele necesare unei vieti sanatoase: o alimentatie fara e-uri, chimicale si aditivi. Produsele DIRECT DE LA FERMA pot fi comandate usor, rapid si ieftin si vor aduce sanatatea si natura direct in casa dvs. 

STRAIGHT FROM THE FARM


STRAIGHT FROM THE FARM is offering to his clients the necessary ingredients for a healthy life: products without chemicals, additives. The STRAIGHT FROM THE FARM products can be easily ordered, quickly and cheep and they will bring health and nature direct to your home.

 



 

Centrul de Diagnostic si Tratament - LARA LIFE-MED  este partenerul oficial pentru 2011 al activitatilor de reprezentare internationala si diplomatie desfasurate de Institutul de Relatii Internationale si Cooperare Economica.

Centrul de Diagnostic si Tratament - LARA LIFE-MED a demonstrat constanta in promovarea imaginii internationale a Romaniei oferind servicii medicale de calitate internationala si fiind recomandat de Institutul de Relatii Internationale si Cooperare Economica drept unitate medicala de top. 

 

 

The Center for Diagnosis and Treatment LARA LIFE-MED is the official partner for public diplomacy for 2011 at Institute of International Relations and Economic Cooperation.

The Center for Diagnosis and Treatment LARA LIFE-MED had demonstrated a long commitment to promote ROMANIAN image abroad offering exceptional quality services and being recommended by Institute of International Relations and Economic Cooperation of Romania as a top medical unity.

ROMANIAN DIPLOMATIC BULLETIN is a trimestrial publication reflecting the diplomatic activity of Romania. Romanian diplomatic Bulletin is published by Institute of International Relations and Economic Cooperation.


CANALUL TV AL INSTITUTUL DE RELATII INTERNATIONALE SI COOPERARE ECONOMICA PE YOU TUBE

THE TV CHANEL OF INSTITUTE OF INTERNATIONAL RELATIONS AND ECONOMIC COOPERATION ON YOU TUBE


CANALUL TV AL INSTITUTUL DE RELATII INTERNATIONALE SI COOPERARE ECONOMICA PE DAILYMOTION 

THE TV CHANEL OF INSTITUTE OF INTERNATIONAL RELATIONS AND ECONOMIC COOPERATION ON DAILYMOTION 


CITESTE NOUTATI DE LA INSTITUTUL DE RELATII INTERNATIONALE SI COOPERARE ECONOMICA PE TWITTER 

FOLLOW INSTITUTE OF INTERNATIONAL RELATIONS AND ECONOMIC COOPERATION ON TWITTER 


BLACKSEANEWS

Blackseanews is the leading news agency and information sourse for Balkans, Eastern Europe and Middle East

 

EUROPEAN COUNCIL ON INTERNATIONAL RELATIONS

The leading EU think thank


KAZAKHSTAN 20 YEARS OF INDEPENDENCE. PEACE AND CONSTRUCTION


 


 






Appeal for the establishment of a Parliamentary Assembly at the United Nations is proudly supported by Institute of International Relations and Economic Cooperation of Romania

OSCE. KAZAKHSTAN PRESIDENCY. ROMANIAN SUPPORT by Professor Dr. Anton Caragea

OSCE. KAZAKHSTAN PRESIDENCY. ROMANIAN SUPPORT is a book destined to remember the events of 2010.

Publicity / Publicitate


ASTANA-CAPITAL OF THE FUTURE. EXHIBITION organized by Embassy of Republic of Kazakhstan in Romania and Institute of International Relations and Economic Cooperation of Romania. 

Under the high patronage of European Council on International Relations , Diplomatic Mission of Kazakhstan and Institute of International Relations and Economic Cooperation was held in Bucharest the Conference on OSCE 2010. A decisive year for Romania. Kazakhstan Presidency



KAZAKHSTAN PRESIDENTIAL ELECTIONS 2011. EUROPEAN MONITORING MISSION

Kazakhstan Presidential Elections in  3 April 2011 are ushering a new era of democracy and development. Let`s all support the Democratic Kazakhstan

DANUBE&DELTA INTERNATIONAL EXHIBITION 

DUNAREA SI DELTA-EXPOZITIE INTERNATIONALA

WORLD TOURISM NEWS


WORLD TOURISM NEWS is a site dedicated to rapidly and promptly inform tourist, stakeholders in touristic industry and all the people that love to travel about the latest developments in world tourism.

WORLD TOURISM AWARDS


WORLD TOURISM AWARDS are the special prizes carved by European tourism industry representatives in recognition of the countries and tourism agents that are promoting the ideal of free, ethical and ecological oriented tourism in the world.



DIPLOMAT CLUB este curierul vietii diplomatice , mondene si al lumii afacerilor

WORLD CAPITAL OF CULTURE AWARD 

WORLD BEST TOURIST DESTINATION AWARD 

CONFERENCE ON SECURITY AND COOPERATION IN EUROPE AND ASIA

WORLD SUPPORT FOR PRESIDENT NURSULTAN NAZARBAYEV PEACE PLAN IN XXI CENTURY



EUROPEAN JOURNAL OF TOURISM

European Journal of Tourism is a regular publication of European Council on Tourism and Trade destined to disseminate information`s about World Best Tourist destinations, European tourism statistic, evolution`s, laws, regulations and main event`s.

Send to a friend

Quote of the Day

Quote of the Day