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 paper Romania’s road to the EU The advantages of being a member of the European Union Structural funds Persons’ freedom of movement 3
Structure of the paper Short history of Romania’s relations with the EU Structural funds The persons’ freedom of movement Conclusions 4
Short history of Romania’s relations with the EU commercial relations with the EEC countries official recognition of the EEC 1991 – Trade and Cooperation agreement Demand 1997 – Commission response 1999, December – decision to start de negotiations 2000, 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 25 th – Signature of the Adhesion Treaty 2006, September – Announcement of the adhesion date 2007, January the 1 st – Romania is the 27 th EU member 6
Advantages. Structural funds : more than 30 billions of Euros 7
Romania’s level of development 8
Disadvantages Structural funds The contribution to the EU budget 1.1 billions Euros in billions Euros in billions Euros in 2009 Insufficient absorption of structural funds 21% in % in 2008 ????? in
Absorption degree in other EU countries,
Advantages. The persons’ freedom of movement The possibility of travelling (the Schengen Area) The possibility of studying abroad The possibility of working abroad ( )
2+3+2 No more restrictions: Estonia, Finland, Poland, Slovakia, Czech Republic, Cyprus, Sweden, Slovenia, Latvia, Lithuania, Bulgaria, Spain, Denmark, Greece, Hungary and Portugal Netherland (until July the 1 st 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 Switzerland (2016?) 12
Disadvantages. The persons’ freedom of movement External migration: reasons The price differences (wage differences, profit rates differences, interest rates differences) Income difference Differences in the level of economic development 13
Medium wage 14
Disadvantages. The persons’ freedom of movement External migration: consequences About millions Romanians work abroad Lake 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
The crisis. Consequences Structural funds Labor force Unemployment increase Home return 17
CONCLUSION EU membership could be an opportunity, but it depends on each member state to take advantage of it 18
Thank you for your attention 19