1. Romanian Government Reforms 2009 - 2011 1

2. A.THE ECONOMIC CRISIS – the most severe in the last 60 years B. BUDGETARY DEFICIT of 5.7% (according to the european methodology) in the year with the highest economic growth (7.3%) that led the EU Commission to trigger the excessive deficit procedure. C. AN UNREFORMED STATE and UNREASONABLE DECISIONS of the Tariceanu Government, which undertook social spending on debt, without coverage: 7 normative acts which approved salary increases in 2008 increase of the pension point in 2008, from 581,3 RON to 697,5 RON. The Government had three major opponents in 2008 2

3. The Government Treasury received 7.6 bn. euro according to the stand - by agreement with IMF, European Commission and World Bank 3 * There is another 1 bn. Euro from EBRD and EIB for investment projects in the private sector (no implication from the state) Total amounts drawn up to present: 17,4 bn. euro, out of which 11,942 bn. euro from IMF. 7,6 bn. euro

4. The number of public employees decreased by 158.983 between 2008 and May 2011 4 May 2011

5. The reduction of the gap between public and private average gross earnings 2008 - 2011 5 Public Total Economy Privat

6. Adjusting the public expenditure: 2008 vs. 2011 6 Investment Expenditure Personnel Expenditure

7. Reforms 2009 - 2011 1.Economic recovery 2.Fiscal Framework reform 3.Public Administration reform 4.The reform of Public Sector’s Employees Payment 5.Public Pension reform 6.The reform of Labour Legislation 7.The reform of Social Dialogue 8.The reform of Education System 9.The reform of Health System 10.The reform of Social Assistance 11.The reform of Judicial System 7

8. 1. Economic recovery 8

9. 9 Current GDP Forecast 2009 - 2012 Source: National Forecast Commission, May 2011

10. Government's vision in dealing with the economic and financial crisis A. Structural state reforms B. Measures for reducing the budget deficit and for the recovery of public finances through a major effort of the Government, out of which :  Two-thirds focused on improving and reducing public expenditure;  One third focused on increasing the revenues. C. Measures for relaunching a healthy economic growth and on the long run, at times of major accumulated macroeconomic imbalances that limited the fiscal space necessary for triggering the economic recovery. 10

11. A. Avoiding major economic slippages The general budget deficit would have been close to 10% of GDP in 2009 and to 14% of GDP in 2010 and 2011, in the absence of the austerity measures taken by the Government: 11 Budgetary deficit without Government’s measures Actual/estimated budgetary deficit

12. 50% reduction of fuel consumption expenditure for public institutions and 20% spending reduction for goods and services remained to be executed in the second half of 2010. Reduction of 8,000 positions by reorganising institutions, public authorities and 120 governmental agencies. Prohibition to cumulate pension with salaries in the budgetary system, for individuals with pensions higher than the gross average salary per economy. Recalculation of the special pensions – the service and State military pensions – and their inclusion into the public pension system. The pension point value freezing in 2010 and 2011 and the national gross average salary indexing, as of 2012, by 100% of the inflation and 50% of the real growth of the gross average salary per economy Blocking the access to vacant positions and allowing the occupancy of 15% only of any positions that subsequently became vacant In the budgetary system. Meals and gift vouchers no longer provided for the public sector personnel. 25% wage reduction in the public sector, 15% reduction of unemployment benefits and those for child raising. Improvement and reduction of the reduction of thepublicexpenditure B. Measures to reduce the budgetary deficit B.1. Measures to reduce the public expenditures 12

13. Increasing the standard rate of VAT from 19% to 24%. Increasing the duty on tobacco, alcohol, petrol and gas oil. Tax increase for individuals owning more buildings and for the means of transport with capacity displacement over 2000 cm³. Increasing charges and tax collection by reducing tax evasion. Broadening tax basis by vouchers taxing and by increasing tax on interest and some local taxes. Extension of the health insurance contribution of 5.5% for pensions higher than740 RON per month. Increasing the social contributions percentage up to the January 2008 level Measures to increase the budgetaryrevenues B.2. Measures to increase the budgetary revenues B. Measures to reduce the budgetary deficit 13

14. C. Measures to boost economic recovery 1.Measures to save jobs and boost the absorption of the unemployed 2.Fostering public investments 3.Fostering private investments through state aid 4.Fostering private investments through state guarantees 5.Programmes to support industry and sustainable development 6.“Buy Romanian” Programme 7.“Prima Casă” Programme 8.Measures to accelerate the absorption of EU funds 9.Diminishing the fiscal and administrative burden 10.Improving the business environment through fighting fiscal evasion 11.Supporting the agriculture 14

15. C. Measures to boost economic recovery 1. Measures to save jobs and boost the absorption of the unemployed Subsidies for companies hiring redundant people aged over 45 years or those that are single parents.  The employers are exempted one year from paying unemployment social contributions for those persons employed on a permanent basis.  Amount of the subsidy: 500 RON/month/employed person, for maximum 12 months.  The employers are obliged to keep the employees in activity at least 2 years.  8,543 beneficiaries until 31 st May 2011 (out of 14,650 estimated for 2011) Subsidies for employers that hire redundant people who have 3 years until retirement  Employers benefit monthly from a subsidy of 500 RON, for maximum 3 years.  86 beneficiaries until 31 st May 2011 (out of 315 estimated for 2011) Companies that hire persons on a permanent basis with disabilities for at least 2 years benefit monthly from 500 RON.  The employers are obliged to keep the employees in activity at least 2 years.  83 beneficiaries until 31st May 2011 (out of 250 estimated for 2011) 15

16. C. Measures to boost economic recovery For the last 3 measures:  37,2 mil. RON were allotted from the budget in 2011 – in the first 5 months of 2011, 30,3 mil. RON were already spent. Subsidies for employers that hire young graduates  The employers are exempted one year from paying unemployment social contributions for those persons employed on a permanent basis.  The subsidy period is 12 months (18 months for the graduates – persons with disabilities), and the monthly subsidy depends on the level of studies: 500 RON for primary school and gymnasium; 600 RON for secondary school and post-secondary school; 750 RON for tertiary education.  The employer is obliged to keep in activity the employer for another 2 years after the end of the subsidy period.  Budget in 2011: 93.75 mil. RON.  2,540 beneficiaries until 31 st May 2011 (out of 10,290 estimated for 2011). Fostering the apprenticeship and the young people employment during holidays.  250 RON/month for employers and the monthly value of the services for the theoretical training of the apprentice, not surpassing 100 RON/month.  250 RON/month for student/pupil employed during holidays, for at most 60 days.  Budget in 2011: 457 thousand RON.

17. C. Measures to boost economic recovery 2.Fostering public investments Increasing the budgetary allocations for public investment from 6,3% of GDP in 2008 to 6,5% of GDP in 2011 (from 32.6 bn. RON in 2010, to 35.2 bn. RON in 2011)  Enactement of Public-Private Partnership Law (PPP) 3.Fostering private investments through state aid 1. First pillar: large investment projects State aid for investments over 100 mil. RON, which employ over 500 people.  Example: Turceni energy efficiency project.  The investment amounts to 296,5 mil. euro, out of which 36 mil. euro represents state aid.

18. C. Measures to boost economic recovery Support for large investment projects through state aid scheme for projects over 5 mil. euro that employ at least 50 people.  Beneficiaries: 10 investment projects worth 711,7 mil. euro in 2010, which create 4.767 new jobs. The state aid approved was 214.5 mil. euro.  Examples: The tyre factory of S.C. Pirelli Center of vehicle testing of Renault Technologie Roumanie The factory of components for aerospace industry of S.C. Premium Aerotec The gearboxes factory of Renault Mecanique Roumanie The agricultural complex AAYLEX PROD (poultry abattoir) The Injection Pump Factory of Delphi Diesel Systems Romania Creating a new SUV car model – Automobile DACIA Factory - pumping units for oil drilling - LUFKIN Industries The manufacture of new carriage types for passengers - SC REMAR

19. C. Measures to boost economic recovery 2. Second pillar: support for SMEs Mihail Kogălniceanu Programme for financing the SMEs  The programme enforcement starts in August, 2011.  Subsidy for maximum 70% of the interest rate, but no more than 6,5% per year.  State guarantees for maximum 80% of the credit amount, but no more than 100.000 RON  The Programme is implemented online – reducing birocracy.  Total buget of the subsidies (2011-2013): 165 mil. RON 2011: 24 mil. RON – 4.000 potential beneficiaries 2012: 70 mil. RON – 2.000 potential beneficiaries 2013: 71 mil. RON – 2.000 potential beneficiaries  Total guarantee fund: 400 mil. RON.  The credit line cannot surpass:  125.000 RON/year/beneficiary  30%, respectively 50% of the turnover on the last 12 months for the beneficiaries having other credit lines, respectively the beneficiaries without other credit lines. 19

20. C. Measures to boost economic recovery “Minimis” state aid scheme  Beneficiaries: the projects of 905 SMEs were approved during 2008-2010. The total amount paid was 192 mil. RON. Creation of the sole virtual portal One Stop Shop: www.immoss.rowww.immoss.ro Support for women's entrepreneurship development in the small and medium enterprises sector through the multiannual national programme during 2005-2012  Beneficiaries: 826 women applied online and 232 women attended the entrepreneurial training course in 2010. 600.000 RON were allotted for this programme in 2010.  The absorption rate is 100%. Credit for entrepreneur women – EximBank  Credit line with interest rate subsidied for the SMEs that have women as major stakeholders or are managed by women that are also stakeholders.  Interest rate: 5 points under the market interest rate (minimis aid)  Credit value: maximum 100,000 euro. 20

21. C. Measures to boost economic recovery 3. Third pillar: microenterprises The “START” Programme for the development of entrepreneurial skills among young people and the facilitation of their access to financing  The Programme is created for microenterprises active for less than 2 years.  Grants of maximum 70% of the eligible expenses for the investment project, but no more than 100,000 RON / beneficiary.  2010 Beneficiaries: 71 companies Absorption rate: 100%.  2011: Budget: 10 mil. RON (almost 30% higher than in 2010). 1st phase: 800.000 RON – workshops for entrepreneurial training (8 locations) 2nd phase: 9,2 mil. RON – financing business plans through grants within budget. Maximum number of companies that can be financed: 92. 21

22. C. Measures to boost economic recovery The National Multiannual Programme for the creation and development of technological and business incubators.  Budget allotted and spent in 2010: 2,9 mil. RON (absorption rate: 100%).  Budget allotted in 2011: 6,15 mil. RON, double as compared to 2010.  3 incubators created in 2006  Alba Iulia – 13 incubated firms (86 new jobs)  Braşov – 17 incubated firms (37 new jobs)  Sfântu Gheorghe – 17 incubated firms (48 new jobs)  2 incubators created in 2010  Tg-Mureş – 20 incubated firms  Mangalia – 8 incubated firms  1 incubator created in 2011 up until now: Bacău  4 incubators by the end of 2011: Timişoara, Satu Mare, Câmpia Turzii, Dorohoi. 22

23. C. Measures to boost economic recovery The Programme for young entrepreneurs  Grants up to 10,000 euro, but no more than 50% of the business plan’s value. Both the young who obtains the credit and the one co-financing the business plan from own sources can benefit from the grant.  The National Guarantee Fund provides guarantees for the loans needed for the business plan, covering 80% of the loan, but no more than 80,000 euro.  The new employer is exempt from the payment of social security contributions for up to 4 employees, but he must employ at least two persons.  1.069 files submitted, out of which 446 files approved (from 657 files assessed) – up to 4th July 2011.  Up to 14 th July 2011, 4,361 companies were recorded at the National Trade Register Office - out of which 2,809 are currently already registered.  Most companies were registered in Bucharest (498) and Cluj (319), followed by the next counties: Braşov (231), Dolj (187), Timiş (176). 23

24. C. Measures to boost economic recovery 4.Fostering private investments through state guarantees Support for SMEs through FNGCIMM  Beneficiaries: 9000 guarantees worth over 650 mil. euro in 2010, which led to the creation/preservation of over 195.000 jobs.  Beneficiaries: FRC issued 1860 indemnities totaling 371,6 mil. RON for financing projects of 1.401 mil. RON, for 1.630 SMEs which employ over 45.350 employees, in 2010. Providing government guarantees of 80% of the loan for beneficiaries of projects financed from structural funds in priority areas for the Romanian economy, for maximum 4 years.  Beneficiaries: FNGCIMM issued guarantees that amount to approx. 19 mil. RON in 2010 for the implementation of investment projects of about 450 mil. RON.  Total ceiling of guarantees that may be issued in 2011 amounts to 300 mil. euro. 24

25. C. Measures to boost economic recovery 5. Programmes to support the industry and the sustainable development Programme for the improvement of the industrial products competitiveness  Funds allotted in 2011: 15.102 mil. RON  Funds allotted in 2010: 18.903 mil. RON.  Beneficiaries: 37 completed projects Support for market traders and services through the development and modernization Programme  5 mil. RON allotted in 2010 1793 companies applied online for 188 projects, out of which 117 contracts were concluded. The absorption rate is 98%.  For 2011 the Government allotted a total budget of 7 mil. RON, which is 40% higher than in 2010. 25

26. C. Measures to boost economic recovery “Rabla” Programme  2010  Beneficiaries 189,323 used cars traded-in scrappage 62,550 new cars purchased, out of which 25,263 Romanian cars  Total funds: 722 mil. RON  2011  Beneficiaries (until 5 th of July 2011) 56,644 cars taken from collectors 8,141 new cars purchased, out of which 2,773 are Romanian cars  Total funds: 544.5 mil. RON, out of which 88.5 mil. RON payments for 2010 are from the budget allotted for 2011. 26

27. “Green House” Programme – for individuals  2010  18.000 files submitted, out of which 16.000 files financed  Budget:110 mil. RON  2011 ( The session was open on 01.06.2011)  Number of files submitted: 18.987  Budget: 100 mil. RON The national multiannual programme for increasing the energy efficiency in residential buildings  Budget in 2010: 300 mil. RON, out of which budgetary loans:150 mil. RON.  In 2011, the budgetary loans allotted worth 150 mil. RON.  Beneficiaries in 2010-2011: 29.000 flats. C. Measures to boost economic recovery

28. 28 The programme regarding the growth of energy production from renewables  52 projects about to be financed, worth over 906 mil. RON. 6. “Buy Romanian” programme  Aims at increasing the institutional capacity of Ministry of Economy to formulate, implement, coordinate and monitor public policies and boosting the Romanian economy.  The funding (5.2 mil. RON) comes from European funds (Operational Programme Administrative Capacity Development). The programme duration: one year from the signing of the financing contract.

29. C. Measures to boost economic recovery 29 7. “Prima casă” programme has been improved Prima Casă 4 (1 st June – 4 th July 2011):  298 guarantees for dwellings, worth 6.1 mil. euro.  Beneficiaries: every person who not owns a dwelling in exclusive property or with the husband / wife, no matter how and when it was acquired, or owns at most a dwelling in exclusive property or with husband / wife, acquired in any other way than through the Prima Casă Programme, having a surface area of maximum 50 sqm.  The funders (banks) have the possibility to use a threshold level of 50% of the guarantees provided under the Prima Casă Programme, with a proportional sharing of risks and losses between the state and the funder. In 2011: 5,416 guarantees, worth 205.7 mil. euro (for the programmes Prima Casă 3 and Prima Casă 4). Overall programme Prima Casă (1-4): 40,375 guarantees up until now, worth 1.635 bn. euro.

30. 8.Measures to accelerate the absorption of EU funds The granting of financial facilities to the beneficiaries:  Doubling the maximum pre-financing quota, from 15 to 30% of the eligible value.  Providing pre-financing also to the private beneficiaries which enjoy state support, up to 35% of the grant’s value.  The private beneficiaries have the option to open project accounts with commercial banks.  The obligation for the micro-enterprises to provide their own contribution to the eligible costs (in the POR) is removed.  Speeding up the auction procedures, by modifying the legislation concerning the acquisitions. Simplification of the applicant’s guide: at the project’s submission, some documents are no longer required or are replaced with statements on the applicant’s own responsibility. The Management Authority has the possibility to sign financing contracts with a value up to 20% higher than the allotment approved through the operational programmes (“over-contraction”), in order to assure a faster pace of absorption, to offset the savings on some projects and to anticipate any unforeseen ineligible expenses. C. Measures to boost economic recovery 30

31. C. Measures to boost economic recovery 9.Diminishing the fiscal and administrative burden for companies in difficulty through: Despite of the budgetary constraints, the flat tax rate of 16% was maintained. The VAT payback procedure was improved. Until now, 237 of taxes and tariffs were reduced/unified, from 491 at the beginning of 2009. The minimum tax was eliminated starting from October 2010. The single statement regarding the social contributions and the record of insured persons was implemented from 1 January 2011. The single statement will be completed exclusively online starting from 25 th August 2011. Central and public administration debt to economic agents has halved since 2008. The level of interest rate due for tax debts to the state budget, social security budget, not paid on time, was reduced from the 0.05% (18.25% annually) to 0.04% for each day of delay (14.6% annually). 31

32. C. Measures to boost economic recovery 32 10. Measures for fighting fiscal evasion: Implementing the control of reach individuals. Implementing the control of electronic trading. Completion of the integrated border security customs system. Elimination of the illegal trade with cigarettes from the duty-free shops. Creation of the Register of intra-EU operators, comprising all the taxable and non- taxable legal persons who perform intra-EU operations. Development of IT transeuropean systems, which exchange information between them, and which support customs functions in the “Electronic Customs” programme. Monitoring the movement of excise products under suspension. Romania was one of the first countries of EU that has implemented the informatic system of surveillance and control of these products at intra – EU level. Application of the reverse charge for VAT, for the delivery of certain types of cereal and technical plants - the beneficiary must pay the tax, instead the supplier (the measure is available until 31 st May 2013).

33. C. Measures to boost economic recovery 33 Results obtained in 2010, by the tax inspection bodies, Garda Financiară and Autoritatea Naţională a Vămilor, following the 329.994 inspection and control actions:  Supplimentary amounts determined: 11.622 mil. RON (74% more than in 2009)  Value of established damages: 7.045 mil. RON (24% more than in 2009)  Precautionary measures: 5.164 mil. RON (121% more than in 2009) The value of outstanding amounts from returns with negative amounts of VAT with refund option, presented by taxpayers, recorded, in general, a downward trend from 2008 up to present: from 3.382 mil. RON in December 2008 to 1.714 mil. RON in May 2011. The number of days which exceeds the legal term for processing the requests for reimbursement has been reduced, and is represented by the decreasing number of requests for reimbursement which exceeded the legal term of 90 days: from 1.814 requests in December 2008 to 746 requests in May 2011.

34. C. Measures to boost economic recovery 34 11. Supporting the Agriculture „Primul siloz” Programme  Beneficiaries: 240 certificates of deposit have been issued since 2009 until 30 th June 2011;  At present, 98 certificates are in circulation of a total amount of 269 mil. RON guaranteed by the Administrator of the scheme – the Rural Credit Guarantee Fund, of the amounts allotted by the Ministry of Agriculture and Rural Development. The National Rural Development Programme (2 nd pillar of the Common Agricultural Policy)  Projects completed up to 30 th June, 2011: 1,777.  Submitted projects: 69.686 worth over 14,7 bn. euro.  Selected projects : 47.692 worth over 4,4 bn. euro.  Contracted projects: 30.072 worth approx. 4 bn. euro.  Payments: 2.12 bn. euro (21% of the 2007-2013 allocation).  For 2011: 16 sessions for the projects’ submission, with a total financial allocation of 1.64 bn. euro. Payments per surface for farmers (1 st pillar of the Common Agricultural Policy)  In 2011, the subsidy per hectare will reach more than 170 euro, 40 euro higher than last year.  Payments in advance for 80% of farmers, until February 2011.  In 2011, over 2 million hectares will be introduced in farming, reaching the largest area of ​​ land worked in the past 20 years.

35. 2. Fiscal Framework reform Fiscal-budgetary responsibility Law 69/2010 represents a turning point in public finances and establishes the principles, objectives and priorities of the multiannual budgetary and fiscal policy: introduces expenditure ceilings, reduces the number of budget adjustments, eliminates the risk of populist decisions around election campaigns and sets up The Fiscal Council etc. The main objective is to gradually reduce the budget deficit to 3% in 2012. These reforms aim at reducing the tax and administrative burden:  Compensation of the VAT to be paid with the VAT to be reimbursed - development of a unified computer selection system of VAT returns from the national database, according to which “the oldest return goes first”.  Forced execution can be suspended or delayed, according to the new regulations - applied in case the taxpayer has an application in progress for refund/reimbursement or submits one and the amount requested is equal to or greater than the fiscal claim because of which the execution started.  Reduction of the level of interest rate due for tax debts to the state budget, social security budget, not paid on time, from the present 0.05% (18.25% annually) to 0.04% for each day of delay (14.6% annually). For budgetary debts owed to local governments, the interest rate was reduced from 3% (36% annually) to 2% (24% annualy) for each month of delay. 35

36. 36 Recent changing of the Accounting Law  2 specific objectives: reduction of costs for companies drawing up financial statements; reduction of bureaucracy in financial administration.  We introduce a simplified accounting system for small businesses that meet two cumulative conditions: their assets and turnover are less than 35,000 euro: these companies will prepare 2 financial statements instead of 5; these companies do not report the balance sheet biannually, but the annual balance sheet only; the balance sheet and the profit and loss account will be elaborated in the simplified accounting system with a small number of components and a plan of 50 accounts instead of 400 accounts; accounting documents can be signed also by people with higher economic studies, not only by expert accountants, based on a civil convention.  349.000 companies (57% of the total active companies in the market) are benefiting from these measures. 36

37. 3. Public Administration reform  By imposing personnel norms for central and local public authorities, the public apparatus was reduced from 1.398.757 people in December 2008 to 1.239.774 people in May 2011.  141 governmental agencies were abolished, merged or restructured.  E-governance to eliminate bureaucracy:  Development of e-ROMANIA National Platform and National Electronic System (SEN).  Electronic Single Point of Contact - sets out the online interaction between public institutions in Romania and service providers.  Results: in 2010 there were savings of around 3 bn. RON as a result of the transparent procedures development for electronic procurement SEAP. 37

38. 4. Reform of the Public Sector Employees’ Payment  The Unitary Payment System Law regulates the payment for all categories of personnel paid from public funds, unlike the previous period when this remuneration was comprised in 39 Laws.  Expected results: the ratio between the basic minimum salary and the maximum one of the public sector employees is 1 to 15, approaching the best European practices; harmonization of the payment system for the public sector employees take into account the importance, the responsibilities and the complexity of the activity and the required level of education for the activity performed; a new hierarchy of basic salaries has been created, both between different fields of activity and within the same field, depending on the complexity and the importance of the activity; salary increases necessary for achieving this objective take into account the macroeconomic indicators and the evolution of social indicators; compliance with the salary bill of 39 billion RON for 2011. 38

39. 5. Public Pension reform  Under the legislation adopted in the pension system: the financial sustainability of the pension system on the medium and long term is ensured ; the contributiveness principle is enforced in the public pension system; the retirement laws which are not in compliance with the contributiveness principle were abolished and special pensions were recalculated; a minimum social pension of 350 RON was established; the cumulation of pension incomes with salary incomes in the public sector is prohibited for those with pension incomes higher than the average gross salary in the economy; reduction of the number of early retirements; more severe criteria are implemented for granting disability pensions; starting with the 1 st of January 2011, working groups I and II are entitled to payments, this means 1.541.000 pensioners; the budgetary effort amounts to 403 mil. euro in 2011. in 2012, pensions will increase by 100% of the inflation rate, plus 50% of the real growth of average gross salary for the previous year. 39

40. 6. The reform of Labour Legislation  A new Labour Code was implemented. Main objectives: increasing the flexibility of the work relationships; adapting the work relationships to the dynamics of the labour market; maintaining the Code’s regulations in line with the European legislation; discouraging the illegal employment by adopting tougher sanctions; establishing performance as a criteria in the labour contracts and in the work relationships. Since the entry into force of the new Labour Code, 1 st May 2011, until 11 th July 2011, the number of recorded employment contracts increased by 648,435 (out of which 65.87% are on a permanent basis). 40

41. 41 The number of employment contracts concluded is 144,111 higher than in 2008

42. 7. The reform of the Social Dialogue  The Government decided to promote the Social Dialogue Law by assuming responsibility, according to art. 114 in the Romanian Constitution.  The Social Dialogue Law completes the Labour Code: it reforms the way the trade unions, the employers unions, the Economic and Social Council are organized; it adapts to Romania’s present needs the rules that concern the collective work contracts and labour conflicts solving. 42

43. 8. The reform of the Education System  By implementing the National Education Law, the Romanian educational system was fundamentally reformed.  The main modifications concern : the rethinking of the role of the early education; the quality insurance of the public primary and secondary education system; establishing an educational system based on training skills rather than the assimilation of information; the re-configuration of the National Curricula; the implementation of an Educational Portfolio; the implementation of the financing per student principle – public money allocation will became transparent and will comply with the strategic educational targets, according to the financing follows the student principle; the implementation of the School after School Programme; the support of the children and of the young people capable of high performances; the provision of equal access to study in the Romanian universities; the definition of university types and classification of university ranking as well as the implementation of a proper methodology for the hierarchisation of the programmes of study; the redefinition of the PhD by instituting two types of PhD, the Scientific and the Professional one. 43

44. 9. The reform of the Health System  The implemented measures aim at: the decentralization of the health system and the increase of the degree of participation of the local authorities in the management of the hospitals – of the 435 public hospitals subordinated to the Ministry of Health, 370 were transferred to the local public authorities; the restructuring of the hospital system; the introduction of a national health card; the implementation of the copayment mechanism, except for the social vulnerable groups or for those with a small income; the control of the expenditure on medicines; the increase of the patients’ access to modern treatments, at accessible costs, by introducing a new policy of medicines price control and by introducing new technologies; the increase of the collection basis for the health insurances, by addressing the pension revenues of more than 74 RON; the development of public-private partnerships and the attraction of the business environment in the development of integrated sanitary systems; the beginning of the process of introducing standards at all the levels of the Romanian health system and of a system that guarantees the quality of the medical services. 44

45. 10. The reform of the Social Assistance  At least the following objectives are envisaged: the orientation of the social assistance programmes according to the value of the family revenues and the restructuring of the about 200 national and local social benefits; the consolidation of the guaranteed minimum income programme, of the aid for the payment of the heat invoices and of family allowance in a new single frame; the finalization of the decentralization of the social services in the field of domestic violence, in order to increase the local authorities’ responsibility, and to ensure the necessary financial resources; the development of the support services responsible for the integration of the Roma families in the society; the provision of the socio-economic balance of the families living in an urban and rural space, of the elderly, of the disabled and of their families; the rethinking of the legal and institutional framework concerning the protection of the mothers, the increase of the birth rate, the decrease of child abandon and the diminution/decrease of the domestic violence phenomenon, the increase of the quality of the children’s life in difficult environments and the minimum quality standards meeting in all the special services dedicated to children in need; the rethinking of the social protection measures for the families with special needs and the increase of the degree of dynamism of the active measures of the family solidarity; the increase of the active participation of the civil society and the sustainable development of the partnership in favour of family development and protection. 45

46. 11. The reform of the Judicial System  Four new codes were implemented – the Civil Code, the Criminal Code, the Civil Procedure Code and the Criminal Procedure Code – in order to restore the judicial system’s credibility, by enhancing the transparency, by simplifying the legal framework and by improving the accessibility degree. The positive aspects of these reforms are already visible in the reports issued by the Cooperation and Verification Mechanism. The Law of the Small Reform of the Judicial System was also adopted (Law 202/2010).  Expected results : : the speeding up of the trials; the simplification of the procedures; the diminishing of the costs; the improvement of the quality of the act of justice by enhancing the accountability and the specialization of both judges and prosecutors; a more effective delimitation of the material competence, the unification of the jurisprudence and the transformation of the act of justice into a predictable process; the adjustment to normal limits of the sanctioning treatment; the development of the business environment, both by the revision of contract regulation and by inclusion of distinct regulation of contracts specific to the banking sector. 46

47. Economic impact of the decisions made

48.  Collected budgetary revenues in GDP reached in 2010 the highest level in the last 6 years (33% of GDP).  Budgetary deficit is under control As compared to 7.3% in 2009, the budget was elaborated in 2011 in order to reduce the deficit to 4.4%, and in 2012 to less than 3% of GDP.  Current account deficit is almost 38% lower In the first 5 months of 2011, it amounted to 1,8 bn. euro, which is 37.7% lower as compared to the first 5 months of 2010.  Vulnerability caused by the large short – term external debt was corrected In 2010, the short-term external debt was 18.4 bn. euro, as compared to 20.6 bn. euro irresponsibly engaged in 2008. The share of short-term external debt in the total external debt decreased from 28.5% in 2008 to 20.3% in 2010. The share of short-term public debt in the total public debt decreased from 45.1% in 2008 to 32.9% in 2010.  Average inflation is decreasing From 7.85% in 2008 to 6% in 2010 and we are forecasting a level of 5.1% in 2011.  Credit recovery is taking place through the major cost reduction Monetary policy interest rate decreased form 10.25% in 2008 to 6.25% at the moment. Correcting deficits and vulnerabilities 48

49. Structure of budgetary revenues: 2008 – 2011 (% GDP) 49

50. Structure of public expenditure: 2008 – 2011 (% GDP) 50

51. 51 Romania is no longer in recession In the first quarter of 2011 the GDP increased by 1.7% (unadjusted series) as compared to the first quarter of 2010, and by 0.7% (seasonally adjusted series), as compared to the fourth quarter of 2010. Romanian industry remains a pillar of economic growth:  Industrial production grew by 5.5 % in 2010 as compared to 2009 and by 8.9% in the first four months of 2011, as compared to the same period of last year;  Work productivity is increasing considerably in this sector, by 17% in 2010 as compared to 2009, by 30% as compared to 2008 and by 11.2% in the first four months of 2011, as compared to the same period of 2010;  The turnover in industry grew by 20.4% in the first five months of 2011; new industrial orders increased by 23.5% in the first five months of 2011. In 2010, exports recorded their highest level in the whole history of Romania.  The total value of 37.3 bn. euro in 2010 exceeded by 3.6 bn. euro the level recorded in 2008;  Trade deficit (FOB-FOB) in 2010 diminished with 69% as compared to 2008.  In the first five months of 2011, goods export was 33,8% higher than in the first five months of 2010, totaling 76.26 bn. RON.

52. Germany Italy France Turkey Hungary United Kingdom Bulgaria Spain Netherlands Poland Other countries Main export partners in 2010 (share in total exports)

53. Romanian exports on the main areas of activity in 2010 Products of agriculture and hunting 4,9% Wearing apparel 6,3% Machinery and equipment 7,1% Motor vehicles, trailers and semi-trailers 16% Coke products 4,8% Chemicals and chemical products 4,1% Basic metals 7% Computer, electronic and optical products 10% Electrical equipment 8% Rubber and plastic products 4,2% Other products 28%

54. Evolution of FDI flows attracted by Romania during 2000-2011 (mil. euro)

55. FDIs amounted to 799 mil. euro in the first five months of 2011, covering 43.9% of the current account deficit. The construction sector returned to a positive trend in May 2011  The volume of construction works increased in May 2011 with 16% as compared to the previous month and with 3.4% as compared with May 2010. The unemployment rate is stabilising this year at the level recorded in 2008:  After an increase from 4.4% in 2008 to 8.36% in March 2010, the unemployment rate started decreasing every month, to 4.78% in June 2011.  The number of people receiving redundancy payments has diminished by 156.9 thousand people in May 2011 as compared to December 2011, which means that the number of people who got employed exceeded the number of people who were laid off, as a result of a better economic activity;  In the first five months of 2011, a number of 176.9 thousand people got employed; for the whole year 2011 we are estimating a number of 338 thousand people to get employed. Romania is no longer in recession 55

56. The unemployment rate is decreasing towards the level recorded in 2008 56 Source: National Forecast Commission, July 2011 Number of recorded unemployed people (right axis) Unemployment rate (left axis) In thousands

57. Public and private investments 57 According to Fitch Agency, in July 2011, Romania came back to “investment grade” category. The budgetary allotment for public investments increased to 35.2 bn. RON in 2011, namely 6.5% of GDP, compared to 6.3% of GDP in 2008 (the year with the highest economic growth).  In the first 6 months of 2011, the public investment expenditure (capital expenditure and the expenditure for the development programmes financed externally and internally) was 14.5 bn. RON, 2.8 bn. RON higher compared to the same period in 2010. The percentage of private investments in GDP was 17.2% in 2010 (according to Eurostat, 2011).  In 2010, Romania ranked 2 nd in EU-27, as percentage of investments in GDP (22.7%).  Bulgaria ranks 1 st (investments of 23.5% of GDP). The Czech Republic (21.3%), Slovakia (20.3%), Poland (19.5%) and Hungary (19.3%) rank after Romania. The forecasts for the current year point to a growth in the percentage of investments in GDP in Romania, up to 23.2%, the highest level in EU-26 (data not yet available for Bulgaria).

58. In the first 5 months of 2011, payments made for projects financed from EU funds have increased by 61.5%, as compared to the same period of 2010. Payments made to beneficiaries: 2.65 bn. euro (13.04% of the 2007-2013 allocation), out of which: :  Prefinancing of 1.58 bn. euro  Reimbursements of 1.06 bn. euro Submitted projects: 28.627 worth 53.2 bn. euro Approved projects: 8.231 worth 18.9 bn. euro  EU contribution = 12 bn. euro Contracted projects: 6.217 worth over 13.3 bn. euro  EU contribution = 10.5 bn. euro Absorption of European Funds at 8 th July 2011 58

59. What next? Short and Medium Term Plans 1.The prioritization of the multiannual strategic investments 2.Implementing the National Infrastructure Development Programme 3.European Funds absorption 4.Solving the problem of arrears 5.Restructuring of the state-owned enterprises 6.Sell of minority stakes held by the state in different companies 7.Public – Private Partnership Law implementation 8.Further Health System Reform 9.Social contributions cutting 10. Decentralization of public institutions 59

60. 1.Prioritization of multi-annual strategic investments The creation, by a working group under the authority of the Prime Minister, of a database / a list of primary investment projects to provide fund-raising over the next 3-5 years. The improvement of the monitoring and evaluation for the investment projects, at the central authorities level, in particular by improving the database on equity investments managed by the Minister of Public Finances, which will include information on the state of the projects, such as delays in implementation or cost overruns. The implementation of the Government’s Action Plan in order to accelerate the absorption of EU funds and of the National Infrastructure Development Programme. Capital public expenditure reorientation towards a gradual shift from investments financed entirely from domestic sources to investments cofinanced from EU funds; providing about 4% of GDP for capital expenditures corresponding to the investments cofinanced from EU funds, including those from external loans, in 2012. 60

61. 2. National Infrastructure Development Programme 3 subprogrammes: The 10,000 km roads subprogramme  In all counties there have been auctions for construction works. The first opening bid: at the end of June, followed by the opening of all offers in 8 th July.  9,016 km of roads will be repaired. The modernization subprogramme for localities  About 650 nurseries and kindergartens will be built in urban and rural areas (an average of 15 per county) on 3 categories, depending on the number of children groups.  Between 13 th and 17 th June 2011, there have been auctions for 635 nurseries/kindergartens, valued at approx. 760 mil. RON. Water supply and sewage subprogramme  The approval of the technical and economical indicators for water supply systems of localities is in work.  The amount allotted is 700 mil. euro for almost 600 localities, depending on the volume and type of work. 61

62. Autostrazi in pregatire Timisoara Arad Sibiu Bucuresti Orastie Constanta Autostrazi in executie Autostrazi cu lansare in 2010 - 2011 Bucuresti Cernavoda LEGENDA Autostrazi executate PROGRAMUL DE CONSTRUCTIE AUTOSTRAZI Road infrastructure – The highways construction programme THE HIGHWAYS CONSTRUCTION PROGRAMME Highways to be started in 2010-2011 Highways in preparation LEGEND: Finished highways Highways in construction FINISHED 313,5 KM IN CONSTRUCTION 276 KM 2974 MEUR SIGNED 158,11 KM 1121 MEUR ABOUT TO BE SIGNED 25,6 KM 134 MEUR UNDER AUCTION 72,1 KM 945 MEUR TOTAL 845,3 KM 5174 MEUR

63. Timisoara Arad Sibiu Bucuresti Orastie Constanta Bucuresti Cernavoda LEGEND Highways finished PROGRAMUL DE CONSTRUCTIE AUTOSTRAZI Road infrastructure – Finished highways CAMPIA TURZII - GILAU Length: 51,5km Total value: 236 MEuro Financing: The state budget out of which: VAT 45 MEuro Lands 50 MEuro In exploitation BUCURESTI - PITESTI Length: 111 km Financing: The state budget In exploitation BUCURESTI - CERNAVODA Length: 151 km Financing: The state budget, EIB, ISPA In exploitation TOTAL 313,5 km FINISHED HIGHWAYS

64. Road infrastructure – Highways in construction Deva SUPLACU de BARCAU - BORS Length: 64 km Total value: 963 MEuro Financing: State budget out of which: VAT 153 MEuro Lands 55 MEuro VARIANTA DE OCOLIRE ARAD Length: 12,3 km Total value: 173 MEuro Financing: - EIB 76 MEuro - FC 40 MEuro - State budget 57 MEuro ARAD - TIMISOARA Length: 32,2 km Total value: 194 MEuro Financing: - EIB 85 MEuro - FC 44 MEuro - State Budget 65 MEuro MOARA VLASIEI - PLOIESTI Length: 42,5 km Total value: 318,60 Meuro C+M : 251,00 MEuro Lands: 17,00 MEuro Consultancy: 2,2 MEuro VAT: 48,4 MEuro BUCURESTI – MOARA VLASIEI Length: 19,5 km Total value: 492 Meuro C+M : 200 MEuro Lands: 291,00 MEuro Consultancy: 1,0 MEuro VAT: 38,2 MEuro Financing: State budget MEDGIDIA - CONSTANTA Length: 31,5 km Total value: 203 MEuro Financing: - FC 35 MEuro - EIB 111 MEuro - State budget 58 MEuro CERNAVODA - MEDGIDIA Length: 19,3 km Total value: 211 MEuro Financing: - FC 36 MEuro - EIB 115 MEuro - State budget 60 MEuro VARIANTA DE OCOLIRE CONSTANTA Length: 22,1 km Total value: 192 MEuro Financing: - FC 53 MEuro - EBRD 75 MEuro - State budget 64 MEuro DEVA – ORASTIE Constructor: Strabag AG / Strabag SRL / Straco Grup Length: 32,80 km Value (VAT included): 228,65 M EUR HIGHWAYS IN CONSTRUCTION Legend Highways in construction TOTAL 276 km AMOUNT 2,97 MLD EURO COMPLETION 2011-2012

65. Timisoara Arad Sibiu Bucuresti Orastie Constanta Bucuresti Cernavoda PROGRAMUL DE CONSTRUCTIE AUTOSTRAZI ORASTIE – SIBIU si Bypass SEBES Lot 2 –km 24+100 – km 43+855 Constructor: Asocierea Straco Grup SRL – Studio Corona SRL Civil Engineering Length: 19,74 km Value (VAT included): 114,26 M EUR Execution period: 2011 - 2013 ORASTIE – SIBIU si Bypass SEBES Lot 4 – km 65+965 – km 82+070 Constructor: Asocierea Astaldi SpA – Euroconstruct ‘98 SRL – Astalrom SA Length: 16,1 km Value (VAT included): 146,63 M EUR Execution period: 2011 - 2013 ORASTIE – SIBIU si Bypass SEBES Lot 1 – km 0+000 – km 24+100 Constructor: SC STRABAG SRL Length: 24,1 km Value (VAT included): 166,65 M EUR Execution period: 2011 - 2013 NADLAC – ARAD si drum de legatura Lot 1 – km 0+000 – km 22+180 Constructor: Asocierea Romstrade – Monteadriano Engenharia e Construcao – Donep Construct Length: 22,18 km Value (VAT included): 115,8 M EUR Execution period: 2011 - 2013 NADLAC – ARAD si drum de legatura Lot 2 – km 22+180– km 38+882 Constructor: Alpine Bau GmbH Length: 16,98 km Value (VAT included): 124,45 M EUR Execution period: 2011 - 2013 TIMISOARA - LUGOJ Lot 1 – km 44+500 – km 54+000 Constructor: Asocierea Spedition UMB SRL – Technostrade SRL – Carena SpA Impresa de Construzioni Length: 9,5 km Value (VAT included): 63,62 M EUR Execution period: 2011 - 2013 LUGOJ - DEVA Lot 1 Lugoj – Dumbrava km 0+000 – km 27+400 Constructor: Asocierea Tirena Scavi SpA – Societa Italiana per Condotte d’Acqua SpA – Cossi Constructioni SpA Length: 27,4 km Value (VAT included): 205,9 M EUR Execution period: 2011 - 2013 ORASTIE – SIBIU si Bypass SEBES Lot 3 – km 43+855 – km 65+965 Constructor: Impregilo SpA Length: 22,11 km Value (VAT included): 182,91 M EUR Execution period: 2011 - 2013 HIGHWAYS WITH POS-T AGREEMENTS SIGNED MAY – JUNE 2011 Road infrastructure – Highways with POS-T agreements signed TOTAL 158,11 km VALUE 1121 MIL EUR COMPLETION 2013

66. Timisoara Arad Sibiu Bucuresti Orastie Constanta Bucuresti Cernavoda PROGRAMUL DE CONSTRUCTIE AUTOSTRAZI Road infrastructure – POS-T highways - agreements about to be signed AUTOSTRAZI POS-T CARE URMEAZĂ A FI SEMNATE TIMISOARA LUGOJ Lot 2 – km 54+000 – km 79+625 Constructor: Length: 25,62 km Value(VAT included): 134,78 M EUR Execution period: 2011 - 2013 POS-T HIGHWAYS WITH AGREEMENTS ABOUT TO BE SIGNED TOTAL 25.62 km VALUE 134,78 MIL EUR COMPLETION 2013

67. Timisoara Arad Sibiu Bucuresti Orastie Constanta Bucuresti Cernavoda PROGRAMUL DE CONSTRUCTIE AUTOSTRAZI Road infrastructure – POS-T highways about to be auctioned LUGOJ - DEVA Lot 2 – km 27+400 – km 65+500 Length: 38,1 km Estimated value: 428,37 M EUR Execution period: 2011 – 2015 AUCTION START – JUNE 2011 LUGOJ - DEVA Lot 3 – km 65+500 – 99+500 Length: 34 km Estimated value: 517,2 M EUR Execution period: 2011 – 2015 AUCTION START – JUNE 2011 POS-T HIGHWAYS ABOUT TO BE AUCTIONED TOTAL 72,1 km VALUE 945.57 MIL EUR FROM THE TOTAL SAVINGS OF 600 MEURO FROM THE PREVIOUS AUCTIONS AND BRIDGE PROJECT, IN THE 2014- 2020 PERIOD

68. SERBIA NATIONAL ROADS REHABILITATION WITH AGREEMENTS OF CONSTRUCTION SIGNED IN THE SEPT. 2010 – MAY 2011 PERIOD 15A DN 15A, Reghin – Saratel Km 0+000 – km 46+597 DN 15, Reghin – Tg. Mures Km 78+800 – km 103+700 Constructor: Spea Length: 71,5 km Value (VAT included): 39,74 M EUR Current stage: mobilizare constructor 15 14 DN 14, Sibiu – Medias – Sighisoara Km 3+500 – km 51+100 Km 57+500 – km 89+400 Constructor: Strabag SA Length: 79,5 km Value (VAT included): 39,72 M EUR Current stage: in execution DN 73, Largire la 4 benzi intre km 7+000 si km 11+100 si drum de legatura cu DN 73D Constructor: Genesis & Straco Length: 7,28 km Value: 35 M EUR Current stage: in execution DN 5, Bucuresti – Adunatii Copaceni Km 7+573 – km 19+220 Constructor: SC ROMSTRADE SA Value: 19,57 M EUR Length: 11,647 km Current stage: in execution DN 6, Alexandria – Craiova Lot 1 – km 90+190 – km 132+435 Constructor: Shapir Structures 1991 Value: 42,54 M EUR Length: 42,245 km Current stage: in execution DN 24 / DN 24B, Limita jud. Galati/Vaslui - Crasna – Albita LOT 1 – DN 24, km 51+000 – km 90+000 Constructor: Asocierea SC Spedition UMB SRL - Tehnostrade Value: 22,56 M EUR Length: 39 km Current stage: order to start works issued on 10.05.2011 24 24B DN 6, Alexandria – Craiova Lot 2 –km 132+435 – km 185+230 Constructor: Asocierea Romstrade – Ezentis – Euroconstruct Trading 98 SRL Value: 41,30 M EUR Length: 52,8 km Current stage: in execution DN 6, Alexandria – Craiova Lot 3 – km 185+230 – km 222+182 Constructor: Secol SPA – Secol Romania SRL Value: 36,1 M EUR Length: 36,952 km Current stage: : in execution 1H DN 1H, Zalau - Alesd Lot 2 – km 26+510 – km 69+334 Constructor: Asocierea SC SPEDITION UMB SRL - Tehnostrade Value (VAT included): 26,28 M EUR Length: 42,824 km Current stage: 19 May – order issued to start works DN 1H, Zalau - Alesd Lot 1 – km 0+000 – km 26+510 Constructor: Asocierea OHL ZS – PEYBER HISPANICA SL – SC Societatea de intretinere si reparatii Drumuri Timisoara Value: 21,9 M EUR Length: 26,51 km Current stage: 19 May – order issued to start works DN 24 / DN 24B, Limita jud. Galati/Vaslui - Crasna – Albita LOT 2 – DN 24, km 90+000 – km 105+070 DN 24B, km 0+000 – km 22+000 Constructor: Asocierea SC Spedition UMB SRL - Tehnostrade Value: 23,95 M EUR Length: 37 km Current stage: order to start works issued on 10.05.2011 DN 24 / DN 24B, Limita jud. Galati/Vaslui - Crasna – Albita LOT 3–DN 24B, km 22+000 – km 47+881 Constructor: Asocierea SC Spedition UMB SRL - Tehnostrade Value: 21,5 M EUR Length: 25,8 km Current stage: order to start works issued on 10.05.2011 Rehabilitation of National Roads, with agreements signed: (sept. 2010 – may 2011): Length: 473,06 km Amount (VAT included): 370 MEURO Out of which: Financing from ERDF Length: 314,78 km Amount (VAT included): 255,6 MEURO Financing from the State: Length: 7,28 km Amount (VAT included): 35 MEURO Financing from EIB: Length: 151 km Amount (VAT included): 79,4 MEURO

69. Pasaj denivelat pe varianta de ocolire Arad peste CF Brad - CF Curtici - DJ 709B Constructor: SC CCCF Drumuri si Poduri TImisoara SRL Length: 1,37 km Value (VAT included): 7,35 M EUR Current stage: in execution Execution period: 2011 – 2012 Pasaj denivelat pe varianta de ocolire Arad (DN7, km 540 +248) peste CF Arad - Bucuresti Constructor: SC Confort SA Timisoara&SC Vel Service SA Buc. Length: 1,37 km Value (VAT included): 7,35 M EUR Current stage: in execution Execution period: 2011 - 2012 Pod pe DN 54, km 67+774 peste Sai si varianta noua de traseu DN 54, Turnu Magurele, km 65+950 – km 70+600 Constructor: SC TELDRUM SA Length: 4,7 km Value (VAT included): 4,06 M EUR Current stage: contract executie semnat Execution period: 2011 – 2012, in functie de alocatia bugetara Varianta de ocolire CARACAL Constructor: ROMSTRADE Length: 10,35 km Value (VAT included): 13,45 M EUR Current stage: organizare santier Execution period: 2011 – 2013 Varianta de ocolire ALEXANDRIA Constructor: SHAPIR STRUCTURES 1991 Length: 13,276 km Value (VAT included): 15,98 M EUR Current stage: organizare santier Execution period: 2011 – 2013 Varianta de ocolire CAREI Constructor: IDECON S.A.U. Length: 7,62 km Value (VAT included): 9,68 M EUR Current stage: semnare contract Execution period: 2011 – 2013 Varianta de SACUIENI Constructor: Asocierea Grupo Empresarial Magenta SA – Assignia Infrastructuras SA – SC Transmir SRL Length: 10,35 km Value (VAT included): 13,45 M EUR Current stage: semnare contract Execution period: 2011 – 2013 ROADS / BRIDGES/ PASSAGES DIVERSIONS SIGNED CONSTRUCTION AGREEMENTS (sept. 2010 – may 2011): Length: 48,5 km Value (including VAT): 70,5 MEURO Out of which: Financing from ERDF Length : 41,71 km Value (including VAT): 50,5 MEURO Financing from the State Length: 6,79 km Value (including VAT): 20 MEURO ROADS / BRIDGES / PASSAGES DIVERSIONS WITH AUCTIONS IN COURSE IN THE SEPT. 2010 – MAY 2011 PERIOD

70. 4. Solving the problem of arrears Implementing the action plan and the improved mechanism for the control of commitments and measures enforcement by the end of April 2011, in order to eliminate the existing arrears and to prevent the accumulation of new ones, both at the level of the consolidated general budget and at the level of the state enterprises. A better control of arrears at local authorities level, by setting an indicative target. Harmonisation of the accounting system with the Treasury system of payments (September 2011). Natural gas price liberalization. Starting with 1 st July 2011, the price of natural gas for the industrial consumers will be increased by 10%. For the households, the price remains unchanged until March 2012. 70

71. 5. Restructuring the state-owned enterprises Implementation of a comprehensive strategy to reform the state-owned enterprises governance. Introduction of an improved reporting system for the state-owned enterprises already included in the ESA definition of the consolidated general budget. Prevention of new arrears and losses in case of the companies reclassified by Eurostat as being a part of the consolidated general budget, and of those which might be reclassified in 2011 and 2012. Elaboration of strategic action plans for the main companies (especially those in the energy sector and transport) until the end of April 2011 and for all the others until the end of July 2011. In order to solve the governance related problems, we will elaborate (in consultation with the World Bank) and we will adopt the necessary legislation required to improve the governance of these companies; we will introduce the compulsory external, independent and regular audit activity at these companies and the financial control will be transferred from the line ministries to the Ministry of Public Finances by the end of September 2011. 71

72. 6. Sell of minority stakes held by the state in different companies 72 Petrom, Transelectrica, Transgaz, Romgaz etc. For the main privatizations: - up to the end of august 2011 a company with international reputation will be assigned as advisor; - up to the end of 2011 submissions will be sent and - up to the middle of 2012 auctions will be organized.

73. 7. Public – Private Partnership Priority Projects 73 Transport and infrastructure  Comarnic – Braşov Highway – under concession  Sibiu – Piteşti Highway– 116 km  Ploieşti – Buzău – Focşani Highway – 133 km  Bucureşti South Belt and North Belt  Târgu-Mureş – Iaşi – Ungheni Highway– 307 km Energy  Tarniţa – Lăpuşteşti Hydroelectric Power Plant  3 and 4 Cernavodă Nuclear Facilities  Doiceşti Steam Power Plant  AGRI International Project (Azerbaidjan – Georgia – România)

74. 7. Public – Private Partnership Priority Projects (cont.) 74 Environment and Agriculture  Siret – Bărăgan Channel lanscape Regional Development  Eco Project in Ghencea district  Esplanada Project  Dunăre – Bucureşti Channel  Dunăre Overpass, between Brăila and Tulcea Health Care System  6 regional emergency hospitals in Timişoara, Cluj-Napoca, Târgu-Mureş, Iaşi, Craiova and Bucureşti  Turning to advantage the Health Care Center "Ana Aslan" Justice  Building a penitentiary in PPP, according to the anglo-saxon model.

75. 8. Further Health System reform Establishing indicative ceilings for quarterly contracts regarding services developed with hospitals and doctors and creating incentives for doctors who meet the indicative ceilings; Establishing the care package provided by the government in order to eliminate the coverage for non-essential costly medical services; Review of the formula for National Health Insurance House by introducing a system where "money follows the patient“; Review of the list of compensated and free drugs approved by Government Decision no. 720/2008, for amendment and transfer to generic drugs, where possible; Controlling the pharmaceutical costs for the most expensive drugs for 2012, by applying strict protocols for the use of drugs and by the new module of electronic prescriptions for the Unified Informational Integrated National Health System, in compliance with strict procedures. 75