ROMANIA'S POST-EU ACCESSION STATE AID POLICY

Marius George Popa
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Marius George Popa: BUCHAREST UNIVERSITY OF ECONOMIC STUDIES

Annals - Economy Series, 2024, vol. 4, 185-206

Abstract: This study examines the Romania's state aid policy after the country joined the European Union (EU) in 2007. With its membership, Romania's economic and regulatory environment underwent a dramatic change, bringing its policies into compliance with EU norms and laws. This research examines several types of state aid that Romania has put in place, such as grants, tax incentives, and guarantees, with the goals of promoting economic expansion, improving competitiveness, and reducing regional disparities. The study presents the government's response to the recognised market failures and the alignment with European trends through an extensive examination of official reports and statistical data. The results demonstrate that Romania's application of EU state aid regulations was in line with the EU framework and that the goals that many of the EU member states consider most significant are followed in the distribution of public support. The Romanian state aid policy recognises market failures (agriculture, energy savings and environmental protection, regional development) and attempts to direct public efforts to close the gaps, even though the total aid granted is not impressive when compared to developed economies and the aid's share of GDP is at a moderate level. In order to provide a comprehensive understanding of Romania's place in the European context, an overview analysis of member states state aid disbursments from 2007 to 2022 is provided. The paper inserts some policy recommendations to optimize state aid distribution and effectiveness, emphasizing the need for robust monitoring mechanisms, greater transparency, and alignment with broader EU objectives. This analysis provides valuable insights for policymakers, researchers, and stakeholders interested in the dynamics of state aid in Romania’s post-EU accession period.

Keywords: state aid; objectives; instruments; policy; EU; Romania (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cbu:jrnlec:y:2024:v:4:p:185-206

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