Romania

Over the last two decades, Romania has converged rapidly towards the OECD average income per capita. Its economy has also proved resilient: after a deep contraction in 2020 triggered by the coronavirus pandemic, activity has rebounded fast. However, short and medium term challenges remain. The recent surge in inflation and the new pandemic wave require prudent macroeconomic policies. Eventually, fiscal sustainability needs to improve to cope with ageing. Productivity levels remain well below the OECD average, calling for reducing competition barriers, raising human capital, enhancing the regulatory framework, and improving transport infrastructure. Romania should seize the opportunity provided by the NextGeneration EU plan to boost investments for the green and digital transitions. Poverty remains high and some groups have difficulties to join the labour market. Active labour market policies need to be reinforced and access to training is a pre-requisite for addressing skills shortages. Finally, pursuing convergence to the highest OECD standards requires improving the rule of law and fighting corruption. SPECIAL FEATURES: STRENGTHENING THE BUSINESS ENVIRONMENT FOR PRODUCTIVITY CONVERGENCE; IMPROVING LABOUR MARKET CONDITIONS FOR STRONGER AND INCLUSIVE GROWTH

Over the last two decades, Romania has converged rapidly towards the OECD average income per capita. Its economy has also proved resilient: after a deep contraction in 2020 triggered by the coronavirus pandemic, activity has rebounded fast. However, short and medium term challenges remain. The recent surge in inflation and the new pandemic wave require prudent macroeconomic policies. Eventually, fiscal sustainability needs to improve to cope with ageing. Productivity levels remain well below the OECD average, calling for reducing competition barriers, raising human capital, enhancing the regulatory framework, and improving transport infrastructure. Romania should seize the opportunity provided by the NextGeneration EU plan to boost investments for the green and digital transitions. Poverty remains high and some groups have difficulties to join the labour market. Active labour market policies need to be reinforced and access to training is a pre-requisite for addressing skills shortages. Finally, pursuing convergence to the highest OECD standards requires improving the rule of law and fighting corruption. SPECIAL FEATURES: STRENGTHENING THE BUSINESS ENVIRONMENT FOR PRODUCTIVITY CONVERGENCE; IMPROVING LABOUR MARKET CONDITIONS FOR STRONGER AND INCLUSIVE GROWTH

This profile provides a concise and policy-relevant overview of health and the health system in Romania as part of the broader series of the State of Health in the EU country profiles. It provides a short synthesis of: the health status in the country; the determinants of health, focussing on behavioural risk factors; the organisation of the health system; and the effectiveness, accessibility and resilience of the health system. This edition has a special focus on the impact of COVID‑19. This profile is the joint work of the OECD and the European Observatory on Health Systems and Policies, in co-operation with the European Commission.

Countries in Eastern Europe and Central Asia have clear aspirations to strengthen civic participation and increase prosperity for all. A highly skilled and knowledgeable population is critical to achieving these goals, which makes creating and maintaining high quality and equitable education systems a vital part of regional development efforts. Results from the Programme for International Student Assessment (PISA) show that learning outcomes in the region have generally improved, but that the improvement has not been equitable. While countries in the region are producing some of the top performing students in the world, many other students are being left behind. This report, jointly developed by OECD and UNICEF, analyses PISA data in detail to identify the strengths, challenges and unique features of education systems in Eastern Europe and Central Asia. Drawing upon a rich knowledge base of education policy and practice in the region, it makes recommendations about how systems in the region can provide an excellent education for all students. This report will be of interest to regional policy-makers as well as individuals who wish to learn more about education in Eastern Europe and Central Asia.

Under Action 14, countries have committed to implement a minimum standard to strengthen the effectiveness and efficiency of the mutual agreement procedure (MAP). The MAP is included in Article 25 of the OECD Model Tax Convention and commits countries to endeavour to resolve disputes related to the interpretation and application of tax treaties. The Action 14 Minimum Standard has been translated into specific terms of reference and a methodology for the peer review and monitoring process. The peer review process is conducted in two stages. Stage 1 assesses countries against the terms of reference of the minimum standard according to an agreed schedule of review. Stage 2 focuses on monitoring the follow-up of any recommendations resulting from jurisdictions' stage 1 peer review report. This report reflects the outcome of the stage 2 peer monitoring of the implementation of the Action 14 Minimum Standard by Romania.