Comment 04 Jul 17

Economic Storm-clouds Hover Over Romania

After weeks of political turmoil, companies and investors in Romania now face growing uncertainty and a fiscal overhaul that risks putting the country’s recent economic gains in jeopardy.

Roxana Voicu-Dorobantu
In mid-June 2017, the country faced a political crisis with the ruling party passing a motion of no confidence against its own government, bringing down Grindeanu and replacing him with former Economy Minister Mihai Tudose. Photo: GotCredit/Flikr.

Romania seems to have shifted in just a couple of months from moderate and measurable risk by the European Commission in its seasonal forecast, to full-blown uncertainty.

In conditions of risk, a company has a choice to mitigate it  - fully, partially, or not at all. But it has that choice. Uncertainty leaves no real choice. Everything may then change suddenly, with no reason. Damage control remains the only option.

Romania is a textbook case of freeze frame: “This is me. You’re probably wondering how I got here.” The forecast for the economy has gone from accelerated growth to “What now?” mainly because of distrust and perceived volatility in decision-making.

It all seemed so well back in December. The new ruling party, the Social Democrats, PSD, allied with the Alliance of Liberals and Democrats, ALDE, formed a cabinet under the veteran Social Democrat Sorin Grindeanu to implement the Governing Program.

Subscribe to Balkan Insight Premium to read the full article.

Please login to your account below if you are already a Premium Subscriber.

Buy Premium Subscription

Our Premium Service gives you full access to all content published on, including analyses, investigations, comments, interviews and more. Choose your subscription today and get unparalleled in-depth coverage of the Western Balkans.

Buy Premium Subscription

If you have trouble logging in or any other questions regarding you account, please contact us

Talk about it!

blog comments powered by Disqus

Premium Selection

27 Jul 17

Poison Gas: The Bosnian War’s Forgotten Weapon

Poison gas and other toxic chemicals were used dozens of times during the Bosnian conflict to torture and murder prisoners, but almost no one has been held directly responsible in court.

27 Jul 17

Bosnian Hostel Tells Story of Assassination that Changed World

A stay at an unusual hostel in Sarajevo takes visitors back to the event in 1914 that put the city on the map and unleashed the First World War.

27 Jul 17

Busting Myths About Russia’s Balkan Designs

24 Jul 17

The Many Charms of Serbia's Valjevo

24 Jul 17

The Srebrenica Refugee Camp that Never Closed

20 Jul 17

Serbia in Two Minds Over New IMF Deal