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 1974 - commercial relations with the EEC countries 1980 - official recognition of the EEC 1991 – Trade and Cooperation agreement 1995 - 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 25th – Signature of the Adhesion Treaty 2006, September – Announcement of the adhesion date 2007, January the 1st – Romania is the 27th EU member 6 Advantages. Structural funds 2007-2013: 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 2007 1.4 billions Euros in 2008 1.5 billions Euros in 2009 Insufficient absorption of structural funds 21% in 2007 60% in 2008 ????? in 2009 9 Absorption degree in other EU countries, 2004-2006 19.30% Cyprus 23.50% Czech Republic 24.50% Poland 25.20% Latvia 25.60% Lithuania 26.20% Malta 27.60% Slovakia 29.40% Estonia 32.60% Hungary 34.10% Slovenia 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 10 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) 2007-2008 2009-2011 2012-2013 11 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 1st 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 2013. 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 2-2.5 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, % 120 111.9 100 104.5 100 111.4 104.4 100 110.9 104.2 100 110.7 104 100 110.4 103.8 100 110.2 103.7 100 109.7 103.6 100 80 UE 27 UE 25 60 UE 15 40 29.1 31.1 34.3 36.2 39.9 42 44 R omania 20 0 2002 2003 2004 2005 2006 2007 2008 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 nicoleta.sirghi@yahoo.com ioanacaz@yahoo.com 19