In-depth Business Intelligence

Key Economic Data 
  2002 2001 2000 Ranking(2002)
Millions of US $ 44,428 38,700 38,200 52
GNI per capita
 US $ 1,850 1,720 1,610 108
Ranking is given out of 208 nations - (data from the World Bank)

Books on Romania


Area (




Ion Iliescu

Private sector 
% of GDP 


Update No: 091 - (26/11/04)

Governing Party Considering Deal with Nationalists 
Top officials from Romania's governing party have said that they would consider a political agreement with the main nationalist party, depending on results from closely contested elections. The Social Democratic Party did not rule out "a specific agreement with the Greater Romania Party" after the Nov. 28 elections, executive secretary Octav Cosmanca said, according to daily Evenimentul Zilei.
The remarks were the first suggesting the Social Democrats could team up with the nationalist party, branded by some Western diplomats as "extremist. "The U.S. Embassy in Bucharest in October warned it would end relations with the National Trade Union Bloc after it forged an alliance with Greater Romania.
The governing party, which has been accused of arrogance and corruption, ran a tight race with the centrist Justice and Truth Alliance ahead of the parliamentary and presidential elections. Greater Romania came in third.
Social Democratic deputy leader Miron Mitrea also said the party was considering some kind of partnership with the Greater Romania, according to the daily Jurnalul National. 
"I think that in politics any solution is viable, possible…. Only a politician who is not realistic can say he does not take into account a party which has more than 20 percent," he was quoted as saying.
Greater Romania leader Corneliu Vadim Tudor is in third place for the presidential elections. The party beforehand had about 25 percent of seats in 484-seat Parliament.

Presidential elections
Prime Minister Adrian Nastase, chairman of the governing party, was always leading the presidential race, followed by Bucharest Mayor Traian Basescu, who heads Justice and Truth Alliance.
Nastase said that he had been waiting for election results before making any partnership decisions.
In campaign stops, Basescu criticized the government for rushing to close accession negotiations with the European Union, saying that the terms don't protect Romania's interests.
The government rejected his claims, saying that it was in Romania's interest to close the negotiations before the end of the year, in order to sign the accession treaty with the EU in 2005.
Romania is scheduled to join the EU in 2007, alongside Bulgaria.

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E.ON, CEZ file final bids for Romanian power sellers

Czech utility CEZ and German power group E.ON are finalists in the race for the privatisations of Electrica Moldova and Electrica Oltenia, regional energy distributors. Out of the five companies which expressed their interest in the takeover of the two electricity companies only two submitted bids by the deadline set by the economy ministry, New Europe reported.
E.ON AG, Europe's second largest electricity utility, and CEZ AS, the Czech Republic's biggest power company, filed final bids for majority stakes in two Romanian power distributors, Dorin Mucea, the head of the economy ministry's privatisation department, said recently. Final offers were made for state-owned Electrica Moldova SA and Electrica Oltenia SA, two of Romania's eight regional power distributors. 
The government is offering a 24.62 per cent stake in Electrica Oltenia and Electrica Moldova, with the new owner required to gain a majority stake through a share capital increase. The two companies supply electricity to the southwestern and northeastern parts of the Romania country, respectively. Electrica Olentia has 1.36m customers and sells 6.8m MWh a year, and Electrica Moldova has 1.3m customers and sells 4.1m MWh a year. The two bidders submitted offers for both suppliers, Mucea said.
Romanian authorities will start negotiations with the two bidders to select the winner for each supplier, he added. Spain's Union Fenosa SA, another company that was initially in the group of bidders, did not bid, according to Mucea. AES Corp of the US was also considering bidding for two power suppliers, although Romanian authorities said the company was not shortlisted.
AES spokeswoman, Robin Pence, said recently the company was interested in bidding only if Romanian authorities accepted its request to extend the deadline, according to Dow Jones. The final deadline had already been delayed by two weeks at the request of companies who said they needed more time to prepare their offers. The amounts of the bids were not announced.
"We hope to complete the sale" of the two companies "before the end of the year," Mucea said at a press conference in Bucharest. When asked about the chances of CEZ, he said: "Although state-owned, it is competitive and has very modern and good management." Mucea said CEZ and E.OM filed bids for both power distributors. Theodor Reumschuessel, a spokesman for E.ON Energie AG, the unit responsible for Eastern Europe, declined to comment. "Our interest in Romanian distribution companies is another logical step in the region of southeastern Europe," CEZ said in a statement.
Oltenia has about 1.4m customers and sells about 6.8 terrawatt hours of power, CEZ said. CEZ, which earlier this year bought three power distribution companies in Bulgaria, has 3.4m customers in the Czech Republic and another 1.9m customers outside the country. Romania is selling its energy assets to open its power market before it joins the European Union. The nation expects to join the 25-member bloc in 2007.

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Cable Systems clinches US$70 loan from ING Bank

Romania Cable Systems (RCS) received a US$70m loan from ING Bank Romania, ING Bank deputy general manager Misu Negritoiu said. The funds will be used to finance acquisitions, increase working capital and boost future equity. Apart from the Romanian branch the loan operation also includes ING Bank NV Amsterdam and The Royal Bank of Scotland, New Europe reported recently. RCS is one of the most important telecommunications operators in Romania. Services for transmission of data, Internet, cable TV and fixed telephony are provided by Romania Data Systems (RDS), through RCS infrastructure. 
Over the past 5 years, the company has invested more than US$100m. It has operations in Hungary and Slovakia too. The RCS main shareholders are Austrian investment fund EPIC and US-based Quadrant. It reported a 2003 turnover of US$80m.

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Telemobil to raise over US$273m

Shareholders of Telemobil, the operator of Zapp network, approved in late September the increase of the company's share capital by 9,262.4bn lei (about US$273m), through contributions in kind by shareholders or through conversion of the various shareholder loans granted to the company, New Europe reported.
The operation will be accompanied by an issue of more than 370m shares with a face value of 25,0000 lei/share. Shareholders may opt for full payment on the date of subscription or for paying 30 per cent at that moment and the rest over a three-year period from publication in the Official Gazette on October 13th.

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