EVALUATING COSTS AND BENEFITS OF ROMANIAN'S INTEGRATION INTO THE EUROPEAN UNION

• Main Authors: Constantin Ciupagea, Dorin Jula, Laura Marina, Geomina Turlea, Manuela Unguru, Radu Gheorghiu
• Format: Article
• Language: English
• Published: European Institute of Romania 2004-12-01
• Series: Romanian Journal of European Affairs
• Subjects: macro-economic field; free movement; fiscal discipline
• Online Access: http://www.ier.ro/documente/rjea_vol4_no4/RJEA_Vol4_No4_Evaluating_Costs_and_Benefits_of_Romanians_Integration_into_the_European_Union.pdf

The study „A Cost-Benefit Assessment of Romania’s Accession to the European Union”, part of the programme Pre-Accession Impact Studies II that was coordinated by the European Institute of Romania, tries to offer a partial image of an evaluation of the qualitative and quantitative impact of Romania’s potential integration into the EU in the short, medium and long run. The focus is on the quantification and analyses of the transformations and effects induced by Romania’s accession to the European Union in terms of generated costs and benefits. The main cost categories directly associated with the accession to the European Union may be grouped in costs related to the adoption of the European norms and policies, costs related to the conformation with and implementation of the standards, costs of assuming the status of European Union member and costs related to the modernisation of the Romanian economy. The main benefits of Romania’s accession to the European Union are generated from supplementation and diversification of the financial resources, from acceleration of reforms and support for the transition through the provision of fundamental elements for the definition of the national economic policies and from the intrinsic status of an EU Member.The impact analysis of Romania’s integration process has been performed separately for the pre-accession and post-accession periods. Also, the scenarios considered in the impact assessment must be differentially conceived, one considering integration as granted, the other one trying to postpone the moment of foreseen integration into the EU. The study uses both qualitative analyses and quantitative mathematic-economic modelling tools to assess the possible changes at sectorial level, as well as at macroeconomic national level. The findings of these analyses are presented at the end of this document.