rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 ro ee...

53
Romania nominal and real convergence on the way to euro adoption Ionut Dumitru President of the Fiscal Council, Professor at Academy of Economic Studies Bucharest, and Chief-economist, Raiffeisen Bank Romania Feb 2015

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Page 1: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Romania – nominal and

real convergence

on the way to euro adoption

Ionut Dumitru

President of the Fiscal Council, Professor at Academy of Economic Studies Bucharest,

and Chief-economist, Raiffeisen Bank Romania

Feb 2015

Page 2: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Eurozone enlargement – current status

Source: European Commission

Initia l ta rget Date of setting the ta rget Current ta rget

Bulgaria 2010 2004 no target date

Croatia 2019 no target date

Czech Republic 2009/ 2010 2003 no target date

Hungary 2008 2003 no target date

Lithuania 2007 2004 2015

Poland 2008/ 2009 2003 no target date

Romania 2014 2007 2019

Denmark no target not obliged to join

Sweden no target de facto opt-out

United Kingdom no target not obliged to join

Page 3: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

I. Nominal convergence.

Maastricht criteria

Page 4: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Source: European Commission

Nominal convergence: Maastricht criteria

1. Inflation

“the achievement of a high degree of price stability; a Member State has a price performance that is sustainable and an average rate of inflation, observed over a period

of one year before the examination, that does not exceed by more than 1.5 percentage points that of, at most, the three best performing Member States in terms of price

stability.”

2. Long-term interest rate developments

“observed over a period of one year before the examination, a Member State has had an average nominal long-term interest rate that does not exceed by more than two

percentage points that of, at most, the three best performing Member States in terms of price stability. Interest rates shall be measured on the basis of long-term

government bonds or comparable securities”

3. Public budget deficit is below 3.0% of GDP

“the sustainability of the government financial position will be apparent from having achieved a government budgetary position without a deficit that is excessive”, i.e. that exceeds 3.0% of GDP on permanent basis

4. The ratio of government debt to GDP is less than 60% of GDP

5. Exchange rate stability under ERM II mechanism

Member State has respected the normal fluctuation margins [+/-15%] provided for by the exchange rate mechanism on the European Monetary System without severe

tensions for at least the last two years before the examination

Page 5: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)
Page 6: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Tabloul de bord

Page 7: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Source: Fiscal Council

The impact of the new fiscal code on budget deficit (% of GDP)

-1.9

-2.9 -2.6

-4.6

-5.3

-8.6 -8.8

-5.9

-3.3

-2.1

-1.5

-1.0 -1.3

-3.2 -3.3

-4.7

-5.5

-9

-8

-7

-6

-5

-4

-3

-2

-1

0

Effective Deficit (ESA 2010)

Structural balance

Medium term objective (MTO)

Maastricht criteria

Page 8: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Ample fiscal consolidation – decreasing public investments

Source: Eurostat, Ministry of Public Finances,

Reduction of public budget deficit was delayed as the most important adjustment measures were taken in July 2010 (increase in VAT from 19% to 24%, reduction of public

wages by 25%)

However, fiscal consolidation was quite fast and Romania has a low public budget deficit now (below 3% of GDP)

Unfortunately, the fiscal adjustment process was accompanied also by a sharp reduction of public investments

2

3

4

5

6

7

09Q 1 10Q 1 11Q 1 12Q 1 13Q 1 14Q 1 15Q 1e

Tota l public investments, ESA 2010 definition (% of GDP,

last 4 quarters)

Capita l expenditure funded from na tiona l budget (% of

GDP, last 4 quarters)

Note: Capital expenditure is a segment of total public investments

1 .2

2 .2

2 .9

5 .6 8 .9 6 .6 5 .3

2 .9

2 .2 1 .5

32 .3

33 .1

35 .4

33 .3

31 .7

32 .9

33 .833 .5

33 .033 .4

33 .4

35 .3

38 .338 .9

40 .6

39 .639 .1

36 .4

35 .2 34 .9

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Public budget deficit (% of GDP)

Public revenues (% of GDP)

Public ex penses (% of GDP)

Page 9: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

E oluţia heltuielilor şi e iturilor ugetare după sta darde ESA

2009 2010 2011 2012 2013 2014

Modifi ări 4 față

de 2013

Modifi ări 4 față

de 2009

Total venituri (% din PIB) 31,7 32,9 33,8 33,5 33 33,4 0,4 1,7

Venituri fiscale 17,1 17,7 19,1 19,1 18,6 19 0,4 1,9

Impozite indirecte, din

care: 10,7 11,8 13 13,1 12,8 12,8 0 2,1

TVA 6,5 7,5 8,6 8,4 8,3 7,8 -0,5 1,3

Accize* 3,1 3 3,1 3,1 3,1 : : 0

Impozite directe, din care: 6,4 6 6,1 6 5,9 6,2 0,3 -0,2

impozit pe venit 3,6 3,4 3,4 3,6 3,5 3,6 0,1 0

impozit pe profit 2,4 1,8 1,8 1,7 1,7 1,8 0,1 -0,6

Co tri uții asigurări sociale 10 9,3 9 8,8 8,7 8,6 -0,1 -1,4

Alte venituri curente 1,6 2,7 2,3 2,5 2,6 2,9 0,3 1,3

Total cheltuieli (% din PIB) 40,6 39,6 39,1 36,4 35,2 34,9 -0,3 -5,7

Consum intermediar 6,3 5,4 5,7 5,8 5,6 5,2 -0,4 -1,1

Re u erarea salariaților 10,7 9,5 7,8 7,7 8 7,7 -0,3 -3

Dobânzi 1,5 1,5 1,6 1,7 1,7 1,6 -0,1 0,1

Asiste ță so ială 13,2 13,7 13,1 12,1 11,7 11,9 0,2 -1,3

Su ve ții 1,1 1 0,9 0,7 0,6 0,5 -0,1 -0,6

Alte cheltuieli curente 1,5 1,9 2,1 2,5 1,9 2,2 0,3 0,7

For area rută de apital fix

6 5,7 5,4 4,8 4,5 4,3 -0,2 -1,7

Sold bugetar -8,9 -6,6 -5,3 -2,9 -2,2 -1,5 0,7 7,4

Sursa: Eurostat

Notă: * cifrele aferente anului 2014 nu sunt încă disponibile, iar diferenţa 2009-2014 se referă la 2009-2013.

Page 10: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Obiectivul pe termen mediu – constrangere

importanta

-4.7

-3.5

-2.0 -1.5

-1.2 -1.2

-2.2

-2.9

-5.6

-8.9

-6.6

-5.3

-2.9

-2.2

-1.5 -1.6

-3.5 -3.0

-2.0

-1.2 -0.6

0.6 0.4

1.2 1.3

2.0

-1.1

-1.8 -1.9

-2.3 -1.7 -1.4

-0.9 -0.4 -0.1

0.2 0.6 0.9

-10

-8

-6

-4

-2

0

2

4

6

8

10

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

e

20

16

p

20

17

p

20

18

p

20

19

p

20

20

p

gap PIB

Deficit efectiv*

Deficit efectiv necesar pentru un deficit structural de 1% din PIB**

Criteriul de la Maastricht (deficit de 3% din PIB)

Source: AMECO

* Pentru 2015-2016 – Prognoza Comisiei Europene

** Calcule Consiliul Fiscal (crestere economica medie 2015-2020 de 4% la o crestere potentiala de 3%)

Page 11: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Source: Eurostat

Achieving the inflation criterion is a difficult task

3 .4

2 .8

2 .4 2 .4

2 .12 .0

1 .91 .8 1 .7 1 .7

RO EE HU UK AT AT LT M T LU PL

Average annua l infla tion ra te (from M ar

2010 to M ar 2015) - 10 la rgest advances

EU 28 average = 1.7%

Note: inflation dynamics over the last five years

46

5152

56

60

63 65 6567

73

BG RO PL HU LT HR CZ SK LV EE

Level of consumer prices in 2013

(% of Euro a rea 15 ), 10 low est levels

Page 12: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

II. Real convergence

Page 13: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Public policies make a difference

Source: European Commission

29 .1

24 .5

39 .2

30 .6

59 .9

41 .7

45 .8

59 .0

28 .2

21 .7

48 .3

20

25

30

35

40

45

50

55

60

65

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

GDP per capita in PPS

(% of average for Germany and France)

Bulgaria Poland Hungary Romania

Note: Estimates for the year 2014

Page 14: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Real convergence: not a one way street

Source: European Commission

50

60

70

80

90

100

110

120

130

140

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

GDP per capita in PPS

(% of average for Germany and France)

Ita ly Ireland Portuga l Spa in Greece

Page 15: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Euro area enlargement: euro adopted recently only by small countries

Source: European Commission, Eurostat

0

2

4

6

8

10

12

14

Ma

lta

Cy

pru

s

Esto

nia

Latv

ia

Slo

ve

nia

Slo

va

kia

Ro

ma

nia

Lith

ua

nia

Bu

lga

ria

Hu

ng

ary

Cze

ch R

ep

ub

lic

Po

lan

d

Po

rtu

ga

l

Gre

ece

Sp

ain

Stable popula tion in 2013 (% of Euro area )

Gross domestic Product in 2013 (% of Euro area )

Euro adoption years:

2007: Slovenia

2008: Malta, Cyprus

2009: Slovakia

2011: Estonia

2014: Latvia

2015: Lithuania

Page 16: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Euro area enlargement: deep foreign trade integration for Euro area late comers

Source: European Commission, Eurostat, Raiffeisen RESEARCH

0

20

40

60

80

100

120

Sp

ain

Po

rtu

ga

l

Gre

ece

Slo

ve

nia

Cy

pru

s

Ma

lta

Slo

va

kia

Esto

nia

Latv

ia

Ro

ma

nia

Lith

ua

nia

Bu

lga

ria

Hu

ng

ary

Cze

ch R

ep

ub

lic

Po

lan

d

1999 2001 2007 2008 2008 2009 2011 2013 2013 2013

Ex ports of goods and services (% of GDP)

Exports tow ards EU member countries (% of GDP)* Exports tow ards non EU member countries (% of GDP)*

Tota l exports of goods and services in 2013 (% of GDP)

* computed in the year of Euro adoption for new Euro area member countries and in 2013 for non Euro area member countries

Page 17: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Euro area enlargement: high GDP per capita at the moment of euro adoption

Source: Eurostat, Raiffeisen RESEARCH

81

67

7578

89

72

6459 57 58

Sp

ain

Po

rtu

ga

l

Gre

ece

Slo

ve

nia

Cy

pru

s

Ma

lta

Slo

va

kia

Esto

nia

Latv

ia

Lith

ua

nia

1999 2001 2007 2008 2008 2009 2011 2014 2015

GDP per capita in PPS as % of Germany+France

in the year of accession in Euro area

Page 18: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Discrepante regionale foarte mari si in crestere

Page 19: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Source: National Institute of Statistics, Raiffeisen RESEARCH.

Economic activity concentrated in a small number of counties

TR

B

GR

CLDJ

IF

CT

IL

OT

M H

GJ DB

PH BR TLVL AG

CSBZ

BV GLVNTMSB CV

HD

AB

ARBC

VSM S HR

N TCJ

SJ BN IS

BH

SV

M MSM

BT

N omina l GDP per capita (2011 , % of country average)

<= 50%

(50%, 75%]

(75%, 100%]

(100%, 125%]

(125%, 150%]

> 150%

Only 5 counties produce more than 40% of GDP.

Page 20: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Source: Ministry of Finance, Raiffeisen RESEARCH.

Large companies are concentrated even more

Over 50% of large companies are located in 5 counties.

TR

B

GR

CLDJ

IF

CT

IL

OT

M H

GJ DB

PH BR TLVL AG

CSBZ

BV GLVNTMSB CV

HD

AB

ARBC

VSM S HR

N TCJ

SJ BN IS

BH

SV

M MSM

BT

N umber of companies w ith net turnover above EUR 5 mn. (2012)

<= 50

(50 , 100]

(100 , 150]

(150 , 200]

(200 , 250]

> 250

Page 21: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

III. Recent economic growth developments

Page 22: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

A booming economy before the crisis

Source: Eurostat

BG

CZ

EE

LV

LT

HU

PL

RO

SI

SKHR

2

3

4

5

6

7

8

9

10

2 4 6 8 10

An

nu

al

gro

wth

ra

te f

or

do

me

sti

c d

em

an

d

(av

era

ge

20

01

-20

08

)

Annua l grow th ra te for rea l GDP (average

2001 -2008 )

GDP grow th driven

by domestic

dema nd

GDP grow th driven

by ex ports

1 .82 .1

3 .3

4 .04 .3 4 .3

5 .76 .0 6 .2

6 .5

7 .4 7 .5

EA

EU

27

HU PL

HR

CZ

BG EE

SK

RO LV LT

Annua l average GDP grow th

(2001 -2008)

Page 23: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Scarce net inflows of foreign capital to private sector, slow recovery pace

Source: National Bank of Romania, National Institute of Statistics

Note: net inflows of foreign capital in the private sector; portfolio inflows excluded

-9

-6

-3

0

3

6

9

12

01

Q1

02

Q1

03

Q1

04

Q1

05

Q1

06

Q1

07

Q1

08

Q1

09

Q1

10

Q1

11

Q1

12

Q1

13

Q1

14

Q1

15

Q1

e

Rea l GDP excluding agriculture (% yoy )

6 .9% per year

2 .6% per year

-10

-5

0

5

10

15

20

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Jan

-Ma

r 2

01

5

Net FDIs (% of GDP)

Net loans, deposits (% of GDP)

Tota l inflow s of foreign capita l in priva te sector (% of GDP)

Page 24: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Signs of revival in households spending

Source: National Institute of Statisitcs, European Commission, Raiffeisen RESEARCH

Note: normalized levels (deviation from mean relative to standard deviation); 3-month moving

averages Note: 3-months moving averages

-3

-2

-1

0

1

2

3

Ap

r-1

5

Ap

r-1

4

Ap

r-1

3

Ap

r-1

2

Ap

r-1

1

Ap

r-1

0

Ap

r-0

9

Ap

r-0

8

Ap

r-0

7

Ap

r-0

6

Ap

r-0

5

Consumer confidence index

Euro a rea CEE 4 countries Romania

90

100

110

120

130

Ma

r-1

5

Ma

r-1

4

Ma

r-1

3

Ma

r-1

2

Ma

r-1

1

Ma

r-1

0

Ma

r-0

9

Ma

r-0

8

Reta il sa les

(defla ted turnover, 2010=100)

Non-foods, w ithout fuels Foods

Fuels Tota l reta il sa les

Page 25: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

20

30

40

50

60

70

80

90

100

110

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Gross fixed capital formation at 2010 prices

Consumption at 2010 prices

GDP at 2010 prices

Evolutie foarte slaba a investitiilor in ultimii ani

Source: EUROSTAT, Raiffeisen RESEARCH

Page 26: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Increasing volatility on the external markets

Source: Bloomberg, Raiffeisen RESEARCH

10

12

14

16

18

20

22

24

Ma

y-1

3

Jul-

13

Se

p-1

3

No

v-1

3

Jan

-14

Ap

r-1

4

Jun

-14

Au

g-1

4

Oct

-14

De

c-1

4

Fe

b-1

5

Ma

y-1

5

VIX index

-0 .5

0 .0

0 .5

1 .0

1 .5

2 .0

2 .5

3 .0

Ma

y-1

4

Jun

-14

Au

g-1

4

Se

p-1

4

No

v-1

4

De

c-1

4

Fe

b-1

5

Ma

r-1

5

Ma

y-1

5

Yields for US and German T-securities

US 5Y US 10Y

Germany 5Y Germany 10Y

Page 27: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Deleveraging under way

Source: National Bank of Romania, Raiffeisen RESEARCH

0%

5%

10%

15%

20%

25%

30%

35%

40%

04Q 4 06Q 4 08Q 4 10Q 4 12Q 4 14Q 4

Gross ex terna l debt, by sectors

Centra l bank and government (% of GDP)

Bank ing system (% of GDP)

Priva te non-bank ing sector (% of GDP)

0

5

10

15

20

25

05Q 1 07Q 1 09Q 1 11Q 1 13Q 1 15Q 1e

Stock of bank ing loans, by sectors

Consumer loans (% of GDP)

Housing loans (% of GDP)

Bank ing loans for individua ls (% of GDP)

Bank ing loans for companies (% of GDP)

Page 28: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

IV. Structural reforms – key to speed up the convergence process

Page 29: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Low level of competitiveness

Source: The Global Competitiveness report, World Economic Forum, 2014-2015

Note: Red lines denote scores for Romania

Page 30: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

World Economic Forum World Competitiveness Report –

Ranking (out of 144 countries)

Source: The Global Competitiveness report, World Economic Forum, 2014-2015

Romania Bulgaria Czech Republic Hungary Poland Slovak Republic

7.05 Effect of taxation on incentives to work, 1-7 (best) 140 91 110 128 88 119

6.04 Effect of taxation on incentives to invest, 1-7 (best) 128 81 107 133 102 114

7.08 Country capacity to retain talent, 1-7 (best) 128 142 80 122 117 130

7.07 Reliance on professional management, 1-7 (best) 126 113 47 114 71 74

7.01 Cooperation in labor-employer relations, 1-7 (best) 125 111 52 71 100 105

2.02 Quality of roads, 1-7 (best) 121 106 81 58 89 82

6.01 Intensity of local competition, 1-7 (best) 120 75 17 47 51 32

6.09 Prevalence of trade barriers, 1-7 (best) 117 99 72 30 66 38

1.08 Wastefulness of government spending, 1-7 (best) 116 98 7 96 85 126

7.09 Country capacity to attract talent, 1-7 (best) 115 142 93 118 124 117

1.07 Favoritism in decisions of government officials, 1-7 (best) 114 134 106 122 67 141

4.10 Primary education enrollment, net %* 114 66 55 95 49 n/a

1.17 Ethical behavior of firms, 1-7 (best) 112 101 94 96 57 123

1. Corporate ethics 112 101 94 96 57 123

…. 5.06 Internet access in schools, 1-7 (best) 53 45 27 35 50 31

2.09 Fixed telephone lines/100 pop.* 52 42 63 37 78 68

9.03 FDI and technology transfer, 1-7 (best) 49 91 36 19 68 18

6.07 No. days to start a business* 48 84 92 14 111 87

. Stre gth of i estor prote tio , – est * 45 45 83 105 45 98

. Do esti arket size i dex, – est * 44 66 48 56 20 61

9.05 Fixed broadband Internet subscriptions/100 pop.* 40 39 41 31 46 47

6.06 No. procedures to start a business* 32 22 106 22 22 78

5.04 Quality of math and science education, 1-7 (best) 31 54 74 60 50 75

9. I t’l I ter et a d idth, k /s per user* 19 27 25 75 37 93

. Legal rights i dex, – est * 11 11 63 43 11 29

7.04 Redundancy costs, weeks of salary* 7 21 95 61 89 89

WO

RST

BES

T

Page 31: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

World Bank Doing Business Report – Ranking (out of 189

countries)

Source: World Bank Doing Business 2015 Report

Starting a

Business

Registerin

g Property

Getting

Credit

Protecting

Minority

Investors

Trading

Across

Borders

Enforcing

Contracts

Rank RankTime

(days)Rank

Time

(days)

Cost (%

of

income

per

capita)

Rank Rank Rank Rank

Payments

(number

per year)

Time

(hours per

year)

Total tax

rate (%

profit)

Rank Rank RankTime

(years)

Recovery

rate

(cents on

the dollar)

United States 7 46 41 78.6 61 89.6 25.5 29 2 25 47 10.6 175 43.8 16 41 4 1.5 80.4

Germany 14 114 8 96 3 28 44.4 89 23 51 68 9 218 48.8 18 13 3 1.2 83.4

Poland 32 85 137 212 64 161 20.8 39 17 35 87 18 286 38.7 41 52 32 3 57

Slovak Republic 37 77 110 286 100 128 56.9 11 36 100 100 20 207 48.6 71 55 31 4 54.4

Bulgaria 38 49 101 110 125 130 320.4 57 23 14 89 13 454 27 57 75 38 3.3 33.2

Czech Republic 44 110 139 143 123 129 175.8 31 23 83 119 8 413 48.5 58 37 20 2.1 65.6

Romania 48 38 140 255 171 223 496.1 63 7 40 52 14 159 43.2 65 51 46 3.3 30.7

Slovenia 51 15 90 212.5 31 38 119.3 90 116 14 42 11 260 32 53 122 42 2 50.1

Hungary 54 57 103 91 162 252 111.5 52 17 110 88 11 277 48 72 20 64 2 40.2

Resolving InsolvencyPaying Taxes

Economy

Ease of

Doing

Business

Rank

Dealing with

Construction

Permits

Getting Electricity

Page 32: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

World Bank Doing Business Report – Paying taxes, ranking

(out of 189 countries)

Source: World Bank Doing Business 2015 Report

Economy Rank Payments (number per year) Time (hours per year) Profit tax (%) Labor tax and contributions (%) Other taxes (%) Total tax rate (% profit)

Ireland 6 9 80 12.4 12.1 1.4 25.9

Denmark 12 10 130 20.3 3 2.8 26

Bulgaria 89 13 454 5 20.2 1.7 27

Switzerland 18 19 63 9.5 17.7 1.8 29

Slovenia 42 11 260 12.5 18.2 1.4 32

United Kingdom 16 8 110 20.9 11.3 1.5 33.7

Europe & Central Asia .. 20.5 234.3 10.4 21.4 3.1 34.9

Poland 87 18 286 13.1 24.7 1 38.7

Netherlands 23 9 123 21.1 17.6 0.4 39

Norway 15 4 83 24.8 15.9 0 40.7

OECD high income .. 11.8 175.4 16.4 23 1.9 41.3

Portugal 64 8 275 15.1 26.8 0.5 42.4

Romania 52 14 159 10.7 31.5 1 43.2

United States 47 10.6 175 28.2 9.7 6 43.8

Hungary 88 11 277 11.8 34.3 1.8 48

Czech Republic 119 8 413 7.6 38.4 2.6 48.5

Slovak Republic 100 20 207 8.5 39.7 0.4 48.6

Germany 68 9 218 23.3 21.2 4.3 48.8

Page 33: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Ineficiente foarte mari in sectorul companiilor de stat

Page 34: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Potential agricol ridicat...

Romania ocupa un loc important in

Uniunea Europeana din punct de vedere al

suprafetelor agricole si al ocuparii in

agricultura

Sursa: Eurostat, Institutul National de Statsitica , Raiffeisen RESEARCH

0

1

2

3

4

5

6

RO BG HU HR GR EE SK LT LV PL FI CZ ES CY

VAB in a gricultura in 2 0 1 4 (% din

tota l VAB in economie )

Medie UE =1.6

0

5

10

15

20

25

30

35

RO BG GR PT PL HR LT SL LV HU IE FI AT ES CY

Popula tia ocupata in agricultura in

2014 (% din tota l popula tie ocupata )

Sa la ria ti (% din tota l persoane ocupate in economie)

Auto-ocupare (% din tota l persoane ocupate in

economie)

Uniunea Europeana =5 .0%

0

2

4

6

8

10

FR PL DE ES RO IT UK HU BG DK CZ LT

Supra fa ta cultiva ta cu cerea le

(milioane hectare, medie 2009 -2013)

0

2

4

6

8

10

12

14

16

18

20

FR ES DE PL IT RO UK HU BG SE CZ DK

Supra fa ta a rabila

(milioane hectare, medie 2009-2013)

Page 35: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

... dar insuficient valorificat - probleme structurale in agricultura

0

10

20

30

40

50

60

70

80

90

100

RO

GR SL

HR IT PL

LT PT

HU

BG ES

AT

LV NL

CH EE

SK

NO SE

FR FI

IE DE

UK

CZ

DK

Structura supra fetei a gricole utiliza ta dupa

ma rimea ex ploa ta tiei in 2 0 1 0 (% din tota l)

Peste 50 ha

20 -50 ha

10 -20 ha

5 -10 ha

0 -5 ha

Impact puternic al conditiilor climaterice asupra productiei agricole

Segmentare importanta a exploatatiilor agricole (lipsa cadastrului)

Agricultura de subzistenta detine o pondere importanta

Romania este importator net de produse agroalimentare (exclusiv cereale)

Sursa: Eurostat, Institutul National de Statsitica , Raiffeisen RESEARCH

75

80

85

90

95

100

105

110

115

120

19

96

19

98

20

00

20

02

20

04

20

06

20

08

20

10

20

12

20

14

M edie 1995 -2014

Va loarea adaugata bruta in agricultura (termeni

rea li, 2003=100 )

Page 36: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Eficienta energetica scazuta a economiei

Eficienta energetica a economiei s-a imbunatatit, dar ramane redusa comparativ cu celelalte economii din Uniunea Europeana

Cresterea eficientei energetice a economiei permite cresterea competitivitatii acesteia, inclusiv reducerea importurilor de produse energetice

Sursa: Eurostat , Raiffeisen RESEARCH

200

300

400

500

600

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Gross inland consumption of energy divided by

GDP (kg of oil equiva lent per 1 000 EUR)

0

1 0 0

2 0 0

3 0 0

4 0 0

5 0 0

6 0 0

7 0 0

Se

rbia

Bu

lga

ria

Esto

nia

Cze

ch R

ep

ub

lic

Slo

va

kia

Ro

ma

nia

Latv

iaP

ola

nd

Lith

ua

nia

Hu

ng

ary

Slo

ve

nia

Cro

ati

aFin

lan

dB

elg

ium

Cy

pru

sP

ort

ug

al

Gre

ece

Ne

the

rla

nd

sS

we

de

nM

alt

aFra

nce

Ge

rma

ny

Sp

ain

Lux

em

bo

urg

No

rwa

yA

ustr

iaIt

aly

Un

ite

d K

ing

do

mD

en

ma

rkIr

ela

nd

Gross inland consumption of energy divided by

GDP (kg of oil equiva lent per 1 000 EUR) in 2013

EU a vera ge = 1 42

Page 37: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Population is declining and getting older

Source: Eurostat, Raiffeisen RESEARCH

15

17

19

21

23

25

19

80

19

83

19

86

19

89

19

92

19

95

19

98

20

01

20

04

20

07

20

10

20

13

20

16

20

19

20

22

20

25

20

28

20

31

20

34

20

37

20

40

20

43

20

46

20

49

Stable popula tion of Romania

(mn. persons)

-5 .9% betw een 1990 and 2002

-8.0% betw een 2002 and 2012

-10.6% betw een 2012 and 2050

0

10

20

30

40

50

60

70

80

19

80

19

84

19

88

19

92

19

96

20

00

20

04

20

08

20

12

20

16

20

20

20

24

20

28

20

32

20

36

20

40

20

44

20

48

Structure of popula tion, by age segments

Popula tion agged 15 -65 years (% of tota l popula tion)

Popula tion agged over 65 years (% of tota l popula tion)

Page 38: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Low investments in factors supporting

growth potential of the economy

Source: World Bank, Eurostat, Raiffeisen RESEARCH

0 .0

0 .2

0 .4

0 .6

0 .8

1 .0

CY RO BG LV GR SK M T HR PL LT

Expenditure on R& D

(% of GDP)

Average 2009 -2013 2013

0

2

4

6

8

10

RO EE LV LT PL CY BG LU CZ HU SK M T

Total health ex penditure

(% of GDP, avg. 2009 -2013)

- from public sources

- from priva te sources

Tota l hea lth expenditure

0

1

2

3

4

5

6

RO BG IT GR DE ES IE SK AT HR

Public spending on education

(% of GDP)

Average 2009 -2013 2013

Page 39: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Numarul de contributori la sistemul public de pensii care revin

la 100 de pensionari în tarile din UE

Sursa: Comisia Europeana

Page 40: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Evolutia numarului de pensionari

vs. numarul de salariati

Sursa: INS

Page 41: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Evolutia pensiei medii (lei) în perioada 2001-2014

Sursa: INS

+30.5%

Page 42: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Deficite nesustenabile in sistemele de asigurari sociale

Sursa: Eurostat

Deficitul bugetelor de asigurări so iale pe sii, șo aj și să ătate şi defi itul ugetar total –

ESA2010 (% din PIB)

1.45 1.34 1.49 1.07

-0.08

0.34 0.69 0.42

-1.12

-3.12

-4.46 -4.15 -3.30 -3.01 -3.28

-10.00

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

Defi it siste e de asigurări so iale % di PIB

Deficit bugetar (% din PIB)

Page 43: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Total alocari din fondul de rezerva

la dispozitia Guvernului (mld. lei)

Sursa: calcule Consiliul fiscal pe baza datelor din Hotărârile de Guvern privind

alocarea de sume din fondul de rezervă

Page 44: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Absorbtia fondurilor europene este slaba

A sor ția fo durilor stru turale – o parație u alte state e re UE

Total

alo ări 2007-2013

Plăți 2014

Rata

a sor ție

2014

Total alo ări 2007-

2013/locuitor

Total

plăți/lo uitor

2014

mld. euro mld. euro % euro euro

Lituania 6,78 6,35 93,70% 2.279,85 2.136,22

Estonia 3,40 3,14 92,30% 2.578,04 2.379,53

Polonia 67,19 57,31 85,30% 1.743,57 1.487,27

Letonia 4,53 3,70 81,70% 2.238,56 1.828,90

Slovenia 4,10 3,35 81,70% 1.991,94 1.627,42

Ungaria 24,92 19,01 76,30% 2.515,05 1.918,99

Bulgaria 6,67 4,37 65,50% 916,13 600,07

Repu li a Cehă 26,53 16,76 63,20% 2.522,45 1.594,19

Slovacia 11,50 6,91 60,10% 2.125,06 1.277,16

România 19,21 10,82 56,30% 959,69 540,30

Sursa: Comisia Europeana (fonduri structurale) si Eurostat (populație, 2013) Notă: Rata de absorbtie calculata de Comisia Europeană pe baza plăților intermediare și a prefinanțărilor.

Page 45: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Venituri bugetare foarte mici . . .

Ve iturile ugetare şi e ituri fis ale % di PIB, ESA , 4

Sursa: EUROSTAT; Veniturile fiscale includ şi contribuţiile de asigurări sociale.

Page 46: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Sursa: Co isia Europea ă, Eurostat

Venituri din TVA (% din PIB) – 2014

. . .ineficienta colectarii fiind evidenta

Page 47: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Cheltuieli mari cu investitiile publice . . .

Sursa: Eurostat

Po derea heltuielile u i estiţiile î PIB și total e ituri ugetare (medie 2006-2014)

.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

Est

on

ia

Ro

nia

Leto

nia

Po

lon

ia

Bu

lga

ria

Slo

ve

nia

Croa

ția

Litu

an

ia

Repu

lia

Cehă

Su

ed

ia

Un

ga

ria

Fra

ța

Luxe

mb

urg

Ola

nd

a

Fin

lan

da

Sp

an

ia

Gre

cia

Slo

va

cia

Da

ne

ma

rca

Po

rtu

ga

lia

UE

țări

Irla

nd

a

)oa

euro

ță

ri

Cip

ru

Ma

lta

Au

stri

a

Ma

rea

Bri

tan

ie

Ita

lia

Ge

rma

nia

Be

lgia

Pondere în PIB Pondere în venituri bugetare

Page 48: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Calitatea infrastructurii

Sursa: World Economic Forum, The Global Competitiveness

Report 2014-2015

0

1

2

3

4

5

6

7

Ro

nia

Bu

lga

ria

Slo

va

cia

Po

lon

ia

Un

ga

ria

Repu

lia

Cehă

Au

stri

a

Fra

ța

Ge

rma

nia

Ola

nd

a

Scor privind calitatea infrastructurii GCI (2014-2015)

. . . dar ineficiente

Page 49: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

VAT rate (2015)

17

18 18

19 19

20 20 20 20 20 20

21 21 21 21 21 21

22 22

23 23 23 23

24 24

25 25 25

27

15

17

19

21

23

25

27

29Lu

xem

bo

urg

Ro

ma

nia

20

17

Ma

lta

Ge

rma

ny

Cyp

rus

Bu

lga

ria

Est

on

ia

Fra

nce

Au

stri

a

Slo

vaki

a

Un

ite

d K

ingd

om

Be

lgiu

m

Cze

ch R

ep

ub

lic

Spa

in

Latv

ia

Lith

ua

nia

Ne

the

rla

nd

s

Ita

ly

Slo

ven

ia

Gre

ece

Ire

lan

d

Po

lan

d

Po

rtu

gal

Ro

ma

nia

Fin

lan

d

De

nm

ark

Cro

ati

a

Swe

de

n

Hu

nga

ry

EU average: 21.5

Source: European Commission

Page 50: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Top corporate income tax (2014)

10

12.5 12.5

14 15 15

16 17

19 19 20 20 20

20.6 21 21 22 22

24.5 25 25

26 27

29.2 30 30.2

31.4 31.5

34 35

38

10

15

20

25

30

35

40

Bu

lga

ria

Ire

lan

d

Cyp

rus

Ro

ma

nia

20

19

Latv

ia

Lith

ua

nia

Ro

ma

nia

Slo

ven

ia

Cze

ch R

ep

ub

lic

Po

lan

d

Cro

ati

a

Fin

lan

d

Ice

lan

d

Hu

nga

ry

Est

on

ia

Un

ite

d K

ingd

om

Slo

vaki

a

Swe

de

n

De

nm

ark

Ne

the

rla

nd

s

Au

stri

a

Gre

ece

No

rwa

y

Luxe

mb

ou

rg

Spa

in

Ge

rma

ny

Ita

ly

Po

rtu

gal

Be

lgiu

m

Ma

lta

Fra

nce

EU average: 21.3

Source: KPMG

Page 51: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Top personal income tax (2014)

10

14 15

16 16

21 22

24 25

32

35 35

39

43.6 45

46 46.2 47.2 47.5 47.9 48

50 50 50.3 51.5 52 52

53.7

55.6 56.5 56.9

10

15

20

25

30

35

40

45

50

55

60

Bu

lga

ria

Ro

ma

nia

20

19

Lith

ua

nia

Hu

nga

ry

Ro

ma

nia

Est

on

ia

Cze

ch R

ep

ub

lic

Latv

ia

Slo

vaki

a

Po

lan

d

Cyp

rus

Ma

lta

No

rwa

y

Luxe

mb

ou

rg

Un

ite

d K

ingd

om

Gre

ece

Ice

lan

d

Cro

ati

a

Ge

rma

ny

Ita

ly

Ire

lan

d

Au

stri

a

Slo

ven

ia

Fra

nce

Fin

lan

d

Spa

in

Ne

the

rla

nd

s

Be

lgiu

m

De

nm

ark

Po

rtu

gal

Swe

de

n

EU average: 37.9

Source: KPMG

Page 52: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Top social security contributions (2014)

14.75 15.8

19.3 20 22.3

27.34

31 32.02

34.09 34.45 34.65 34.75 36 36.25 37.2 38.2 38.42

39.71 39.9 40.49 40.98

43.96 44.95 45 47

48.07 48.6 49.96

68

10

20

30

40

50

60

70

80

Ire

lan

d

Un

ite

d K

ingd

om

Cyp

rus

Ma

lta

No

rwa

y

Luxe

mb

ou

rg

Bu

lga

ria

Fin

lan

d

Latv

ia

Po

lan

d

Ro

ma

nia

20

17

Po

rtu

gal

Est

on

ia

Spa

in

Cro

ati

a

Slo

ven

ia

Swe

de

n

Ge

rma

ny

Au

stri

a

Ita

ly

Lith

ua

nia

Gre

ece

Ro

ma

nia

Cze

ch R

ep

ub

lic

Hu

nga

ry

Be

lgiu

m

Slo

vaki

a

Ne

the

rla

nd

s

Fra

nce

EU average: 36.6

Source: KPMG

Page 53: Rom ania p nom inal and real convergence on the way to ... · 2.4 2.4 2.1 2.0 1.9 1.8 1.7 1.7 RO EE HU UK AT AT LT MT LU PL Average annual inflation rate (from Mar 2010 to Mar 2015)

Dividend tax (2014)

0 0 0 0 0 0 0

5

12

15 15 15 15 15 16

19 20 20

21

25 25 25 25 25 25 26

27

30 30

0

5

10

15

20

25

30

35

Cyp

rus

Est

on

ia

Hu

nga

ry

Latv

ia

Slo

vaki

a

Un

ite

d K

ingd

om

Ro

ma

nia

20

16

Bu

lga

ria

Cro

ati

a

Cze

ch R

ep

ub

lic

Lith

ua

nia

Luxe

mb

ou

rg

Ne

the

rla

nd

s

Slo

ven

ia

Ro

ma

nia

Po

lan

d

Fin

lan

d

Ire

lan

d

Spa

in

Au

stri

a

Be

lgiu

m

Ge

rma

ny

Gre

ece

No

rwa

y

Po

rtu

gal

Ita

ly

De

nm

ark

Fra

nce

Swe

de

n

EU average: 16.1

Source: Deloitte