Despite Romania's EU membership: Economic and political crises, spatial disparities

Although Romania is part of the European Union (EU) since 2007, the accession brought less development than expected. Since 2009, the crisis has determined the government to make a financial agreement with the International Monetary Fund (IMF), which led to budgetary cuts, including a 25% reduction of wages of all public sector employees, an increase of Value Added Tax (VAT) from 19% to 24% and the bankruptcy of most Small and Medium-Scale Enterprises (SMEs). These measures resulted in lower living standards and an overall reduction of consumption, an economic and social decline at national level and an increasing marginal position of Romania in the EU. There is a growing differentiation within the Romanian society as well. The dissolution of hundreds of schools in the rural areas and the closing of hospitals in small towns enlarged the existing gaps between central regions and large cities, where investments concentrate, and rural and marginal areas, where many farmers abandoned their activities. The strategies of highlighting the tourism attractions of these areas proved partially unsuccessful. The analysis of regional disparities at the regional and county level shows ever increasing imbalances and inequalities between the developed and underdeveloped areas. While the hierarchy remains largely the same, with Bucharest [Bucuresti] and Ilfov County still way ahead of the other regions. All these have led to a debate regarding a new regionalisation of Romania. The 2012 political crisis also determined attempts to renew the Constitution. Therefore, other changes are expected, which could only lead to the end of the transition phase of reforms.