Romania on track for 2007 EU accession after gaining "functioning market economy" status

Romania was granted functioning market economy status yesterday as part of the country report by the European Commission. The report also stated that the accession timeframe would remain unmodified: the European Union aims to sign a joint accession treaty with Romania and Bulgaria in 2005, with the two countries set to join the Union in 2007.

The report, presented yesterday to the European Parliament by Romano Prodi, president of the European Commission, and the EU’s enlargement commissioner, Gunter Verheugen, states that Romania and Bulgaria would jointly enter the European Union in 2007 “if they are ready.”

After the accession treaty is signed, “as soon as possible in 2005,” the two countries will be monitored for a further two years. In this way, the European Commission intends to ensure Romania and Bulgaria live up to the pledges they made during the negotiation process. If not, integration could be postponed by a year.

Bulgaria completed accession negotiations this summer, and Romania hopes to do the same by the end of the year. The EU enlargement commissioner told European MPs that the European Commission supports completion of accession negotiations with Romania by the end of the year, but made no commitment. He explained that, though it was going to be a difficult process, “it was a variant that should not be ruled out.”

The Commission’s report mentions that, in line with the Copenhagen criteria (1993) for a country to be accepted into the Union, it must also have a “functioning market economy,” and be “able to withstand competition and market forces within the European Union.” These criteria are complementary. This year Romania managed to fulfill the first criterion, but not the second. The report makes it clear that this will not happen unless reforms are strictly enforced, and speaks of efforts to sustain macroeconomic stability and the need to continue structural reforms. The second criterion must be fulfilled by the accession date.

As expected, the document triggered many reactions. The EU Ambassador to Romania, Jonathan Scheele, congratulated Romanians on the report’s positive aspects, saying it was the result of a collective effort. “I encourage them to continue with the same determination,” Scheele said.

Romanian President Ion Iliescu saw the document as “balanced and objective,” but also pointed to the “weaknesses” of which the report also made mention. The President’s spokesperson, Corina Cretu, said these issues required the special attention of the Government.

Ion Iliescu will chair the Government meeting to be held today, at which measures to tackle the negative aspects mentioned in the report are to be endorsed.

The PNL-PD Alliance (formed by the National Liberal Party and the Democrat Party) welcomed the European Commission’s decision to stick to the 2007 accession timeframe. The Alliance co-president, Calin Popescu Tariceanu, hailed the report as “a diplomatic gesture of goodwill towards Romania,” though not as an acknowledgment of the Government’s policy in the past few years. iulian.anghel@zf.ro