Will D.I.Popescu do more than D.I.Popescu?

The reform in the energy sector, or the lack of, to be precise, has been harshly criticised by the International Monetary Fund and by the European Union, which see it as the main obstacle in the way to a functional market economy.

Others have complained about it, too, albeit for different reasons. It is about the pensioners in the Titan neighbourhood, stunned by the upkeep bill. “Subsidised prices!” is the battle cry of both sides. Only that the West means it as a reproach, while in Romania it is an upfront demand.

The Romanian Government, however, seems pleased with the progress of the reform in this sector. Or at least this is what the recent restructuring/reshuffle shows: not only that the position of Dan Ioan Popescu, who has held it for two and a half years now, was not discussed, it was consolidated, as he became the Minister of Economy and Commerce.

Each of the three memorandums concluded with the IMF over the last two years included extensive coverage of the measures to be taken in view of restructuring the energy sector.

The lack of restructuring, the increase in arrears, the delay in privatising the electricity and natural gases distribution, as well as Petrom have always been Romanian party’s weak points whenever negotiating with the IMF. The (almost) only step taken, i.e. raising the prices of gas, electrical and thermal power, can be easily explained: it worked for both sides. It worked for the IMF because the institution stresses on deregulation and it worked for the Industry Ministry because it helped it disguise its lack of efficiency.

“The establishment of the Ministry of Economy and Commerce actually means dropping artificially created structures, which did nothing over the last few years. Putting everything under the control of one person is not a bad idea, but I don’t think Dan Ioan Popescu should be the one in charge because he used to run the lowest performing ministry and reformed nothing,” said Marian Milut, chairman of the National Union of Romanian Employers.
adrian.mirsanu@zf.ro ; sorin.pislaru@zf.ro