The most spectacular change brought by the government reshuffle is the concentration of several ministries and institutions in the hands of a single minister – of the Economy.
Thus, the number of the Government’s financial and economic institutions is cut down to three – the Finance Ministry, the Economy Ministry and the Public Works, Transports and Housing Ministry.
Built around the structure of the Industry and Resources Ministry, the Economy Ministry encompasses the Development and Prognosis Ministry, the Economic Policy Department and the Foreign Trade Department, currently led by Eugen Dijmarescu. #leadend#The same structure will engulf the Ministry for SMEs and Cooperation, although the institution was originally supposed to morph into a government agency.
The new structure is to mastermind the economic policies, to work closely with the Finance Ministry, the Labour Ministry and the Public Works and Transports Ministry.
However, it is possible that the Economy Ministry cannot overcome the status of a bureaucratic mammoth, with hundreds of civil servants, where the decisions could get lost on their way down from the top to the enforcers.
The Economy Ministry will not be able to deal only with economic strategies and policies, as it will also have to solve many concrete issues. The most difficult matter is the energy sector restructuring and privatisation.
“We have not been consulted on this new organisation formula. We understand there must be fewer ministries, in accordance with EU regulations, but it is clear that we need a de-bureaucratisation. At first sight, there are pros and cons. For instance, I don’t know whether the Economy Ministry should include everything – Industries and Tourism in one place. As tourism is both a priority and a source for growth, perhaps it deserves special attention. I hope this integration will not see this sector losing itself somewhere in a superstructure,” says Florin Pogonaru, chairman of the Association of Romanian Businesspersons.
At any rate, just because the ministry bears the same name as an institution in Western Europe, this does not automatically guarantee improved efficiency.
“I don’t think we can compare it with an Economic Ministry from Western Europe, where they have already privatised everything. The mission of an Industry and Resources Ministry that should deal with privatisation (38% in the total capital of the Romanian economy belongs to this ministry, i.e.) is separate from the mission of a Western Economy Ministry, which has to deal rather with policies and strategies,” Pogonaru explains.
“The efficiency of the new entity will largely depend on organisation and the assumed responsibilities. If it goes for a deeper involvement, it will encounter difficulties,” says financial analyst Aurelian Dochia.