Romania's political and economic stability is now a reality that Spanish businessmen should not miss out on.
The excellent bilateral relations between the two countries, their linguistic ties, and the significant size of the Romanian market should be key factors in increasing the Spanish presence in the country.
– What fundamental changes has Romania undergone in 1990 compared to today, in the transition to a market economy?
In December 1989 the totalitarian regime fell and Romania embarked on the path towards the Western values that had been its own until the Second World War.
The multi-party system emerges. During the first year, more than 200 parties were created because people needed to express themselves after 50 years of being unable to do so. Democratic values, rights, and freedoms of expression are reborn. A free press exists, which by 1993 and 1994 was already behaving as one of the powers of the system.
In the economic sphere, Romania maintained its centralized system until the very end of the communist regime. The return to a market economy required numerous reforms and is a difficult process. The country had once boasted giant companies, employing tens of thousands of people, which, after privatization, were slashed to pieces.
The process isn't over yet, and it could be an opportunity for investors looking to get closer to the country, because it can be bought at a good price. This money invested now will, in a few years, be money invested in the EU.
The progress made was reviewed at the Copenhagen European Council. Romania set 2007 as the year for its accession to the EU, given the difficulties and the progress that needed to be made.
Our challenge is to ensure that the Commission's next report confirms that the Romanian market economy is a functioning economy.
– What assessment would you make of the political situation in Romania during the last two years of social democratic government?
The social democratic government is very pragmatic. The Prime Minister has a very strong team working on a sound government program whose results are already evident.
They assumed power after the elections in 2000. In 2001, GDP grew by 5,3%, and last year by 4,5%, a growth rate also projected for this year. For three years, from 1996, GDP declined by 15%, but in 2000 the economy stabilized with a certain percentage of growth. All of this occurred amidst unfavorable international economic conditions.
We've always had high inflation, reaching 40% three years ago. Last year it fell to 18%, exceeding expectations. There's a reform process underway, a privatization process, and a modernization of companies. We're making progress with encouraging figures. The country risk has also decreased.
The government is stable. There are no social movements, despite the country's economic difficulties, which means there is solidarity among the people.
– Undoubtedly, the main pillars of Romania's current foreign policy are the EU and NATO. What will these revenues mean for the country?
In 1990, the first democratic values set as their main goal the country's accession to the European system.
We were invited last year to the Prague Summit to join NATO, and the process is underway for all seven countries, although it is slow. Joining NATO is proof that the country meets the political and democratic criteria.
Romania has always been a source of stability. In the 90s, we found ourselves amidst several centers of instability: the Soviet Union collapsed, as did Yugoslavia and Czechoslovakia. With our entry into NATO, given our geostrategic position, we will contribute to the stability of the region.
The EU brings prosperity and offers us a significant market. Furthermore, Romania is the second largest country in the region and has a skilled and well-trained workforce, which will attract substantial investment.
Joining the EU means entering a zone of prosperity, human rights, and a model of society that greatly interests us. Romanians have always been European, even though history pushed us to belong to another world. Now we look to the future.
– Despite the Latin affinity between Spain and Romania, the Spanish presence in the country is not significant. Why do you think this is?
Romania is the ideal partner for Spain. A Spanish speaker, after two months living in Romania, begins to understand the language and within another two months starts speaking it fluently. That won't happen in any other country in the region. The linguistic affinity is an extraordinary bond.
With Spain, trade grew by more than 60% in 2001 compared to the previous year, and in 2002 it increased by a further 27% over 2001, reaching $500 million. Both countries aim to reach $1 billion by 2006 and 2007.
There is an inertia caused by historical tradition. We Romanians have moved closer to Western Europe, reaching as far as Paris and Rome, while the Spanish ventured into Europe as far as Berlin.
We must consider bringing ourselves closer together. We are two Latin American countries, with the same idiosyncrasies, the same values, located in two strategic points of the continent, and with great potential for cooperation in all fields.
– How would you rate the current bilateral relations between Spain and Romania?
Relations are excellent, with a dialogue of trust between the leaders of both countries.
President Illiescu visited the country in October 2001. Subsequently, during Spain's EU presidency, Romania opened nine rounds of negotiations. Spain's experience offers a lesson from a country that struggled for nine years to negotiate its EU accession and can offer us its expertise in EU integration.
Within the framework of cooperation, we have 27 administrative twinning programs, 9 of which are with Spain. The visit of the King and Queen is further proof of the growing level of political dialogue between our two countries. For an ambassador, it is a great pleasure to work in a friendly country.
– In matters of national security, could illegal immigration be one of the main concerns in these bilateral relations?
Romania is facing difficulties during this transition phase. There is an agreement with Spain to regulate migration flows. Under this agreement, 2.500 Romanian workers came to Spain last year, and 4.500 have arrived this year.
On the other hand, there are people who come as tourists and stay to earn a living. There are also people who can't find work and become marginalized, turning to crime and organized crime. This phenomenon is worrying because people judge us based on what they see, and the vast majority who are working honestly are invisible. It creates a negative impression of Romanians. Currently, the Romanian community in Spain numbers over 45.000 people with legal status. There is ongoing dialogue between the interior ministries of both countries to try to resolve these issues.
– What advantages could a Spanish businessman find by directing his business to Romania?
The language and low prices are key advantages. There is legislation that protects investments starting at one million dollars. Therefore, there are tax benefits for the first few years of investment.
Another advantage is that Romania has a very diverse industry, so any sector can represent a significant business opportunity.
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