OECD Competition Assessment Reviews: Romania
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During the past few years, Romania has recovered well from the global financial crisis. However, the country still faces structural problems, including poor competitiveness, that limit economic growth. Against this background, the OECD Competition Assessment Project analysed legislation in three sectors of the Romanian economy: construction, transport and food processing. Using the OECD Competition Assessment Toolkit to structure the analysis, the OECD identified 227 problematic regulations and made 152 specific recommendations on legal provisions that should be amended or repealed. This report identifies the sources of those benefits and, where possible, provides quantitative estimates. If these recommendations are implemented, there should be benefits to consumers in Romania and to the Romanian economy in all three sectors.
Construction
The Construction sector is important, both as the creator of infrastructure for other sectors and as a great source of employment (over 1.1 million people in 2014). It is also a major contributor of GVA (EUR 9.4 billion in 2014). Among its major constraints are unclear procurement practices with unguided discretion by public authorities, caps on prices for major components such as gravel and sand and constraints on specific types of business such as market stalls and tourist constructions. Potential conflict of interest with public authorities, obsolete legislation and laws that have not kept up with recent EU legislation, such as those governing the environment have also led to wide discretion granted to authorities.
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