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1 1 (June 14, 2022)

handle is hein.crs/govegir0001 and id is 1 raw text is: Congressional Research Service informing the legisiative debate since 1914 Updated June 14, 2022 Romania: An Overview With a population of almost 20 million, Romania is the largest country in southeastern Europe. After the end of communist rule in 1989, Romania adopted a Euro-Atlantic orientation, joining NATO in 2004 and the European Union (EU) in 2007. Romania's strategic Black Sea location, steadfast commitment to its security partnership with the United States, and shared concerns about Russia make it a key U.S. ally in the region. Romanian officials have unequivocally condemned Russia's 2022 war on Ukraine and have supported EU sanctions against Russia and NATO's enhanced deterrence and defense posture in the eastern part of the alliance. Dormestkc Background Romania is a parliamentary republic with a semi- presidential system. A directly elected president serves as head of state, and a prime minister leads the government. President Klaus Iohannis, a centrist backed by the National Liberal Party (PNL), was elected to a second five-year term in 2019. PNL has led successive, short-lived governments since late 2019. Prime Minister Nicolae Ciuca leads a grand coalition government including PNL, the Social Democratic Party (PSD), and the Democratic Alliance of Hungarians in Romania (UDMR). The Ciuci government formed in November 2021, succeeding another PNL-led government that took office in December 2020 and collapsed in October 2021. Romanian voters largely delivered victories to center-right, liberal, and progressive candidates in European Parliament and presidential elections in 2019 and in local elections in 2020. In the December 2020 parliamentary elections, however, PSD won a plurality of votes (just under 30%). PNL placed second (25%), followed by the liberal USR- PLUS alliance (15%), the newly formed far-right Alliance for Romanian Unity (9%), and UDMR (6%). Key voter concerns included the economy and perceived mismanagement of the COVID-19 pandemic. Despite placing first, PSD remained in opposition until joining the government in November 2021. The Ciuci government faces serious policy challenges: the continuing pandemic, record-high energy costs and inflation, an influx of hundreds of thousands of refugees from Ukraine, and the security crisis triggered by Russia's war on Ukraine. The governing parties' historic rivalry and potentially diverging priorities could strain the coalition. PSD holds key ministries and leads opinion polls, while support for PNL has declined. Under the coalition agreement, Ciuci is to serve as prime minister until May 2023, followed by a PSD appointee. Governance and Rule-of-Law Concerns Corruption and weak rule of law are regarded as significant challenges in Romania. Due to concern that these issues had not been resolved when Romania joined the EU in 2007, Brussels continues to monitor Romania's reform progress. During the 2000s and 2010s, EU assessments praised key elements of Romania's anti-corruption and judicial reforms. The National Anticorruption Directorate, for example, successfully prosecuted numerous officials and politicians on corruption charges. From 2017 to 2019, however, PSD- led governments sought controversial changes to Romania's judicial and anti-corruption institutions, citing their politicization and capture. Critics viewed the measures as an effort to undermine judicial independence and protect officials accused of corruption, including PSD's powerful then-leader, Liviu Dragnea. The situation changed following public backlash and sharp EU and U.S. criticism. Dragnea began a prison sentence for abuse of position in May 2019, and the PSD-led government collapsed in October 2019. Some of the controversial justice measures have since been reversed. Still, corruption remains a major challenge. The State Department's 2021 human rights practices report for Romania assessed that corruption, misuse of public funds, and bribery remain widespread. Figure I. Romania at a Glance Sources: International Monetary Fund and 201 I Romanian census. Economy and Energy For part of the 2000s and 2010s, Romania was among the EU's fastest-growing economies. Despite improved conditions and greater gross domestic product (GDP) per capita convergence toward the EU average, nearly a third of Romania's population is at risk of poverty or social exclusion. Other barriers to economic growth include an aging and shrinking population, infrastructure deficiencies, an unpredictable legal environment, and corruption. The pandemic contributed to a 4% contraction in GDP in 2020. Romania's GDP grew by 5.8% in 2021, and its economy is

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