This country report surveys the economic and social development of Romania. It shows that most of Romania’s social indicators lag behind those of the EU. Persistent macroeconomic imbalances have slowed the real and nominal convergence process. The economy is still affected by low levels of competitiveness, incomplete restructuring, modest productivity in agriculture, a high level of employment in subsistence agriculture and slow disinflation.

Regional disparities have grown and amplified social inequities, mainly between urban and rural areas and between large cities and small, mono-industrial towns. Rural areas are affected mostly by a lack of access to utilities and infrastructure.

The healthcare system faces problems in terms of access to medical services for low-income groups and limited coverage in rural areas and small towns. The pension system suffers from inequities in pension levels, a low number of contributors, a reduced coverage rate and insufficient resources. Social assistance, unsuccessfully reformed in 1995, was replaced in 2002 by a minimum guaranteed income.