Romania's integration into the Organisation for Economic Co-operation and Development is not an end point, but rather the activation of a reference framework that could generate an additional potential growth of 0.8%-1% of GDP per year, according to Leonardo Badea, First Deputy Governor of the National Bank of Romania.
'Romania simultaneously needs fiscal discipline, productive investment and the development of financial markets in order to increase the economy's potential and stabilise public debt. In this way, the reforms carried out as part of convergence with OECD standards can produce lasting effects and more effectively support the structural transformation of the economy. In conclusion, Romania's integration into the OECD is not an end point, but the activation of a reference system that can generate additional potential growth estimated at 0.8%-1% of GDP per year,' he said in a press release sent to AGERPRES.
The central bank official added that, for this milestone objective to become reality, monitoring performance indicators - from total factor productivity (TFP) and the quality of foreign direct investment to the efficiency of human capital spending - must become the backbone of post-accession public policies.
He pointed out that the experience of regional countries such as Poland and Czech Republic shows that long-term success depends on the institutional capacity to turn formal standards into functional market mechanisms.
Leonardo Badea considers that accession to an organisation perceived as a 'club of developed economies' sends a strong signal regarding a country's commitment to high standards in areas such as corporate governance, anti-corruption, competition policy, trade facilitation and investment regulation. This helps strengthen investor confidence and can reduce the cost of capital for the economy.
He also explained that the accession process involves extensive and multidimensional assessments of the legislative and institutional framework, which accelerates the implementation of structural reforms with an impact on productivity.
'Studies show that eliminating public policy vulnerabilities - defined as those approaches which, according to OECD indicators, fall below the average observed internationally - could generate significant economic gains. For example, according to the analysis OECD Economics Department Working Papers No. 834, aligning national policies with the average level of OECD countries could lead, in the case of a typical economy, to long-term growth of around 25% in GDP per capita. A significant part of this impact comes from specific reforms promoted by the OECD. Around one fifth of the estimated increase (about 5%) is associated with reforms in product market regulation. A similar impact would result from adjusting the average level of the tax burden on labour (tax wedge'). Significant economic benefits could also arise from investments in human capital and reforms to unemployment benefit systems, which can improve the functioning of the labour market,' Badea said.
At the same time, he noted that OECD membership encourages the adoption of best practices in areas such as education, public health and the labour market, thereby contributing to improved quality of life and the development of human capital. Accession also facilitates the implementation of more transparent, efficient and accountable public spending mechanisms.
Moreover, compliance with OECD standards strengthens the functioning of financial markets and supports the economy's ability to withstand external shocks, enhancing macroeconomic resilience.
In the document published on Tuesday, Leonardo Badea argued that, in the recent OECD Economic Survey of Romania, the most encouraging element is not only the impressive rate of income convergence, but also the precise diagnosis of the country's potential for deeper integration into the global economy.
'Romania currently occupies an intermediate plateau' position in global value chains, characterised by asymmetric integration: exports are dominated by large, foreign-owned entities, while links between foreign firms and domestic suppliers remain limited. From this perspective, the comprehensive analysis in the report provides a clear roadmap for moving beyond this stage,' he said.
He believes that one of the key opportunities highlighted in the report is strengthening organic links between foreign capital and domestic suppliers. 'This capillary infusion' can transform local firms from simple component suppliers into innovation partners, accelerating technology transfer and building a far more resilient and interconnected economic ecosystem,' the central bank official noted.
He therefore recommends mechanisms through which Romanian firms can integrate into the production chains of new facilities developed by foreign investors and offer competitive options in supply, transport and distribution.
Badea also addressed the social aspects highlighted by the OECD, noting that identifying segments that are disconnected from or underrepresented in the labour market (such as young people, women or rural populations) provides levers to accelerate the economy's potential growth.
To achieve these objectives, he suggested that public policies should focus more on instruments recommended by OECD member countries, such as dual education systems (school and company), active labour market services, expanded childcare services, flexible working arrangements, anti-salary discrimination policies, development of transport and digital infrastructure, support for rural entrepreneurship and SMEs, regional labour mobility programmes and vocational training tailored to local community needs.
Another important observation by OECD experts concerns the technological leap Romania's economy is capable of making. Badea stressed that, although the adoption of advanced technologies in local business has been modest - limited by managerial shortcomings and restricted access to finance - Romania's widespread and high-level digital infrastructure provides an ideal foundation for a rapid increase in productivity.
At the same time, he highlighted the importance of digitalising public administration as a driver of convergence. This process produces favourable economic effects in several areas: reducing transaction costs, increasing transparency and thus credibility and predictability, stimulating economic initiatives, investment and productivity, and improving tax collection.
According to him, the digitalisation of procurement processes and budget resource management is a technical antidote to 'facade institutionalism'. 'By using e-procurement systems and real-time monitoring of expenditure, informational asymmetries that favour market distortions are eliminated. This strengthens investor confidence and optimises capital allocation towards infrastructure projects with high social returns,' he explained.
Modernising tax administration systems (such as SAF-T and e-invoicing) is essential for broadening the tax base and reducing the tax collection gap. In a context where maintaining macroeconomic sustainability is a prerequisite for accession, the digital efficiency of the tax authority becomes a guarantee of the state's ability to support public investment without increasing risk premiums, Badea added.
In addition, widespread access to digital public services and electronic identity creates the ecosystem needed for the development of the platform economy and high-tech services. This transition is critical for increasing total factor productivity, giving Romania the opportunity to capitalise on domestic technological talent and generate growth less dependent on extensive resource consumption.
'Therefore, we must not lose sight of the need for substantial corrections to current macroeconomic imbalances, in line with the objectives and milestones agreed with the European Commission. Without such adjustments, administrative modernisation and the adoption of OECD standards will not have the expected effects, as institutional performance, investment quality and financial market development can only be sustained in the long term alongside macroeconomic stability,' Leonardo Badea warned.
In this context, he stressed the need to correct the trajectory of public debt growth, which under current conditions requires bringing the primary deficit below 1% of GDP. 'This process can only be gradual, but it is important that it is not delayed,' the central bank official pointed out.
According to him, in 2026 the primary deficit will likely stand at around 3.27% of GDP (taking into account that interest payments on public debt will probably reach about 3% of GDP, while the total deficit is projected at around 6.25%).
At the same time, fiscal consolidation must be accompanied by maintaining public and private investment flows towards sectors with high multiplier effects, as not only the volume but also the quality of investment is a key determinant of potential GDP growth, Badea concluded.
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