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JOINT SITUATIONAL ANALYSIS
Romania, located in southeastern Europe, boasts diverse geography, including the Carpathian Mountains, plains, and a Black Sea coastline. Its historical role as a cultural and commercial crossroads has shaped its identity as a bridge between Eastern and Western civilizations. While the Carpathian Mountains offer resources like minerals and timber, the fertile plains support agriculture. However, the Black Sea’s strategic importance has increased due to the conflict between Russia and Ukraine, leading to security concerns. Despite these challenges, Romania’s geographic diversity has profoundly influenced its cultural heritage, economic pursuits, and historical engagements.
Romania’s population, totaling about 19 million, consists of slightly more females than males. The average life expectancy has increased, reaching around 74 years, with variations between genders. The birth rate has decreased to approximately 9 births per 1,000 people, while the death rate stands at around 13 deaths per 1,000 people. The ethnic makeup is diverse, with ethnic Romanians being the majority, alongside minority groups like Hungarians, Roma, Ukrainians, and Germans. Emigration, driven by economic challenges since the fall of the dictatorship in 1989 and the 2007/8 global financial crisis, has led to an aging population and labor shortages, resulting in a significant drop in Romania’s population over the past three decades, from 23 million in 1991 to just over 19 million in 2021.
Romania functions as a semi-presidential republic with a bicameral parliament, marked by the overthrow of the communist regime in 1989 and subsequent democratization efforts. The upcoming presidential elections are scheduled for mid- to late November 2024, reflecting ongoing political dynamics aimed at combating corruption and reinforcing
the rule of law. Economically, Romania boasts a diverse, high-income economy, ranking among the top EU nations in terms of nominal GDP and purchasing power parity. However, persistent challenges include a notable budget deficit, significant unemployment rate of 5.4%, and economic inequality, with a quarter of the population at risk of poverty. Inflation surged over 15% in 2022 due to the Ukraine conflict, exacerbating affordability issues, particularly in housing. Despite progress, Romania remains one of the EU countries with the highest poverty rates, concentrated mainly in rural areas and smaller cities.
The country’s high risk of poverty has had a significant impact on the health and wellbeing of Romanians, particularly those belonging to rural communities, historically marginalized groups such as Roma communities, and certain groups of migrants. The escalation of the conflict in Ukraine has also increased the people’s risk of falling into poverty due to an increased national inflation rate, rising cost and scarcity of affordable housing, rising food costs, and other factors.