Romania’s EU Accession Negotiations: the Significance of the EU Budget
Romania completed its negotiations for accession to the European Union, as scheduled, by the end of 2004. The experience of the negotiations over the 2004 enlargement confirmed that the EU budget is an absolutely key issue in such talks. The purpose of this paper is to consider the context of Romania’s negotiations over the EU Budget. First, we look at the relationship the EU15 member states have with the EU budget.
We show how rules governing the operation of the EU Budget have affected budgetary flows to the EU15 and highlight the stability over time of the shares of total budget flows to and from each member state. Second, we look at the experience of the new Member States in their accession negotiations and review the outcomes. This will allow us to see how the political economy of the EU Budget affected the talks and the deal the new member states were able to secure. We then apply the lessons learned to the case of Romania. Our analysis reveals inflexibilities in the negotiations that left Romania more or less facing a ‘take-it-or leave- it’ offer.
Keywords: EU budget, pre-accession aid
Strategic Negotiations in the Process of the EU Enlargement: A Game-Theoretical Application to the Agricultural Dossier
This material attempts to predict the results of negotiations in the process of the EU enlargement. The analysis is to shed light on the underlying determinants of possible outcomes and to suggest with anticipation improved ways of conduct. The interaction between nation-states is modeled in classes of games or strategic structures of interaction on the basis that the incentives of each party are revealed by their behavioral stance. The findings present a detailed analysis of bargaining power and offer predicted solutions to negotiations for the cases of the two candidate countries – Poland and Romania – considered in the application. The model’s predictions closely follow the results of negotiations in every significant detail.
Keywords: bargaining power, economic dependence, institutional stability
The Adoption of the Common Agricultural Policy – Elements of Pre and Post Accession Impact
The short time left until the EU accession date, has become a strong pressure factor for the speeding up of the necessary restructuring processes of the agrifood sector and rural areas. This is a challenge without precedent for the decision makers in the following period in order to prepare the sector from both institutional and legislative point and of views to implement the Common Agricultural Policy and for the management of the funds related to it. In the same time the sector also has to be to be “morally” prepared for the exigencies and potential shocks due to the lack of competitiveness after entering the Single Market and this activity has to be also a priority. The absorption of community funds proposed for Romania in 2004, will depend especially of the wish for restructuring and “the abilities” of the decision makers in chasing the right pattern of agricultural policy for the next period, and after accession. The cost/benefits estimations in this document are based on a very simplistic approach. The scenario proposed starts from the optimistic hypothesis that, until 2007 Romania will be fully prepared from institutional point of view, as well as from point of view of the requirements regarding food security, animal welfare, the environment’s state etc., and it will be able to produce at the level established by negotiations, fulfilling 100% the eligibility conditions, and Romania will enter on the Single Market with the negotiated elements (quotas, basic areas, reference productions, etc.).
The assessment methodology is based on the application of CAP legislation in force for each product and the estimation of direct payments and funds allocated for market measures following the rigors imposed to Romania for the gradual allocation of direct payments.
Keywords: agricultural sector, financial efforts, rural development
A Power Asymmetry – goodness of fit analysis of the agricultural outcome of Romania’s accession negotiations to the European Union
Starting from the power asymmetry concept, this paper aims to qualitatively assess the goodness of fit of the final agricultural package to the Romanian objective needs and possibilities. The power asymmetry will be linked to the common agricultural setup that the EU designed for all the newcomers, Romania included, but also to the differences between Romania’s initial position paper and the final outcome of the negotiations. The goodness of fit judgment implies reference to Romania’s output and structure as well as to its experience with Community compatible measures and institutional systems.
For this purpose, the paper will focus (1) on some quantitative aspects of the negotiations (levels of single area payments and of reference areas or quantities) as well as (2) on the challenging aspects deriving from the adoption of particular parts of the relevant acquis communautaire (rural development regulations and cross-compliance).
Keywords: accession negotiations, Accession Treaty, Common Agricultural Policy
Rural Development and Agricultural Policy in the Context of Negotiating the European Union Acquis
Elaborated during the first half of 2004 as an UNDP-financed project and never published in a complete form before, this study documents the failures of prolonged and significant state interference in the agricultural sector in Romania, focusing on the post-communist period. Given the unavoidable facts that in the absence of private property it is impossible to have either a rational allocation of resources and the right incentives, we reach the conclusion that the failures of the Romanian agriculture were not at all accidental, but inherent in its statist design. An assessment of the European Common Agricultural Policy and its potential impact on our agricultural sector is provided in the last part of the study.
Keywords: CAP, inefficiency, Romania