President of Romania,
President of the Academy,
Ministers,
MPs,
Excellencies,
Ladies and gentlemen,

I will structure my intervention on three components: achievements - or benefits - of Romania's EU accession, unfulfillments and things that need to be made from now on, from my perspective.
It is clear that, beyond the differences that have marked and marks the Romanian political class, however, around the fundamental objectives of the country, it remained united - and here I refer to NATO or EU integration, on which there was consistency and therefore, accomplishments. If we make a short and certainly not exhaustive inventory of the main benefits that Romania has following integration, after EU accession, they would be - very briefly, again, and without an exhaustive character - the following: First, free movement of goods, services, capital and persons. Perhaps many remember how before 1989, the dream to travel to Europe seemed unattainable. It became a reality and this should not be forgotten.
Second, foreign direct investment, which contributed to economic growth and modernization of Romania- 44 billion euro in the period 2003-2010, taking into account the pre-accession period.
Third, exports: 65.8% of Romanian exports are carried out with EU Member States, which says a lot about our dependence of EU economies and the fact that we must raise our competitiveness and internal productivity to face such competition.
Fourth, I refer to the consolidation of the rule of law in Romania. Irrespective of the many critics there, some things cannot be disputed. Rule of law in Romania has improved in these years. Freedoms and civil rights have appropriate guarantees to European standards, and state institutions began to operate closely to European standards, although some things still need to be improved. I would refer to a criterion that the independence of justice, and I invite you to see how the legislation has evolved over time so that we can say today that, in procedural terms, in terms of legislation, there are all guarantees and mechanisms provided for independent operation of justice.
Finally, I would refer to European funds, the 35.4 billion euro for this financial exercise, including here, Schengen facility, funds for agriculture, structural or cohesion funds, which is a chance, and European Affairs Minister made it very clear that Romania has an advantage over the contribution given to EU, in terms of amounts that we have drawn and have the chance to draw in our country.

If we look but with the other eye, the failures, obviously we cannot remain indifferent and not find some things objectively. In Chapter failures, I referred to - again, without the requirement of comprehensive approach of these failures - to the following elements. First, there are ten EU countries that maintain restrictions on labor market. Secondly, I would say that, unfortunately, foreign direct investment - which, again, brought the chance of Romania's economic growth and development during the pre-accession period and especially of post-accession – they were not fully used from two reasons: we had the chance of consistent growth and we missed the opportunity to modernize the Romanian state at the time when it was much easier to make structural reforms of the state, compatible with EU requirements, and instead to do it, unfortunately, they slipped sometimes on the slope of populist, demagogic policies with no support in the economy.
I refer to what we all know - that in 2007-2008, there were increases in social benefits by 70-80%, provided that, if we think of Germany, that in 10 years managed to increase by 22% these social benefits, and Romania allowed increases of 70-80% in a year and a half. Instead of those increases without coverage, there was better if they went in the economy, highways and other infrastructure works to modernize Romania. We did not know how to seize the advantage of foreign direct investment and economic growth that followed or we did not fully exploited.

European funds remain a non – fulfillment, n terms of percentage of absorption. It is not the time now to look for all guilty, but to look that when we joined the EU, instead of having projects on the table prepared to go immediately and bring European money, it had to pass two years until we started to accredit programs to draw European funds.
After that, the pace of contraction was not one that we wanted. Today, on the Cohesion Fund and structural funds, the contract rate is 64% and, indeed, 2012 is crucial in terms of avoiding disengagement of European funds for Romania.
I would refer only to MCV, the fact that we did not manage these years to eliminate the cooperation and verification mechanism on justice remains a major unfulfillment of Romania, with consequences for every citizen of this country. Where we are now - and I just give you a simple analysis: competitiveness deficit of Romania compared to the European average is less than the advantage we have in relation to European public debt. As I explain: we have the fourth lowest debt to GDP in the EU, with 61% lower than the European average, and productivity by 57% lower than the EU average. Here I think it is key that we need to start from: productivity by 57% lower than the EU average - hence, the major objective of Romania is the competitiveness deficit recovery. What to do?
Just some thoughts, resulting in several proposals. First, implementation of the goals of the EU 2020 strategy – I will not read because you know, you are an informed public - but I will mention just a few of them: the employment rate of people aged 20 to 64 years to reach 70% compared with 63%, in 2010, or investment in research and development to reach 2% of GDP, and if we talk about the rate of population aged between 30 and 34 graduates of the form tertiary education, will amount to 26.7%, versus 18% in 2010. And last but not least, social inclusion promotion, particularly by reducing poverty, and we have aimed cutting by 580,000 in the number of people at risk of poverty and social exclusion. There are some elements that we have, of the 2020 Strategy, engaged in relations with the EU and which should be made.
Secondly, modernization of the state, reforms have been made, such as those regarding the Labour Code, in justice, education, social assistance, in the civil service and fiscal responsibility are fair reforms, necessary , and it was good if they were made during economic growth, because we had not accumulated the effects of crisis and people did not have so many constraints.
But this time, we had to implement them, it was not available to us. Therefore, in addition to these reforms, further reform of state companies, a black hole in the last 20 years in terms of competitiveness and productivity, should be carried out on two components: the privatization of management or restructuring of companies, depending on each situation - privatization, restructuring, depending on specific objectives. Health reform and administrative reform of the country, in order to ensure that European funds in the next financial year will be more easily absorbed from the perspective of procedural mechanisms too, because it is easier that every region, every county, to establish a Sectoral Operational Programme on priorities there than to come all to Bucharest and there, to make a program for the entire country, which inevitably cannot capture the specific differences and what is specific to each region and each county.
Third, keeping public debt and deficit under control, preserving what we hardly won by the effort of Romanians.
Fourth, joining the euro by 2015. Fifth, use of public-private partnership schemes, because these forms of development modernized European Union and are applicable in Romania and now, we have all legislation in force to implement public-private partnership projects, to bring additional resources into the economy, beyond the money entered as European money.
Sixth, I would refer to accession to the Schengen area, the Seventh elimination of Cooperation and Verification Mechanism on justice, the eighth, the efficient use of European money and money prioritization from the state budget for objectives to be completed, and not open objectives that never reach the final stage, and the Government's objective this year is to give with priority the RON 38.2 billion that it has budgeted to complete the investment objectives in advanced completion stage, and not to start new works, which means loss of opportunity to complete existing ones.
And last but not least, I would refer, in conclusion, to an important part: which can be Romania's advantage in the European Union further on? Yes, agriculture can be a solution because we are able to feed 80 million people, but sadly, yet import 60-70% of the food. But, it is a challenge which may be an alternative, where to excel. Yes, tourism and energy. But I would refer to another area, based on restoring competitiveness deficit. I looked at the competitive strategies of some countries in the European Union. Germans are determined to build the most efficient green economy. Czechs aim to become by 2020 the fifth European power in research, development and innovation. Where can Romania excel, without ignoring agriculture, energy and tourism? I say: creativity and creative industries. Creativity is the ace up the Romanians’ sleeve. Romania has the chance to enter a new stage of development, more dynamic and creative.
Romania has the advantage of human resource to be part of this wave. Human capital puts us among the richest countries in terms of ingenuity and creativity. It is recognized that Romanian has creativity, provided it is directed correctly.
Creative industries are rooted in our talent and individual skills and the range of creative industries is wide open, from software to architecture, design, film and advertising, as many areas of creativity here that Romanians can excel in. Economic strength of the creative industries is high in Romania. Nearly 2 out of 10 employees, about a quarter of companies in Romania and the eighth part of exports from these industries. I think through a coherent strategy, Romania can excel in creative industries.
Thank you and wish you success.