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Sovereignty Bargains of Romania's EU Integration Sarah Musaev Senior Thesis Spring 2014 - Professor Haegel American University of Paris Sovereignty Bargains of Romania's EU Integration i Europe ? Give me a name and a phone number !” Henry Kissinger

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Sovereignty Bargains of Romania's EU Integration

Sarah Musaev

Senior ThesisSpring 2014 - Professor HaegelAmerican University of Paris

Sovereignty Bargains of Romania's EU Integration

i

“Europe? Give me a name and a phone number!”

Henry Kissinger

Table of Contents

Abstract........................................................................................................1

Introduction.....................................................................................................................1

Chapter 1- EU’s interest...................................................................................................1

Chapter 2 –NATO’s push for the EU accession.................................................................2

Chapter 3- Romania’s interests.......................................................................................1

Chapter 4-Romania’s consequences................................................................................1

Conclusions.....................................................................................................................1

Sovereignty Bargains of Romania's EU Integration

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Abstract

Romania’s clearly essential geostrategic location has become an ever-growing

interest for the US, NATO, and most recently the EU. The principle of this thesis is to

depict the interest based acceleration of integration pushed for by NATO and the

European Union, as well as why the 2007 accession was not purely in the interest of

Romania. It is essential to shed light on the EU vs. RO gains and the asymmetry of this

situation. Moreover, a few of the domestic consequences that Romania must endure

due to the overlooked pivotal feats such as corruption and political instability. As the

European Union is extremely optimistic that one day all of Europe will be a single

dominant superpower, euro-skepticism sentiments increasingly grow. The undeniable

loss of sovereignty and imposed pressures to conform abide to a higher power for a

final scope of a federalization of Europe turns out to be an unrealistic utopian ideal.

Sovereignty Bargains of Romania's EU Integration

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Introduction-

In the 2003 country report prepared by Baroness Emma Nicholson, the European

parliamentary group Christian-Democrats, noted that " the completion of accession

negotiations in late 2004 and the complete integration in 2007, are impossible if

Romania does not solve two structural problems: the eradication of corruption and the

implementation of both economic and social reforms. Recommendations for Romanian

authorities concerned: anti-corruption measures, creating an independently functional

judiciary system, freedom of the press, and ending police abuse. As a result, Romania

reacted immediately by creating an action plan for the years before accession.

Romania's integration in the European Union economically means to create a

free trade market, economic and financial cooperation, EU support for the restructuring

of the Romanian economy and the political establishment of an institutional framework

for achieving a permanent political dialogue between the parties.

Bilateral trade is expected to create a free trade area, which will result in the

gradual elimination of tariff, and non-tariff barriers that currently exist in trade relations

between Romania and the European Union -these concern industrial products except,

textiles, steel and agricultural commodities (raw, low processed and processed). The

Free Trade aspect of integration is planned to be conducted in a gradual 10-year

transition period. The transition period is asymmetric in terms of tax rate reduction and

elimination on Romania side, thereby giving it a longer period of time to open its market

Sovereignty Bargains of Romania's EU Integration

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to imports from the EU. If the European Union is committed to eliminate all tariffs and

quantitative fences through the first stages of this period, Romania will be obliged to do

this at the end of the second stage.

The European Union is an integrationist and strategic entity, based on

institutionalized multilateral cooperation in order to create a monetary and economic,

social and political unification, capable of generating a multiplier effect that can

ultimately lead to a higher welfare than any individual country would be capable of.

The European Union has become stronger both by increasing its allies as well as

by strategically enlarging the Union. From the three European Communities (coal, steel

and atomic energy) to the Europe of today, the countries of the longstanding continent

have come a long way. For example, Switzerland, who has not voted to enter the

European Economic Area, refused integration to the European Union or Norway who

wanted to join the Union, but after two referendums the people chose to be independent

and for Norway to preserve its economic sovereignty. Even Morocco sought for EU

accession, but the request was rejected due to the Rome Statute's requirement- that

member states must be in Europe. But the European Union is still dealing with these

challenges and present to achieve two main goals: deepen political integration and

eastward expansion. The European Union is primarily an element of stability in the

world; from its decided establishment it has maintained over fifty years of peace on the

continent.

Sovereignty Bargains of Romania's EU Integration

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A major achievement of the EU is a single free market, which contributed to the

prosperity of Member States and EU citizens as well as enabled Europe to become an

essential economic force in the world of competition and globalization.

For Europe to become a model of security, freedom and participation, countries

wishing to join the European Union, must work together to the "deepening" of Europe,

by promoting the kind of solidarity that will provide all citizen a European status, one

that already exists between nationals of Member States, a solidarity without

discrimination based on national prerogatives and democratic freedoms as well as

equal treatment of citizens of Member States. At the same time the Union aims to

transform the European project closer to the interests and needs of the citizens, one of

equal opportunities for all individuals and systematized in a more active and effective

structure externally.

Sovereignty Bargains of Romania's EU Integration

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Chapter 1- European Union’s Interests

I will try to highlight some of the benefits or interests that the EU pursues in

Romania and its neighbors that are not yet part of the Union. I will start with the

countries of South Caucasus, as now the European Union tends to eastward expansion,

namely the European Union aims to joining Georgia, Armenia and Azerbaijan.

Following the breakup of the Soviet Union in 1992, three new states emerged in

the South Caucasus region, the successors of the former Soviet republics: Armenia,

Azerbaijan and Georgia (formerly Gruzia, in Soviet times). They were not sovereign

states, except for a brief period after the Bolshevik revolution (1917-1922, Democratic

Republic of Armenia). The Caucasus is located in the vicinity of the Caspian Sea and

Central Asia regions holding important natural reserves of oil and gas.

In some cases, the involvement of the European Union is seen as essential only

for a long-term plan of stability. The main instrument of the EU in the South Caucasus is

the European Neighborhood Policy (ENP). In it, the countries of the region play an

important role, especially in terms of establishing the security required in the proximity

of the European Union. In this context, the existence of frozen conflicts in the Caucasus

region merely arouse concern for European Chancelleries, who needed to address or at

least neutralize existing threats. Due to the proximity of the area of Russia, the

European Neighborhood Policy is limited to express positions of principle and invite the

Russian Federation to cooperate.

Sovereignty Bargains of Romania's EU Integration

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An important European document for the South Caucasus is the «Black Sea

Synergy". This summarizes the areas of interest in cooperation between the European

Union and its bordering countries in the region: democracy, human rights and good

governance, cross-border traffic, "frozen" conflicts, energy, transport, environmental

protection, maritime policy, fisheries, trade, research and education, science and

technology, employment, and regional development. The main programs imagined, in

this context, aims to: develop civil society, local cooperation, cultural and educational

exchanges, free trade, adjoin international financial institutions such European

Investment Bank (EIB) and European Bank for Reconstruction and Development

(EBRD).

Likewise, Romania's initiative was established as well as a new structure of

cooperation, the Black Sea Forum for Dialogue and Partnership, which proved to be

unsuccessful. Unfortunately, initiatives aimed at the Black Sea focused more on

Georgia rather than other Caucasus states. In terms of concrete energy there was the

Baku Initiative, which aimed at better cooperation between countries in the region and

the European Union to ensure a mutual beneficial energy security program INOGATE

(Interstate Oil and Gas pipelines to Europe). This plan provides a structured blueprint

for transit energy from Central Asia and the Caspian Sea to the European Union and

the TRACECA program (transport Corridor Europe Caucasus Central Asia), cogitating

the development of infrastructure: transport (road, rail, air and sea) between Central

Asia and Europe. These initiatives are central axis of European policy in the area, in

Sovereignty Bargains of Romania's EU Integration

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addition to various pipeline projects, with the particular territories of Georgia and

Azerbaijan. Of these the most important is the Nabucco project, which aims to connect

the Baku - Erzurum region (in some versions of the plan include pipeline connections

from Tabriz - Erzurum) with a European projection route through Romanian, Hungarian

and Austrian territories.

The main weakness of the European Union's position in the region lies in the fact

that it did not differentiate its policy with each of the three countries involved (it took a

rather general approach), given that the situation and the position of each state is

different (what can be said about every Member State in the Union). This inconsistency

is aims to mask the discomfort of European institutions in adopt a position that would

favor one side or another (especially in the case of Nagorno-Karabakh, but also in the

Russian-Georgian conflict), in efforts to maintain cordial relations with all actors involved

and to benefit from the presumption of impartiality. However in reality, even Member

States embrace contradictory positions.

The only aspect over which the European Union has an advantage over is the

fact that it signed a "Partnership and Cooperation Agreement" with Armenia and

Azerbaijan (in 1996, which entered into force in 1999). Likewise, it entered into a "Joint

Action Plan" with Georgia (in 2006) within the European Neighborhood agreement,

which was considered by the administration in Tbilisi as a first step towards joining the

European Union.

Sovereignty Bargains of Romania's EU Integration

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In the case of Azerbaijan, the Plan of Action was signed in November of 2006,

while for Armenia there are ongoing discussions to sign a similar agreement. However,

the European Neighborhood Policy does not currently have a satisfactory framework for

furthering the development of relations with those countries.

Regarding the relationship with Azerbaijan, the EU established foundational

prerequisites, a first step, for a more concrete EU involvement in the region. Bilateral

relations between Romania and Azerbaijan have been consistently good since the

Caucasian state independence of 1991; Romania was the second country to recognize

Azerbaijan as a sovereign state after Turkey.

With the Romanian accession to the European Union, the good relations

between the two countries have been transferred as well as the EU's relations with the

partnering Caucasian states. Given that Romania is, at this time, the Union's

easternmost border, the Unions interests are to have an active policy in the Black Sea

region and in the vicinity of the European Union. The potential transfer of good

cooperation with Azerbaijan across the EU could be a first real contribution from the

Romanian state, which would clarify and expand EU foreign policy in the Caucasus

region. Good political relations with Romania and Azerbaijan in general, with the

countries of Central and Eastern Europe, are assured means for good economic and

political relations. The European Union will essentially win alliance with Azeri state,

making this a guarantee in a policy to promote international law and to restore the

territorial integrity of Azerbaijan.

Sovereignty Bargains of Romania's EU Integration

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EU's interest in the South Caucasus refers to achieving political and economic

stability, peace building and conflict elimination of potential expansion, to maintain a

free transit area and even constructing a free economic zone in the region.

Strengthening democratic institutions is just one of the tools to achieve these regional

objectives. To satisfy their own interests, the EU should identify the main pivot, which is

Azerbaijan. Therefore, it must have a special political relationship built with the Azeri

state. The main factor promoting this policy is to find a consistent strategy to solve the

crisis in Nagorno –Karabakh, on the principles of territorial integrity and national self-

determination. It is vital to keep in mind that Azerbaijan is the most economically

developed country in the region and has the most potential for development in the area.

An imperative role for concentrating European states and initiating the integration

process in its current sense is awarded to Jean Monnet, due to which the first steps

were made in order to achieve a new European unity. The acting head of the National

Organization of planning in France, proposed that the production of coal and steel in

France and Germany id to be administered by a supranational body. On 9 May 1950,

Robert Schuman, French Foreign Minister launched a statement inspired by Jean

Monnet, proposing the creation of a market for coal and steel, to be conducted

according to national methods involving a rupture of traditional schemes between

states. Achieving this market was a first step towards the development that we know

today for European countries. The system created by the three treaties (ECSC, EEC,

EAEC) developed in two main directions. The first direction considered improving

Sovereignty Bargains of Romania's EU Integration

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community institutions, and the second followed the expansion Communities by

attracting new member states.

Black sea region

The Black Sea region has a strategic importance that is given to the rich natural

resources, particularly oil and gas that has a potential market of over 350 million

consumers. The cumulative trade region accounts for over 5% of the world's trade. The

strategic component of the region has increased in recent years due to the outbreak of

anti-terrorist campaigns, and the Unites States is also interested in developments in the

region; while the European Union assists the countries of the area due to the New

Neighborhood Policy (ENP).

The evolution of economic cooperation in the Black Sea region can be divided

into three stages:

   - The initial formation which lacked results due to unclear organization which

lasted until the meeting in Bucharest in 1996, when foreign ministers adopted a "Plan of

Action" which as a result improved cooperation;

- The introduction of the Ministerial Troika system input, during which began the

joint financing of the Permanent's International Secretariat (PERMIS) from Istanbul and

intensified meetings at all levels. In June 1998, in Yalta, was the signing of the "Charter

of the BSEC"(black sea economic cooperation).

Sovereignty Bargains of Romania's EU Integration

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  - The final stage was the adoption of regional organization characteristics.

Interests in Romania also include a corridor for closer Europe-Asia relations; not

only considering necessary energy supply but also that the Caucasus-Caspian region

may eventually become one of the most dynamic economic areas of the world, which

would result in massive revenues for the entire zone including the TRACECA countries.

Romania has many bilateral advantages thus being a center of interest for the

international community: it has direct rail links with all countries of the CIS; it provides a

direct connection with Central Asian countries via Iran and Turkey by the ferry from

Constanta to Samsun; it has the largest and best equipped port on the Black Sea; it has

a great underused capacity in the refining and petrochemical industries; it is a potential

candidate for political, economic integration and European security.

Statistics show that the EU has exported to countries in Central and Eastern

Europe more than it imported from there. However, employment in these countries

covers basic gaps in the labor market in the West. Romania has highly qualified

specialists employed in IT companies in Germany and other countries, and many young

men and women in Romania provide operation services in hospitals, hotels and

restaurants, but also in other countries such as Italy and Portugal. Moreover, Romania

has become a major exporter of skilled and less skilled labor.

Sovereignty Bargains of Romania's EU Integration

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EU AN NATO INTERESTS ARE STRATEGIC GEOPOLITICAL

After the events of September 11, US pushed western European countries to

increase their inclinations to be more permeable for imports of labor from the candidate

countries –because there was indeed a need for such, especially considering the Bush

administration and the Iraq war. There existed objective and subjective elements which

in essence strengthened the Romanian-American relationship (at a political level) to

fluctuate due to the strategic opportunity for the United States who as a result pushed

for a rapid admission to NATO.

Romania applied to join NATO since 1994 (shortly after the fall of communism)

but was constantly critiqued and denied admission due to the ongoing domestic

complications. From every angle it was viewed as an unstable country that did could not

qualify due to the lack of standards (military, economic, political, internal corruption,

etc.). In January 2001 began the evaluation for the candidacy of Romania run by

general Popescu and secretaries of state. While the conclusions did not seem favorable

for its admission “we are politically unstable, we do not have money, as for the money

we were expecting from the Americans for concrete expenses were already spent in

other areas”- Popescu. Therefore the only value that Romania had was the massive

support for NATO admission by the US.

Shortly after the shameful report was released Secretary General Edgar Buckley

in January 2001 claimed “that despite the domestic instability, Romania will surely be

admitted in the Alliance by the year 2004”. The other candidate states which were

Sovereignty Bargains of Romania's EU Integration

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Estonia and Lithuania were on a promising path of fulfilling the preconditions of NATO,

while their strategic ramifications for their accessions did not seem beneficial. Romania

and Bulgaria had a contrary problem, the incapacity of fulfilling the conditions while their

geopolitical location at the time seemed of more importance due to the Iraq war.

On the one hand, the U.S. presidential teams promoted accession by presenting

their approaches regarding the Middle East situation, including the Israeli – Palestinian

conflict (through direct dialogue or " proxies " ); their interest in maintaining "small fires"

of extra space conflict - European interest " military - industrial complex " U.S. - as an

outlet for the sale of military equipment . Moreover, the conflict in Iraq (the first) gave

Romania the opportunity to capitalize on their position at the UN and help in negotiating

resolutions in August 1990 and the following months. The second conflict allowed

Romania to promote their geostrategic position through the Cogalniceanu

base in Dobrogea making it readily available to Americans .

It was found that the number of troops deployed in Iraq was the most

significant, but sometimes it was more important political support , logistics

and intelligence .

On the other hand, some developments in post- revolution Romania did not

initially convince Americans that Romania can be a reliable partner in Eastern Europe:

as it was recently out of communism on the " left side" of history (there were numerous

allegations of crypto- neo –communism sentiment for some governments); low

Sovereignty Bargains of Romania's EU Integration

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maintenance of structures of the security; failure to follow bi -partisan politics (power -

opposition ) in large projects of foreign policy; the partial reservations in the democratic

party that expressed opposition in connection with the bombing of Belgrade; Hungarian

lobby oppositions in the U.S. and pressures in Budapest; as well as the economic and

military instability, etc. . It should be noted, however, that despite these unfavorable

fluctuations, at the political level, there was a very intense relationship and effective

military level between the two countries (Mil -to –Mil programs).

Shortly after a reevaluation and push from the Bush administration, Great Britain as

well as other countries began to be more inclined for the admission (though their

sentiments were not exactly enthusiastic).

- changed nato port for the war----- in 2001 the perspective changed to a more favorable one for admition due to the events that were occurring ( bush admin- Iraq war) Ro admitted to nato- to use Romanian airbase in dobroja 2 hrs to bagdad. Article page 32 even better article on Romania nato irak - http://nastase.wordpress.com/2012/09/25/lumea-americanii-si-noi-iv-razboiul-din-irak-2003-2011/

-

Sovereignty Bargains of Romania's EU Integration

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Chapter 2- Romania’s Overlooked Domestic Concerns

- Depite all of the EU’s interests to proceeded with the acceleration of integration to the eu they overlooked the major domestic structural problems that Romania has-

- Major overlooked factors overlooked by decision makers in the eu council was the cultural and social ethicals readiness of Romania. A serious feat that was overlooked- romanias internal problems such as corruption, money laundering ta evasion.

- http://store.ectap.ro/articole/529_ro.pdf - therefore not accepted in the interest of Romania- as it is not up to par

with nearly any of the qualifications of the Lisbon treaty –

Chapter 3- Romania’s Interests

Free movement of persons (workers) within the Member States of the European

Union is a mutually advantageous feat that became fully implemented on January 1st

2014. Meaning that Romanian's are now removed from border control within the

Sovereignty Bargains of Romania's EU Integration

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European community, and are no longer subjected to special requirements or

formalities (in theory any European citizen benefits from this). Ultimately, citizens of new

EU members (including Romania) were subject to transitional measures, which limited

their access to the labor market of the initial Member States for a period not exceeding

seven years. Transitional arrangements for the free movement of workers were agreed

between old and new Member States, maintaining the prior accession systems, in which

a citizen of a future member would need a work permit to work in the EU.

ADD MORE ABOUT JAN 1st working rights

Free Movement of goods is also among the many gains of Romanian integration.

The Treaty establishing the EEC signed in Rome to set up a common market that are

aimed to eliminate trade barriers between Member States. This act sought the greatest

possible liberalization of goods trade between the signatory states through a customs

union. A common market shall be progressively established during a transitional period

of twelve years for Romania. The community is based on a customs union comprising

all trade in goods, which shall involve the prohibition between Member States of

customs duties on imports and exports, and of all charges having equivalent effect on

the adoption of a common customs tariff in their relations. Provisions shall apply to

products originating in Member States and to products coming from excluded countries.

Products from excluded countries are considered free circulation in a Member

State if the import formalities have been fulfilled and were charged within the Member

Sovereignty Bargains of Romania's EU Integration

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State. In the case of customs duties and charges with an equivalent effect who have not

received a full or partial refund of these taxes and charges. Within the first year of this

Treaty, the Commission sets out methods of taking into account the need to reduce

formalities imposed on trade as much as possible. By the end of the first year of the

entry into force of the Treaty, the Commission shall, in trade between Member States,

the provisions applicable to goods originating in another Member State, to manufacture

products which were used which were exempted in the exporting Member State

customs duties and charges having equivalent effect or which have benefited from a

total or partial drawback of such duties or charges.

Freedom to provide services, Member States must ensure that the right of

establishment and freedom to provide services throughout the EU is not hampered by

national legislation. In some sectors, the acquis prescribes harmonized rules which

must be observed to the internal market, this concerns mainly the financial sector

(banking, insurance, investment services and securities markets ) but also some

specific professions (craftsmen , farmers, traders) . Also, follow harmonized rules on

personal data protection and certain information society services.

Free movement of capital, Member States must remove all restrictions in national

legislation on capital movements between them (with some exceptions), and adopt EU

rules to guarantee the proper functioning of cross- border payments and transfers of all

Sovereignty Bargains of Romania's EU Integration

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forms of capital. The acquis also includes harmonized rules on payment systems.

Laundering directives establish money laundering as a crime. They require financial

institutions to identify and know their customers, keep appropriate records and report

any suspicions of money laundering (which is currently not being done in RO).

Directives are addressed also to the work of auditors, accountants, notaries and

lawyers, casinos, real estate agents and certain operators who trade valuables

transactions involving large amounts. It is necessary to have an adequate

implementation capacity.

Chapter 4- Romania’s Consequences

However one would try to put everything in a balance it looks as though Romania

is not exactly a winner in the game, as the consequences following its addition in the EU

outweighed the few profitable aspects of this bargain. Two incredibly prominent

consequences that Romania has been confronted with since 2007 were: the drastic

decline of agriculture (due to imposed EU sanctions) as well as a visible decline of

sovereignty.

AGRICULTURE

Sovereignty Bargains of Romania's EU Integration

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Asymmetric concessions of the agreement with the EU protected

many agricultural products from competition with those of Romania, the

CEFTA brought significant deficits in this area of trade, Romania's foreign

trade products being less competitive than the main partners because of

the difference in productivity.

Imports of agricultural products from the EU represents about 7 % the

CEFTA area being 27.34 % of the total which goes to show that Romania

already has to deal with European competition through intermediaries

therefore passing tariff barriers. EU accession countries in the first wave

made agricultural trade deficit to worsen rapidly, as other comparative

advantages of Romania decline as well.

Romanian agriculture will not be able to face the rigors requirements

of the CAP without a strong state intervention to capitalize the sector in

the accession, although there are clear signs of carrying the increasingly

difficult rigors preconditions of CAP in Europe ( eg the Netherlands ). This

will not change because of the strong lobbying exerted by EU producers.

It is possible, however, that EU farmers will be drawn to this, with the

accession of Romania, in order to achieve an organic production on land

which rested more than 15 years. For example in Spain where, with the

entry into the EEC the income of producers doubled inconclusively.

Sovereignty Bargains of Romania's EU Integration

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Romania has the highest level of employment in agriculture standing at

27.9% .

The agriculture sector, whose production is based on small farms using

intensive labor, will have to face the largest restructuring of labor, so a good

part of the integration cost will be paid by those employed in agriculture.

Besides unemployment there may be psychological or transfer costs.

Needless to say, agriculture is nearly nonexistent due to EU imposed

sanctions as Romania entered as one of most important producers in Europe

and in less than 5 years it became one of the largest importers of agricultural

products in Europe. Thus, finding Romanian agriculture products today may

be considered a luxury.

-Sovereignty declines and conforms

Reactia anti-brussles - norways refusal (example) france germany- there exists an anti-eu sentiment. anti European climate that’s emerging throughout Europe because of beurocracy and lack of legitimacy.

http://www.timpul.md/articol/reactiile-anti-ue--dincolo-de-limita-28897.html

http://www.moldovenii.md/en/news/view/section/16/id/7801

-Changing the notion of sovereignty is a consequence of integration

No longer national all depend on brussles. European common defense is a falirue – no French or british wanted to give up their reign over defense issues-

Sovereignty Bargains of Romania's EU Integration

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Each state, more or less powerful struggles to achieve their goals, and those

goals will never be equally noted with everyone to attempt to maintain peace and

understanding. Indeed states become more democratic, or at least, fight for human

rights, but the reality is essentially different. We live in a modern age with a "modern

war" where democracy is a pretext for a sovereign, independent, and where each state

sees its own interests, defending themselves with " their arms" or threats. There is no

end to the people's desires for power. And if there is a unified power on this earth at

some point, the requirements will be the same.

Romania sees the relationship with the European Union a significant opportunity

to overcome backwardness trap and secular aspirations of modernization, and

integration would put it safe from instability and turmoil in the rest of the world space.

However, sustained economic growth is a phenomenon rarely met. In Western Europe,

Ireland is the most interesting case . It is true that Spain in particular and Portugal have

evolved changed for the better after ending the dictatorships - of Franco , respectively

Salazar - but none of them had growth rates as in Ireland.

Note that the entry into the European Union , Ireland had income / capita of 59 %

of the EU average while Greece , the date of entry ( in 1981 ) the figure stood at 77 % .

For 1998 , income / capita in Ireland exceeds the EU average , while Greece was down

to 66 % of this average .

Sovereignty Bargains of Romania's EU Integration

21

For Romania the lack of appropriate institutions and responsible public policy it

will be virtually impossible to meet the rapid economic development needs, and without

such dynamics it will be increasingly difficult to join the club of European countries that

prosper. Romania has a per capita income that is about. 27-28 % of the EU average

while being a country with a relatively large population (compared to European

standards).

For years, some EU politicians and opinion leader s from Western European

countries are discussing the benefits and costs of EU enlargement .

A few words about dollarization / euroisation. Those who advocate this monetary

arrangement appear to devise economic space which would apply to the scheme as a

mere "annex", with complex internal life. They omit, for example, the consequences of a

major trade deficit, which automatically reduces the amount of severe domestic

currency (without Central Bank can intervene to May), which would cause a major

deflation and recession, economic unbearable and social. In addition the domestic

banking system would be under pressure due to high interest terrible.

Sovereignty Bargains of Romania's EU Integration

22

Conclusions:

Note that the EU’s approaches are not strictly in the interest of Romania. It has

obligations to its European partners as well as pressures from NATO. As a border

country of the two structures - the EU and NATO – it has to promote the interests of

these structures not only their own interests.

To become a zone of peace, the Black Sea should be removed from the

influence of Russia and I am convinced that it will accept a process more or less rapid

of internationalization of the Black Sea, given the strategic importance of the extended

Black Sea already acquired.

Future of the Black Sea may be promising, given that the strengths of this area

are amazing: at the crossroads of Asia and Europe, it represents a strategic challenge

and a very common crossing point whose natural resources are immense.

In the context of globalization where intersecting interests of the great powers,

cross-border cooperation becomes paramount for the development of the region. In this

regard, local authorities are on the first place because they depend on understanding

regional threatened by deep contradictions inherited from the past, the meeting of two

distinct civilizations and inequality .

 Among the few advantages I have identified for Romania are:

Sovereignty Bargains of Romania's EU Integration

23

- Free movement of persons (workers) that can work in any member state of the

European Union ;

- Free movement of goods, export of goods duty free EU states ;

- Free movement of capital;

- Free movement of services;

- The possibility of citizens to conduct projects to receive funding from the European

Union amounts substantially the view sustainers of business .

     

The   disadvantages of integration :

Theoretically there are countless disadvantages explained by scientists and

those who work in this system, some of them have been mentioned above, which have

been drastically affected by the entry into the European Union. Maybe Romania or

rather those who run the country, do everything to be in good order, which is

established by them. In recent years, or the last 7 years since RO joined the European

Union, citizens have managed to seek advantages and disadvantages Romanian

integration in the European Union. Every day they are overwhelmed by rules adopted

by the corrupt politicians who run the country, and the public opinion is that it is not the

EU to blame, but rather the people in power in our country. All these recent legislative

decisions Romania has recently made to attempt to conform to EU standards

Sovereignty Bargains of Romania's EU Integration

24

substantially affect its citizens in a negative manner, and have affected their status in

society, all parts of work in the financial systems, agriculture and even human psyche.

Even though the public belief is that European Union integration may lead to certain an

overall more beneficial outcome, they omit to take into consideration the immeasurable

damaging outcomes that the loss of sovereignty and rough monetary/economic

transition will ensure, the imagined long term benefits of evolving are merely a myth.

The asymmetrical situation and problems it will face in the following years will merely

lead to the countries demise. The accession will merely worsen the economic situation

and will only bind Romania to a failing utopian ideal. Though many believe that the

euro-zone will stand strong, skepticism continues to grow throughout the countries that

are the backbone of the European economy (respectively Germany). “An inharmonious

new voice is emerging- anti-Muslim, anti-elite, anti-globalization and increasingly anti-

Brussels”, while disapproval rates skyrocket, even in newly joined member states.

Sovereignty Bargains of Romania's EU Integration

25

http://www.economist.com/node/21536873

Sovereignty Bargains of Romania's EU Integration

26

Bibliography

Last Name, F. (Date). Dolor Sit Amet. Lorem Ipsum, 1 - 10.

Last Name, F. (Date). Lorem Ipsum Dolor Sit Amet. City: Publisher.

Last Name, F. (Date). Lorem Ipsum Dolor Sit Amet. Duis sed elit ante, pp. 10-20.

Sovereignty Bargains of Romania's EU Integration

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