April 2, 2021
Romania: An Overview
With a population of almost 20 million, Romania is the
for example, successfully prosecuted hundreds of officials
largest country in southeastern Europe. After the revolution
and politicians. From 2017 to 2019, however, PSD-led
ending communist rule in 1989, Romania adopted a Euro-
governments sought to change Romania’s judicial and anti-
Atlantic orientation, joining NATO in 2004 and the
corruption institutions. Many critics viewed the measures as
European Union (EU) in 2007. Romania’s strategic Black
an effort to undermine judicial independence and protect
Sea location and commitment to strong transatlantic
officials accused of corruption, including PSD’s powerful
relations have made it a key U.S. partner in the region.
then-leader, Liviu Dragnea.
Domestic Background
The situation changed alongside strong public backlash and
Romania is a parliamentary republic with a semi-
EU criticism. Dragnea began a three-and-a-half-year prison
presidential system; the prime minister leads the
sentence for abuse of position in May 2019, and the PSD
government, and a directly elected president is head of state
government collapsed in October. Since then, Romanian
and wields some powers in defense and domestic affairs.
governments have moved to reverse the justice measures,
Prime Minister Florin Cîțu of the center-right National
and PSD’s new leadership has sought to distance the party
Liberal Party (PNL) has led the current government since
from its past agenda. Still, corruption remains a major
December 2020. President Klaus Iohannis (backed by PNL)
challenge, and some of the 2017-2019 measures have not
was elected to a second five-year term in 2019. Romania’s
yet been reversed. A 2020 EU assessment notes continuing
bicameral parliament consists of a Senate and a Chamber of
challenges to judicial independence and combating
Deputies.
corruption. Romania, Hungary, and Bulgaria share the
worst score among EU members in Transparency
Romania has had a volatile political scene over the past few
International’s 2020 Corruption Perceptions Index.
years, characterized by political polarization, unstable
governments, and disputes over constitutional prerogatives.
Figure 1. Romania at a Glance
From 2017 to 2019, governments led by the center-left
Social Democratic Party (PSD) introduced controversial
changes to the justice system that drew U.S. and EU
criticism and triggered Romania’s largest protests since
1989 (see below). The PSD government collapsed in late
2019, and PNL-led coalitions have governed since then.
Romania has held four countrywide elections over the past
two years. European Parliament, presidential, and local
elections in 2019 and 2020 largely delivered victories to
PNL and centrist liberal parties. In December 2020,
however, PSD won parliamentary elections with just under

30% of the vote. PNL placed second (25%), followed by
Source: Map and graphic created by CRS. Information from 2011
the liberal USR-PLUS alliance (15%). Some observers
Census, International Monetary Fund, and National Bank of Romania.
were surprised when a new far-right populist party garnered
9% of the votes. With PSD unable to secure coalition
Economy and Energy
partners, PNL formed the current government with USR-
By 1989, Romania was one of Europe’s most impoverished
PLUS and the Democratic Alliance of Hungarians in
countries. Conditions gradually improved, however,
Romania (UDMR). Cîțu, the outgoing government’s
alongside economic reforms and EU integration. For part of
finance minister, became prime minister.
the 2000s and 2010s, Romania was among the EU’s fastest-
growing economies. In 2020, the World Bank classified
Governance and Rule-of-Law Concerns
Romania as a high-income country for the first time (based
Corruption and weak rule of law are regarded as significant
on 2019 data).
challenges in Romania. Due to concern that these issues had
not been resolved when Romania joined the EU in 2007,
Despite these gains, Romania has one of the EU’s lowest
Brussels monitors the country’s reform progress through a
levels of gross domestic product (GDP) per capita. Nearly a
temporary Cooperation and Verification Mechanism.
third of its population is at risk of poverty or social
exclusion. Other barriers to economic growth include an
During the 2000s and 2010s, EU reports and other external
aging and shrinking population, infrastructure deficiencies,
assessments praised some of Romania’s anti-corruption and
and widespread corruption. As elsewhere, the Coronavirus
judicial reforms. The National Anticorruption Directorate,
Disease 2019 (COVID-19) pandemic has adversely
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Romania: An Overview
impacted the economy, with an estimated 4.8% GDP
billion deal to purchase new U.S.-developed Patriot air
contraction in 2020.
defense systems (Romania received its first delivery in
September 2020). Other planned acquisitions include High
As one of the EU’s top oil and gas producers, Romania is
Mobility Artillery Rocket Systems, Naval Strike Missile
relatively self-sufficient in its energy supplies , particularly
Coastal Defense Systems, and secondhand F-16 fighter jets.
natural gas. Recent oil and gas discoveries in the Black Sea
could open new export opportunities, although resource
Relations with the United States
development has been delayed.
Security Cooperation. The United States and Romania
have wide-ranging security relations and share similar
Foreign and Security Policy
perceptions of Black Sea issues and global challenges.
Romania’s Euro-Atlantic strategic orientation is backed by
Romania’s strategic partnership with the United States is a
strong cross-party consensus. Because of its more limited
pillar of its defense strategy, and U.S. officials have
trade, energy, and cultural ties to Russia, Romania is
described Romania as a steadfast ally. U.S. and Romanian
arguably less vulnerable to Russian influence operations
soldiers have deployed together in Afghanistan, Iraq,
than other countries in southeastern Europe. Romania’s
Kosovo, and elsewhere. Bilateral security ties are further
national defense strategy attaches central importance to the
cemented through frequent drills and regular U.S. rotations
country’s EU and NATO membership and its bilateral
to joint-use bases in Romania.
partnership with the United States. Romania has sought to
elevate Black Sea security as a transatlantic priority.
Romanian officials have welcomed a strong U.S. security
presence in the country. A 2005 Defense Cooperation
NATO and EU Membership
Agreement enables U.S. use of several bases in Romania,
Romania is an active NATO member and seeks to shape
some of which have served as logistical and transportation
EU foreign policy on certain issues. The country is a hub
hubs for missions in Afghanistan. Romania hosts one of the
for NATO’s defense and deterrence initiatives in the Black
two Aegis Ashore ballistic missile defense systems that the
Sea region (see below) and has organized major naval and
United States contributes to NATO missile defense in
onshore exercises. For years, Romania has been a top troop
Europe. More recently, in October 2020 the United States
contributor to the NATO-led Resolute Support Mission in
and Romania signed a 10-year Roadmap for Defense
Afghanistan. Within the EU, Romania generally backs a
Cooperation to reinforce and expand ties .
firmer approach to relations with Russia and supports EU
enlargement into the Western Balkans.
Foreign and Security Assistance. During the 1990s, the
United States provided extensive assistance for Romania’s
Black Sea Security
domestic transition and its EU and NATO membership
Romania has sought to lead regional cooperation initiatives
bids. Since 2000, the United States has provided about $700
and elevate Black Sea security in NATO and the EU.
million in assistance to Romania. Following Romania’s EU
Bilateral relations with Russia, Romania’s neighbor across
accession in 2007, most U.S. assistance targeted security
the Black Sea, are often strained. Romanian officials have
issues, including military training, Black Sea security,
criticized Russia’s actions in the Black Sea region,
transnational threats, military modernization, and improved
including its support for breakaway territories in Moldova
interoperability with NATO. In addition, the United States
and Georgia, its aggression against Ukraine in 2014, and its
has invested in upgrading and expanding joint-use facilities
subsequent military buildup in the region.
in Romania. The FY2021 National Defense Authorization
Act (P.L. 116-283) authorizes $130.5 million to expand and
Romania is a strong proponent of NATO’s defense and
upgrade Câmpia Turzii air base.
deterrence initiatives along the alliance’s eastern flank.
Largely at Romania’s behest, the allies agreed in 2016 to a
Energy. The United States and Romania cooperate on
tailored Forward Presence in southeastern Europe. Romania
energy security. Romania is part of the Three Seas
hosts the Multinational Divisional Headquarters Southeast,
Initiative, a U.S.-backed platform among EU member states
which commands the Romanian-led Multinational Brigade
in central Europe that includes a focus on energy
Southeast and oversees NATO Force Integration Units in
infrastructure. In October 2020, the two countries signed an
Bulgaria and Romania. While some observers call for
initial agreement to cooperate on modernizing Romania’s
greater NATO engagement in the Black Sea region—noting
sole nuclear power plant. A consortium led by the U.S.
in particular its more expansive initiatives in the Baltic
engineering firm AECOM is slated to carry out the
region—Black Sea NATO members Bulgaria and Turkey
multibillion dollar project (Romania canceled prior plans to
have resisted some proposals due to their differing threat
cooperate with China General Nuclear Power Corporation).
perceptions and strategic interests.
Corruption and Rule of Law. The United States has long
Defense Spending and Military Modernization
urged Romania to strengthen the rule of law and combat
Romania has significantly increased its defense spending
corruption. In September 2019, the State Department
since 2014, partly in response to Russia’s actions in
imposed a travel ban on former PSD leader and Speaker of
Ukraine and the Black Sea. In 2020, Romania’s defense
the Chamber of Deputies Liviu Dragnea and his immediate
spending exceeded the NATO benchmark of 2% of GDP. A
family over his involvement in significant corruption. The
significant portion of recent spending went toward new
designation was made under Section 7031(c) of the
equipment and defense capabilities. Romania’s planned
Department of State, Foreign Operations, and Related
acquisitions are valued at over $10 billion, including a $4
Programs Appropriations Act, 2019 (P.L. 116-6 ).
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Romania: An Overview

IF11801
Sarah E. Garding, Analyst in European Affairs


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