The Feeble Tiger: Romania’s Economic Growth Hampered by Poor Governance

Billions in EU funds are squandered due to mismanagement and corruption 

19 October 2023

Adrian Mihaltianu

Marcin Król Fellow

Romania’s economic growth has been impressive over the past few years, but many regions remain undeveloped despite massive EU funds inflow, fuelling widespread disillusionment among Romanians.

Just two kilometres away from Alba Iulia, a middle-sized city right in the middle of Transylvania, lies Ciugud, a small village that managed to absorb more than 35 million euros from European funds in 16 years for its 3,048 inhabitants, a whopping 11,482 euros for each one of them. When visiting, one might be excused to think this beautiful village is somewhere in southeastern Germany, not rural Romania.

The results of this comprehensive strategy for development are notable: many private companies started building their production facilities nearby, all houses are connected to modern amenities, the schools are completely modernised and digitalised and electric cars can be charged near the mayor’s office.

The number of inhabitants is constantly increasing, as people are drawn in by the combination of rural peacefulness and modern comfort. There’s even an 18-hole golf course nearby, while asphalted rural roads and the nearby newly-built highway allow fast access to cities hundreds of kilometres away.

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Adrian Mihaltianu

Marcin Król Fellow

Marcin Król Fellow 2022/2023 at Visegrad Insight and a journalist with more than 17 years of experience, both in editorial and management teams for medium-sized and large media companies. Currently coordinating PressOne.ro, an independent, in-depth solutions journalism project bringing light on major issues in Romania and abroad.

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