SIMPROVING THE ECONOMIC ACTIVITIES IN THE LESS FAVOURED AREAS OF ROMANIA

Abstract

This paper deals with finding solutions for improving the economic activities in Romania’s undeveloped areas, which still represent a major problem for this country’s economy. During 1999 and 2009, these areas were considered tax havens, due to some facilities accorded by the Government and the EU (headage compensatory allowances*, tax deductions, non-refundable funds). Many had the opportunity to invest in those regions, but no positive effect was to be seen. Tulcea County (Danube Delta area), coal mine regions, rural areas and the North-East area (Suceava and Botosani county) are considered to be Romania’s less favoured areas. * The objective of these schemes is to provide a reasonable level of income for farmers where natural production conditions are least favourable so as to conserve the countryside by the prevention of further depopulation of rural areas. Compensatory allowances are payable to farmers for the keeping of cattle, sheep and goats. (www.europa.eu)

Keywords

• less favoured areas
• non-refundable funds
• tax havens
• economic growth
• economic activities