Romania's Exchange Rate Policy towards its European Monetary Union Membership - Prospects and Challenges

This paper has a focus in considering the implications of the European integration for the present and future exchange rate arrangements between the European Union and Romania as an emerging country. The objective of this paper is to examine rather medium-term outlook for exchange rate arrangement involving Romania in its European membership process and the EU in the new single currency environment. The national currency has a managed floating exchange rate regime against the single European currency, compatible with the inflation targeting policy currently promoted in Romania. Romania will also have to register a quite problematic coexistence of inflation targeting with an exchange rate stability after joining the Exchange Rate Mechanism II. An exchange rate arrangement involving the national currency and the single European currency must be quite flexible to the economic conditions of Romanian economy and to the policy commitments of the authorities. The arrangement will also have to be compatible with the price stability objective of the European monetary policy and will need to strengthen the national authorities’ capacity of achieving the structural adjustment. The flexibility within the ERM II will allow all of these ends to be fulfilled. Joining the ERM II and thus registering a formal link to the single European currency, the Romanian economy will enjoy a greater credibility in the context of an anchor for macroeconomic policies. The ERM II has also a few disadvantages. A hard pegging with the euro inside the ERM II wouldn’t be appropriate given the incapacity of the emerging market system of determining an equilibrium level for the exchange rate of the national currency against the euro. A real exchange rate appreciation could also generate tensions as a result of price tendency and differences in productivity growth between the national economy and the Euro Area countries.exchange rate policy, EMU

Considerations Concerning the Sphere of the Activities of Internal Auditing

The internal audit has known a continuous evolution, the sphere of the specific activities being gradually extended from the financial and accounting area to the entity’s operational area. This aspect is significantly influenced, among others, by the subordination means of the department of internal audit within the entity, as well as by the range of services which could be offered to the decisional factors. In this sense, the present material debates the connection between the position of the function within the entity and the exigencies which are imposed as far as the assessment of the objectives for the internal auditors is concerned. In the same time, we will talk about the range of services which have been offered by the internal auditors both from the perspective of the needs for their beneficiaries, as well as of the independence which characterises this kind of services. In the same time, we have approached the range of the specific services for the missions of this nature. The approach concerning the positioning of the internal audit aims, on one side, at its role as a main instrument of the entity as far as the monitoring of the risks is concerned and the assurance of the quality for the internal control devices which have been instituted by the entity, and on the other side, the need to assure the adequate independence for the accomplishment of such desiderata. As far as the services which have been offered by the auditors are concerned, within this material, they are subjected to the analysis from the perspective of their beneficiaries, as well as under the aspect of the compatibility between the assurance services and the consultancy services.subordination, auditing committee, consultancy.

CHANGES IN THE STRUCTURE OF POPULATION AND HOUSING FUND BETWEEN TWO CENSUSES

In the last decade, a series of structural changes took place in our country with regard to the whole society, mainly in the economic and the social area.Changes occurred in the number and the structure of the population living at a specific time. Whether we refer to the residence environment, gender or employment status as recorded in the Population and Housing Census of 18 March 2002 in the villages, towns, municipalities and counties - as administrative and territorial units, and also in the developing regions, the changes result from official statistical data and information published in the last ten years

THE NEED FOR PUBLIC DEBT MANAGEMENT IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT WITHIN THE EUROPEAN UNION

Public debt is created when the necessary resources for the socio-economic development of a state are greater than the opportunities that exist at that time. The destination of the necessary resources acquired from foreign markets can be either consumption by raising the standard of living (on short term) or investments in order to reduce the discrepancies in relation to the European Union through investments in infrastructure, jobs, human and technical capital development. The scientific research aims to clarify several key objectives, namely: the theoretical concept and its belonging in the governance politics; the dynamics of public debt in Romania and the identification of specific features of the indebtedness decision, the influence of the current global economic crisis on the Romanian economy, the analysis of Romania's public debt sustainability integrated in the European structures, and proposals for action in order to return as soon as possible to a positive economic dynamics with direct impact on people's standard of living. The theme of this research is contemporary in the context of the financial and economical global crisis and the difficulties in overcoming this period. The need to coordination the fiscal and budgetary policies in Romania, the awareness that the accumulation of a large public debt presents a threat to future generations, the increase of the tax pressure over a market that trends towards globalization and the impact that the aging of the population will have on the public finances sparked public controversy, both in the academic environment and in the media. To continuously borrow resources and maintain a stable level for them requires a sustainable public debt, an important objective of any state's tax policy. A sustainable public debt is the result of the market and of the fiscal and budgetary policy decisions. Although the sustainability of public finances and implicitly of public debt has been an issue extensively debated for over a century, they currently remain vague concepts. Although, intuitively, it is natural to consider that a fiscal policy is sustainable if it avoids financial collapse, there is no generally accepted definition in terms of sustainable public debt, respectively a sustainable level of public debt. The methodology of this research is stressed by the large number of statistical data on public debt dynamics used in the analysis, relevant in this regard are the national and international databases: the National Bank of Romania, Ministry of Public Finances, World Bank, Euro stat, the statistical database of the European Commission, the database of the International Monetary Fund, the Organization for Economic Cooperation and Development, the normative documents consulted in order to ensure the terminological accuracy of the concepts, the numerous theoretical and empirical studies of Romanian and foreign specialists, the views and arguments of scientific researchers with high experience in the field. The personal contribution to the researched field is present throughout this work. Thus, I aimed to clarify some theoretical aspects of the issues addressed, of some concepts and economic notions to elucidate the studied phenomenon by using a large number of statistical data in order to analyses the dynamics of public debt in Romania, in comparison with other former communist countries and to formulate proposals for a long-term sustained recovery and a sustainable economic growth.public debt, budget deficit, external financing, public debt management, degree of indebtedness, public debt service

CONSIDERATIONS ON THE PLANNING OF THE FINANCIAL AUDIT MISSION

In order to exercise efficiently the financial audit it is required to adequately plan it, for each individual mission. This document synthesizes the essential aspects which must be taken into account by the auditors and divides them into groups, according to the following paths of action: obtaining a detailed knowledge of the entity audited; estimating an acceptable level of the audit risk; understanding the internal control system of the entity; determining rigorously of the terms of the mission.audit, planning, particularities, risk, engagement

STRUCTURA FINANCIARA A FIRMELOR INDUSTRIALE ROMANESTI

Pentru finansarea activitatii o firma apeleaza la doua categorii de surse financiare: surse proprii si surse imprumutate. Cele doua categorii de surse de finantare identificate se completeaza reciproc, existand anumite proportii intre acestea care trebuie respectate, deoarece apelarea la credite intr-o masura necontrolata antreneaza o serie de riscuri pentru intreprindere, punand in pericol intreaga activitate a acesteia. Plecand de la aceste considerente, in cadrul lucrSrii sunt prezentate rezultatele unui studiu efectuat la nivelul mai multor firme industriale listate la Bursa de Valori Bucureati pe piaSa Rasdaq, care, in perioada 2002- 2004, au apelat la credite bancare pentru finanSarea activitSSii.structura financiara, autonomie financiara, levier financiar, lichiditate, solvabilitate

An Evaluation of the Romanian Fruits and Vegetables Producers Access to Different Types of Common Agricultural Policy Instruments. Is there Any Real Consistency with the Policy Objectives?

Fruits and vegetables sectors are considered to be strategic in the European Union due to their contribution to a better human health. Among others positive effects, their intake increase reduce mortality and obesity, assuring in the same time harmonised development for young children. The present study thus focused to reveal the consistency of the measure implemented in the Common Agricultural Policy to support fruits and vegetables production in Romania in liaison with the policy objectives. The country is one of the main ten important European producers of horticultural products in terms of production volumes and acreage. Results showed that over the last seven years (2007-2014), the sectorial production drawbacks have not been ameliorated very much. Both sectors are dominated by small-size farms that can produce only seasonally and mainly for short-market chains. In the same time, the greenhouses area shrink to levels that made the country extremely dependent to imports especially for tomatoes. The analysis of the pillar one payments schemes revealed that the fruits and vegetables producers could have access to only one payment that was half from European averages. Moreover, almost half of the producers had low sizes that left them outside the eligible criteria. The measures designed for the second pillar also penalized producers through the selection criteria. These results showed that for Romania there was not a real consistency between the actual policy measures and the objectives assumed by policy makers. The future measures (2014-2020) seem to correct these negative findings being better tailored to the situation of the local fruits and vegetables producers

A STUDY ON THE RETURN ON EQUITY FOR THE ROMANIAN INDUSTRIAL COMPANIES

In this paper, a study on a sample of 73 Romanian companies operating in industries was conducted. The survey covered the year 2008 and was based on data extracted from annual financial statements of the companies from the sample. Starting from a number of representative papers in the field, there were identified the influence factors of the return on equity and the quantifiable ones were hold, respectively the operating profit margin, the asset turnover and the financial leverage. These financial rates, together with the return on equity, have been determined for the entire population of enterprises from the sample. Subsequently was tested the statistical correlation between the level of influence factors and the return on equity. The results obtained partially confirmed the hypotheses set when starting the research, but have also denied some of them.return on equity, net profit, equity, operating profit margin, asset turnover,financial leverage

Vineyards’ restructuring and conversion through national support programmes - the case of Romania

Wine industry is considered to be a traditional industry, where the potential for growth is still important for the existing wine producers and new entrants, based on strategies for increasing international awareness, technological innovation and financing program. The paper aims to explore the evolution of the determinants of wine and vineyards industry from a macroeconomic perspective, in order to assess the efficiency of the National Support Programmes, financed by the European Union. The exploration intends to cover the tendency of the following indicators: areas under vines, areas under vines for wines, wine producers, wine consumers, wine imports and wine exports, in order to explore new opportunities for growth and develop future orientation. Moreover, the analysis intends to address the importance of National Support Programmes 2009-2013; 2014-2018; 2019-2023, whose evolution is currently considered a key research question in the field. Romania is an important European country from the point of view of wine industry, the various wines it produces are known for their quality. With an area of around 180.000 ha cultivated with vines which, in 2016, represented 1,42% of its agricultural area and 2,28% of arable area, Romania ranks the 5th position in the European Union, after Spain, Italy, France and Portugal. However, the countries that took advantage of the financial funds allocated to the National Support Programmes, were: Italy, Spain and France, which together spent more than 70% of the total amount for each of these programmes