In spite of Romania’s high agricultural potential, our country has one of the lowest performing food sectors in Europe. This is extremely visible recently, in the quantity of food imported by our country.
Although Romania has a high agricultural potential compared to most European countries, it is not properly taken advantage of, as the yields obtained by local farmers (calculated as the ratio between the production obtained and the planted areas/number of animals slaughtered) are among the lowest in the EU, being less than those of Poland and Hungary, as the National Bank of Romania (NBR) points out in its latest report on inflation. The food industry thus failed to cope with the recent increase in domestic food consumption, which was driven by the wage increase or the extension of the reduced VAT rate for all food items. Thus, the surplus of demand was mostly covered by imports, which also influenced prices.
What instruments are available to the Commission to balance imports and exports across Romania, as well across the other Member States?