Romania
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Three years later, overrun by the Soviets, Romania signed an armistice. The post-war Soviet occupation led to the formation of a Communist "people's republic" in 1947 and the abdication of the king. The decades-long rule of dictator Nicolae CEAUSESCU, who took power in 1965, and his Securitate police state became increasingly oppressive and draconian through the 1980s. CEAUSESCU was overthrown and executed in late 1989. Former Communists dominated the government until 1996 when they were swept from power. Romania joined NATO in 2004 and the EU in 2007. Romania, which joined the European Union on 1 January 2007, began the transition from Communism in 1989 with a largely obsolete industrial base and a pattern of output unsuited to the country's needs. The country emerged in 2000 from a punishing three-year recession thanks to strong demand in EU export markets. Domestic consumption and investment have fueled strong GDP growth in recent years, but have led to large current account imbalances. Romania's macroeconomic gains have only recently started to spur creation of a middle class and address Romania's widespread poverty. Corruption and red tape continue to handicap its business environment. Inflation rose in 2007 for the first time in eight years, driven in part by the depreciation of the currency, rising energy costs, a nation-wide drought affecting food prices, and a relaxation of fiscal discipline. Romania hopes to adopt the euro by 2014. Source: The Places Factbook, CIA. |
The
principalities of Wallachia and Moldavia - for centuries under the suzerainty of
the Turkish Ottoman Empire - secured their autonomy in 1856; they united in 1859
and a few years later adopted the new name of Romania. The country gained
recognition of its independence in 1878. It joined the Allied Powers in Places
War I and acquired new territories - most notably Transylvania - following the
conflict. In 1940, Romania allied with the Axis powers and participated in the
1941 German invasion of the USSR.