The justice reform is working for Romania

I would make one main observation about last week’s report on the Cooperation and Verification Mechanism (CVM). The mechanism is working. Thanks to the combined efforts of Romania’s authorities, the European Commission and member states like the UK who have contributed with projects and expertise, Romania has made important progress over the last year in tackling corruption and reforming its administrative and judicial systems. The National  Integrity Agency is setting new standards for ethics in public life. Corrupt practices are being investigated and prosecuted by Romania’s law enforcement agencies. Romania’s framework of laws has been consolidated and updated in four new codes, which will transform the application of civil and criminal law making the justice system more predictable, efficient and easier to access.

The report sets out the path for the next stage of reforms in the year ahead. Implementing the codes will be key. So will tackling delays in high-level corruption cases. Romania needs to ensure it is equipped with all the necessary legal instruments, including systems to confiscate the assets of crime. The UK will continue to provide assistance, sharing our experience and expertise.

It is hard to overstate the importance of this agenda. The main challenge facing Romania (and many other countries in Europe right now) is how to generate new economic growth. The CVM addresses exactly those areas which hold Romania back. It will bring more foreign investment into Romania, it will help Romania make better use of EU funds, and it will make it cheaper and easier to start a business and to create new jobs. When the new civil code is implemented from 1 October it will unify commercial law in Romania and make it much easier to do business here. A reformed judicial system will be increase investors’ confidence in Romania and be able to provide swift and consistent decisions to uphold contracts and settle commercial disputes. This in turn will ease the flow of EU funds, addressing bottlenecks in the courts when tenders are contested. A robust and transparent public procurement process will ensure that Romania gets the best value out of the EU projects.

Economists estimate that corruption can knock between 0.5% and 1.5% off GDP growth. Implementing the CVM will ensure that Romania’s economy is as fit and competitive as it needs to be in the coming decades when Europe’s economies are up against the emerging economies of Asia and Latin America. It should have a central place in Romania’s strategy for sustainable economic growth.