Romania has made marked progress in the past five to six years from an economy based on agriculture and cheap labour to one driven by investment. High rates of growth in gross domestic product, an increasing share of fixed capital formation, and large inflows of foreign direct investment point to an economy catching up European norms. Romania already fulfils three of five Maastricht criteria and has set 2014 as an indicative target date to join the euro-zone.

However, development is uneven, real convergence is still a long way ahead, and vulnerabilities have appeared. Economic growth is fuelled by household consumption, based on a combination of rising wages (which are outstripping productivity gains) and a credit boom.