The Energy Sector Reform and Macroeconomic Adjustment in a Transition Economy: The Case of Romania

Author/Editor:

Stéphane Cossé

Publication Date:

April 1, 2003

Electronic Access:

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Disclaimer: This Policy Dicussion Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper assesses the main issues faced by the energy sector in a transition economy such as Romania and their macroeconomic dimension. It examines how the size of quasi-fiscal subsidies, owing mainly to inappropriate prices and the lack of financial discipline, has led to an increased focus on the energy sector under the IMF-supported programs. The paper analyzes the macroeconomic impact of recent reform measures and discusses the next steps to improve price policy and collection in energy utilities. Shifting to targeted budgetary subsidies appears also to be a crucial reform step.

Series:

Policy Discussion Paper No. 2003/002

Subject:

Commodities Economic sectors Electricity Energy sector Expenditure Government subsidies Natural gas sector Tariffs Taxes

English

Publication Date:

April 1, 2003

ISBN/ISSN:

9781451974546/1564-5193

Stock No:

PPIEA0022003

Pages:

26

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