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Due the central bank’s policy of pegging the Romanian Leu to the Euro within a certain

bandwidth, the exchange rate is relatively stable against the Euro. However, over the last year

(July 2017/July 2018), the rate has declined by 1.8%, likely due to the growing economy and
rising inflation.

1.2 Population

In 2017, Romania had a population of 19.6 million, making it the seventh largest in the EU and

the second largest Eastern European EU member (after Poland). It is estimated that an
additional 2.7 – 3.5 million Romanians live abroad (semi) permanently, the majority in Italy

and Spain, and some in non-EU countries such as the United States and Canada. While many

of them are seasonal workers, many have found permanent employment. Mainly because of

emigration, the Romanian population declined by an annual average of 134,000 between

2006 and 2017. The degree of urbanization is relative: a large part of the population still lives

in the countryside. The major urban centre is Bucharest, which has a population of 1.9 m,

making it the economic centre of the country.

1.3 Government

President Klaus Iohannis is from the PNL (Partidul Național Liberal: National Liberal Party). The

next presidential elections are due by the end of 2019. In January 2017, after the December

2016 elections, the current government assumed office as a coalition of the PSD (Partidul

Social Democrat: Social Democratic Party) and the ALDE (Alianța Liberalilor și Democraților:

Alliance of Liberals and Democrats). The PSD is by far the largest party in the coalition; ALDE

has only a minor role.

Since it assumed office, the government has had three prime ministers. This is consistent with

the pattern of instability of Romanian governments since the Revolution. One feature of this

has been frequent and rapid changes in ministry positions, which also affect the current

government, with senior PSD party leaders orchestrating constant changes in the composition

of the cabinet. The animosity between the president, who was drawn from one major party

(PNL), and a cabinet and parliament dominated by the other major party (PSD) has created an

unproductive political landscape. Such political instability has for many years inhibited serious

development and the execution of policy – in all fields, including healthcare, as we will see in

chapter 3.

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