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Effects of the drought in Romania
(2012-08-10)
Last updated: 2012-08-13 14:38 EET Print
After two years of severe recession, Romania seemed to be finally back on track, but the intensive drought this summer has again turned things upside down. The Central Bank Governor Mugur Isarescu has recently stated that there is enough data on the current situation of Romanian agriculture to forecast a decrease in economic growth. In turn, PM Victor Ponta also blamed the economic downturn on the heat wave that has affected Romania. The first budget revision draft this year clearly shows that the Government has once again decreased its economic forecast, from 2.5% to 1.2% of the GDP. The poor absorption of EU funds could not make up for the serious problems in the agriculture sector. The lack of rain has affected almost the entire country. The Agriculture Ministry has announced that over 47% of the corn crops have been affected. Wheat, rye, two-row barley, oat and sugar beet crops stand no better. According to official data, the total wheat crop this year will stand at 4.751 million tons, down 15% as compared to 2011. The vegetable and fruit production is also poor. Romanian authorities have started talks with the European Commission with a view to getting funding for upgrading the irrigation infrastructure on an area of 800 thousand hectares, starting January 1st, 2014. Agriculture Minister Daniel Constantin has announced a list of unprecedented measures aimed at fighting the drought and supporting farmers. Measures include subsidizing energy for irrigation, speeding up investments in the irrigation infrastructure and setting up a loan fund with preferential interest rates for farmers. The severe drought has also caused problems to sailors, as low water levels on the Danube have disrupted river navigation. The most severe situation is in Zimnicea, in southern Romania, where the Danube is more than halfway below its normal level. In this area, the navigable channel has narrowed and dredgers were deployed to clear the waterway.

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