The Application of Romanian-German Economic Agreements Before and during the Second World War

Author:Stefan Gheorghe
Position:Senior Lecturer, PhD, Danubius University of Galati, Faculty of Economic Sciences, Romania
Pages:501-504
SUMMARY

With a predominantly agrarian-industrial feature, Romanian economy represented only a small percentage of the world’s economy, however, certain sectors particularly distinguished themselves. Increased trade between the two countries was considered to release the tension of the political and economic situation of the two countries, an equally profitable economic agreement being the best solution,... (see full summary)

 
FREE EXCERPT
Performance and Risks in the European Economy
501
The Application of Romanian-German Economic
Agreements before and during the Second World War
Stefan Gheorghe
1
Abstract: With a predominantly agrarian-industrial feature, Romanian economy represented only a small
percentage of the world’s economy, however, certain sectors particularly distinguished themselves. I ncreased
trade between the two countries was considered to release the tension of the political and economic situation
of the two countries, an equally profitable economic agreement being the best solution, on w hich both
leaders of the two countries agreed from the s tart. We believe that this report, clearly unfavorable to the
Romanian party, is not due exclusively to the Romanian-German economic agreement, as many exp erts
believe, on the contrary, it was meant to be a means by which Germany was to achieve its own econo mic and
political interests, but which, as demonstrated in practice, was considered obsolete even by the Germans, the
frame of Romanian-German economic exchanges surpassing its stipulations.
Keywords: agrarian-industrial feature; economic agreement; political and economic c oncession; non-
equivalent exchanges; monopoly position
JEL Classifcation: Y4; Y70
Romania’s economic policy in the period immediately prior to the outbreak of the Second World War
will be influenced by the evolution of the international situation which determined that special
attention be given to the military sector and the reorientation of foreign trade, under the conditions of
the disappearance of some traditional markets or toilsome transportation. At the end of the second
decade of the interwar period, Romanian society was already characterized by the existence of
numerous social, economic and political tensions overlapping an equally d ifficult international
economic and political context. With a predominantly agrarian-industrial feature, Romanian economy
represented only a small percentage of the world’s economy, however, certain sectors particularly
distinguished themselves: for instance, in 1937 the industry and mining produced more than one third
of the national income, while agriculture and forestry already represented approximately 55% of
national income (Constantinescu, 2000). Also, the actions of the Bucharest regime would result in
increased state intervention in industrial activity and massive orders in the production sector,
purchasing large quantities of cereal, acquiring loans in the national market, supervising foreign
control and monitoring currency circulation (Scurtu, 1996). As a result of meetings between King
Carol the II and German Chancellor Adolf Hitler, the Roman-German economic agreement of 23
March 1939 aimed at strengthening economic relations between Romania and Germany, in the context
of profound changes affecting Europe and anticipating the outbreak of the Second World War.
Increased trade between the two countries was considered to release the tension of the political and
economic situation of the two countries, an equally profitable economic agreement being the best
solution, on which both leaders of the two countries agreed from the start. "Adapting our economy to
the needs of Berlin" did not tally with the economic and political interests of the Romanian state
however, and putting into practice such an agreement would prove even more damaging for Romania.
1
Senior Lecturer, P hD, Danubius University of Galati, Faculty of Economic Sciences, Romania, Address: 3 Galati Blvd,
Galati, Romania, tel: +40372 361 102, fax: +40372 361 290, Corresponding author: stefangheorghe@univ-danubius.ro.

To continue reading

REQUEST YOUR TRIAL