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

Performance and Risks in the European Economy

501

The Application of Romanian-German Economic

Agreements before and during the Second World War

Stefan Gheorghe

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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.

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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.