Issue Rationale Field of Action to Support the pension system is at medium risk in the long-term Better Public Administration Poor administrative capacity is a core concern for Romania which contributes to the low absorption of EU funds. The governance and quality of public administration should therefore be strengthened Field of action 1 Field of action 2 Field of action 4 Labor Market, Youth Unemployment & Poverty Romania should enhance the quality of active labor market policies, employment information availability, enhance social program efficiency to reduce the risk of poverty Implementation Of Precautionary Programme Romania negotiated with the European Commission and the IMF a precautionary economic adjustment programme in 2011 Field of action 1 Health Sector Reform There are major inequalities in the Romanian health sector mainly due to the inefficient use of resources and poor management Field of action 2 Business Environment The Romanian authorities should ensure a coherent eGovernment and undertake efforts to ease access to finance and to reduce the administrative burden on SME’s Field of action 1 Romania faces a major challenge in raising the quality of its education and training system. Romania should build up its administrative capacity and align education to labor market requirements Field of action 1 Romania has a low degree of competition and efficiency in the energy and transport industries. Government needs to ensure transparency in agency function. Field of action 1 Education Reform Energy And Transport The Field of action 3 Field of action 3 Field of action 4 Field of action 2 Field of action 4 Romania has embarked on an ambitious project of aligning itself to the latest trends in eGovernment and introducing the most advanced electronic systems in providing public services to its citizens. Romania’s Page 29 of 172