As the year approaches an end, Romania-Insider.com looks back at the biggest business and political developments of 2011 in Romania. In a random order, we picked the 15 most important issues that shaped business and politics in Romania this year. Which one was the most important, in your opinion? 

1. Nokia closes down factory in Romania Finnish telephone equipment producer Nokia closed down its factory in Romania and relocated production to Thailand. The company was the fourth largest company in Romania based on turnover in 2010 and also the country’s second largest exporter, after car maker Dacia, covering 7.8 percent of the exports. Its decision to leave Romania will most likely impact the country’s economy and weaken other foreign investors’ trust in Romania.  More here.
2. Tnuva pulls out of Romania Israeli dairy producer Tnuva pulled out of Romania after five years on the market. It said it would close down its factory near Bucharest, after having already closed down a cowshed in the country. The company posted a loss of EUR 22.7 million in 2010, when its turnover stood at EUR 21.4 million. More.
3. New IMF deal Romania inked a second deal with the International Monetary Fund this year. In March, Romania and the IMF signed a EUR 5 billion loan agreement, successor to a larger EUR 20 billion bailout package that ended in April this year. Under the new deal, the IMF will disburse Romania EUR 3.5 billion, while the EU and the World Bank contribute with EUR 1.4 billion and EUR 400 million, respectively. However, Romania will access the funds only in case of economic distress. More.
4. Fondul Proprietatea stock exchange listing After five years of waiting, Romania's Fondul Proprietatea was listed on the Bucharest Stock Exchange (BSE), allowing shareholders to sell their shares on the open market. Trading on the first day on the BSE reached EUR 50 million, but the price of shares went downwards from RON 0.65 on the first trading day. Throughout the year, the value of a share went down by around 30 percent. Fondul Proprietatea was created in 2005 as a joint stock company with a special purpose to provide compensation to those whose real estate assets were confiscated abusively by the Romanian state during the communist regime and who can no longer receive restitution in kind. More.
5. New Labor Code A new Labor Code was released at the beginning of May in Romania. According to the new Code, employers can go to prison for one or two years or pay a fine if they have more than five employees without legal paperwork. More.
6. CEOs for state companies Romania will pay EUR 250,000 to the recruiting company that will place the new private CEO for state company Hidroelectrica, part of a plan that includes several other state companies that will have private management in the country. Romania’s Economy Ministry has laid out the steps a recruitment company will have to take to enter the bid for placing private CEOs in state companies. The bid will take place between December 9 this year and January 16, 2012. More.
7. New retailers open shop in Romania The long-awaited clothing retailer H&M opened its first store in Romania this year and continued expansion throughout the country. Do-it-yourself retailer Leroy Merlin also opened its first unit in Romania – in Bucharest. Meanwhile, on the luxury front, the first Valentino mono-brand store opened in the Grand shopping galleria, while Burberry is set to open shop in the five-star Radisson Blu hotel. H&M, Valentino, Burberry.
8. Anti-missile shield in Deveselu Romania’s External Affairs Minister Teodor Baconschi and the US Secretary of State Hillary signed in September the agreement to place the US anti-missile shield in Romania. Romanian President said that the anti-missile agreement with US signed in Washington brings Romania’s security at the highest level in the country’s history. Elements of the shiled will be place in Deveselu, southern Romania. The US authorities will pay USD 400 million for locating the anti-missile system at Deveselu in Romania, with an additional USD 20 million for the annual functioning costs, missiles not included. Romania doesn’t have to pay anything, only provide the former military base at Deveselu and the security of the system. The system that will be installed by the year 2015 at Deveselu in Romania is a strictly defensive system for interceptions. More.
9. BNR cuts interest rate to 6% The Romanian Central Bank (BNR) reduced the key interest rate from 6.25 percent to 6 percent in November. BNR cut the rate from 6.5 percent to 6.25 percent in May 2010. In December 2009, the key policy rate was of 8 percent and was gradually decreased throughout 2010. More.
10. Failed Petrom public offer The Romanian state intended to sell half of its remaining stake in oil and gas company Petrom, but the offer was not carried through, after investors bid for less than 80 percent of the available shares, which was set as the threshold for a successful offer. The Romanian state will try again to sell nearly half its share package in oil and gas company Petrom next year- some 9.84 percent. More.
11. Erste buys additional stake in Romania's BCR Austrian lender Erste Bank has agreed to purchase a 30 percent stake in BCR, where it already controls the majority of the shares. Erste has only signed a contract so far, but has agreed in principle to buy shares in BCR from the five investment funds called SIF. The deal involves a EUR 145 million cash part and 1 percent in Erste's shares for each of the five SIFs. The Erste shares now value some EUR 265 million. More.
12. National Arena The Bucharest City hall inaugurated its 55,000-seat stadium in the capital city, after four years of construction work. The first match played on the arena – the Romania – France – ended with a torn off lawn. Most comments after the game were directed towards the poor quality of the newly installed lawn. UEFA event halted games temporarily on the stadium until the lawn was improved. The costs for building National Arena reached EUR 234 million. More.
13. Basarab flyover The EUR 160 million Basarab flyover, which connects the West to the North of Bucharest, was inaugurated in June 2011. Work on the flyover started in 2006 and was conducted by construction companies Astaldi and FCC. More.
14. Delayed Schengen entry The Netherlands has opposed Romania's entry into the Schengen area, which was initially set for 2011. Netherlands officials said neither Romania or Bulgaria did any efforts to combat corruption. After this announcement, but on an unrelated not, according to Romanian representatives, customs workers in Romania blocked Dutch flowers at border on bacteria suspicion. More.
15. New European Funds Ministry Romania set up a new ministry to deal with the low absorption rate of EU funds. The new Minister for European Affairs, led by former EU Commissioner Leonard Orban plans to attract EUR 4 billion in EU funding in one year. More.

editor@romania-insider.com