Assessing the Economic Sustainability of the EU and Romanian Farming Sectors

Abstract

In the context of increasing pressures on European agriculture, the economic sustainability of farming sectors is becoming a key strategic objective, especially for Member States with structural vulnerabilities such as Romania. This study proposes an integrated assessment of the economic sustainability of farming sectors in the European Union and Romania for the period 2013–2022 using an analytical framework based on composite indicators built on data from the FADN network. The seven indicators used are grouped into three dimensions: (i) economic performance—profitability, capitalization, and liquidity (FESI, FCI, PCFI); (ii) subsidy dependence and efficiency (FSDI, SEI); and (iii) technical–economic efficiency in the use of resources (FEPI, COEI). The results indicate accelerated economic growth of Romanian farms, but it is associated with structural vulnerabilities, such as low capitalization, high liquidity volatility, and high dependence on public support. In contrast, farms in the EU show superior financial resilience and a steady investment capacity. This study underlines the need for differentiated agricultural policies aimed at strengthening financial autonomy, increasing investment efficiency, and reducing the gap between Romania and the EU, helping to inform policy interventions for the transition towards a more competitive and resilient farming sector.