Romania - National Report - World Arbitration Reporter (WAR) - 2nd Edition
Crina Baltag, Ph.D. (Queen Mary University of London), LL.M. (Stockholm University), M.Sc. (Academy of Economic Studies, Bucharest), LL.B. (University of Bucharest); Attorney-at-law; Secretary General, Amcham Brazil Arbitration and Mediation Center. Crina may be contacted at email@example.com or at firstname.lastname@example.org.
Originally from World Arbitration Reporter (WAR) - 2nd Edition
I. INTRODUCTION: ARBITRATION IN ROMANIA—HISTORY AND PRACTICE
A. History and Current Legislation on Arbitration
The fall of the Communist regime, the transition towards a market economy and the integration of Romania in regional and international structures compelled Romania to the modernization of its legal system, in order to respond to these new challenges and to the demands of a fast economic growth. The popularity of arbitration in Romania, as an alternative method for the resolution of disputes, has grown in the last twenty years. However, there is a general belief that parties still prefer to submit their disputes to arbitration under the auspices of well-known foreign arbitration institutions, rather than to institutional or ad hoc arbitration in Romania. Reasons why parties are reluctant to arbitrate in Romania are related to the legal framework regulating arbitration, the perception of the Romanian legal system and, in particular, of its court system.
1. Historical evolution of the law on arbitration
The birth of the Romanian Arbitration Law is dated back in 1859, with the Romanian Civil Procedure Code (‘RCPC’) mainly inspired from the French law. The original provisions of the RCPC concerned only civil arbitration, while the arbitration procedure was rigid and complicated.
Only after the amendment of 1993, the RCPC recognized the institutional arbitration in Romania. However, Romanian arbitration institutions existed since 1929, when the first arbitral chambers had been organized for stock exchanges. During the Communism, arbitration and, in particular, institutional arbitration was considered incompatible with the Communist ideology, since it was promoting the idea of a private justice. Despite this interdiction, the Communist regime had to allow the organization of an Arbitration Commission attached to the Chamber of Commerce of Romania for the resolution of disputes arising out of the international trade relations, which were the state’s monopoly. Until the fall of the Communist regime, the Arbitration Commission attached to the Chamber of Commerce of Romania was the only place where arbitration was kept alive. The Court of International Commercial Arbitration attached to the Chamber of Commerce and Industry of Romania (‘CICA’), the successor of the Arbitration Commission, is the main arbitration institution in Romania, administering domestic and international arbitration proceedings.