Interview by Dan Cărbunaru – Director of Calea Europeană

In an interview for CaleaEuropeană.ro, Stefano Scarpetta, Director of the Employment, Labour and Social Affairs (ELS) Directorate of the OECD, discussed Romania’s labour market in the context of its accession to the Organisation for Economic Co-operation and Development (OECD). He highlighted both the progress made and the challenges that still need to be addressed.

Scarpetta emphasized that no country is perfect, but Romania has shown the right approach by recognizing existing issues, making progress, and being open to learning from other countries. “The spirit of cooperation, collaboration, and mutual learning is what makes OECD an important place to be part of,” he stated. Romania’s constructive engagement in the Employment, Labour, and Social Affairs Committees has been a key factor in advancing its accession process.

One of the major challenges discussed was Romania’s significant workforce migration. Over the past two decades, millions of Romanians have sought employment in OECD and EU member states, attracted by better working conditions and higher wages. Scarpetta noted that while international experience can be valuable, Romania must focus on improving its own working conditions, wages, and productivity to encourage skilled workers to return. “You have a huge talent pool, not only in Romania but also in other European countries,” he said, adding that economic growth and job creation are essential to reversing this trend.

The OECD official also highlighted labour market disparities, particularly in female participation and youth employment. The high proportion of young people who are neither in education, employment, nor training (NEET) is a pressing concern. He stressed the need for Romania to better integrate these individuals into the workforce to maximize its human capital.

Addressing the broader benefits of OECD membership, Scarpetta cited examples from Latin America, where initial skepticism about joining the organisation gave way to broad support. He explained that OECD membership provides access to valuable policy insights, best practices, and international dialogue, all of which can accelerate economic and social development. “We don’t have to reinvent the wheel every time—learning from others helps speed up the process of good reforms,” he explained.

Looking to the future, Scarpetta acknowledged the multiple transformations affecting labour markets globally, including digitalization, artificial intelligence, the green transition, and demographic shifts. These changes create both challenges and opportunities, requiring adaptable policies and a workforce equipped with the necessary skills. “Policy plays an essential role, but we must also equip people to withstand shocks and grasp opportunities,” he noted.

Education and lifelong learning are central to this adaptation. While some argue that older education systems were better, the OECD official underscored the importance of foundational skills such as literacy, numeracy, and problem-solving. “If we lack foundational skills, everything else becomes more difficult,” he warned, emphasizing that education systems must evolve to meet the demands of a changing labour market.

Overall, Romania’s accession to the OECD represents a crucial step in its economic development, Scarpetta noted. While challenges remain, the country’s willingness to engage in reforms, learn from international experiences, and invest in human capital will determine the long-term success of this process.

Stefano Scarpetta has been the Director of the Employment, Labour and Social Affairs (ELS) Directorate of the OECD since 2013. Stefano Scarpetta leads the work of the Organisation in a number of broad areas including Employment, Labour, Migration, Health, Skills, Gender and Tackling Inequalities and contributes to the implementation of the Secretary-General’s strategic orientations in these areas. Stefano represents the OECD in the G20 and G7 and many other high-level international fora on labour market, social, migration and health issues. Under his leadership, ELS provides continuous assistance and support to countries in the design, implementation and evaluation of polices drawing from evidence-based analyses of how policy affects different economic, labour and social outcomes. His advice has contributed to numerous policy reforms in OECD countries and beyond, and new policy thinking in areas ranging from inequalities, labour market inclusion and the future of work, social protection for all, the integration of migrants, the economics of public health and patient-centred health care.

Interview by Dan Cărbunaru – Director of Calea Europeană

Stefano Scarpetta, Director of the Department for Employment, Labor and Social Affairs (ELS) at the OECD, discussed in an interview for CaleaEuropeana.ro about the improvements that the Romanian authorities can make to have a resilient health system, where prevention becomes a priority, investments in the workforce are not lacking in order to combat the shortage of medical staff, but also to strengthen the doctor-patient relationship.

An improved and adapted healthcare system means investing in prevention and primary care

”I think in the health sector is another one in which improvement is absolutely needed. But also I think the health sector in all countries, including Romania, has to adapt. Because we are living longer. We are living in better health, but we have more people older with chronic conditions. And I think the health care system has to evolve in a way in which hospitals of course play a fundamental role, but also primary care. Because many individuals with chronic conditions can be helped through basically primary care and not only by hospital and specialized care. So I think we need to invest more on prevention.”

The shortage of medical professionals, a challenge that urgently needs to be addressed

”We need to again create a better link, if you like, between the patient themselves and the doctors at all levels. And we need doctors and nurses, because in many countries, including Romania, there is a scarcity of doctors and nurses. But for that we have also to improve the working condition for them.”

    Read also: OECD report (2020): Romania faces world’s biggest exodus of doctors. A third have emigrated, looking for better career prospects and remuneration

”The reason why some of them drop out from the profession, or the fact that young people may not invest, may not study in the medical field, is because they know that working condition might be very difficult. So I think we have to work on both sides. On the working condition, on the pay, on the adaptation of the skills, but also on diversifying the offer of health support, which of course has to focus on hospital, specialized care, but also on primary care.”

Stefano Scarpetta, a high-profile Italian economist known for his expertise in labor market, social policy and global economics who has been director of the Employment, Labour and Social Affairs (ELS) Department at the Organization for Economic Cooperation and Development (OECD) since 2013, believes that the new taxes announced by the Trump administration could have consequences on the prices of certain goods and services.

In an interview with CaleaEuropeană.ro, on the occasion of the conference entitled “Improving the quality of employment through skills development and global collaboration: a challenge for Italian companies in Romania – experiences and good practices in the light of OECD standards” organized by the Italian Embassy in Bucharest and the Ministry of Labor, Family, Youth and Social Solidarity, he stressed that a “trade war or, to some extent, an escalation of tariffs” is not beneficial for either side.

”We still need to process exactly what is the extent of the severity of the measures (n.r. announced) and it is also it will be very important to see whether there will be a reaction in the countries potentially affected by these tariffs. Certainly, I think from the work we’ve done at OECD, the trade war or, to some extent, an escalation of tariffs will not be good for GDP nor employment. In particular, will affect some sectors, those most impacted by the tariffs themselves, but also potential on the vulnerable groups, because this might also lead to increasing prices of a number of product and services. I think we still have to see how the diplomacy and the negotiations will go and hopefully avoid the introduction, but among particular, the persistence of these tariffs in different countries. They have a negative effect not only for European countries, but I think across the globe, even potentially for the OECD itself”, Scarpetta responded to a question asked by CaleaEuropeană.ro on the impact of the tariffs unveiled by the US administration on the day described by Donald Trump as ”Liberation Day”.

Asked about the OECD’s position in facilitating dialogue between Americans and Europeans, Stefano Scarpetta gave assurances that the Organization for Economic Cooperation and Development “is a safe place”.

”The United States is a founding country of the OECD, it’s actually a country that inspired its predecessor, the Organization for European Economic Cooperation. This was basically the organization that implemented the Marshall Plan, which was which was the big plan from the United States to help the reconstruction of Europe. So you see how strong the ties are between the US, the OECD and European countries. I think the OECD is still a very safe place for an open and transparent dialog and we have so many areas of cooperation between European countries, the US and many other countries that are members of the OECD. The OECD is made up of 38 countries that strongly believe that there is still place for constructive dialogue with all countries, including the US”, the Director of the Employment, Labour and Social Affairs (ELS) Directorate of the OECD since 2013, a renowned Italian economist known for his expertise in the fields of labour market, social policies and global economics, has shown his conviction.

Donald Trump announced Wednesday that he will impose “reciprocal tariffs” of at least 10% on all imports entering the United States and higher specific tariffs on some of the biggest trading partners of the world’s largest economy, including the European Union, which is facing tariffs of 20%.

The financial market has already reacted to the announcement of these protectionist measures, with stock markets falling and the US dollar losing ground against the euro in a trade war that looks set to intensify, with companies and citizens the main losers.

The European Union, through European Commission President Ursula von der Leyen, and the European Parliament, through its International Trade Committee, have sharply criticized the decisions, announcing that countermeasures are pending if the negotiations for an agreement do not bear fruit.

Some member states have already braced for the impact. Spain has revealed it will implement a €14.1bn support package, while Romania’s government has announced measures to protect Romanian companies in all industries affected by the effects of the US-EU trade war.