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Successfully investing in Romania

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last updated on 10 October 2025 | reading time approx. 3 minutes

 

 

 

How do you assess the current economic situation in Romania?

Romania remains an attractive destination from a foreign investor’s perspective, particularly for German companies. The current economic landscape reflects a combination of resilience and economic challenges, shaped by global instability, regional conflicts and internal political shifts. 

Romania's European (EU) membership continues to drive growth in key sectors like IT&C, agriculture, automotive, renewable energy, real estate and services. Romania's admission into the Schengen-Area marks a step forward and is expected to support long-term economic and trade development.

While the country has shown resilience in the face of recent global and regional challenges, the political instability between December 2024 and May 2025 has caused a degree of uncertainty, which has somewhat affected the investors’ perspective. However, the recent democratic elections won by the pro-European centrist Nicusor Dan, validated as State President, have significantly calmed the political situation in Romania, offering a foundation for economic stability and development.

Despite challenges such as a widening budget deficit and persistent inflation, Romania maintains macroeconomic stability and continues to attract foreign investors. The country’s key strengths include a skilled and cost-competitive workforce, attractive tax environment, dynamic IT and tech sector, as well as its strategic geographic location.

How would you describe the investment climate in Romania? Which sectors offer the largest potential?

The investment climate in Romania, as an EU member state and an important partner in NATO, has continuously improved in recent years. Romania offers a dynamic and evolving frame for investments, underpinned by its strategic location, a skilled workforce, reduced labor and production costs, as well as from a competitive tax system. Despite recent challenges, including internal political and regional tensions, the country continues to attract foreign direct investment across various sectors.

Romania's integration into the EU has facilitated access to substantial funding, enhancing infrastructure and aligning the country’s regulatory frameworks with the European standards. The government's commitment to fiscal consolidation, as evidenced by efforts to reduce the deficit and increase EU fund absorption, aims to increase investor confidence in the future.

Romania has emerged as a regional tech hub, with cities like Bucharest, Cluj-Napoca and Timisoara hosting various IT companies and startups. The automotive sector remains a cornerstone of Romania's industrial landscape. Romania is investing in renewable energy in order to align with EU climate targets. The real estate market, especially in urban centers, is experiencing growth driven by increased demand for residential and commercial properties. With fertile land and favorable climate, Romania's agriculture is increasing its productivity benefiting also from the EU support schemes.

What challenges do German companies face during their business ventures into Romania?

One of the most important challenges German companies are facing while doing business in Romania are the insufficient development of transport infrastructure and the changes in the current legislation. Compliance with laws, taxation regulations and other business requirements may increase the need for specialized expertise. Insufficient digitalization within the public administrative structures, as well as the frequent changes in the political-economic framework are also affecting the continuity and implementation of major projects (e.g. in the infrastructure). Cultural differences could also be challenging for German companies doing business in Romania.
  

What impact does Romania’s accession to the Schengen Area in 2025 have on foreign investment and trade?​

Romania’s complete accession to the Schengen Area in 2025 eliminates border controls with other EU member states, significantly optimizing the free movement of goods, services and people. This improved connectivity reduces logistics costs and transit times, making Romania a more attractive location for foreign investors and exporters, especially in manufacturing, logistics and trade-related sectors​

   

In your opinion, how will Romania develop?

Romania's economy is expected to continue growing by increasing foreign investments particularly from EU-partners like Germany. Accessing EU funding and adopting structural reforms will support infrastructure modernization, digitalization and green transition, which are essential for boosting competitiveness. Romania’s skilled workforce and growing tech sector offers strong potential for innovation growth.

Long-term political stability and a commitment to pursue economic reforms are essential for the Romanian government. These factors will increase investors’ confidence and enable the country to fully leverage EU membership benefits.

Challenges include managing the State budget deficit and the fiscal environment while maintaining growth-friendly policies and achieving social cohesion during change. Dealing with geopolitical threats in the region will also require intensive diplomacy efforts.

Overall, Romania is well-positioned to become a dynamic mid-sized European economy, with strong regional ties, if it continues to implement reforms and to make strategic investments in its future.

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