Romania’s Decision Makers | Editorial Series by The Diplomat-Bucharest 

As Romania navigates a rapidly evolving European economic landscape, strengthening competitiveness increasingly depends on strategic clarity, institutional discipline, and the ability to move quickly when new opportunities emerge. For businesses operating in advanced industries such as automotive technology and research and development, long-term success is closely linked to a country’s capacity to define clear national priorities, support investment through predictable policies, and cultivate a culture that rewards performance and innovation.

In this context, Liviu Balan, Head of Country at AUMOVIO in Romania, believes that the country must begin with a stronger national strategy built around measurable objectives and supported by projects that directly contribute to those goals. Equally important, he argues, is ensuring consistent implementation and monitoring of milestones while reinforcing meritocracy and focusing public resources on initiatives that genuinely drive economic progress.

At the same time, maintaining Romania’s attractiveness for investors requires a stable and predictable fiscal framework that allows companies to plan multi-year strategies with confidence. In this interview for The Diplomat-Bucharest, Liviu Balan also reflects on the role of workforce transformation in a fast-changing industry, highlighting how empowering employees to take ownership, propose innovations, and develop entrepreneurial thinking can become a decisive driver of competitiveness for both companies and the broader economy.

From your perspective, how attractive is Romania today compared to other CEE markets when you allocate capital and investments?

Romania remains a highly attractive destination in the CEE region when we look at capital allocation and long‑term investments. The country benefits from several strategic advantages — from its geographical position to a well‑trained workforce and a cost structure that remains competitive in the region. These elements give Romania the potential to become a strategic growth hub for the next‑generation automotive industry in Europe and even beyond.

From an investment perspective, Romania performs well in the development and production of automotive systems and components. However, there is still significant potential to attract major investments from vehicle manufacturers and from semiconductor suppliers and other electronics producers.

One of the key levers that can accelerate Romania’s attractiveness is the strengthening of Public‑Private Partnerships. These partnerships are essential not only for the automotive sector but for Romania’s broader economic progress.

AUMOVIO Romania brings strong expertise in consulting and applying for IPCEI projects, including the IPCEI for Microelectronics and Communication Technologies. Based on this experience, it is clear that Romania can maximize its benefits from European initiatives by strengthening its national strategies and ensuring long‑term sustainable development. Among the current project proposals, the one focused on AI‑based infrastructure and services is an area where Romania has strong potential.

When evaluating investment attractiveness, we also look at the country’s commitment to skills development and the adoption of cutting‑edge technologies. At AUMOVIO Romania, we have extensive capabilities in development, production, testing, prototyping, and industrialization, many of which extend beyond the automotive sector. We also invest heavily in equipping engineers with the software competencies required by the industry. In partnership with universities, AUMOVIO Romania runs courses and laboratories that prepare students for automotive careers even before graduation — a critical factor for long‑term competitiveness.

How do you evaluate Romania in terms of cost competitiveness versus productivity and value creation?

Overall, Romania remains a competitive market in the CEE region, and its potential can be fully unlocked through continued investment in infrastructure, technology, strong Public‑Private Partnerships, and the continuous development of specialized talent. These elements are essential for keeping pace in an increasingly competitive global landscape.

To ensure competitiveness in Romania, we must be agile and fast in attracting and integrating into the Romanian economy the business opportunities currently emerging in the European market.

What are the top three factors that most influence your investment decisions in Romania: regulation, infrastructure, talent, taxation, or market size?

Romania’s investment attractiveness, from our perspective, is shaped first and foremost by the predictability of regulations, the reliability and commitment of the authoritues, and a sufficiently strong state-of-the-art talent pool with continuously updated competences and skills.

How could public authorities better support large investors and strategic industries?

To support the investment plans of the companies in Romania, the existence of a predictable and stable fiscal framework is a must. A coherent tax code, which would remain unchanged for a longer period, would facilitate planning and compliance with multi-annual business strategies.

At the same time, an open and constructive dialogue with the tax authorities, and a balanced approach towards taxpayers, including multinational companies, could contribute to a more friendly and attractive tax climate for investments.

In addition, it would be useful to clarify and consistently apply existing tax incentives, so that they are not subsequently challenged, as sometimes happens. We remain open to contributing, together with other interested parties, to a consultation process that would lead to the improvement of the legislative framework and the consolidation of an even stronger partnership between the business environment and the authorities.

What should Romania change in education or workforce policies to better match business realities?

Romania has the opportunity to strengthen its position as a regional technology hub, and our experience at AUMOVIO shows that this potential is real. We operate in Timișoara, Sibiu, Iași and Brașov – cities that have evolved strongly in the automotive and IT&C sectors. This was and remains possible only fulled by our close collaboration with our strategic partners — the universities, the authorities, our business partners, our employees, and the community we are part of. Together, we advance technology in and from Romania and drive the future.

The focus should be on enabling a more industry-aligned ecosystem, be it education, workforce policies, fundings, business or innovation. For over 25 years, AUMOVIO locations in Romania are working closely with universities, high schools to continuously adapt the educational offer to market realities. This includes contributing to academic curricula, partnering in dual-education programs, offering mentorship and courses, equipping laboratories, supporting scholarships and internships, and participating in research and development programs. With this, we improve workforce readiness, reduce the gap between education and employment, and foster innovation.

Speaking about innovation, Romania needs to strengthen its national strategies for long‑term sustainable development so that it can access and fully capitalize on all available funding opportunities. And, as large companies become vectors of internationalization and productivity for SMEs and the academic environment, the funding programs should be aligned to their needs. Partnerships and policies that encourage such innovation ecosystems will help Romania remain competitive in the long term.

In addition, workforce policies should foster both technical and mindset‑driven skills. At AUMOVIO, we encourage our approximately 13,000 colleagues – of which more than half are engineers and IT specialists working in R&D –  to take ownership of their careers, express ideas openly, propose innovations, develop entrepreneurial thinking and focus on value‑creating activities. This cultural shift is essential for competitiveness in a fast‑changing industry.

Overall, Romania should continue supporting companies, that drive technological advancement. At AUMOVIO Romania, our four R&D centers (in Brașov, Iași, Sibiu, and Timisoara) and two production units (Sibiu and Timisoara) offers a broad portfolio of solutions, including sensors, displays, braking and comfort systems, supported by extensive expertise in architectural platforms and advanced driver assistance systems for connected and autonomous mobility.

How confident are you about Romania’s economic outlook for 2026–2030?

The automotive world is transforming: technologically, economically and disruptively. With new stakeholders, dynamic markets and the changing of value chains, a new business approach is an absolute must. At AUMOVIO, we are making the most of our long-standing expertise to embrace new mobility solutions. Our unique portfolio, smart value-creation strategy, local presence and global reach enable us to offer innovation and expertise, momentum and reliability, foresight and partnership. We are the Adaptive Powerhouse for Future Mobility, making it safe, exciting, connected, and autonomous.

Attracting EU funds, taking new business and industry opportunities, facilitating a more predictable and transparent decision-making landscape and policies would lead to a leaner development of the Romania’s economic outlook and competitiveness power in the next years.

Where do you see the biggest growth opportunities during this period?

The most important opportunities are aligned with global transformation trends, which also set the tone for the automotive industry. To stay in line with the market and its expectations, we need to be a few steps ahead, be ready for what comes next, and deliver as quickly as possible, with the best possible cost and quality. Flexibility and the ability to adapt to immediate changes are essential to remain competitive.

The mobility of the future, as we define and prepare it at AUMOVIO, is safe, exciting, connected, and autonomous. We are ready to Lead. Transform. Deliver.

What investment priorities will define your company’s roadmap in Romania over the next 3–5 years?

Depending on future projects and the evolution of the automotive industry, the company will continue its investments in Romania.

What should Romania’s economic strategy prioritize to stay competitive in the next decade?

To accelerate the pace of economic growth, the investment climate in Romania should be improved through a series of strategic measures, such as: reducing the tax burden related to labor costs, allowing investors to dedicate their own resources mainly to business development and less for relationship management with tax authorities, digitalizing administrative and tax processes, launching and promoting public-private partnerships, simplifying granting and state aid procedures, developing a national economic and entrepreneurial education program for contributing to the formation of a solid economic culture, finalizing partnership projects on time for best and sustainable economic effects, etc.

Which three reforms would have the greatest positive impact on business confidence?

In general, Romania’s business confidence would benefit most from reforms such as the administrative reorganization of the territory, a predictable fiscal environment that is independent of the political landscape, and adapting the structure and organization of state institutions to the real needs of the country.

What industries could realistically become Romania’s strategic champions by 2030?

Industry and economic environments are transforming.  As mentioned previously, attracting EU funds, taking new business and industry opportunities, facilitating a more predictable and transparent decision-making landscape and policies will eventually lead to a leaner development of the Romania’s economic outlook and competitiveness power in the next years.

If you were advising policymakers tomorrow, what one message would you deliver?

Romania needs to start by defining a stronger national strategy, followed by projects that directly support measurable country goals, and to ensure timely and accountable implementation and monitoring of the committed milestones. It is equally important to avoid diverting resources toward non‑essential, and to reinforce meritocracy in Romania’s culture.