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

Romania’s economic competitiveness is entering a new phase. In the past, the country was widely perceived as an attractive market thanks to its well-qualified workforce, relatively low labour costs, and competitive electricity prices. Today, however, many of these advantages have gradually diminished, prompting the need for a renewed approach to strengthening Romania’s economic appeal and its capacity to attract foreign capital while also retaining investors already active in the market.

At the same time, Romania continues to benefit from important structural advantages, including strong prospects for energy independence, a large domestic market, and a skilled labour force. Looking ahead, the country’s economic outlook will depend on key milestones such as consolidating the state budget, fully absorbing EU funds, and ensuring continued infrastructure development once European financing becomes less available.

In an interview with The Diplomat-Bucharest, Ondrej Safar, CEO Distributie Energie Oltenia and Country Manager Evryo Group, shares his perspective on Romania’s competitiveness, the importance of infrastructure investments, and the conditions needed for the country to remain a regional economic leader in the years ahead. 

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

Romania remains an attractive market for investments. The aspects to be considered by any potential investor are mainly linked to the economical dynamics of the state, which may mean higher costs of capital, expected changes in state spendings, tax system, central and local authorities restructuring. These dynamics may prove challenging  for newcomers, yet long term investors understand the necessity of these changes for the long term healthy economic development.

How do you assess Romania in terms of cost competitiveness relative to productivity and value creation?

In the past, Romania was perceived as a competitive market due to several clear advantages, such as a well-qualified workforce, relatively lower labour costs, and competitive electricity prices. Today, however, many of these advantages have significantly diminished. This shift should prompt a reconsideration of how Romania builds its economic competitiveness, by developing solid mechanisms to attract foreign capital while also retaining and encouraging investors already present in the market.

What are the top three factors that influence your investment decisions in Romania?

We, Distributie Energie Oltenia (DEO), are operating electricity infrastructure in part of Romania. We very well know that every RON invested is translated into the tariffs paid by our customers through the distribution tariff. In simple words, we are investing our customers’ money. This is why our investment decision factors in the needs for the grid due to its age, the technical development, the energy transition needs and the affordability of customers. And that investment decision is not done isolated within our company, but in dialog with the local authorities, the energy regulator and the government.

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

Support for investors and strategic industries means a stable and predictable legislative framework that allows investments to be planned over the medium and long term. At the same time, legislation supports the  technological developments and economic changes when it is coherent and sufficiently flexible to adapt. .

Equally important is maintaining constant dialogue between authorities and the business community, as well as improving cross-sector collaboration, given the interdependencies between different economic sectors. Romania is perfectly able to demonstrate that it can provide competitive conditions for attracting investments compared to other European markets and that it understands the risks investors take when developing long-term projects.

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

We believe in a continuous dialogue between the policy makers and  the business community in order to identify both the current skills requirements and the future trends of the labour market. Based on this dialogue, education policies and training programs can be developed to better match the needs of the economy, allowing the education system to contribute more effectively to the development of the human capital that companies require. And one of the examples for that is Ucenic Electrician, a professional education program we are running for the past 10 years together with the School Inspectorates across 7 counties, delivering the new generation of electricians.

How confident are you in Romania’s economic outlook for the period 2026–2030

In my view, the country’s outlook for the next 5 years depends on certain key milestones: the consolidation of the state budget, the full absorption of EU funds and creating conditions for further infrastructure development once EU funding is no longer an option. At the same time, Romania has a great position from the energy independence perspective, is a large market, owns qualified labour force, which are all necessary ingredients to continue to be economic leader of the region. If the above milestones are properly checked, Romania’s economic outlook can only be a positive one.

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

Major growth opportunities lie in investments in electricity transmission and distribution infrastructure, in the efficient use of European funds, and in attracting foreign investments for large-scale infrastructure projects.

These directions can generate significant economic impact, provided they are supported by a clear and predictable legislative framework.

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

To remain competitive, Romania must place real priority on infrastructure investments, which represent a key driver of economic development. The country’s ability to attract capital and major investors largely depends on the existence of a stable business environment, coherent economic policies, and competitive conditions for conducting economic activities compared to other European markets.

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

Business confidence could be significantly strengthened through public administration reform, economic and fiscal policies focused on attracting investments, and the stimulation of major projects in areas such as infrastructure, industry, and the IT sector.

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

Energy, the automotive industry, and the IT sector have the potential to become strategic pillars of the Romanian economy by 2030, given the existing industrial base, the available skill levels, and the opportunities for technological development.

What investment plans do you have for this year?

In the coming period, Distribuție Oltenia plans an extensive investment program aiming to improve the quality of our service to the end consumer. Over the next three years, the company has 19 projects underway that are co-financed through non-reimbursable funds under the Sustainable Development Programme, which will be implemented gradually.

At the same time, our goal is to prepare the network for the new realities of the energy system, including the integration of renewable energy sources and the connection of new consumers. And in order to do that, larger funds are needed, considering the age of the infrastructure and the requirements arising from the customers’ onboarding into the energy transition, as well as from the country’s commitments. On this, us and the authorities are trying to find a common ground to provide a proper framework for larger funds to be inserted in the investment plans.

If you were to advise decision-makers tomorrow, what would be the main message you would convey?

Several strategic documents (Draghi report, Letta report), expand upon the successful energy transition as a key pillar of the EU competitiveness. Fundamentally, this means timely and proper investments into the energy infrastructure. We see it already happening across Europe and Romania still has a chance to keep the pace and align its public policies to stimulate these necessary investments. Our dialogue with the key stakeholders on this topic remains vivid.