As a community of leading international investors, the Foreign Investors Council (FIC) emphasizes that Romania’s economic progress depends fundamentally on a stable and predictable governance framework.

“The on-going political crisis comes at a time when growth and consumption are already impacted by the fiscal consolidation process, while fiscal and external trade deficits remain elevated, thus increasing the economy’s sensitivity to uncertainty,” a FIC statement reads.

Against an already fragile international economic backdrop marked by geopolitical tensions, FIC underlines that stability, predictability, and institutional dialogue to further stabilize the state budget, reduce bureaucratization and additional reforms are critical to preserving investor confidence in Romania.

“While FIC is a non-partisan business organization, our priority is to safeguard the investment climate. In periods of political transition and heightened public discourse, the priority of the business community is the preservation of a functional business environment that allows for long-term planning and capital allocation.

Romania has repeatedly demonstrated its potential to attract and retain investment when stability, predictability, and cooperation are in place. Addressing current challenges through responsible governance and open dialogue is key to safeguarding economic resilience and supporting sustainable development in the period ahead,” FIC states.

To ensure Romania remains competitive, the FIC highlights three critical pillars:

Institutional Predictability: Policy stability is essential. Frequent changes in the political landscape often translate into abrupt shifts in fiscal or legislative policy. Investors require a stable approach to maintain trust in the local market particularly in a context where regional risk perceptions remain sensitive and financing conditions are already tight. According to the recent FIC Business Sentiment Index Survey, 53% of companies report a deterioration in legislative predictability, while 68% identify it as a key concern. In addition, 46% of investors perceive Romania as less attractive than regional peers, underlining the direct link between predictability and competitiveness. Equally, FIC analyses show that, in the past, foreign direct investment inflows have shown sensitivity to fiscal and policy uncertainty, for example in the first half of 2023 FDI dropped by 13%.

Fiscal Responsibility: A credible fiscal consolidation path is critical. Sound budgetary management and is essential for preserving Romania’s sovereign credit ratings and ensuring affordable access to capital for both the public and private sectors. Public debt has increased to more than 60% of GDP, and government bond yields are among the highest in Europe, reflecting both global conditions and domestic vulnerabilities. Maintaining confidence among rating agencies is therefore essential. Fiscal consolidation is not enough, the promised reform of reducing state expenditures should continue.

Strategic Momentum: It is vital that administrative focus remains on accelerating the absorption of EU funds, including through the PNRR and SAFE programs, and the ongoing OECD accession process. These are non-partisan milestones that represent the backbone of Romania’s future development.