Foreign investors ask Romania for fiscal consolidation and a euro adoption plan

Seven investor groups meet the government

On Wednesday, 4 November, Prime Minister Luca Niculescu met representatives of foreign investors at Palatul Victoria in Bucharest, together with several ministers. Seven organisations took part: AHK (the German-Romanian Chamber of Commerce and Industry), AmCham, BRCC (the British Chamber of Commerce in Romania), CCIFER (the French chamber), the Foreign Investors Council (FIC), CCIpR (the Italian chamber) and NRCC (the Dutch chamber). The government statement said the main aim of the Executive is to relaunch the economy, and Niculescu thanked investors for their role in Romania's development. Among the ministers present were Finance Minister Alexandru Nazare, Energy Minister Dumitru Chisăliță and Oleg Ungureanu, head of the Prime Minister's Chancellery.

What the investors asked for

The joint communiqué placed fiscal consolidation at the top of the business priorities and called it a "central element" of Romania's competitiveness. The organisations said consolidation must go together with a smaller budget deficit, lower inflation and structural reforms. They asked for the minimum turnover tax (IMCA) to be eliminated from 1 January 2027 and for state aid schemes in the economic relaunch package to start operating. On sector measures they proposed energy at competitive prices for industry, faster digitalisation of public services and a revised VAT collection mechanism to fight tax evasion. For the next six months they want a coherent path of structural reforms aligned with Romania's OECD accession, plus a national project on adopting the euro backed by the government, the central bank (BNR) and other relevant actors. The communiqué does not propose a target date for the euro.

The government's answer on taxes

Officials from chambers of commerce in six countries, namely the Netherlands, Germany, France, Italy, the United Kingdom and the United States, held talks with the government on Wednesday afternoon. Government representatives told them the programme includes no tax increases, keeps the single tax rate and removes IMCA, a step the business community had also requested. Niculescu told the visitors that Romania is a safe destination for their money. He pointed to a placement of 4.5 billion euros on international financial markets as a sign of improved external credibility, saying:

“The good signal of these days, when Romania raised 4.5 billion euros on international markets, confirms that overcoming the political deadlock in Bucharest has boosted external credibility.”

Unions, pensions and the EU budget

On Thursday, 5 November, at the opening of the cabinet sitting, Niculescu said talks held that week with trade union confederations covered pension indexation and reducing bureaucracy. He said the government had confirmed its support for a first set of concrete measures:

“We confirmed support for a first set of concrete measures that respond to the needs of society.”

Unions will be part of the consultation that shapes Romania's national position on the next European funding cycle, which is still being prepared. The sources do not record a decision on pension indexation, which was one of the topics raised.

Energy and the next steps

At the same sitting, Niculescu said he had asked Energy Minister Dumitru Chisăliță to prepare a report, to be drawn up with the other ministries concerned, leading to a package of measures that would make better use of Romania's energy mix. He called energy a central concern for investors:

“Energy, as you know, is one of the main topics of interest for investors.”

Thursday's agenda also included measures on security and on financing for SMEs, start-ups, micro-enterprises and farmers. Niculescu said investors had voiced support for Romania's OECD accession after an optimistic message from Secretary-General Mathias Cormann earlier in the same week. He asked the head of the Chancellery to prepare quarterly meetings with members of the chambers of commerce.