US State Department report cites judicial delays and corruption risks in Romania

Strategic market appeal and legal access

The US Department of State released its 2026 Investment Climate Statement for Romania on 30 September 2026, assessing commercial conditions as part of an annual series covering more than 170 economies. The report characterizes Romania as maintaining an open investment framework and actively pursuing foreign direct investment. American businesses benefit from access to a consumer market of approximately 19 million people, supported by a relatively well-educated workforce and competitive wage levels. Foreign investors enjoy national treatment, direct access to the domestic market, and eligibility to take part in privatizations with no caps on foreign equity holdings. In 2023, Bucharest established the Romanian Agency for Investment and Foreign Trade, known as ARICE, to serve as a primary liaison for international companies. Foreign businesses can establish wholly owned subsidiaries and convert or repatriate 100% of their post-tax profits.

Its strategic position, EU and NATO membership, educated workforce, competitive wages, and natural resources make it attractive for companies looking to access markets in Europe, the Caucasus, and the Near East.

Judicial bottlenecks and anti-corruption setbacks

Contract enforcement and property rights protection remain constrained by persistent structural deficiencies across Romanian courts. Foreign enterprises frequently cite a lack of commercial expertise among judges, who often have limited experience with market economy mechanics, international transactions, or emerging technologies. Litigation tends to be lengthy, expensive, and unpredictable, complicating debt recovery and ruling enforcement. Anti-corruption efforts have faced institutional and legal obstacles following several high-profile legal changes. In 2018, jurisdiction over judicial corruption cases was transferred from the National Anticorruption Directorate (DNA) to the General Prosecutor's Office. Subsequently, Constitutional Court Decision 368 in 2022 shortened criminal statute of limitations terms, leading directly to the dismissal or cancellation of 9,635 indictments and convictions between 2022 and 2025. A 2025 High Court of Cassation and Justice ruling also barred internal affairs police officers from assisting in corruption investigations outside their ministry, prompting prosecutors to discard previously collected evidence.

Institutional delays and regulatory unpredictability

The report notes that administrative capacity and transparency deficits continue to hinder routine business operations across several sectors. Foreign enterprises face substantial delays when obtaining mandatory permits, including environmental clearances and operational licenses. Large government-backed initiatives, particularly public-private partnerships, frequently encounter delays caused by insufficient inter-ministerial coordination or competing political and commercial interests. Furthermore, public procurement tenders often lack transparency, complicating bidding processes for foreign entrants. Legislative modifications are frequently introduced without comprehensive impact studies, creating sudden compliance shifts for active businesses.

The lack of legislative predictability, as well as reduced institutional capacity, continues to affect the investment climate.

Sectoral exposure and fiscal pressures

The assessment outlines favorable expansion opportunities for American firms in information technology, automotive manufacturing, telecommunications, defense, healthcare, and banking. Additional opportunities exist across food services, consumer products, insurance, and general manufacturing. However, macroeconomic vulnerabilities persist, centered on twin budget and current account deficits alongside elevated inflation rates. The energy sector is noted as particularly vulnerable to frequent, unforeseen regulatory revisions. US authorities recommend that prospective investors conduct comprehensive due diligence assessments before committing capital to Romanian operations.