CORRESPONDENCE FROM MELBOURNE (AUSTRALIA) Romania: A potential investment hub in Central Europe

In a rapidly changing European economic landscape that demands adaptation to new global realities, Romania possesses all the attributes to become a major investment hub in Central and Eastern Europe. With its strategic position, access to European funds, and a growing economy, the country is well placed to increasingly attract the interest of foreign investors, particularly in key sectors such as infrastructure, transportation, green energy, digitalisation, and manufacturing.

Investments in infrastructure and transportation are emerging as national priorities. Indeed, the construction and modernisation of roads, railways, and ports are fundamental elements for improving connectivity with international markets and enhancing Romania's economic appeal.

The infrastructure projects already underway, largely financed by European funds, are essential for facilitating the transport of goods and improving labour mobility. Among the most important initiatives are the European transport corridors that connect Romania to the trans-European network, as well as the modernisation of the port of Constanţa, which is crucial for international trade. These projects will reduce transit times, lower logistical costs, and make Romania a strategic point for companies looking to invest in production, distribution, and export.

I believe that one of the most dynamic areas for development must be the energy sector. Romania benefits from a diverse energy mix, and the transition toward renewable sources is accelerating. In the context of this transition and the concerns related to energy security and reducing energy costs, foreign investors will show increased interest in financing projects to modernize energy infrastructure. Investments in wind farms, solar parks, and efficient energy storage technologies will contribute to greater energy independence by reducing fossil fuel imports, as well as lowering carbon emissions in line with European and international environmental targets.

Green hydrogen and biofuel projects are also attracting the attention of foreign investors, with the potential to transform Romania into an important supplier in the European clean energy market. The implementation of smart grids and energy efficiency solutions is another strategic direction that attracts foreign capital and fostering regional economic growth.

Romania has already become an important player in the IT&C and high-tech sectors, and accelerating digitalisation must be an essential objective to maintain this trend. Therefore, government support programs for innovation and research & development (R&D) have to be implemented to transform the country into a centre of technological excellence.

Investment opportunities in artificial intelligence, automation, robotics, and cybersecurity are on the rise, and foreign companies and multinationals active in these areas view Romania as an attractive destination for development. Moreover, the integration of these emerging technologies into the processing and manufacturing industries can boost their global competitiveness.

It is imperative to fully utilise funding available from the European Union, with these funds directed toward modernising infrastructure and facilitating the energy transition. Achieving this objective will not only reduce the financing costs of strategic projects, but will also enable the transfer of expertise and contribute to stabilising the economy, thereby reducing the pressure on public debt.

Collaboration with international financial institutions, such as the World Bank and the European Bank for Reconstruction and Development, can open new opportunities for attracting private capital. Additionally, the efficient and transparent use of capital resources can help improve the country's credit rating, thus reducing financing costs for future projects.

Recent discussions I have had with a significant number of international accredited investors and investment funds have highlighted several essential measures for attracting a steady flow of private capital to Romania. A key element is the creation of special economic zones, such as industrial parks and innovation hubs, which offer tax incentives, simplified administrative regimes, and modern infrastructure for companies wishing to expand their operations in Romania.

In my opinion, improving legislation for public-private partnerships (PPP) will allow for the implementation of large-scale projects in infrastructure, energy, and industry, attracting private capital and reducing pressure on the public budget. Strategic financiers are interested in stable markets and secure opportunities, as well as collaborative models that offer long-term predictability and profitability.

At a time when global investors are seeking bankable and sustainable projects, our country offers a favourable environment for such initiatives. Through an integrated strategy focused on infrastructure, energy, digitalisation, and public-private partnerships, Romania can secure a prosperous and stable economic future.

The success of this transformation will depend on the authorities' ability to implement ambitious structural reforms and create a competitive business environment that attracts capital, technologies, and cutting-edge know-how. In this way, Romania will not only position itself as a regional pillar of development but will also contribute to global economic progress, solidifying its role on the map of international investments.