Romania: Germany’s Investment Gateway

15 October 2023

As published in 

A partnership for growth

Bilateral trade between Germany and Romania has reached historic highs, fostering deeper collaboration and expanding opportunities in investment, digitalisation, and green energy under Prime Minister Ion-Marcel Ciolacu’s administration.

Romania’s ties with Germany run deep. From historical ethnic links to modern economic synergies, the countries enjoy strong bilateral relations against a backdrop of shared policy, security and diplomatic viewpoints. “We align on numerous fronts with Berlin, standing shoulder to shoulder,” says Adriana-Loreta Stănescu, Ambassador at The Embassy of Romania in Berlin. “Whether it is European enlargement, support for Ukraine and the Republic of Moldova – both politically and in practical terms – or commitments to Euro Atlantic security and upholding international norms and rules-based order, these are shared priorities for Romania and Germany.”

As the nation’s largest trading partner, Germany plays an important role in Romania’s drive for long-term financial sustainability. Boosted by significant funding from the EU, two national resilience and recovery plans are anchored in infrastructure development, deficit reduction, tax reform and energy transition – measures designed, in part, to encourage foreign investment. “Romania is attractive because of its good taxation system, favourable labour costs and investor-friendly environment,” explains Minister of Finance Marcel-Ioan Boloș. “I want us to become the favourite destination for German and European investors.”

How do you see the evolution of this longstanding partnership?

The stability of the German economy enhances the sustainability of all European economies. A significant advantage brought by German companies to Romania is the stimulation of local development and the establishment of dual education. I am particularly attentive to the development in Brasov, stimulated by major German companies like Continental and Daimler. Large-scale German investments not only elevate efficiency in the education sector but also introduce alternative development modalities. The ongoing German Romanian Economic Forum underscores the tight-knit relationship between our nations, as does our joint support for the Republic of Moldova. Presently, Romania and Germany are endeavouring to provide guarantees for companies aspiring to invest in the Republic of Moldova.

Germany stands as Romania’s principal economic and commercial partner.

Romania possesses numerous funds to support investments in green energy and is one of only seven European Union states with access to the Modernisation Fund. We aim to direct these funds towards major green energy investments, envisioning these projects as potential partnerships between the Romanian state and private companies.

This report was published in partnership with Die Welt