Romania’s foreign direct investment (FDI) regime is entering a more pragmatic phase, as recent legislative changes aim to streamline procedures while maintaining safeguards for strategic sectors. According to an interview with CIJ EUROPE, Silviu Stratulat, Managing Partner at Stratulat Albulescu Attorneys at Law, said the evolution of the framework reflects both European alignment and a growing effort to improve the country’s investment appeal.

Romania introduced its FDI screening mechanism in 2022, following a broader European Union initiative to protect critical assets and sensitive industries. While the framework was not among the first in the region, it aligned the country with established regimes in major EU economies and reflected a shift toward greater scrutiny of cross-border capital flows.

In its initial form, however, the legislation created a degree of uncertainty. Broad definitions of sensitive sectors and limited guidance made it difficult for investors to assess whether transactions required notification. In practice, authorities encouraged a precautionary approach, effectively expanding the scope of filings and adding complexity to deal execution.

From a transactional perspective, the introduction of FDI screening extended timelines and increased costs, particularly for mid-sized investments. Despite this, Stratulat notes that it did not deter foreign capital. Instead, investors adapted by incorporating FDI approval into their transaction planning, treating it as a standard step rather than an obstacle.

One of the more effective aspects of the regime has been the ability to initiate filings at an early stage, based on preliminary agreements rather than fully executed contracts. This has allowed investors to run the screening process in parallel with due diligence and negotiations, helping to mitigate delays. In practice, approvals have generally been obtained within a timeframe of around three months.

Recent amendments adopted in March 2026 indicate a shift toward a more investor-oriented approach. The notification threshold has been increased from €2 million to €5 million, significantly reducing the number of transactions subject to review. At the same time, procedural timelines have been shortened and administrative steps simplified, while fees have been reduced, easing the cost burden on investors.

Additional measures include exemptions for certain intra-group reorganisations involving EU and OECD investors, as well as a more streamlined decision-making process. While the effectiveness of these changes will depend on implementation, they signal a clear intention to improve efficiency and predictability.

Stratulat views these developments as part of a broader effort by Romania to prepare for a new investment cycle. In the context of shifting geopolitical dynamics and the prospect of post-war reconstruction in the region, the country is positioning itself to capture increased capital flows. Sectors such as manufacturing, logistics and infrastructure are expected to benefit, alongside a broader reorientation of global investment toward Europe.

Despite these improvements, regulatory predictability remains a key concern. Romania benefits from the stability provided by EU membership, including harmonised frameworks in areas such as competition law, data protection and corporate regulation. Certain sectors, including IT, construction and agriculture, have also maintained relatively consistent policy support.

At the same time, investors continue to face challenges linked to legislative volatility. Frequent use of emergency ordinances, particularly in tax and labour law, creates uncertainty and can complicate long-term planning. Changes are sometimes introduced with limited consultation or short implementation timelines, increasing execution risk.

Administrative consistency also remains uneven. Differences in capacity across public authorities, combined with periodic leadership changes, can slow decision-making and require investors to re-engage repeatedly with institutions.

In a regional context, Romania retains strong fundamentals, including a large domestic market, competitive labour costs and access to EU funding. Growth sectors such as IT, business services, agriculture and energy continue to attract interest, supported by a well-developed academic base.

However, competition from other Central and Eastern European markets is intensifying. While infrastructure development is accelerating and administrative processes are gradually improving through digitalisation, investor perception continues to play a role. Although progress has been made in strengthening the rule of law, historical concerns still influence how the market is viewed externally.

Overall, Romania’s FDI framework is moving toward greater alignment with international standards. The latest reforms suggest a shift from control toward facilitation, as authorities seek to balance security considerations with the need to attract sustained foreign investment.

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