Costescu (InvestRomania): Why is Romania more attractive compared to other CEE countries

The state secretary of InvestRomania, Manuel Costescu, tells Business Review that the country is more attractive for companies willing to invest due to its geo-strategic location, but also because of its skilled workforce and growing economy.

“Romania has been able to leverage its geo-strategic location, as positioned at the cross-roads of the traditional commercial and energy routes between the EU-28, Asia and the Balkans, holding 1/3 of the Danube, as well as the biggest and deepest port at the Black Sea.
Projecting itself more effectively on the world investment map throughout economic stability – thus predictability and maintaining its position as one of the most investment-conducive countries in the pool represents a mandatory achievement for Romania.

Therefore, it has maintained one of the lowest flat tax in the region and EU28 (16 percent), issued generous state aid schemes amounting to EUR 1.2 billion for supporting investment and job creation, introduced the tax exemption on reinvested profit and reduced by 5 percent the employers’ social security contributions. Furthermore, the new Fiscal Code brings a much-awaited fiscal relaxation, with VAT dropping to 20 percent in 2016 and 19 percent in 2017, as a new powerful tool in enhancing our competitive advantages.

Figures speak for themselves as in Q1 2016, Romania enjoyed a sustainable economic growth of 4.2 percent placing us on the 1st position in EU28. Furthermore, a dollar invested in Romania’s GDP in 2000 would yield USD 5 in 2016. This is a 5x multiplier, much more rapidly than the EU average,” said Costescu.

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The government official has also mentioned some of key areas in which Romania is more competitive compared to its CEE peers.

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He said that women’s participation in engineering and sciences are well above the EU average, while the workforce is not just qualified, but also eager to develop, learn and work hard.

“English aside, about 30 percent of university graduates speak French, we have several high schools that teach their entire curriculum in German; Italian and Spanish are increasingly widespread due to the language affinity. English is not as widespread among some investor groups and experience teaches us that developing working relationships and building trust with Italian, Spanish, German, Austrian, etc. investors in their own language is much easier and gives you an excellent advantage,” said Costescu.

Business Review will publish an exclusive interview with the government official in the print magazine, which comes out this week.

Ovidiu Posirca