COMMISSION STAFF WORKING DOCUMENT 2026 Country Report - Romania Accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic, social, employment, structural and budgetary policies of Romania
Date: 2026-06-03
Institutions: European Commission, Reform and Investment Task Force
Subjects: Romania, budget policy, economic policy, economic recovery, economic reform, employment policy, energy policy, labour market, social policy, stability pact

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 3.6.2026  SWD(2026) 223 final  COMMISSION STAFF WORKING DOCUMENT 2026 Country Report - Romania Accompanying the document Recommendation for a COUNCIL RECOMMENDATION  on the economic, social, employment, structural and budgetary policies of Romania {COM(2026) 223 final}  
 
 
 
 
 
 
 
 
 
 
 
 
ECONOMIC DEVELOPMENTS AND KEY POLICY 
CHALLENGES 

value  added  tax  (VAT)  rates  and  excises,  and 
the  end  of  the  cap  on  electricity  prices.  Core 
inflation increased at a slower pace than HICP 
inflation, also helped by slowing wage growth. 
The  current  account  deficit  started  receding 
but  remained  at  a  high  level  of  around  7.9% 
of GDP in 2025. Its financing sources became 
more  robust,  with  almost  half  of  financing 
needs  being  covered  by  non-debt  financial 
inflows, including EU grants. 

Graph 1.1: Inflation – real GDP growth and 
contributions 

Source: European Commission 

rate 

Labour  demand  has  eased  due  to  weak 
economic  activity  leading  to  lower  hiring 
and  employment  rates.  The  employment 
rate  declined  from  69.5%  in  2024  to  69%  in 
2025.  The  unemployment 
increased 
slightly above 6% in 2025, broadly in line with 
labour  demand,  high 
EU  peers.  Weaker 
inflation  and  fiscal  consolidation  have  slowed 
wage  dynamics  in  Romania.  In  particular,  the 
freeze  has  helped 
public  sector  wage 
moderate  nominal  wage  growth,  while  still-
elevated inflation has weighed on real wages, 
including in the private sector. 

Real  GDP  growth  is  expected  to  broadly 
stagnate at 0.1% in 2026 and to pick up 

Subdued economic growth amid 
economic rebalancing and sizeable 
fiscal consolidation measures 

and 

conditions 

Romania  has achieved rapid  convergence 
to EU income and productivity levels, but 
economic  growth  has  slowed  markedly 
recently. Since its EU accession, Romania has 
increased its GDP per capita from 44% of the 
EU  average  in  2007  to  about  78%  in  2024. 
However,  more  recently,  the  strong  post-
pandemic  economic  recovery,  helped  by  loose 
government 
monetary 
spending,  has  resulted  in  a  rapid  increase  of 
the  fiscal  and  current  account  deficits.  The 
imbalances 
increase 
in  macro-economic 
investor 
in 
triggered  a  pronounced  drop 
sentiment  and  forced  the  authorities  to 
implement  in  summer  2025  a  significant 
package  of  fiscal  consolidation  measures, 
amounting  to  around  3.7%  of  GDP.  This 
reduced  real  GDP  growth  to  less  than  1%  in 
2025,  a  level  notably  lower  than  Romania’s 
potential growth rate. With fiscal consolidation 
policies  still  in  place,  the  growth  outlook  for 
2026  remains  subdued,  close  to  stagnation 
(Graph  1.1).  On  the  positive  side,  recent 
measures  have  helped  start  a  necessary 
macroeconomic  rebalancing:  the  government 
deficit  is  likely  to  decline  to  around  6.2%  of 
GDP 
imbalances  are 
receding, and inflation is expected to gradually 
converge  to  the  National  Bank  of  Romania 
(NBR)  target.  This  rebalancing  should, 
if 
sustained  over  time,  create  the  conditions  for 
a  continuation  of  real  income  convergence  to 
the EU average in the medium term.   

in  2026,  external 

Harmonised  index  of  consumer  prices 
(HICP)  inflation  increased  to  a  high  of 
8.6%  at the  end  of  2025.  This  was  mainly 
due to policy measures such as the increase in 

2 

-6-4-20246810121418192021222324252627InvestmentInventoriesPriv. consumptionGov. consumptionNet exportsReal GDP (y-o-y%)Inflationforecastpps.  
 
  
ambitious 

of  2027. 

fiscal 
The 
as 
consolidation  measures  and  still  elevated 
inflation are expected to lower real disposable 
income and consumer spending in 2026. Public 
spending  is  also  forecast  to  decline.  However, 
the restoration of market confidence following 
the  adoption  of 
the  fiscal  consolidation 
packages is projected to support a recovery in 
private  investment.  Total  investment  should 
also  benefit  from  the  completion  of  large 
projects  funded  under  the  recovery  and 
resilience  plan  (RRP).  This  is  expected  to 
support a pick-up in real GDP growth to 2.3% 
in  2027.  Inflation  is  forecast  to  decline  as  of 
the second half of 2026, which is expected to 
support  consumer  spending  and  investment. 
Nevertheless,  the  conflict  in  the  Middle  East 
and  its  impact  on  energy  prices  have  slowed 
the disinflation process. Growth, however, may 
fall short of current projections, given elevated 
rising  domestic 
global  geopolitical 
political instability and uncertainty surrounding 
the 
and 
consolidation 
implementation of RRP investments. 

fiscal 

path, 

risks, 

Sizeable  fiscal  consolidation  measures 
have  helped  contain  the  budget  deficit. 
After  reaching  9.3%  of  GDP  in  2024,  the 
general government deficit fell to 7.9% of GDP 
in 2025 and is expected to reach 6.2% of GDP 
in 2026 and 5.8% in 2027. This was achieved 
large  consolidation  packages 
through  two 
adopted  in  the  second  half  of  2025  and 
stronger  spending  control.  Romania’s  deficit 
remains  high  and  government  debt,  which 
increased  to  59.3%  in  2025,  is  on  the  rise. 
Debt  is  expected  to  exceed  60%  of  GDP  in 
2026 and continue rising in 2027. 

The  quality  of  public  finances  remains  a 
central  issue.  Romania  has  reduced  the 
government  deficit  through  two  large  tax 
reform  packages.  On  the  expenditure  side,  it 
mainly relied on broad freezes in public wages 
and  pensions.  Further  progress  in  reducing 
fiscal imbalances will be needed in the coming 
years,  through  two  main  channels.  First, 
Romania needs to implement lasting structural 
improvements  in  revenue  collection.  Romania 
has the largest VAT and corporate income tax 
(CIT)  compliance  gaps  in the  EU  (around  30% 
and  44%,  respectively).  It  has  committed,  in 
the  context  of  the  RRP,  to  a  wide  range  of 

increase 

in  a  meaningful 

measures  that  should,  if  fully  implemented, 
result 
in  VAT 
collection  at  unchanged  VAT  rates  over  the 
coming  years.  Second,  Romania  needs  to 
improve  the  budget  process  to  reverse  the 
tendency  of  overspending  relative  to  budget 
plans. Some progress was made in 2025, and 
the  2026  budget  seems  to  rely  on  credible 
assumptions. Strict adherence to budget plans 
over  several  years  would  foster  predictability 
and potentially generate large benefits for the 
government’s financing costs.   

the 

about 

increased 

investment 

Public 
to  an 
exceptionally  high  level  in  2025,  raising 
questions 
quality, 
prioritisation, and post-RRP sustainability 
of  public  capital  expenditure. 
  Public 
investment  is  projected  to  rise  from  7.2%  of 
GDP  in  2025  to  8%  of  GDP  in  2026  in  cash 
terms. These levels are more than twice higher 
than  the  EU  average.  While  they  may  be 
justified  for  2026,  when  both  RRP  and 
cohesion spending will operate at close to full 
speed,  they  do  not  appear  sustainable  in  the 
medium  term.  In  2025,  the  authorities  took 
some  steps  to  contain  domestically  financed 
investment,  including  cancelling  or  postponing 
projects  and  tightening  the  rules  for  national 
the  broader  challenge 
programmes.  Yet, 
remains, 
regards  public 
investment  by  local  administrations.  In  the 
coming  years,  the  authorities’  capacity  to 
better  control  and  prioritise  public  investment 
will  be  a  key  factor  in  the  ability  to  correct 
fiscal imbalances. 

in  particular  as 

funding 

instruments 

competitiveness, 

EU 
provide 
considerable  resources  to  Romania.  They 
support investments and structural reforms to 
environmental 
increase 
sustainability,  skills,  social 
fairness  and 
security,  while  helping  to  address  challenges 
identified in the CSRs. Key instruments include 
the  Recovery  and  Resilience  Facility  (see  Box 
2)  and  Cohesion  policy  funds  (see  Box  3).  In 
addition, the Common Agricultural Policy (CAP) 
provides  Romania  with  an  EU  contribution  of 
EUR 15 billion under the CAP strategic plan for 
2023-2027(1),  while  EUR  162  million  are 

(1)  An overview of  Romania’s formally approved strategy 
to implement the EU’s common agricultural policy 

3 

 
 
 
allocated  under  the  Common  Fisheries  Policy 
(CFP).  A  further  EUR  467.9  million  are 
available  under  the  Asylum,  Migration  and 
Integration  Fund  (AMIF),  together  with  the 
Instrument 
Border  Management  and  Visa 
(BMVI)  and  the  Internal  Security  Fund  (ISF). 
Other 
support 
competitiveness 
instance 
through  open  calls  under  Horizon  Europe  and 
the Connecting Europe Facility. 

also 
in  Romania,  for 

programmes 

EU 

credit ratings and adverse changes in investor 
sentiment. 

Graph 1.2: Current account and structural 
government balance 

Macroeconomic challenges  

Romania continues to face vulnerabilities 
related  to 
large  fiscal  and  external 
deficits,  despite  some  improvement  in 
2025. The Commission undertook an in-depth 
review  of  the  Romanian  economy  as  part  of 
the (2). That review highlighted that in addition 
to large fiscal and external deficits, borrowing 
costs for the sovereign remained elevated, and 
Romania’s  sovereign  credit  rating  was  just  at 
investment  grade.  At  the  same  time,  it  noted 
that  inflation  remains  high,  while  unit  labour 
cost  growth  has  slowed  markedly  from  the 
very  high  rates  recorded  in  previous  years.  It 
also stressed that the bold fiscal consolidation 
packages adopted in 2025 were an important 
step  in  addressing  Romania’s  vulnerabilities, 
while  the  current  policy  stance  needs  to  be 
maintained. 

Romania’s  high  government  deficit  has 
been  a  key  driver  of  the  large  external 
deficits  and  borrowing  needs.  The  bold 
fiscal consolidation packages adopted in 2025 
was  a  first  and  important  step  in  addressing 
Romania’s  vulnerabilities,  but  the  current 
policy  stance  needs  to  be  maintained  (Graph 
1.2).  Without  pursuing  fiscal  consolidation  in 
line with the excessive deficit procedure (EDP) 
recommendations,  complemented  by  prudent 
income  policies  and  ambitious  structural 
reforms,  Romania  remains  exposed  to  weak 

nationally can be found at  
https://agriculture.ec.europa.eu/cap-my-country/cap-
strategic-plans/romania_en 

(2)  SWD(2026)  141 

final  and  European  Economy 

Institutional Paper 338, May 2026. 

Source: European Commission 

Climate  change  is  increasingly  exposing 
Romania  to  economic  and  fiscal  risks. 
Romania  is  highly  vulnerable  to  droughts  and 
floods,  with  climate-related  impacts  already 
affecting 
resources, 
agriculture,  water 
infrastructure,  energy  and  health,  while  the 
number of extreme flood events rose from 94 
in  2010  to  215  in  2022.  These  risks  are 
compounded  by  a  very  low  level  of  climate 
insurance  protection,  as  1%  of  weather  and 
climate-related 
in  Romania  are 
privately insured. This may increase contingent 
liabilities for the public sector (3). 

losses 

Defence  spending  is  set  to  rise  over  the 
medium-term  and  will  have  to  be 
embedded  in  a  fiscal  strategy  respecting 
fiscal  consolidation  needs  and  efficient 
public  spending.    Defence  expenditure  is 
projected  to  increase  from  1.5%  of  GDP  in 
2025  to  1.8%  of  GDP  in  2027,  supported  by 
loans  under  the  SAFE  programme.    Following 
the  Commission’s  positive  assessment  of 
Romania’s  national  defence  investment  plan, 
the  Council  adopted  a  decision  on  financial 
assistance  available  to  Romania  through  the 

(3)  European Environment Agency, Economic losses from 
weather- and climate-related extremes in Europe: 
Indicators, 2025. 

4 

-9-7-5-3-11-12-10-8-6-4-2015161718192021222324252627% of Potential GDP% of GDPCurrent Account Balance (% of GDP)Structural Balance (% Potential GDP) (rhs) 
 
   
 
Security  Action  for  Europe  Instrument,  for  an 
amount  of  up  to  EUR  16.7  billion  in  loans 
under  highly  favourable  terms.  This  should 
ease  near-term  financing  constraints  for 
military  procurement.  Even  so,  higher defence 
spending will have to be anchored in a credible 
medium-term budget strategy and in stronger 
expenditure  prioritisation. 
In  practice,  this 
leaving  room  for  priority  defence 
means 
investment  while  improving  the  quality  of 
other  public  spending  and  avoiding  further 
fiscal  slippage 
financed 
programmes. 

in  domestically 

and 

face 

South-East) 

growth  and  job  creation.  Moreover,  the  three 
regions bordering Ukraine (North-West, North-
East 
additional 
challenges,  including  an  influx  of  displaced 
persons, disruptions in trade, security concerns, 
and  a  deterioration  in  the  housing  stock, 
healthcare  system,  and  social  services.  While 
investments  undertaken  in  the  context  of 
cohesion policy and the RRP should, over time, 
these 
to 
contribute 
regional 
reducing 
disparities, 
remain  a  major  policy 
they 
challenge for the authorities.  

Box 1: 

UN Sustainable Development Goals (SDGs) 

Romania has made progress across almost all SDGs, but it is still below the EU average 
for most of them (Annex 17). Out of the 16 goals measured, status is better than EU 
average for 2 SDGs. These relate to affordable and clean energy (SDG 7) and life on 
water (SDG 14). On SDGs related to competitiveness, Romania is improving on decent 
work  and  economic  growth  (SDG  8),  as  well  as  quality  education  (SDG  4),  even 
though the percentage of adults with basic digital  skills is significantly lower than the 
EU  average.  However,  industry,  innovation,  and  infrastructure  (SDG  9)  remains  a 
major challenge. SDGs related to sustainability are improving, except zero hunger (SDG 
2) and life on land (SDG 15). Despite overall progress on social fairness-related SDGs, 
the  country  still  falls  short  on  no  poverty  (SDG  1)  and  gender  equality  (SDG  5). 
Positive  trends  in  macroeconomic  stability-related  goals  (SDGs  8,  16,  17)  have  been 
registered,  notably  increasing  GDP  per  capita.  However,  challenges  remain  regarding 
institutional trust and perceptions of corruption. 

in 

In  2022, 

investment 

Despite  Romania’s  strong  convergence 
with the EU, large regional economic and 
social  disparities  remain.  The  significant 
gap  in  terms  of  GDP  per  capita  between  the 
capital  and  the  rest  of  the  country  reflects 
differences 
productivity  and 
labour 
accumulated  investment,  in  particular  foreign 
direct 
labour 
(FDI). 
productivity (GDP per hour worked) in Romania 
was 70% of the EU average, but in the capital 
region  it  was  significantly  above  the  EU 
average,  at  130%.  The  poorest  Nord-East 
region  lagged  behind  considerably  at  40%. 
led  to  a 
These  regional  disparities  have 
divergence in income and inequality across the 
country. 
exacerbated 
demographic  challenges  related  to  population 
migration  and  decline.  Significant  gaps  in  the 
transportation  networks,  both 
road  and 
railways,  have  contributed  to  the  regional 
disparities in investment, innovation, economic 

have 

They 

also 

5 

Key competitiveness policy 
challenges  

to 

a  more 
transition 
Romania’s 
productive 
still 
is 
growth  model 
hampered  by  significant  competitiveness 
bottlenecks.  So  far,  the  country’s  economic 
catching-up has largely relied on lower labour 
costs  and  technological  progress  driven  by 
foreign 
investment.  Going  forward,  faster 
productivity  growth  would  require  broader 
innovation  and 
domestic 
technologies, in particular in small to medium-
sized  enterprises  (SMEs),  in  order  to  go  up 
further  in  EU  value  chains.  It  will  also  be 
important  to  improve  administrative  capacity. 
Recurring  delays  in  the  implementation  of 
major  EU  programmes,  including  the  RRP,  are 

investments 

in 

 
 
a clear symptom of the insufficient agility and 
efficiency of the public administration to plan, 
organise  and 
implement  complex  policy 
projects.   

Despite  a  relatively  high  investment-to-
GDP  ratio,  business 
investment  has 
stagnated in recent years, and innovation 
performance  has  remained  weak.  The 
latter  is  undermined  by  low  R&D  intensity,  in 
both  the  private  and  public  sector,  and  a 
fragmented  institutional  set-up  (Section  2).  
innovation  are 
Productivity  growth  and 
hampered  by 
tertiary 
graduates, a shortage of qualified workers and 
researchers,  and  overall 
insufficient  skills 
digital 
(Section  3). 
technologies  by  firms  has  improved,  but  it 
remains  below  the  EU  average,  and  the 
diffusion of more advanced digital tools is still 
uneven (Section 2).   

low  numbers  of 

adoption 

The 

of 

in  particular 

Romania has a strong foothold in specific 
higher-value-added 
manufacturing 
activities,  but  there  is  large  scope  for 
further  diversification.  The  country  has 
reached  a  mid-level  position  in  global  value 
in  automotive  and 
chains, 
industrial  equipment.  Still, 
the  share  of 
industrial activity in GDP has declined steadily 
over the last decade, particularly in energy and 
labour-intensive  sectors,  where  both  labour 
and  energy  costs  went  up.  While  efforts  to 
deploy clean energy and decarbonisation could 
support lower energy prices (Section 4), further 
reforms  are  necessary  to  strengthen  other 
economic  sectors  with  high  value-added  and 
innovative  potential,  such  as  information  and 
communication  technology  (ICT),  which  have 
been  growing  steadily  and  could  allow 
Romania to diversify its economy. 

Box 2: 

Key achievements of the Recovery and Resilience Plan 

The RRP of Romania represents a total envelope of  EUR 21.4 billion, corresponding to 6.6% 
of  GDP,  aimed  at  supporting  reforms  and  investments  contributing  to  the  green  and  digital 
transitions,  strengthening  economic  resilience,  and  addressing 
long-standing  structural 
challenges identified in the European Semester. 

As of May 2026, EUR 10.7 billion (around 50% of the total allocation) had been disbursed to 
Romania  following  the  satisfactory  fulfilment  of  144  milestones  and  targets, of  which  EUR 
4.3  billion  in  loans.  Implementation  has  progressed,  with  a  growing  number  of  reforms  and 
investments already completed and delivering tangible results. 

Highlights and impact of the plan 

•  Reform of the public pension system implemented in 2023 to ensure fiscal sustainability. 

•  Decarbonisation legislation adopting the 2023 deadline for the  phase-out of coal/lignite 

electricity production entered into force in 2023. 

•  Digitalisation of the Romanian Tax Administration (ANAF), a digital and remote service 

model for interaction between taxpayers and the tax authorities, since 2022. 

• 

Improvement and extension of social services for children, persons with disabilities and 
elderly (expected). 

•  Digitalisation  of  higher  education  to  transform  teaching,  learning  and  administrative 

processes in at least 60 Romanian universities (expected). 

•  Reform  on  preventing  and  reducing  early  school  leaving,  including  a  warning 
mechanism,  adopted  in  2021,  and  investments  in  schools  with  high  risk  of  dropout 
(expected). 

•  Renovation of a large number of public and private buildings to improve energy efficiency 

(expected). 

6 

 
 
 
the 

Following 

The  business  environment  would  benefit 
from  less  regulation,  legislative  and  tax 
predictability and  a  more  efficient public 
administration. 
recent 
implementation  of  major  RRP  reforms  in  the 
areas  of  pensions  and 
taxation,  strict 
implementation  of 
their  provisions  and 
refraining  from  additional  initiatives  in  the 
coming years is important, to avoid backsliding 
or  creating  unnecessary  policy  uncertainty. 
Instead, policy attention and action could focus 
on  improving  state-owned  enterprises  (SOEs) 
corporate  governance  and  further  reforming 
the public procurement system, with a view to 
improving  competition.  SMEs  still  rely  mainly 
on  the  domestic  market,  and  do  not  take  full 
benefit of the EU Single Market, limiting scope 
to  grow  and  innovate.  Barriers  persist  in  the 
provision  of  cross-border  services.  Access  to 
remains  a  constraint  for  many 
finance 
companies, especially SMEs and start-ups, and 
non-bank 
are 
developing 
Supplementary 
pensions (relying mostly on individual savings) 
play  a 
in  the  provision  of 
retirement  income,  with  low  coverage  and 
limited  financial  depth  (Section  2  and  Section 
6).  

financial 
only 

intermediaries 

limited  role 

slowly. 

7 

 
 
Box 3: 

Contribution of Cohesion Policy Funds 

EU  cohesion  policy  funding  supports  Romania’s  efforts  to  increase  convergence  and 
competitiveness,  environmental  sustainability,  skills  and  social  fairness.  In  2021-2027,  EU 
cohesion  policy  funds  (4)  are  providing  EUR  30.9  billion  (amounting  to  EUR  42.0  billion  with  national  co-
financing) or 8% of 2024 GDP of Romania. This makes cohesion policy one of the main sources of public 
investment in the country. The value of selected projects corresponds to 94.3% of the total allocation as of 
March 2026, with additional calls for projects in the pipeline. 

• 

Innovation,  business  environment  and  productivity:  Approximately  EUR  4.35  billion  from  the 
ERDF  is  allocated  to  boost  research,  innovation, and  SMEs  competitiveness  in  Romania,  with  roughly 
5 000 SME projects already approved. Additionally, EUR 1.2 billion from the Just Transition Fund (JTF) 
is dedicated to support the economic diversification and competitiveness of regions most affected by 
the transition away from carbon-intensive activities. 

•  Decarbonisation, energy affordability and sustainability: EUR 8.3 billion from ERDF, CF and JTF 
is  dedicated  to  green  transition  projects  including  investments  in  sustainable  transport,  wastewater 
treatment,  flood  risk  prevention,  waste  management  systems,  and  circular  economy  infrastructure. 
Across all programmes, EUR 1.4 billion is supporting energy efficiency measures. Projects to improve 
the energy performance of over 38 000 dwellings have already been selected for funding.  

• 

Skills,  quality  jobs  and  social  fairness:  Over  EUR  1.6  billion  is  allocated  to  modernise  labour 
market  institutions  and  strengthen  social  dialogue,  increase  accessibility  and  labour  market 
participation.  EUR  1.55  billion  is  being  invested  to  build  a  quality,  inclusive  early  childhood  and  care 
system,  reduce  early  school  leaving,  ensure  quality  education  for  all,  strengthen  the  relevance  of 
vocational education and training (VET) and promote life-long learning. EUR 1.76 billion is dedicated to 
fostering social inclusion by improving social services, including integrated community services for at 
least 450 000 vulnerable people particularly in rural and marginalised communities, and to supporting 
the European Child Guarantee. More than EUR 1 billion is allocated for material support to at least 1.8 
million  deprived  persons.  EUR  514  million  is  dedicated  to  improving  the  quality  of  primary  and 
community healthcare and outpatient services and to strengthening prevention. 

The  mid-term  review  -  a  formal  assessment  process  required  under  the  Common  Provision  Regulation 
aimed to assess the implementation programmes and, where necessary, propose adjustments to improve 
their performance, ensure their relevance in light of new and emerging needs and keep them aligned with 
other EU policies - strengthened cohesion policy’s contribution to emerging strategic priorities, reallocating 
nearly  EUR  2.8  billion  to  such  priorities.  Over  half  of  these  reallocations  go  towards  boosting 
competitiveness  (EUR  1.5  billion),  including  the  development  of  critical  Strategic  Technologies  for  Europe 
Platform (STEP) technologies (EUR 1.07 billion) and the promotion of specialised skills in key sectors. The 
mid-term review also bolstered support for defence and civil preparedness, with EUR 500 million allocated 
to military mobility though improvements to railway infrastructure and TEN-T corridors, with a focus on the 
North-East border region. An additional EUR 276 million was earmarked for dual-use hospital infrastructure 
and  EUR  100  million  for  strengthening  industrial  capacities  for  the  promotion  of  defence 
capabilities,  with  a  prioritisation  of  dual-use  capabilities.  Also,  EUR  28  million  were 
reprogrammed  for  the  development  of  resilient  defence  infrastructure,  with  priority  given  to 
dual-use  infrastructure,  in  Bucharest  Ilfov  region.  EUR  207  million  was  allocated  towards  the 
development  of  social  housing  infrastructure  in  Romania,  and  a  further  EUR  200  million  towards  the 
construction and modernisation of wastewater treatment facilities. In addition to cohesion policy funding, 
Romania will be allocated up to EUR 6 billion under the Social Climate Fund for the 2026-2032 period to 
help mitigate the social impact of the new emissions trading system (ETS2), providing targeted support to 
vulnerable households and small businesses.  

(4)  ERDF, ESF+, CF and JTF. 

8 

 
 
 
INNOVATION, BUSINESS ENVIRONMENT AND 
PRODUCTIVITY 

and 

recommendations 

In  2025,  Romania  received  country-
specific 
(CSRs)  on 
improving  the  quality  and  effectiveness 
administration 
of 
on 
public 
shortages,  while 
skills 
addressing 
improving  the  preparation,  prioritisation 
investment 
and  delivery  of  public 
private 
and 
projects 
investment. Since then, some measures have 
been  implemented,  particularly  under  the  RRP 
and  in  selected  areas  such  as  administrative 
simplification,  skills,  access  to  finance  and 
support  for 
innovation,  but  progress  has 
remained uneven and large gaps persist. 

promoting 

to 

Romania  has  made  substantial  progress 
in  economic  convergence  over  the  past 
decades, but to advance further, Romania 
needs 
long-standing 
address 
productivity  gaps.  Real  labour  productivity 
per  hour  worked  grew  on  average  by  about 
4.5% per year from 2015 to 2019 but slowed 
markedly to around 2% per year from 2020 to 
2025.  Productivity  growth  has  largely  been 
driven  by  ICT  and  mostly  by  foreign-owned 
manufacturing 
automotive, 
pharmaceuticals  and  chemicals,  electronics 
and  aviation  components, in  a  small  group  of 
urban centres. Since the pandemic, momentum 
in industry and services has weakened. (Graph 
2.1).  Productivity  growth  and  diffusion  of 
innovation in the economy are being held back 
by the structure of the business sector, which 
is  dominated  by  a  large  number  of  SMEs. 
These  firms  operate  mainly  on  the  domestic 
market and have limited access to skilled staff 
and  financial  capacity  to  adopt  advanced 
technologies or scale up (Graph 2.2). 

clusters 

in 

Graph 2.1: Real labour productivity growth per 
hour worked 

Source: Eurostat 

activities 

value-added 

Romania’s  growth  model  would  benefit 
from  broadening  its  base  beyond  some 
core  sectors,  advancing  further  towards 
higher 
and 
integration  into  European  value  chains. 
Industrial activities remain an important driver 
of  exports,  innovation  and  productivity,  but 
they  have  come  under  strong  competitive 
pressure  due  to  high  energy  costs,  rising 
labour  costs  and  weaker  external  demand. 
While  addressing  competitiveness  bottlenecks 
in  these  areas  remains  important,  the  next 
phase  of  Romania’s  productivity  convergence 
would  benefit  from  focusing  especially  on 
knowledge-based 
SMEs. 
Accelerating structural reforms to improve the 
business environment and the quality of public 
finance, 
services,  deepening  access 
increasing 
the  supply  of  scientific  and 
managerial  skills,  and  improving  the  public 
research  system  while  strengthening  linkages 
are 
between 
prerequisites 
productivity 
improvements. 

research 
for 

and 
further 

business, 

services 

and 

to 

9 

801001201401601802002202401516171819202122232425Index, 2015= 100Industry excl. constructionManufacturingICTConstructionWholesale and retail trade,transport, and hospitality 
 
   
Graph 2.2: Trade by firm ownership type 

support 

public-private 
innovation, 
to 
collaboration, and strategic technologies under 
STEP.  Yet  the  overall  policy  mix  still  lacks 
continuity, coordination and scale. 

in 

less 

continue 

concentrated 

A  shortage  of  skilled  workers  and  skills 
mismatches 
to  weigh  on 
productivity  and  innovation.  The  share  of 
25-to-34-year-olds  with  tertiary  education 
increased only slightly, to 23.2%, in 2024, still 
the  lowest  in  the  EU  and  far  below  the  EU 
average  of  44.1%.  Romania’s 
research 
workforce  remains  relatively  small  and  in 
2024  was 
firms 
compared  with  the  rest  of  the  EU.  In  2024, 
only  37.9%  of  researchers  worked  in  the 
business enterprise sector, against 57% in the 
EU.  More  broadly,  structural  transformation 
towards higher-skill activities has been weaker 
than  in  much  of  the  EU.  According  to  the 
from 
OECD, 
agriculture  primarily  to  services,  but  the 
increase  in  high-skilled  jobs  was  only  1.7 
percentage  points  between  2008  and  2019, 
against 3.5 percentage points in the EU, while 
the  share  of  low-skilled  jobs  rose  by  3.6 
percentage points (5).  

employment 

shifted 

has 

Romania  has  a  relatively  high  share  of 
tertiary  students  enrolled  in  STEM  fields 
and a sizeable pool of ICT graduates, but 
these  strengths  are  not  yet  translating 
fully into innovation performance, digital 
uptake  by  firms,  or  employment  of  ICT 
specialists.  Low  overall  tertiary  attainment 
means  the  absolute  supply  of  highly  skilled 
graduates 
remains 
innovative 
limited.  Poor  working  conditions  and  weak 
career  prospects  for  researchers  also  make  it 
difficult  to  retain  talent  in  the  country.  A  new 
law  on  the  status  of  R&D  staff  aims  to 
improve 
though 
implementation  and  stable  financing  matter 
more than new formal commitments. 

research 

careers, 

firms 

for 

(5)  OECD, Reviews of Labour Market and Social Policies: 

Romania, 2025. 

Source: National Institute of Statistics 

Boosting innovation 

Closing  the  innovation  gap  is  key  to 
strengthening  productivity  growth.  The 
country is classified as an emerging innovator 
and ranks last in the EU in the 2025 European 
Innovation  Scoreboard,  at  37.7%  of  the  EU 
average. R&D intensity stood at about 0.5% of 
GDP  in  2024,  far  below  the  EU  average  of 
2.2%,  with  both  public  and  business 
expenditure among the lowest in the EU. Public 
R&D  expenditure  remains  underfunded  and 
institutionally  fragmented.  Reforms  under  the 
RRP  seek  to  improve  coordination  and  long-
term  planning  within  the  public  research 
researchers’  careers  more 
system,  make 
cooperation 
merit-based, 
between  the  academic  and  business  sectors. 
However, implementation  remains  incomplete, 
and  the  effect  on  research  performance  will 
depend  on  continued  stable  funding  and 
effective institutional follow-through. 

increase 

and 

Private  innovation  performance  is  also 
weaker compared with the rest of the EU. 
Business  expenditure  on  R&D  stood  at  0.29% 
of  GDP  in  2024,  far  below  the  EU  average, 
while  the  share  of  innovative  firms  remains 
low.  From  2020  to  2022,  only  8.8%  of 
Romanian firms introduced product or process 
innovations,  against  51.4%  in  the  EU.  The 
2025  CSRs  called  for  promoting  private 
investment.  Romania  has  taken  some  steps, 
such  as  revising  R&D  tax  incentives  and 
making greater use of cohesion policy funding 

10 

0102030405060708090100Exports 2014Exports 2024Imports 2014Imports 2024Trade in EUR billionOwnership typeWholly domesticWholly foreignMixed 
   
 
 
Increasing the adoption of digital 
technologies 

Broad-based  use  of  digital  technologies 
by  Romanian 
support 
firms 
could 
productivity. 
In  2025  around  44%  of 
Romanian  SMEs  reached  at  least  basic  digital 
intensity  (6).  This  represents  a  significant 
improvement  compared  to  2023,  when  such 
share  was  less  than  27%,  but  it  still  remains 
among the lowest in the EU (7).  Romania also 
lags  behind  on 
the  more  productivity-
enhancing  uses  of  digital  technology.  The 
share  of  SMEs  with  high  or  very  high  digital 
intensity  stood  at  21.7%,  significantly  below 
the EU average of 32.7%, while the take-up of 
advanced  tools  such  as  AI,  cloud,  and  data 
analytics 
in  most 
Member States (8). 

remains  weaker 

than 

Romania  has 
strong  basic  digital 
connectivity,  but  wider  adoption  and 
effective use of digital technologies could 
bring  broader  productivity  gains  across 
the business sector. Romania remains an EU 
leader  in  fibre  coverage,  including  in  rural 
areas, but 5G coverage remains below the EU 
average.  The  remaining  constraints  appear  to 
stem 
spreading  advanced  digital 
technologies  more  widely  across  firms  and 
translating  the  digital  uptake  into  productive 
and innovative uses.  Measures under the RRP, 
the  cohesion  policy  funds,  and  the  European 
Digital  Innovation  Hubs  support  the  wider 
adoption  and  more  effective  use  of  digital 

from 

(6)  The digital intensity index (DII) is a composite indicator, 
which measures the use of different technologies by 
firms, with the aim of assessing the extent to which EU 
firms are digitalised. 

(7)  Eurostat, DII, SMEs with at least basic digital intensity, 

2025 data. 

(8)  This is broadly in line with findings in the 2025 EIB 

Investment Survey, which suggests that Romanian firms 
are now broadly in line with the EU average in the use 
of multiple advanced digital technologies, with 48% of 
firms reporting adoption. At the same time, Romania 
still appears weaker on some frontier uses. About 30% 
of firms report systematic use of generative AI to 
improve processes, below the EU average of 37%. 

in  developing 

technologies by  firms. Progress has also been 
made 
integrated  digital 
platforms  for  public  services  dedicated  to 
businesses,  particularly 
in  areas  such  as 
licensing,  authorisations  and  certifications, in 
order  to streamline  procedures  and  reduce 
administrative burden. 

Industry and economic security 

industrial 

remains 
base 
Romania’s 
important  for 
innovation,  productivity 
growth and exports, but it faces stronger 
share  of 
competitive  pressures.  The 
industry decreased from close to 25% of GDP 
in  2015  to  just  below  17%  in  2025.  Industry 
still accounts for a large share of exports and 
much  of  Romania’s  more  complex  production, 
in  particular  in  the  automotive  sector  (9).  Yet, 
momentum  has  weakened,  amid  high  energy 
prices,  rapid  labour  cost  increases  and  weak 
external  demand  from  traditional  partners. 
Total  industrial  output  declined  by  0.9%  in 
2025.  Energy-intensive  sectors  such  as  basic 
metals  and  chemicals  recorded  some  of  the 
largest declines in production relative to 2021. 
Similarly,  large  increases  in  the  minimum 
wage  in  recent  years  have  had  a  negative 
effect on labour-intensive manufacturing, such 
as  textiles  and  clothing,  wood  products,  and 
furniture.  These  challenges  underscore  the 
need  to  improve  the  policy  framework  with  a 
view  to  incentivising  industrial  companies  to 
accelerate 
modern 
technologies, innovation and digitalisation. This 
will strengthen their competitiveness and  help 
them  weather  the  green  transition.  Romania 
also  needs  to  upgrade  conditions  for  a  wider 
and  deeper  technology  adoption,  not  only  in 
in  knowledge-intensive 
industry  but  also 
software 
services, 
development, engineering and business design. 

investments 

such 

and 

as 

IT 

in 

(9)  The automotive sector accounts for roughly one third of 
goods exports and continues to have one of the highest 
employment weights in manufacturing in the EU, with 
direct automotive jobs representing 14.5% of 
manufacturing employment in 2024. 

11 

 
 
 
 
Business environment 

Business  dynamism  is  relatively  weak,  in 
particular for SMEs, with negative effects 
on productivity.  SME productivity  is lower in 
comparison  with  the  rest  of  the  EU  and  the 
productivity  gap  between  SMEs  and  large 
firms is wide. Small  firms account for a large 
share  of  employment,  while  generating  low 
value added per worker. In 2024, value added 
per person employed in Romanian SMEs stood 
at roughly half of the EU average, while value 
added per person employed in large firms was 
around 40% higher than in SMEs. This reflects, 
in  part,  the  structure  of  the  business  sector, 
small,  poorly 
which 
capitalised  firms  which  are 
insufficiently 
integrated  into  higher-value-added  activities. 
Firms’ market exit rates are slightly below the 
EU  average,  pointing  to  weaker  resource 
reallocation,  while  the  insolvency  framework 
still  appears  slow  and  insufficiently  geared 
towards early intervention and restructuring.  

is  dominated  by 

Institutional  weaknesses  continue  to 
weigh  on  the  business  environment. 
Although the  2025  CSRs highlighted the  need 
for better legislative predictability and quality, 
repeated  significant  changes  in  tax  rules, 
extensive  use  of  emergency  ordinances,  short 
legislative  preparation  periods,  and  weak  use 
of  impact  assessments  continue  to  affect 
business  decisions.  Public  service  delivery  has 
improved  in  some  areas,  including  in  the 
digitalisation  of  public  services  for  individuals 
and  businesses,  but  business  satisfaction 
remains  very 
low.  Excessive  paperwork, 
fragmented  procedures,  as  well  as  limited 
interoperability 
of 
government,  weaken  the  quality  of  public 
services. Further efforts are needed to simplify 
and  streamline  administrative  processes  by 
setting 
and 
service 
improving  transparency  and  user  experience. 
On  the  Single  Market  and  Competitiveness 
Scoreboard,  Romania  is  among  the  weaker 
performers  on  the  burden  of  regulation:  66% 
of respondents view business regulation as an 

standards 

clearer 

across 

levels 

all 

Over  time,  the  Romanian  industry  has 
become  more  specialised 
in  complex 
manufacturing  activities.  Nonetheless, 
broad  challenges  remain  in  increasing  the 
domestic  value  added  and  moving  further  up 
the value chain. A study by the National Bank 
of  Romania  found  that  specialisation  has 
improved,  allowing  the  economy  to  produce 
and export a larger range of high-value-added 
goods.  The  composition  of  exports,  too,  has 
improved  as  the  share  of  high  technological 
intensity  goods  has  risen  (10).  The  2025 
Regional  Innovation  Scoreboard  shows  that 
exports  of  medium-  and  high-technology 
products  are  among  Romania’s  relatively 
stronger  regional  innovation  indicators  with 
several  regions  recording  marked  gains  since 
2023  (11).  However,  Romania’s  manufacturing 
is still split between, on the one hand, foreign-
owned  manufacturing  clusters  and  a  few 
dynamic  urban  service  centres  and,  on  the 
other,  a  large  base  of  smaller,  domestically 
focused  firms  with  weaker  capacity  to  scale 
up,  adopt  and  use  new  technologies.  This  is 
one  reason  why  strong  performance  in  a  few 
sectors  has  not 
into  broader 
productivity gains across the economy. 

translated 

services, 

especially 

A  larger  role  for  knowledge-intensive 
services in the next phase of convergence 
would  be  beneficial.  Services  account  for 
around  62%  of  GDP,  but  much  of  the  sector 
remains  concentrated  in  lower  productivity, 
non-tradable activities such as retail, transport 
and construction. Knowledge-intensive, export-
ICT,  have 
oriented 
increased in recent years, from 5% in 2015 to 
7.1% in 2025, though they still represent only 
a  relatively  small  share  of  GDP.  The  2025 
Digital  Decade  report  shows  that  6.9%  of  all 
post-secondary  education  graduates  are  ICT 
specialists,  putting  Romania  among  the  EU’s 
leaders.  The  ICT  sector  has  weathered  recent 
competitive  pressures  relatively  well,  despite 
volatile  external  demand  and  increases  in 
taxation, but it needs to adapt to rapid market 
changes triggered by the AI revolution.  

(10)  National Bank of Romania, European Romania: 
Developments, Progress, Challenges, 2025. 

(11)  European Commission, Regional Innovation Scoreboard 

2025: Regional Profile Romania. 

12 

 
 
to 

long-term 

(12). 
obstacle 
Moreover, Romania stands out for the second-
highest  number  of  SMEs  in  the  EU  reporting 
late payments from public entities (Annex 5).  

investment 

State-owned  enterprises  in  key  network 
sectors,  notably  transport  and  energy, 
continue  to  exhibit  weaknesses.  Despite 
recent  reforms  under  the  RRP  and  in  the 
context  of  OECD  accession,  governance 
in  practice.  Lack  of 
weaknesses  persist 
in  board 
transparency  and 
competition 
inconsistent 
appointment 
mandates, 
of 
the 
performance-based  remuneration  continue  to 
weaken  operational  efficiency  and  investment 
implementation  of  the 
discipline.  Stronger 
corporate  governance 
framework  would 
improve  service  delivery,  financial  results  and 
productivity growth, and reduce fiscal risks. 

processes, 

limited 

and 

use 

Strengthening  public  procurement  could 
support  competition  and  productivity 
growth  in  certain  parts  of  the  economy. 
Romania’s  public  procurement  system  has  a 
persistently  high  share  of  single  bids (38%  in 
2025,  EU  average  at  29%),  pointing  to  weak 
competition in several sectors. In addition, the 
system  has  capacity  constraints  and  is  highly 
decentralised,  with  weaknesses  in  planning 
and  tender  preparation,  and  reported  barriers 
to  participation  such  as  rigid  or  subjective 
qualification  and  selection  criteria,  technical 
specifications  perceived  as  difficult  to  comply 
with or not aligned with needs, and unrealistic 
cost estimation. Public procurement remains a 
high-risk area for corruption (13).  

Despite  improvements,  gaps  in  transport 
infrastructure  are  major  obstacles  to 
competitiveness  and  territorial  cohesion. 
Romania  is  pursuing  sizeable  investments, 

(12)  European Commission, Single Market and 

Competitiveness Scoreboard 2025, Country data: 
Romania. 

(13)  Businesses’ views on corruption risks in public 

procurement are above the EU average. Among 
companies that have experience in and have 
participated in a public procurement procedure, 37% 
think that corruption has prevented them from winning 
a public tender or a public procurement contract in 
practice, against an EU average of 25%.   

13 

rolling 

quality, 

through the RRP and cohesion policy, in major 
rail  modernisation  and  rolling  stock  upgrades, 
alongside  large  road  and  road  connectivity 
projects.  Still,  large  gaps  persist  in  finalising 
the TEN-T network as well as in rail and road 
infrastructure 
stock 
modernisation,  and  connectivity  in  remote 
areas,  while  car  fleet  renewal  remains  slow 
and  road  safety  outcomes  remain  among  the 
weakest  in  the  EU.  Projects  are  frequently 
delayed  because  of  weak  preparation, 
land  acquisition  problems, 
tendering  and 
limited 
unrealistic  project  planning,  and 
administrative  capacity,  especially 
rail 
in 
infrastructure.  

Access to finance 

and 

Access  to  finance  remains  a  constraint 
for firms, especially for SMEs, innovative 
firms 
companies. 
high-growth 
Although  SMEs  account  for  the  majority  of 
firms in Romania, large firms generate a much 
bigger  share  of  value  added,  which  shapes 
both  financing  needs  and  financing  capacity. 
internal 
Romanian  firms  rely  heavily  on 
financing.  According 
the  2025  EIB 
Investment  Survey,  internal  funds  accounted 
for  71%  of  investment  finance  in  Romania, 
above  the  EU  average  of 66%,  while  external 
finance  represented  24%.  Many  firms  report 
satisfactory  investment  levels,  yet  18%  say 
they  invested  too  little  over  the  past  three 
years, compared with 12% in the EU.  

to 

by 

Borrowing 

Debt  finance is  relatively  small  in macro 
non-financial 
terms. 
corporations  was  only  37%  of  GDP  in  2024, 
well  below  the  EU  average,  while  trade  credit 
and  advances  represented  a  large  share  of 
liabilities.  This  is  likely  due  to  the  weak 
capitalisation of many  firms, which constrains 
access to external finance. Around one third of 
Romanian  companies  have  equity  below  the 
regulatory threshold, making them less eligible 
for bank financing, and 10.2% of firms report 
being  finance  constrained  in  2025,  against 
6.1%  in  the  EU.  Undercapitalised  companies 
large  share  of  overdue 
account  for  a 
payments  in  the  economy,  which  worsens 
payment discipline and reinforces dependence 

 
 
on  supplier  credit.  The  banking  system  is 
profitable,  well  capitalised,  and  liquid,  which 
suggests  that  the  main  constraints  are  more 
due 
financial 
deepening,  weak  firm  capitalisation  and  high 
borrowing costs. 

to  Romania’s  still 

limited 

Schengen from 1 January 2025 should further 
reduce  cross-border  frictions  in  transport  and 
logistics. Even so, large firms account for most 
intra-EU  exports 
terms,  which 
suggests  that  many  SMEs  still  do  not  scale 
across borders. 

in  value 

literacy, 

issuance 

Capital  markets  remain  underdeveloped. 
Equity market capitalisation stood at 12.4% of 
GDP  in  mid-2025,  far  below  the  EU  average, 
while  corporate  bond 
remains 
marginal.  Household  participation  in  capital 
markets  is  low,  reflecting  limited  financial 
wealth,  weak 
limited 
financial 
incentives  for  long-term  retail  investment, 
savings and investment accounts and a strong 
preference for deposits and real estate. At the 
end  of  2024,  households’  financial  assets 
stood at 63% of GDP, against 212% in the EU, 
while  almost  42%  of  this  wealth  was  held  in 
cash  and  deposits.  Pension  and  insurance 
assets are small in comparison with the rest of 
the  EU,  and  private  pension  funds  remain 
heavily  invested  in  government  bonds,  which 
long-term 
contribution 
limits 
investment  in  the  real  economy.  The  2025 
CSRs  called  for  promoting  private  investment. 
The  establishment  of  a  new  Bank  for 
Investment  and  Development,  and 
the 
financial  instruments financed under cohesion 
policy  and  the  RRP  are  useful  steps  in  that 
financing 
direction, 
ecosystem  would  benefit  from  a  broader 
investor  base,  stronger  institutional  investor 
participation,  and  higher  financial 
literacy 
among firms and households. 

the  wider 

though 

their 

to 

for 

services. 

professional 

requirements 

requirements 

Regulatory  and  administrative  barriers 
continue  to  hinder  trade  in  goods  and 
services and freedom of establishment in 
Romania. For  goods,  market  access  could  be 
improved  by  updating  national  product  rules. 
For  services,  regulatory  restrictions  in  several 
professions  in  terms  of  exclusive  rights  and 
regulatory 
notaries, 
accountants,  architects  and  engineers,  can 
limit  competition  and  raise  costs  for  firms 
Easing 
using 
administrative 
the 
implementation  of  posting  of  workers  rules 
could  reduce  regulatory  fragmentation  within 
the  Single  Market,  facilitate  cross-border 
mobility  and  foster  competitiveness,  without 
undermining  workers’  protections.  Business 
establishment  is  also  hindered  by  restrictive 
practices,  such  as  lengthy  and  fragmented 
licensing  procedures  (14).  Despite  progress 
under  the  RRP  on  reforms  such  as  the  Single 
Industrial  Licence  and  construction  permits, 
these  are  yet  to  produce  effects  on  the 
ground.  Additional  efforts,  including  further 
to  streamline 
digitalisation,  are  needed 
processes across the commercial and services 
sectors.  

in 

Making better use of the Single 
Market 

Romanian  firms  are  not  exploiting  fully 
the  opportunities  offered  by  the  Single 
Market.  Romania  performs  relatively  well  on 
the  formal  transposition  of  and  conformity 
with  Single  Market  rules,  with  a  transposition 
deficit of 0.8% in 2024 according to the Single 
Market  Scoreboard.  However,  the  number  of 
pending 
infringement  cases  remains  high. 
Goods  and  services  integration  in  the  Single 
Market is above the EU average as a share of 
GDP  (Annex  5),  and  Romania’s  full  entry  into 

(14)  OECD, Business Licensing Reforms in Romania, 2026. 

14 

 
 
 
DECARBONISATION, ENERGY AFFORDABILITY AND 
SUSTAINABILITY 

call 

electricity 

cross-border 

recommendations 

In  2025,  Romania  received  CSRs  to 
reduce its dependency on fossil fuels and 
to  facilitate  the  expansion  of  renewable 
energy.  The 
for 
improving  the  grid  capacity,  strengthening  of 
the 
connections, 
advancing  regulatory  reforms  to  de-risk  clean 
energy 
the 
and 
transparency  and  efficiency  in  the  permitting 
process.  Some  steps  were  taken 
in  the 
decarbonisation of Romania’s energy mix, and 
the  country  made 
in 
expanding the availability of renewable energy 
sources (RES).  

limited  progress 

improving 

projects 

Energy affordability remains a 
challenge amid fossil fuel 
dependence and market 
interventions 

Energy  affordability  in  Romania  remains 
a challenge, shaped by a sharp post-2021 
price  spike  followed  by  years  of  state 
intervention.  From  November  2021  to  June 
2025, 
the  government  maintained  an 
electricity price cap and compensation scheme 
that  shielded  households  from  market  rates. 
The  simultaneous  expiry  of  the  price  cap  in 
July  2025,  a  VAT  increase  on  electricity  from 
19% to 21%, and a summer heatwave caused 
household  bills 
than  double. 
Household  electricity  prices  have  stabilised 
since  and  remain  below  the  EU  average, 
whereas for industry, prices are slightly higher 
than  in  2024.  Romania’s  wholesale  electricity 
prices  averaged  110  EUR/MWh  in  2025,  the 
the  EU,  a  situation 
fourth  highest 
aggravated  by 
continued 
dependence  on  fossil  fuel-generated  energy. 
reduce 
Some  measures  are  planned 
electricity  prices, 
like  the  acceleration  of 
storage  and  grid  investments  to  bring  more 

to  more 

in 
the 

country’s 

to 

In  the  medium  term, 
renewables  online. 
completing  the  process  of  phasing  out  coal 
and replacing it with gas capacities would also 
help.  The  phase-out  of  the  price  caps  for 
natural  gas,  initially  planned  for  April  2026, 
has been put on hold as on 5 March 2026 the 
Romanian government adopted an emergency 
ordinance prolonging the use of capped prices 
for  natural  gas  for  households  from  1  April 
2026 until 31 March 2027. In response to the 
regional  conflict  in  the  Middle  East,  Romania 
introduced  broad  fuel-market 
intervention 
measures,  including  caps on  fuel mark-ups  at 
2025  averages,  restrictions  on  oil  and  diesel 
exports, and a 0.30 lei/litre cut in diesel excise 
duty.  The  government  also 
imposed  a 
progressive  solidarity  tax  on  oil  company 
revenues,  and  extended  diesel 
support 
schemes  for  the  transport  and  agricultural 
sectors, 
transport 
including  subsidies  for 
operators.  Going  forward,  it  will  be  important 
to  ensure  that  support  measures  remain 
temporary and targeted. 

In 2025, Romania took important steps to 
support  the  deployment  of  renewable 
energy,  in  line  with  the  CSR  it  received  in 
2025. It managed to increase the flexibility of 
its  energy  systems,  reducing  the  risk  of 
excessive electricity price spikes, and removed 
the  regulatory  price  caps  for  electricity.  The 
RRP  aims  at  reforming  Romania’s  regulatory 
framework  to  promote  the  deployment  of 
renewable energy sources. 

on 

progress 

self-energy 
Despite 
consumption,  consumer  empowerment 
remains limited. The number of prosumers is 
rapidly increasing. Still, no noticeable progress 
has  been  made  on  the  participation  of 
individuals  in  energy  communities.  Romania 
lacks  legislation  for  energy  sharing  despite 
efforts  to  amend  the  definition  of  prosumers 
and  promote  direct  energy  sales.  While 
initiatives  exist  for  energy  communities,  the 
legal framework is not sufficiently clear.  

15 

 
 
The  share  of  fossil  fuels  in  total  energy 
consumption  declined,  but  structural 
dependence  persists.  Romania's  electricity 
mix  has  improved,  but  fossil  fuels  remain 
deeply  embedded  across  the  energy  system 
and are often setting the (high) energy price in 
the  market.  In  2025,  the  share  of  non-low-
carbon  electricity  reached  34.1%.  On  the 
contrary,  the  share  of  low-carbon  electricity 
reached 65.9%, lower than the EU average of 
70%.  

has  made 
its 

progress 
energy  mix 

in 
Romania 
decarbonising 
by 
decommissioning  coal  and  lignite-fired 
capacity.  However, 
power  generation 
further efforts are still needed to advance this 
transition, by continuing implementation of the 
Decarbonisation  Law,  a  cornerstone  of  the 
RRP, to phase out more than 3 870 megawatts 
(MW)  of  coal  and  lignite-based  electricity 
generation  capacity  by  August  2026.  On  the 
gas  side,  Romania  is  reducing  dependence  on 
imported fossil fuels while expanding domestic 
gas  production.  The  country,  currently  the 
second  largest  gas  producer  in  the  EU  after 
the  Netherlands,  aims  to  become  a  net  gas 
exporter  by  2030  by  developing  the  Neptun 
Deep  deep-water  drilling  project  in  the  Black 
Sea, with first deliveries expected in 2027.  

taken 

important  steps 

Progress  has  been  made  in  expanding 
renewable energy, but challenges remain. 
Romania  has 
in 
expanding  RES  in  recent  years,  driven  by  EU 
funding and an improving support framework. 
The new support mechanism, the Contracts for 
Difference  (CfD)  scheme,  has  already  seen 
three  successful  auction  rounds,  covering 
onshore  wind  and  solar  photovoltaic  projects, 
with a total installed capacity of more than 4.5 
gigawatts  (GW).  For  offshore  wind,  Romania 
approved  the  Offshore  Wind  Energy  Law  in 
2024,  establishing  a  regulatory  framework 
aiming to achieve 3 to 7 GW of offshore wind 
capacity  by  2032;  however,  the  implementing 
In  addition,  constant 
rules  are  missing. 
amendments 
framework  - 
although  sometimes  aimed  at  simplification  - 
have  created  a  fast-changing  and  sometimes 
for 
unpredictable 
developers.  The  maximum  approval  deadlines 
under the Revised Renewable Energy Directive 

regulatory  environment 

legal 

the 

to 

(RED III) are still being transposed and are not 
yet  fully  operational.  Keeping  focus  is  key  to 
accelerating  offshore  wind  permitting  to  tap 
the  significant  potential  in  the  Black  Sea,  and 
full  use  should  be  made  of  the  CfDs  scheme 
by  launching  new  auctions  to  bring  more 
renewables online.  

renewable 

In parallel to the accelerated deployment 
of  new 
capacities,  grid 
infrastructure  and  stability  require  close 
attention.  Romania  has taken  some  steps  to 
promote  the  expansion  of  grid  and  electricity 
storage,  in  particular  power  battery  storage, 
but  deployment  is  slow.  Romania's  electricity 
storage  capacity  reported  in  its  final  National 
Energy and Climate Plan (NECP) stands at just 
16.2 MW. Furthermore, demand-side response 
(DSR)  and  other  distributed  energy  resources 
are  still  held  back  by  market  barriers  and  an 
insufficient legal framework. 

While  Romania  is  on  track  to  achieving 
the 15% interconnection target for 2030, 
its  capacity  is  still  insufficient.  Romania 
currently  has  4  000  MW  of  cross-border 
interconnection  capacity,  with  plans  to  double 
it  to  7  000–8  000  MW  by  2030.  Progress  is 
ongoing,  although  further  acceleration  would 
support deeper regional market integration. On 
the 
transmission  side,  Transelectrica,  the 
national  transmission  system  operator,  has 
promoted  the 
idea  of  classifying  certain 
projects  as  projects  of  national  importance, 
allowing  for  faster  permit  approvals  and 
administrative  processing.  There  is  scope  for 
further 
neighbouring 
countries  (Bulgaria,  Hungary,  Moldova  and 
Ukraine) to further increase market integration 
in the region.  

coordination  with 

on 

gas, 

remains 

Romania  still  subsidises  fossil  fuels, 
while the heating sector, which is heavily 
reliant 
largely 
unreformed. Romania received a CSR in 2025 
to reduce reliance on fossil fuels, but progress 
is  lacking.  In  2024,  according  to  the  latest 
available  data, the fossil  fuels subsidies (FFS) 
in  place  which  do  not  specifically  address 
energy  poverty  or  genuine  energy  security 
concerns  represented  0.30%  of  Romania’s 
GDP,  a  decrease  compared  to  the  previous 
year.  However,  the  current  absence  of  a  clear 

16 

 
before 

trajectory 

2030 
phase-out 
disincentivises  electrification  and  hinders  the 
decarbonisation  of  the  energy  mix.  Due  to  an 
unfavourable  electricity-to-gas  price  ratio  (to 
which  FFS  partially  contributes),  the  share  of 
electricity 
energy 
Romania’s 
consumption has remained largely stagnant in 
the  last  decade  (around  15.8%,  below  the  EU 
average of 23.4%). 

final 

in 

but 

and 

Romania  would  benefit  from  further 
efforts to reduce its energy consumption. 
in 
Final  energy  consumption  decreased 
industry 
increased 
services 
substantially  in  the  transport  sector  (+16.3% 
since  2019).  In  the  residential  sector,  it  has 
decreased  by  only  4.3%  since  2019,  whereas 
Romania’s Long-Term  Renovation  Strategy 
sets  a  target  of a 9%  reduction  by  2030 
(compared to  2020 levels).  The building  stock 
currently  accounts  for  40%  of  total  final 
energy consumption. Investments in its energy 
efficiency continue to be needed. For Romania, 
the  2025  CSRs  highlighted  the  need  for 
further  efforts  to  improve  energy  efficiency. 
Romania’s 
policy 
and 
programmes contain several large investments 
on  energy  efficiency  in  housing  and  public 
buildings, but progress has been slow. Further 
policy  efforts  are  needed  to  reduce  energy 
consumption,  in  particular  in  the  transport 
sector and in the building stock. 

cohesion 

RRP 

in 

the 

Emissions 
transport  sector, 
particularly road transport, are a concern 
for  Romania,  as  greenhouse  gases  (GHG) 
emissions  have  increased  (Annex  8).  Both 
the RRP and cohesion policy support measures 
to  increase  the  sustainability  of  the  transport 
sector.  The  goal  is  to  reduce  fossil  fuel 
dependence  via  electrification  and 
local 
renewables,  but  also  to  enlarge  the  public 
transport coverage in the country. Investments 
railway 
include 
infrastructure  and  the  upgrading  of  rolling 
stock.  Reforms  include  the  introduction  of  a 
distance-based  charging  system  for  trucks, 
replacing  the  time-based  system  currently  in 
place. On the other hand, progress towards the 
electrification of the car fleet remains slow. 

the  modernisation 

of 

High energy costs, low resource 
efficiency and pressures on 
environment weigh on industrial 
decarbonisation and 
competitiveness 

have 

Without decarbonisation, reinforced grids 
and  a  more  flexible  energy  system, 
industry risks losing competitiveness due 
to  high  energy  prices.  Decarbonisation  is 
unavoidable  to  maintain  competitiveness.  The 
share  of  industry  in  GDP  has  declined  every 
year  in  the  last  five  years.  Energy-intensive 
hit. 
been 
industries 
Romania’s  manufacturing  industry  has  gone 
through  significant  decarbonisation  over  the 
past  decades  but  still  has  one  of  the  highest 
intensities  of  GHG  emissions.  In  addition, 
prices  in  Romania  for  the  first  semester  of 
2025  were  imbalanced:  for  large  businesses, 
electricity was 3.4 times more expensive than 
gas,  with  taxes  and  levies  (excluding  VAT) 
accounting  for  9%  of  electricity  bills  and  1% 
of gas bills. 

particularly 

Investments 
in  clean  technology  and 
hydrogen  infrastructure  under  the  RRP 
and  the  Just  Transition  Fund 
(JFT) 
incentivise  the  decarbonisation  of  heavy 
industry, but more progress is needed. The 
industrial  sector  is  dominated  by  processes 
with  limited  flexibility  (e.g.  steel/aluminium, 
cement,  glass),  which  constrains  demand-side 
response. However, despite reforms under the 
RRP  aimed  at  supporting 
in 
renewables,  further  efforts  are  needed  to 
accelerate  the  deployment  of  new  generation 
capacity and reduce reliance on fossil fuels to 
enable decarbonisation of the heavy industry. 

investment 

impacts  on 

Environmental  degradation,  waste  and 
water  management  issues,  air  pollution 
and  biodiversity  loss  continue  to  have 
the  economy. 
negative 
systems 
Inefficient  waste  management 
characterised  by  high 
low 
recycling  rates  pose  obstacles  to  advancing 
the  circular  economy  in  Romania.  The  circular 
use  of  materials  has  been  slowly  declining 
since  2012  and  stood  at  1.3  %  in  2023,  the 

landfilling  and 

17 

 
in 

faces 

linked 

challenges 

lowest  rate in the EU. Romania is a source of 
critical  raw  materials  and  among  the  least 
dependent  on  their  imports  in  the  EU.  The 
country 
water 
management  and  infrastructure,  with  water 
productivity  well  below  the  EU  average  and 
high water-withdrawal levels in manufacturing 
and  agriculture.  At  the  same  time,  pressures 
on  ecosystems  and  biodiversity  persist, 
including  habitat  degradation 
to 
agriculture,  fisheries  and  aquaculture,  urban 
expansion  and 
infrastructure  development, 
which  affect  sectors  relying  on  ecosystem 
services.  Limited  administrative  capacity  at 
central  and  local  level  continues  to  constrain 
implementation  of  environmental  projects. 
Local  communities  often  lack  the  expertise 
and 
implement 
required 
measures effectively. Systemic weaknesses in 
administrative  procedures,  enforcement,  data 
impact 
collection 
assessment 
policy 
effectiveness  and  hinder  monitoring  of 
progress.  Investment  projects  under  the  RRP 
for  the  construction  of  facilities  for  waste 
separate collection are currently ongoing. 

environmental 
reduce 

resources 

further 

and 

to 

remains 

coverage 

insurance 

Romania  is  highly  exposed  to  climate 
change impacts. This includes droughts, river 
flooding  and  heatwaves,  which  are  already 
affecting economic activity,  infrastructure and 
public health. Heat stress exposure has surged 
in  recent  years,  and  climate-related  disasters 
losses, 
have  caused  substantial  economic 
while 
low. 
Although  Romania  has  adopted  a  National 
Strategy for Adaptation to Climate Change for 
challenges 
implementation 
2024-2030, 
persist  due 
institutional 
fragmented 
to 
administrative 
limited 
responsibilities, 
capacity,  lack  of  coordination  with  academia 
and 
integration  of  adaptation 
considerations  into  economic  and  budgetary 
from 
policies. 
for 
embedding 
by 
nationally 
laws, 
embedding 
all 
programmes, 
governance levels. 

climate-resilient 
financed 
relevant  standards 

design 
infrastructure, 

in 
across 

insufficient 

Romania 

projects 

benefit 

could 

and 

18 

 
SKILLS, QUALITY JOBS AND SOCIAL FAIRNESS 

In  2025,  Romania  received  CSRs  to 
strengthen labour market participation of 
women  and  young  people  by  improving 
the effectiveness of active labour market 
in  early 
policies  and  participation 
childhood education and care, tackle skills 
shortages  by  boosting  basic  skills  and 
labour  market  relevant  skills,  reduce 
poverty  and  social  exclusion  risks  by 
extending social protection and improving 
its  effectiveness,  as  well  as  through 
better  access  to  essential  and  enabling 
services.  Since  then,  some  measures  have 
been  implemented  to  address  the  challenges 
identified, but there is still significant room for 
improvement (Annex 1).  

Labour market challenges persist 
across population groups and 
regions 

Employment  rates  could  further  increase 
by  integrating  certain  population  groups 
into  the  labour  market  and  addressing 
regional  disparities.  The  employment  rate 
has decreased by 0.5 pp in 2025 and remains 
among the lowest in the EU (69.0% vs 76.1% 
in  the  EU)  and  below  the  2030  employment 
target  of  74.7%.  The  limited  labour  market 
participation  of  women,  young  people  and 
persons  with  disabilities,  as  well  as  Roma, 
keeps  the  rate  low,  as  do  regional  disparities 
and  a  strong  rural-urban  divide.  Economic 
opportunities,  population  growth  and  foreign 
intensity  centre  around  urban 
investment 
clusters,  while  rural  areas  still  focus  on 
agriculture  with  high  self-employment  linked 
to subsistence farming or small-scale trade.  

Employment  participation  of  women, 
Roma, youth and persons with disabilities 
continues to be limited. Romania has one of 

19 

13). 

from 

the lowest employment rates of women in the 
EU  and  a  significant  gender  employment  gap. 
The situation is worse in rural areas compared 
with urban ones. Amongst the main factors for 
gender  employment  disparities  are  limited 
enrolment  in  and  insufficient  offer  of  early 
childhood  education  and  care  (ECEC)  services, 
particularly  in  rural  areas,  and  limited  part-
time  work  options,  making  it  challenging  for 
women  to  balance  work  with  caregiving 
responsibilities 
Youth 
(Annex 
unemployment  remains  among  the  highest  in 
rural  areas 
the  EU,  with  youth 
disproportionately  affected.  High  school  drop-
out rates and a mismatch between educational 
offerings  and 
labour  market  needs  are 
contributing to low labour participation rates of 
young  people.  Addressing  these  shortcomings 
and  focusing  on  labour  market  integration 
measures  for  young  people  may  contribute  to 
better  employment  outcomes.  The  disability 
employment  gap  is  also  significantly  larger 
than  the  EU  average.  Limited  employment 
rates  among  persons  with  disabilities  are 
primarily  due 
insufficient  accessibility 
support  and  incentives  to  encourage  their 
participation  in  the  workforce  (Annex  11).  In 
line with the 2025 CSR, Romania used funding 
under the European Social Fund Plus (ESF+) to 
provide 
integrated  packages  of  activation 
measures  aimed  at  increasing  the  share  of 
women  and  youth  in  the  workforce.  These 
included measures  to  support  youth  networks, 
support  employers 
in  organising  childcare 
services,  and  stimulate  entrepreneurship, 
including  social  entrepreneurship.  Yet,  further 
efforts  are  needed  to  improve  employment 
outcomes,  particularly 
for  persons  with 
disabilities and Roma.  

to 

in  better 

Refocusing  employment  subsidies  and 
training  would  result 
job 
unemployed. 
opportunities 
Romania  predominantly  relies  on  ineffective 
and  poorly  targeted  employment  subsidies  to 
boost  labour  market  participation.  Instead, 
prioritising  the  upskilling  and  reskilling  of 

the 

for 

 
 
 
jobseekers  instead  seems  warranted,  to  equip 
them  with  the  relevant  skills  and  boost  their 
employment  chances.  Despite  improvements, 
the  Public  Employment  Services  has  limited 
capacity  to  provide  better  quality  services. 
Modernisation  efforts  are  ongoing,  under  the 
ESF+  and  the  RRP,  aimed  at  strengthening 
human  resources,  improving  the  quality  of 
services  and  developing  modern 
IT  tools. 
Nonetheless,  further  efforts  are  needed  to 
ensure  better  targeting  and  sufficient  funding 
for active labour market policies. 

to 

skills 

development, 

Romania  faces  job  quality  challenges 
related 
levels  and 
low  wage 
inadequate working conditions. The country 
has  a  considerably  higher  share  of  low-wage 
earners than the EU average, as well as one of 
the  highest  shares  of  workers  with  atypical 
working  hours  (Annex  11).  In-work  poverty 
remains  significantly  above  the  EU  average 
and is among the highest in the EU even after 
social  transfers.  Adult  participation  in  learning 
is  low,  including  among  employed  people, 
career 
hampering 
progression and potentially  labour productivity 
growth. Limited access to social protection for 
people  in  non-standard  employment  and  the 
self-employed  further  reduces  job  quality  for 
these  types  of  workers.  Despite  the  recent 
reform of the social dialogue law, supported by 
the  RRP,  collective  bargaining  coverage 
level. 
remains 
Particular  challenges  have  been  reported  with 
regard  to  social  dialogue 
in  state-owned 
enterprises.  Social  partner  consultations  are 
often formalistic and without substance. Social 
partners’  capacity  building 
is  supported 
through ESF+, yet further efforts are needed to 
strengthen  their  active  role  in  policymaking 
and reform implementation. 

low,  especially  at  sector 

Life-long skills development is 
crucial for Romania’s 
competitiveness 

Romania displays a severe deficit of basic 
skills.  Over  40%  of  15-year-olds  fall  below 
minimum  proficiency  in  mathematics,  reading, 
and  science,  placing  Romania  among  the  EU’s 
lowest  performers.  Socio-economic  disparities, 
including  parents’  education  levels,  as  well  as 

20 

and 

inequities 

reduce  functional 

school  segregation  of  Roma  and 
limited 
inclusion  of  children  with  disabilities,  further 
exacerbate 
learning 
disadvantages (Annex 13). Additionally, the low 
share  of  top-performing  students  negatively 
impacts  talent  development  and  innovation.  
On  boosting  basic  skills,  linked  to  the  2025 
CSR,  despite  pilot  projects  supported  by  the 
ESF+ under the national programme to prevent 
illiteracy,  effective 
and 
implementation and national upscaling has not 
yet  been  achieved.  The  challenges  faced  by 
teachers 
to  rapidly  evolving 
teaching  environments  and  in  implementing  a 
competence-based  curriculum  are 
further 
exacerbated  by  teacher  shortages  in  rural 
areas  and  STEM  disciplines.  While  the  ESF+ 
and  the  Technical  Support  Instrument  (TSI) 
support  the  development  of  a  competence-
based  curriculum  approach,  there  is  room  for 
improvement  in  integrating  basic  skills  across 
all  subjects,  while  preventing  curriculum 
overload.  

in  adapting 

The 

Targeted  reforms  to  close  structural 
education  gaps  and  promote  life-long 
learning  are  needed. 
‘Educated 
Romania’  reform  package,  backed  by  funding 
under  the  Recovery  and  Resilience  Facility 
(RRF), seeks to strengthen teacher training and 
specialisation, but a consistent implementation 
tailored to teacher needs is key. Despite salary 
the  cost 
in  2023  and  2024, 
increases 
reduction  measures  taken  in  2025,  such  as 
increasing  class  sizes,  increasing  the  teaching 
workload,  reorganising  and  merging  schools, 
and  imposing  salaries  freeze,  have  adversely 
impacted  teacher  working  conditions.  High 
rates of early school leaving and out-of-school 
children  restrict  children’s  access  to  further 
education  and  the  labour  market  (Annex  13). 
Although  the  RRF-funded secondary  education 
programme  aimed  at  preventing  school 
dropout  appears  promising,  the  planned  ESF+ 
measures  in  primary  education  are  still  to  be 
implemented. 
and 
reintegration measures, including enforcement 
of  compulsory  education,  are  necessary,  as 
second-chance measures show limited results. 

Targeted 

outreach 

To  better  align  skills  with  the  needs  of 
the  labour  market,  Vocational  Education 
and Training (VET) needs to be made more 
attractive, 
quality 
training and more opportunities for work-

offering 

higher 

 
and 

solutions 

based  learning.  Romania  faces  a  significant 
structural  skills  mismatch,  adversely  affecting 
the  country’s  competitiveness  and  people’s 
skills  development.  Skills  shortages  are 
especially  acute  in  sectors  relevant  to  the 
green transition (15). The construction sector is 
particularly  affected,  but  also  other  sectors 
such  as  waste  and  circular  economy,  water, 
nature-based 
biodiversity 
conservation.  These  are  exacerbated  by  a 
major  deficit  of  basic  digital  skills  (31.8%  vs 
EU  60.4%  in  2025).  Although  a  high  share  of 
upper-secondary  students  attend  VET  (61.2% 
vs  52.9%  in  the  EU  in  2024),  employment 
outcomes  for  VET  graduates  are  limited  and 
well  below  the  EU  average  (63.4%  vs  80.2% 
EU in 2025). This suggests that the current VET 
curriculum is of limited relevance to the labour 
market. Providing more opportunities for work-
based  learning  and  offering  dual  VET  degrees 
classroom 
with 
(combining 
apprenticeships) 
this 
could 
shortcoming.  Beyond  completing  ongoing  RRF 
initiatives,  such  as  the  establishment  of 
integrated  VET  campuses  and  their  equipping, 
it  would  be  useful  to 
involve  economic 
operators  more  closely  in  the  provision  and 
design of work-based learning.  

learning 
address 

is  a  precondition 

Educating and retaining workers with high 
qualifications 
for 
continued  economic  growth.  Romania’s 
tertiary  attainment  rates  among  25-34  olds 
are significantly below the EU average and the 
2030 EU-level  target, due to high numbers of 
students  leaving  school  without  graduating, 
low  participation  of  disadvantaged  students, 
high  post-secondary  dropout 
rates,  and 
emigration.  Despite  high  enrolment  numbers, 
the supply of STEM graduates is already falling 
short  of  demand,  which  is  set  to  increase  by 
2035.  The  National  Programme  for  Reduction 
of  University  Dropout  (PNRAU),  funded  by  the 
ESF+, supports young adults with scholarships 
and 
career 
counselling,  and  remedial  education,  allowing 
them  to  achieve  their  degree.  This  measure 
in  student 
complements  RRP 
accommodation  and  related 
infrastructure, 
aiming to improve material conditions and the 
learning  environment.  In  addition,  Romania 

housing/meal 

investments 

assistance, 

(15)  OECD (2024), Job Creation and Local Economic 
Development 2024: ‑ Country Notes: Romania. 

could take additional measures to develop and 
retain  highly  skilled  talent,  e.g.  by  boosting 
STEM  capacity 
through  enhanced  STEM 
education  from  school  and  by  better  aligning 
higher  education  programmes  with 
labour 
market  needs. Improving the attractiveness of 
the  tertiary  education  sector  through  better 
horizontal  and  vertical  differentiation  among 
institutional 
tertiary 
in 
governance,  and 
research activities is equally important. 

institutions, 

investment 

increased 

stronger 

Engaging  stakeholders  in  designing  adult 
learning  strategies  and  making  best  use 
of  available  data  on  skills  needs  and 
development  are  essential  for  improving 
in 
innovation  and  economic  growth 
Romania.  While  Romania  achieved  its  2030 
national skills target already in 2022, the adult 
learning rate remains among the lowest in the 
EU  (19.1%,  EU:  39.5%).  Employees  in  the 
private  sector  have  limited  life-long  learning 
opportunities,  with  only  17.5%  of  firms 
providing  some  form  of  Continuing  Vocational 
Education and Training (CVET). This reflects the 
private sector’s weak engagement in upskilling. 
In this context, further strengthening the adult 
learning  system  through  a  forward-looking 
approach  to  training,  engaging  the  private 
sector in skills developments and making best 
use  of  skills  intelligence  are  crucial.  The 
implementation  of  adult  learning  strategies, 
largely  supported  by  the  ESF+  and  the  RRP  is 
key.  RRP  investments  in  upskilling/reskilling 
employees 
low-level 
qualifications,  in  particular  for  green  and 
digital skills, are ongoing, with the potential to 
reach  over  100 000  persons.  Romania  could 
benefit  from  further  strengthening 
inter-
ministerial  and  cross-sectoral  coordination  of 
policymaking for skills development, as well as 
make better use of relevant available data and 
involve  more  closely  the  private  sector  in 
upskilling and reskilling.   

people  with 

and 

More  efforts  are  needed  to  address  the 
persistent  urban-rural  divide  across  all 
levels  of  education  services.  Romania  has 
stark  urban-rural  disparities  across  the  entire 
education  spectrum,  with  nearly  half  of  the 
population  living  in  rural  areas  where  small 
schools  prevail  (Annex  18).  The  rural-urban 
basic  skills  gap  is  the  largest  in  the  EU,  with 
rural students scoring substantially lower than 
their  urban  peers.  Only  two-thirds  of  adults 

21 

 
 
in 

living 
rural  areas  complete  primary 
education and just one in fifteen attain tertiary 
education. The early school leaving rate in rural 
areas (23.7%) is substantially higher compared 
to  urban  areas  (4.6%)  and  almost  double  the 
national  average.  ECEC  participation  lags  due 
to  limited  availability,  access  challenges,  and 
socio-economic  barriers.  Rural  schools  suffer 
from 
teacher  shortages  exacerbated  by 
unattractive  working  conditions.  Functional 
illiteracy,  early  school  leaving,  and  higher 
education  dropout  levels  could  be  reduced 
through 
targeted  support  under  current 
measures.  The  school  network  would  benefit 
from 
school 
desegregation  and  commuting  support  to 
for  both  students  and 
improve  access 
teachers’ 
teachers,  along  with 
working conditions in rural areas. 

reorganisation, 

improving 

ensuring 

Ensuring social fairness requires 
effective social protection and 
access to enabling and essential 
services 

Romania is facing high poverty and social 
exclusion  risks,  particularly  affecting 
children.  Despite  consistent  progress,  the 
country has one of the highest risks of poverty 
or social exclusion in the EU (27.94% vs an EU 
average  of  20.9%),  with  children  even  more 
exposed  (32.8%  vs  24.3%  in  the  EU);  these 
rates are even higher in rural areas (Annex 18). 
Vulnerable groups, such as Roma, persons with 
disabilities,  and  populations  with 
lower 
education,  face  elevated  risks.  While  a  far-
reaching policy framework, including the 2022-
2027 National Strategy on Social Inclusion and 
Poverty  Reduction,  and  sectoral  strategies  are 
in  place,  Romania's  social  protection  system 
still  lags  in  terms  of  adequacy  and  coverage, 
necessitating 
to  achieve 
targeted  efforts 
poverty  reduction  goals  by  2030  and  to 
implement  the  2025  CSR  on  reducing  poverty 
and  social  exclusion  risks.    Strengthening  the 
system's 
stability, 
resilience,  and  monitoring  and  evaluation 
processes  is  crucial  to  reducing  poverty  and 
fostering social inclusion nationwide, as well as 
delivering on the European Child Guarantee.  

efficiency, 

funding 

22 

areas 

insufficient,  particularly 

Access to essential and enabling services 
for 
remains 
disadvantaged, 
and 
rural 
vulnerable  groups.  Social,  health  and 
educational  services  continue  to  be  unevenly 
available,  and  marginalised  communities  such 
as  the  Roma  have difficulties  accessing them. 
A 2024 reform to improve the quality of social 
and care services is a promising starting point, 
but  it  will  require  appropriate  institutional 
backing  and  monitoring,  as  well  as  timely 
adoption  of  secondary  legislation,  especially 
for 
the  beneficiary’ 
follow 
cross-government 
mechanism. 
coordination,  closer  cooperation  between  key 
ministries,  meaningful  involvement  of  Roma 
NGOs  and  communities,  and  stronger  action 
against  anti-Roma  racism  and  segregation 
would  also  be  beneficial.  Considerable  EU 
support  is  available,  including  for  a  flagship 
in  2025  to  scale  up 
initiative 
integrated  social,  health,  and  educational 
services 
rural 
communities.  

to  2 000  disadvantaged 

launched 

Strong 

‘funds 

the 

Strengthening  prevention  and  primary 
care  is  essential  to  reducing  avoidable 
mortality  in  Romania.  In  2025,  preventable 
and  treatable  mortality  remained  very  high, 
reflecting  low  investment  in  and  lack  of  a 
coordinated, multisectoral approach to primary 
prevention. This is particularly concerning given 
the  high  prevalence  of  lifestyle  risk  factors  in 
the population, including obesity, poor diet, low 
physical 
alcohol 
consumption.  Weak  primary  care,  also  due  to 
lack  of  staff,  limits  opportunities  for  early 
intervention.  This  further  drives  the  levels  of 
avoidable  hospital  use  and  the  associated 
costs (Annex 15). Moreover, prohibitive out-of-
pocket  costs  for  households  contribute  to 
unmet  medical  needs,  especially  outside  the 
capital. 

activity, 

rising 

and 

care 

(LTC) 

Long-term 
services, 
particularly  home  care,  are  insufficient 
and community-based services to support 
living  of  persons  with 
independent 
disabilities remain scarce. Romania has one 
of  the  highest  rates  of  self-reported  LTC 
needs,  but  one  of  the 
lowest  homecare 
coverage  rates  and  public  expenditure  levels. 
Rural  and  remote  communities  often  have 
scarce,  uneven  and 
low-quality  services. 
Shortages  of  qualified  staff  result  in  a  high 

 
informal  carers.  Despite 

reliance  on 
the 
legislative  reforms  on  deinstitutionalisation 
(DI)  supported  through  the  RRP,  a  substantial 
share  of  adults  with  disabilities  still  reside  in 
large  and  small-scale  institutions,  while  non-
residential  community-based  services  and 
support  remain  scarce.  Improved  coordination 
to  address  delays  in  implementing  the  DI 
strategy, as well as the RRP-supported LTC and 
active aging strategy for 2023-2030, is crucial, 
especially  on  access  for  the  most  vulnerable, 
but  also  for  those  with  moderate  needs. 
Additional  measures  to  address  the  growing 
mental health challenges in the country, and to 
strengthen 
the  LTC  workforce  would  be 
beneficial (Annex 12). 

in  Romania 

is  scarce 
Social  housing 
despite  high  needs.  In  2024  households 
experiencing  poverty  spent  more  than  twice 
the  share  of  their  disposable  income  on 
housing  compared  with  average 
income 
households. Poor housing conditions in general 
remain  widespread,  affecting 
in  particular 
including  persons  with 
vulnerable  groups, 
disabilities  and  Roma  households.  The  2022-
2050  National  Housing  Strategy,  part  of  the 
RRP,  aims  to  deliver  approximately  40 000 
social  housing  units  by  2050,  but  still  lacks 
dedicated  financing  for  municipalities,  or  a 
framework  on  waiting 
monitoring 
lists. 
Improving 
cooperation, 
interinstitutional 
allocating sufficient funding, proper monitoring 
and introducing legislation to allow for a wider 
diversity  of  social  housing  models  can 
contribute  to  expanding  the  social  housing 
stock and tackling segregation (Annex 16). 

boost 

upward 

Addressing  these  challenges  will  help 
Romania 
social 
convergence.  The  second-stage  analysis  in 
line  with  the  Social  Convergence  Framework 
points  to  challenges  for  Romania  that  may 
affect  social  convergence  in  relation  to  its 
labour market, education and skills, as well as 
its social situation (16). 

(16)  European  Commission,  SWD(2026)  122  final.  The 
analysis  relies  on  all  the  available  quantitative  and 
qualitative evidence and the policy response undertaken 
and planned.  

23 

 
 
KEY FINDINGS 

In areas covered by existing CSRs, Romania 
would benefit from: 

•  continuing 

implementing 

fiscal 
fully 

consolidation, 
including  by 
the 
general  and  special  pension  reforms, 
designing  and  implementing  a  reform  of 
public  sector  wage  conducive  to  greater 
fairness  and 
fiscal 
strengthening 
and 
sustainability, 
budgetary  procedures  to  ensure  better 
control over public investments; 

contributing 

to 

•  boosting  innovation  and  research  to 
increase  productivity  and  economic 
growth  by  ensuring  reliable  long-term 
public  R&D  investment,  fostering  private 
regional 
also 
investment, 
disparities, 
researcher’s 
strengthening 
careers, and enhancing business-academia 
cooperation; 

reducing 

the 
of 

quality 
the 

•  strengthening 
and 
effectiveness 
public 
to 
administration  with  a  view 
improving  the  business  environment 
and  Single  Market  access  through 
higher  predictability  and  quality  of  law 
making, 
regulatory  and 
administrative processes for businesses, in 
particular 
the 
digitalisation  of  public  services,  and 
increasing  competition  and  preventing 
corruption risks in public procurement; 

streamlining 

stepping 

SMEs, 

up 

energy system by scaling up renewables, 
phasing out coal and lignite use and fossil 
fuel subsidies, increasing energy efficiency 
buildings,  while 
in 
transport 
strengthening 
flexibility  and 
infrastructure,  specifically  by 
electricity 
investing  in  transmission,  distribution  and 
energy storage infrastructure; 

and 
system 

investment 
infrastructure, 

in 
facilitating 
environmental 
in 
particular  in  the  circular  economy  and 
waste  management,  water  resilience  and 
management,  focusing  on  nature-based 
solutions  and  projects  with  an  impact  on 
air pollution and biodiversity conservation; 

fostering  upward  social  convergence 
by further reducing poverty and social 
exclusion risks, in particular for children, 
Roma  and  persons  with  disabilities,  by 
improving access to essential and enabling 
services, 
in 
disadvantaged areas, as well as improving 
social 
coverage 
protection; 

including  social  housing, 

adequacy 

and 

of 

rates 

youth, 

persons 

increasing  employment 
for 
with 
women, 
disabilities  and  Roma  through  more 
effective, 
targeted  and  better-funded 
active  labour  market  policies  and  through 
improved  provision  of  early  childhood 
education and care; 

• 

• 

• 

to 

•  expanding  firms’  access  to  bank  and 
non-bank 
promote 
financing 
investment,  notably  by  appropriate  use 
of national and EU guarantee schemes for 
SMEs,  easing  markets  participation  of 
retail  and  institutional  investors,  including 
pension  funds,  as  capital  providers  and 
increasing financial literacy; 

•  speeding  up  the  transition  to  a 
modern,  affordable  and  sustainable 

24 

•  promoting 

human 

capital 
development, tackling skills shortages 
and  skills  mismatches  with  labour 
market  needs  by  boosting  basic  skills, 
increasing 
teaching  quality, 
improving 
participation  at  all  levels  of  education, 
reducing early school leaving and retaining 
highly  skilled  talent,  while  addressing  the 
persistent  urban-rural  divide  across  all 
levels of education; 

 
 
• 

in-work  poverty  and  the 
reducing 
prevalence  of  atypical  working  hours 
through 
collective 
strengthening 
bargaining and improving adult learning to 
improve job quality. 

In other areas, Romania would benefit from: 

• 

increasing  overall  tax  collection  as  a 
share of GDP, by focusing on closing the 
VAT  and  CIT  gaps  and  fully  implementing 
the tax administration reform; 

•  strengthening  the  implementation  of 
the  corporate  governance  framework 
for state-owned enterprises, while also 
promoting 
and 
efficiency of the sector; 

rationalisation 

the 

• 

increasing  the  connectivity  of  remote 
and  rural  areas  and  within  regions 
through  sustainable,  safe  and  smart 
transport networks and services; 

•  strengthening  climate  resilience  of 
infrastructure  by  accelerating  climate 
adaptation 
increasing 
investments  and 
climate risk insurance coverage; 

• 

improving  the  attractiveness  and 
quality  of  Vocational  Education  and 
Training  while  expanding  work-based 
learning  to  tackle  skills  shortages  by 
strengthening  private-sector  involvement 
and cross-governmental coordination; 

•  pursuing  targeted  investments  and 
cost-effective  measures  to  shift  the 
focus  from  hospital  care  services  to 
outpatient 
primary, 
the 
services, 
availability 
in 
underserved  areas  and  improving  access 
to long-term care. 

community 
while 
of 

and 
strengthening 

qualified 

staff 

25 

 
ANNEXES 

 
 
 
 
LIST OF ANNEXES 

A1.  CSR implementation 

Fiscal 

A2.  Fiscal developments and debt sustainability 

A3.  Taxation 

Productivity 

A4. 

Innovation to business 

A5.  Single market and industry 

A6.  Savings, investment and access to finance 

A7.  Effective institutional framework 

Sustainability 

A8. 

Industry decarbonisation, circularity and climate mitigation 

A9.  Affordable energy transition 

A10.  Climate adaptation, preparedness and environment 

Fairness 

A11.  Labour market 

A12.  Social policies 

A13.  Education and skills 

A14.  Social scoreboard 

A15.  Health and health systems 

A16.  Housing 

Horizontal 

A17.  Sustainable development goals 

A18.  Competitive regions 

A19.  Transport 

LIST OF TABLES 

A1.1. 
A2.1. 
A2.2. 
A2.3. 
A2.4. 
A3.1. 

2025 CSR implementation and Commission assessment 
Projected change in ageing-related expenditure in 2025-2040 and 2025-2070 
Supplementary pension schemes - Scope for expansion 
Fiscal governance database indicators and public accounting maturity 
Implementation of Reforms and Investments underpinning an extension 
Taxation Indicators 

29 

29 

37 

37 

44 

49 

49 

55 

63 

70 

76 

76 

84 

91 

101 

101 

105 

109 

114 

115 

119 

124 

124 

126 

133 

29 
40 
40 
41 
42 
45 

 
 
 
Key Innovation Indicators 
Single Market and Industry 
Savings and Investments Union summary diagnostic 
Financial sector indicators 
Romania. Selected indicators on better regulation practices for primary legislation 
Digital Decade key performance indicators: availability of digital public services 
Key clean industry and climate mitigation indicators: Romania 

A4.1. 
A5.1. 
A6.1. 
A6.2. 
A7.1. 
A7.2. 
A8.1. 
A10.1.  Key Adaptation Indicators 
A14.1.  Social Scoreboard for Romania 
A15.1.  Key health indicators 
A18.1.  Main development trends, challenges and concentration of resources 
A18.2.  Key regional indicators (at NUTS 2 level) for Romania 
A19.1.  ERTMS deployment in Romania. 

LIST OF GRAPHS 

Composition of non-financial corporations' funding 
Capital markets and financial intermediaries 
Composition of households' financial assets  
Trust in justice, regional / local authorities and in government 

Contributions to the change in the general government balance (% of GDP) 
Public investment evolution and composition (% of GDP) 
Primary spending evolution and composition 
Tax revenue by economic function in 2024, RO (outer ring) and EU-27 (inner ring) 
Tax wedge for single and second earners as a % of total labour costs, 2025 
R&D intensity (GERD, GOVERD and BERD as % of GDP) 

A2.1. 
A2.2. 
A2.3. 
A3.1. 
A3.2. 
A4.1. 
A5.1.  Manufacturing output: total and selected sectors, index (2021=100), 2015-2024 
A6.1. 
A6.2. 
A6.3. 
A7.1. 
A7.2.  Most time-consuming aspects of service delivery 
A8.1. 
A9.1. 
A9.2. 
A9.3. 
A11.1.  Key labour market indicators 
A12.1. 
A13.1.  Difference in average basic skills performance between schools in urban and rural areas 2022, Romania and EU 
A15.1.  Treatable mortality 
A15.2.  Potential gains in working-life years from prevention, between 2022 and 2040 
A16.1.  House supply indicators in RO since 2005 
A16.2.  Housing affordability selected indicators 
A17.1.  Progress towards the SDGs in Romania 
A18.1.  Labour productivity growth (2013-2023) and labour productivity (2023), Romania (NUTS 2 regions) 
A18.2.  The share of children with a primary school within a 15-minute walk and the share of population with a hospital within 10-

Greenhouse gas emissions in the effort sharing sectors, 2005, 2023, and 2024 
Electricity and gas prices for household and non-household consumers, first half of 2025 
ow-carbon electricity generation vs. electricity wholesale prices, 2025 L 
Romania’s installed renewable capacity vs electricity generation mix 

Impact of social benefits (excluding pensions) on poverty reduction 

minute drive by car in rural areas, (NUTS 2), 2023 

A19.1.  Romania's road fatalities per million, 2025 

LIST OF MAPS 

A18.1.  GDP per head compared with the EU average. 
A18.2.  Competitiveness in Romanian regions, 2022 
A18.3.  Average annual population change at NUTS 3 level (2015-2024) 
A19.1.  TEN-T cross-border & national priority sections in Romania. 
A19.2.  Romania's road safety map 

30 

54 
62 
63 
69 
71 
72 
83 
99 
114 
117 
127 
131 
134 

37 
38 
39 
44 
47 
49 
60 
64 
65 
66 
70 
71 
78 
84 
85 
87 
101 
106 
111 
115 
116 
120 
123 
124 
126 

130 
136 

126 
128 
129 
135 
137 

 
 
 
 
 
 
ANNEX 1: CSR IMPLEMENTATION  

Table A1.0: 2025 CSR implementation and Commission assessment 

(Continued on the next page) 

31 

Romania faces challenges in a wide range of policy areas, as identified in the country-specific recommendations (CSRs). Romania was recommended, among other things, to tighten fiscal policy and ensure debt sustainability, improve public administration and governance, accelerate infrastructure and private investment, accelerate the green transition, boost labour market participation and skills, and reduce poverty and social exclusion risk.  The Commission has assessed the degree of implementation of the 2025 CSRs considering the policy action taken by Romania to date*. To do so, the Commission has taken into account the information provided by Romania in its Annual Progress Report as well as other information sources. This annex provides summary information on the policy actions taken or planned by Romania for each CSR. More detailed information on these actions is included in the relevant chapters and other annexes of the report. *CSR 2 is not assessed in CeSaR. RRP implementation is monitored through the assessment of RRP payment requests and analysis of the bi-annual reporting on the achievement of the milestones and targets, to be reflected in the country reports. Progress with the cohesion policy is monitored in the context of the Cohesion Policy of the European Union. Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  1.1 Reinforce overall defence spending and readiness while ensuring debt sustainability in line with the European Council conclusions of 6 March  Total general government defence expenditure in 2026 is projected at 1.7% of GDP, corresponding to an increase of 0.1 pps. compared to 2024. Total general government defence expenditure in 2027 is projected at 1.8% of GDP, corresponding to an increase of 0.2 pps. compared to 2024. Romania has also taken steps to reinforce defence and security spending through the EU’s SAFE instrument, with a loan envelope amounting to a maximum of EUR 16.68 billion Substantial progress 1.2 Considerably tighten fiscal policy to ensure that net expenditure stays within the corrective path under the Excessive Deficit Procedure and to bolster the external position. Annual and cumulated deviations in 2025 amounted to -0.8% of GDP. The EDP is held in abeyance. Fiscal consolidation also contributed to a gradual correction of external imbalances with current account deficit declining from 8.2% of GDP in 2024 to 7.9% of GDP in 2025. Annual and cumulated deviations in 2026 are projected at -0.3% of GDP and -1.1% of GDP, respectively. Full implementation 1.3 Implement the set of reforms and investments underpinning the extended adjustment period as recommended by the Council on 21 January 2025 See table A.2.4 in Annex 2 of the Country Report. The implementation of the key steps of these reforms and investments that were due by 30 April 2026 seems to be broadly on track. Substantial Progress 3.1 Improve the quality and effectiveness of public administration  In line with Romania’s 2021-2027 Partnership Agreement, the National Administrative Capacity Building Roadmap and eight Regional Administrative Capacity Building are currently under implementation.   Through a Technical Support Instrument (TSI) funded project, Romania The RRP includes measures on the organisation of national recruitment competitions for civil servants and the introduction of competence-based frameworks for recruitment, evaluation and career development, alongside the digitalisation of HR management systems. These measures are ongoing with a completion date mid-2026.  The draft Government Decision approving the Strategy in the field of Some Progress    
 
 
 
 
 
 
 
 
 
 
  
 
Table (continued) 

(Continued on the next page) 

32 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  has developed a digital competence framework for civil servants.   The new 2025–2030 national strategy for innovation in the public sector proposes measures to create a culture of innovation in public administration.  The public administration reform adopted at the beginning of 2026 aims to streamline decentralisation, introduce competency-based performance evaluations for civil servants, limit temporary leadership appointments, cut advisory staff and reduce personnel spending by 10% across central institutions. the civil service for the period 2027–2032 is currently under preparation, with a deadline for its approval by the Government in the first semester of 2026. 3.2 and the predictability of decision-making Slight decrease in the use of government emergency ordinances, standing at 25,5% of all primary legislation adopted in 2025, compared to 29,3% in 2024.  The RRP includes the adoption of a Plan for Better Regulation 2026-2030 aimed at improving public policy planning (planned for mid-2026). Limited Progress 3.3 while ensuring that legislative initiatives do not undermine legal certainty through appropriate stakeholder consultations, effective impact assessments and streamlined administrative procedures. Operationalised the risk-based licensing framework, introducing a classification of industrial licences into low-, medium- and high-risk categories.  GEO No. 75/2025 states that all regulatory acts impacting SMEs must receive prior approval from the Ministry of Economy to reduce administrative burden (the SME test). The RRP includes the adoption of a Plan for Better Regulation 2026-2030 aimed at improving public policy planning, impact assessment and stakeholder consultation process (planned for mid-2026). Limited Progress 3.4 Better prepare and prioritise large infrastructure projects and accelerate their implementation,  Projects prepared with technical assistance within the Large Infrastructure Operational Programme have been contracted and are under implementation. Romania's Territorial Development Strategy will provide a framework for coordinating and prioritizing investments in relation to the territorial dimension. Some Progress 3.5 ensure mature public investment projects are carried out in a timely manner During the 2021–2027 programming period, most of the selection criteria approved by the Monitoring Committees have prioritised mature, high- Some Progress  
 
 
  
 
Table (continued) 

(Continued on the next page) 

33 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  quality projects. 3.6 and promote private investment to foster sustainable economic development. Set up and started deploying financial instruments under RRF and Cohesion Funds to improve access to finance for firms, including SMEs.  Established a National Development Bank to improve access to finance for firms, including SMEs.  Started implementing measures to support regional business infrastructure, including incubation and acceleration services, clusters, and smart specialisation parks, under cohesion funds.  Initiated the process of simplifying legislation for Alternative Investment Funds (AIFs). The RRP includes measures (expected to be completed by August 2026): • a one-stop-shop website for industrial • a National Innovation Agency to promote private sector innovation • legislation to foster business–academia cooperation, by August 2026.  Under Cohesion Funds, calls for financing industrial parks, incubated companies, clusters, as well as for increasing the competitiveness of SMEs will be launched in the second part of 2026. Some Progress 4.1 Reduce the reliance on fossil fuels  Adoption of the Decarbonisation Law with a coal phase out calendar by 2023.   Romania has already decommissioned 2 830 MW of coal-fired capacity by December 2025.  Under Cohesion policy, investments in clean urban and transport infrastructure, have been financed. An additional 710 MW is expected to be decommissioned by August 2026; however, a certain share of coal-fired capacity will remain in operation until 2032. Some Progress 4.2 In particular by speeding up the roll-out of renewable energy, improving grid capacity, strengthening cross-border electricity connections, advancing regulatory reforms that de-risk clean energy projects, and improving transparency and efficiency in the permitting process. In 2025, RO launched its second and third Contracts for Difference (CfD) auctions for renewables. These auctions resulted in the allocation of 3,067 MW of new renewable energy capacity, consisting of 1,488 MW solar photovoltaic and 1,579 MW wind.  Completion of electricity transmission infrastructure supporting the integration of Moldova’s power system into the European electricity market through Project of Common Interest, which plays a key role in relieving structural congestion on the RO–BG border, received a CEF grant in 2026.  Development of the legal framework for a comprehensive regional green hydrogen market by Romania, supported by the TSI.  Preparation of secondary legislation for offshore wind development in the Black Sea, also supported by the TSI. Some Progress  
 
 
  
 
Table (continued) 

(Continued on the next page) 

34 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  the Isaccea–Vulcăneşti–Chişinău and Suceava–Bălţi interconnections.  Increased investments in distribution grid modernisation, supported by EU funds, EIB loans and the Modernisation Fund.  Under Sustainable Development Program, 48.26 MW of new capacity from renewable sources will be achieved. 4.3 Also, phase out fossil-fuel subsidies in the heating sector and invest in energy efficiency,  Under Cohesion, investments on energy efficiency in public buildings and houses, as well as in modernising heating networks and increase efficiency are under implementation.  RRP investments on energy efficiency in housing, expected to be completed by August 2026.  Calls for proposals on supporting energy efficiency in public buildings will be launched in 2026 at in some region  Contracts signed for the modernisation of heating networks, and the Bucharest district heating rehabilitation project.  Investments in the energy efficiency of buildings, with a focus on single- and multi-family housing units will be deployed via financial instruments on the Multiregional Investment Platform at regional level. Limited Progress 4.4 Environmental infrastructure and innovation  Cohesion Funds absorption on wastewater has improved, while water investments under the RRF have been significantly reduced. Limited progress in improving and extending separate collection of waste.  Limited progress in reducing air pollutants.  Limited Progress 4.5 Taking into account regional disparities such as the impact on the coal regions. Entry into force of GEO 59/2025 establishing the legal framework for renewable energy communities.  Launch of the Just Transition Fund call (EUR 170 million across six JTF  Limited Progress  
 
 
  
 
Table (continued) 

(Continued on the next page) 

35 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  territories) for renewable energy development by local authorities. Through the Jiu Valley Initiative, funding is allocated to reduce dependence on fossil fuels in transport (public transport fully electric), aiming to mitigate the side effects of the transition - unemployment and energy poverty. 4.6 Wind down the emergency energy support measures in force, using the related savings to reduce the government deficit. Regulated electricity prices were ended, after a few years of maintaining price caps. However, capped prices for natural gas for households are in place until 31 March 2027.   Planned phase out of natural gas price cap in April 2027.  Limited Progress 5.1 Strengthen labour market participation of women and young people through improving effectiveness of active labour market policies  Amendment of the Social Economy Law, complementing employer support.  Ongoing tailored support for young NEETs through enhanced local collaborations between Public Employment Services (PES) and other key stakeholders.  2025-2026 ESF+ project stimulating employment with hiring incentives for employers hiring long-term unemployed, low-skilled individuals, persons with disabilities, people from marginalised groups including Roma and people over 55 years old.  Amendment of Law 76/2022 on promotion of employment,  improving access to activation measures fort women victims of domestic violence and human trafficking.  Introduction of the stability bonus for young NEETs to support retention in employment for 24 months.  2026 Calls for ESF+ funded projects addressing NEETs, development of social inclusion enterprises and support for employers to ensure childcare services, facilitating the access of women to the labour market.  Limited Progress 5.2 and participation in early childhood education and care ERDF resources have been mobilised to address structural deficits in educational infrastructure and to support equal access to education.  Ongoing ESF+ project Two RRP investments supporting the increased capacity of the early-childhood education system are ongoing, by constructing and equipping 110 crèches.  Two ESF+ projects supporting complementary services and Limited Progress  
 
 
  
 
Table (continued) 

(Continued on the next page) 

36 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  supporting teaching staff and students in ECEC training programmes. integrated education and care services in creches.   Ordinance 7841/2024 that foresees an ECEC bachelor programme for 2026. 5.3 Tackle skills shortages by boosting basic skills and labour market relevant skills of the workforce, as well as improving stakeholder engagement and making best use of skills intelligence in education and skills policies. Ongoing ESF+ adult learning projects targeted at employees and low-skilled citizens.  RRP investments in upskilling/reskilling employees in SMEs, digital skills trainings for civil servants, green energy skills trainings for specialists in clean technologies, and trainings on basic digital skills for people from disadvantaged communities.  Ongoing upper-secondary curriculum revision (supported by ESF+ and TSI) strengthening pedagogical preparation.  From 2025, a compulsory teacher competence framework guiding career development.  Ongoing projects for development of skills for smart specialisation, industrial transition and entrepreneurship within SMEs ongoing under the Smart Growth Programme. ESF+ projects expected to be launched by the end of 2026: flexibility and diversification of training opportunities and development of students’ key competences; continuous training of trainers/instructors/apprenticeship coordinators in continuing vocational training; developing and testing innovative tools for assessing competences acquired in non-formal and informal systems to facilitate mobility in employment or training; provision by employers of training programmes for career progression for disadvantaged employees. Limited Progress 6.1 Reduce poverty and social exclusion risks by extending social protection and improving its effectiveness,   The Minimum Inclusion Income Programme (VMI) that started in January 2024 continued, combining benefits which had their value increased slightly due to indexation as of March 2025 and as of March 2026.  A "Solidarity Package" was adopted in April 2026, for providing ad-hoc support to pensioners, ranging from 600 to 1000 RON. The package also foresees additional support for families of vulnerable  Limited Progress  
 
 
  
 
Table (continued) 

(Continued on the next page) 

37 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress  children.  Through ESF+ funding, between 2022 and 2025, 2.5 million social cards provided food aid to deprived families through the “Sprijin pentru Romania” programme.  As of July 2025, an electricity voucher scheme was introduced to alleviate energy costs for vulnerable consumers, substituting the previous price caps system.  With the implementation of Law 111/2024 on domestic service providers, approximatively 40,000 inactive and unemployed people benefited from domestic activity vouchers as of 30 November 2025, that includes also a basic medical insurance package.   An ad-hoc financial support (GEO 12/2025) was provided to retirees with low pensions (800 RON in 2 instalments, in April and December), to compensate for the frozen indexation of the pension decided for 2025 (and continued for 2026). 6.2 including through better access to quality essential and enabling services, focusing on integrated social, health, educational and employment services, in particular for Roma and other disadvantaged groups, The Health Programme, has contracted ESF+ and ERDF projects for the implementation of screening programs for the primary public health diseases, for the development of tools, guidelines, protocols, and training in various medical fields such as primary, outpatient, and inpatient care and for developing the infrastructure at all levels of health care but also in specific areas.     A flagship initiative to scale up integrated social, health, and educational services in 2000 disadvantaged rural communities started in 2025 supported by ESF+ and ERDF.  RRP supports investments to extend the network of day-care centers for elderly (63 centers), as well as for persons with disabilities (50 modernised and 31 new community services), to be completed by June 2026.  As of July 2026, as part of the ESF+/ERDF co-funded Social Inclusion and Dignity Programme, a project to train specialists and informal caregivers for older persons (ADAPT) will be implemented. Limited Progress  
 
 
  
 
Table (continued) 

Source: Romania’s reporting and Commission assessment 

38 

Recommendation text Main measures adopted or implemented  By 30 April 2026  Preparatory steps/ credibly announced measures By 30 April 2026 Assessm. of progress   Preparatory work for introducing a new mechanism for financing social services, based on the “funding follows the beneficiary” principle, in accordance with the Law 100/2024 reforming the social assistance/care system.   Several measures supporting the development of services for children, elderly, persons with disabilities and other vulnerable groups are planned in the coming years, as part of the ESF+/ERDF funded Social Inclusion and Dignity Programme.  ESF+ financed calls for projects under the Health Programme will be launched by the end of 2026 to support preventive services in primary and community healthcare provided by integrated community centes that were developed under the NRRP; increasing the capacity to provide rehabilitation services; and supporting the operational capacity of family planning clinics rehabilitated and equipped through the NRRP. 6.3 while maintaining fiscal sustainability. To correct the very large fiscal deficit recorded in 2024, the authorities adopted fiscal consolidation measures which, by the end of 2025, improved the budgetary outturn and the credibility of the fiscal adjustment path.    Some Progress   
 
 
  
 
FISCAL 
ANNEX 2: FISCAL DEVELOPMENTS AND DEBT SUSTAINABILITY 

Developments in the government 
balance, debt and public expenditure 
(20) 

Romania’s  fiscal  position  improved  in  2025, 
but  the  deficit  remains  exceptionally  high. 
Romania’s  general  government  deficit  fell  from 
9.3% of GDP in 2024 to 7.9% of GDP in 2025 in 
European  System  of  Accounts  (ESA)  terms.  It  is 
projected to fall further to around 6.2% of GDP in 
2026  and  5.8%  in  2027  (in  ESA  terms).  This 
trajectory  reflects  the  impact  of  two  large  fiscal 
consolidation  packages  adopted  since  mid-2025, 
stronger  spending  control  and  strict  budget 
execution  in  the  second  part  of  2025.  Even  so, 
Romania still recorded the highest deficit in the EU 
in 2025. Fiscal challenges are closely linked to the 
country’s  wider  macroeconomic  imbalances,  as 
large  public  deficits  have  fed  domestic  demand, 
inflation,  import  growth  and  the  persistently  high 
current  account  deficit.  Government  debt  rose 
from  54.8%  of  GDP  in  2024  to  59.3%  in  2025, 
mainly  as  a  result  of  still  very  large  primary 
deficits.    According  to  the  Commission’s  Spring 
Forecast,  government  debt  is  set  to  increase 
further to 61.6% in 2026 and 63.4% in 2027. 

Graph A2.1: Contributions to the change in the 
general government balance (% of GDP) 

fiscal 

(CSRs)  addressed 

This  annex  discusses  selected  topics 
in 
Romania’s  public  finance  and  developments 
in 
country-specific 
the 
to 
recommendations 
Romania  in  2025.  These  CSRs  include  a  call  to 
increase  defence  spending  while  continuing  to 
correct fiscal imbalances in line with the corrective 
path under the medium-term fiscal-structural plan 
and the excessive deficit procedure (EDP). Romania 
also  needs  to  implement  the  set  of  reforms  and 
extended 
investments 
adjustment period endorsed  by the Council  of the 
European  Union  on  21 January 2025.  These 
reform  commitments  include  a  comprehensive 
review of the tax framework, modernisation of tax 
administration,  annual  spending  reviews,  pension 
new  minimum  wage-setting 
reforms, 
a 
mechanism,  measures 
improve  business 
financing and reform of the expenditure system of 
state-owned enterprises. 

underpinning 

the 

to 

endorsing 

On 21 January 2025, the Council adopted the 
Romania’s 
Recommendation 
medium-term fiscal-structural plan for 2025 
to 2031 (17). The plan includes an extended fiscal 
adjustment  over  seven  years.  On  the  same  date, 
the  Council  adopted  a  revised  Recommendation 
under  Article  126(7)  TFEU  require  Romania  to 
bring  an  end  to  its  excessive  deficit  by  2030  (18). 
the  Commission 
However,  on  4 June 2025, 
concluded  that  Romania  had  not  taken  effective 
action  to  correct  its  deficit,  and  the  Council 
confirmed  this  on  20 June 2025  under  Article 
126(8)  TFEU.  The  Council  therefore  adopted  a 
revised  Recommendation  under  Article  126(7) 
TFEU  on  8 July 2025,  which  sets  out  a  new 
corrective  path  replacing  the  original  expenditure 
path of the medium-term fiscal-structural plan as 
the  operative  benchmark  for  EDP  monitoring.  The 
reforms and investments underpinning the  seven-
year adjustment period still remain in force (19). 

(17)  OJ C, C/2025/647, ELI: EUR-Lex - 32025H00647 – EN – 

EUR-Lex. 

(18)  OJ C/2025/1264, ELI: EUR-Lex - 32024R1264 – EN – EUR-

Lex. 

(19)  Compliance by Romania with the maximum growth rates of 
net expenditure recommended by the Council is assessed 
in [COM(2026)200]. 

Source: European Commission 2026 Spring Forecast 

(20)  Figures underpinning fiscal surveillance (net expenditure 
growth) are provided in the Fiscal Statistical Tables 
SWD(2026)200 providing background data relevant for the 
assessment of the budgetary policies of the Member States. 

39 

-4-3-2-10123452021202220232024202520262027RevenueExpenditureChange in budget balance% of GDP 
 
 
 
   
 
 
 
Public  expenditure  growth  remained  very 
high  in 2024  and 2025,  and  the composition 
of  spending  remains  a  central  issue  for  the 
quality  of  public  finances.  Current  expenditure 
interest  payments, 
pressures  from  pensions, 
defence  and  fixed  capital  spending  remained 
substantial, even as tighter control of other current 
spending  helped  improve  the  fiscal  outcome  in 
2025.  In  particular,  public  investment  rose  to 
exceptionally  high  levels  by  EU  standards,  at 
around  6%  of  GDP,  against  3.5%  of  GDP  on 
average in the EU (see Graph A2.2). The budget for 
2026 plans a further increase in public investment 
to  close  to  7%  linked  to  the  final  phase  of  the 
national  recovery  and  resilience  plan  (NRRP)  and 
the  rise  in  cohesion  policy  spending.  Romania 
would  benefit  from  preserving  high-quality  EU-
funded  investment  while  reducing  domestically 
financed  projects  of  lower  quality  and  avoiding  a 
post-RRP  cliff  effect  in  investment  in  2027  and 
beyond. 

Graph A2.2: Public investment evolution and 
composition (% of GDP) 

Source: European Commission 2026 Spring Forecast 

The  CSRs  addressed  to  Romania  in  2025 
included a call to considerably tighten fiscal 
policy  to  secure  a  lasting  correction  of  the 
excessive  deficit.  Romania  responded  to  this 
recommendation  by  adopting  two  large  fiscal 
consolidation  packages  in  July  and  September 
2025. Together, these measures are estimated  at 
around  3.7%  of  GDP  over  2025  and  2026  and 
include: (i) an immediate increase in the two main 
VAT rates, from 9% and 19% to 11% and 21%; (ii) 
the introduction of a health contribution for higher 
income  pensioners;  (iii)  higher  taxation  on  banks; 
(iv) a higher dividend tax rate; and (v) extension of 
the public wage and pension freeze into 2026. The 
second  package,  adopted  in  September  2025, 
plans  for:  (i)  an  increase  in  property  taxation 
(which is very low by EU standards); (ii) a new fee 

40 

on  parcels  imported  from  outside  the  EU;  (iii)  a 
special tax aimed at limiting profit shifting abroad; 
and  (iv)  higher  taxation  of  polluting  vehicles. 
Altogether, 
contain 
immediate  fiscal  risks  and  significantly  helped  to 
preserve  Romania’s  investment  grade  rating  at  a 
time  of  heightened  market  sensitivity  to  fiscal 
sustainability.  

these  measures  helped 

of 

The  2025  CSRs  also  recommended  that 
Romania  implement  the  set  of  reforms  and 
investments  underpinning  the  extension  of 
the  adjustment  period  endorsed  by  the 
Council  in  January  2025.  These  commitments 
include:  (i)  a  comprehensive  review  of  the  tax 
framework; 
tax 
(ii)  modernisation 
administration;  (iii)  annual  spending  reviews;  (iv) 
pension  reform; 
(v)  reform  of  public  sector 
remuneration;  (vi)  measures  to  improve  business 
financing,  and  (vii)  reform  of  the  expenditure 
system  of  state-owned  enterprises.  Some  steps 
were  taken  in  2025.  Some  of  reforms  have 
already  been  implemented,  including  on  tax  and 
pensions  (both  the  general  system  and  special 
pensions). Modernising  the  tax  administration  is  a 
key  priority  for  2026.  Romania’s  revised  RRP 
includes detailed commitments to this effect. This 
because 
reform 
Romania’s  VAT  gap  is  still  the  largest  in  the  EU. 
Another  major  area  for  reform  in  2026  is  the 
public  sector  remuneration  system,  which  should 
introduce  greater  fairness  while  contributing  to 
fiscal  consolidation  efforts.  Public 
investment 
management will also require further progress, as 
recent  developments  highlight  deficiencies  in  all 
stages  of  budgeting  (planning,  monitoring  and 
execution). 

particularly 

important 

is 

in 

European 

trajectory  defined 

Defence  spending  is  set  to  rise  materially 
in  the 
over  the  medium  term,  moving 
opposite direction to the medium-term fiscal 
consolidation 
the 
context of the EDP. In the 2025 CSRs, Romania 
was  asked,  like  all  Member  States,  to  increase 
overall defence spending and readiness in line with 
the 
of 
Council 
6 March 2025, while preserving debt sustainability. 
Defence  spending  is  expected  to  rise  to  3.5%  of 
GDP  by  2028.  Romania  is  expected  to  benefit 
significantly  from  the  SAFE  instrument,  with  an 
allocation  of  EUR 16.68  billion.  This  should  ease 
financing constraints for defence procurement, but 
SAFE  support  takes  the  form  of 
loans  and 
therefore adds to deficits and debt when recorded. 
Romania did not request activation of the Stability 

conclusions 

0.01.02.03.04.05.06.07.0201920202021202220232024202520262027Other nationally-financedRRF grants and other EU fundsDefence 
     
and  Growth  Pact  national  escape  clause  for 
defence  spending.  This  means  higher  defence 
outlays  will  need  to  be  accommodated  within  the 
EDP fiscal consolidation path, which increases the 
importance  of  prioritising  expenditure  and 
medium-term budget planning. 

The  type  of  expenditure  with  a  greater 
impact  on  GDP  has  remained  broadly  stable 
for  nearly  three  decades;  however,  it  has 
increased slightly since 2017, peaking during 
the  pandemic  before  stabilising  again. 
Zooming in on the composition of spending, social 
protection  accounts  for  the  largest  share  of  total 
expenditure  (above  30%),  followed  by  economic 
affairs,  general  public  services  and  health,  which 
each  account  for  at  least  10%  of  total  spending. 
Since 2019, public expenditure on other economic 
affairs  and  interests  has  increased  significantly 
(see  Graph  A2.3).  Spending  on  housing,  defence 
and  environment  has  risen  more  modestly.  By 
contrast,  spending  on  communication,  R&D, 
transport, education  and  health has  declined.  This 
trend  deserves  attention,  as  these  spending 
categories  are  generally  considered  growth 
friendly.  In  the  case  of  education,  the  decline  is 
particularly  concerning,  as  spending  is  below  the 
EU  average  and  student  performance  remains 
weak (See Annex 13 for further details). 

of 

tax 

are 

and 

GDP 

social 

relies 

revenues 

contributions) 

Romania has relatively low tax revenues as a 
heavily 
share 
on consumption taxes. In  2024, Romania’s  total 
tax  revenues  as  a  percentage  of  GDP  (including 
compulsory 
amounted 
to 27.9%,  compared  with  the  EU  average of 
39.4%. Total 
projected 
to increase to 28.6%  of  GDP  in  2025, 29.6%  of 
GDP in 2026, and 29.7% in 2027 according to the 
Commission’s 2026 Spring Forecast. The tax mix in 
Romania  relies  heavily  on  consumption  taxes 
(37.3% of tax revenues vs EU average of 26.8%). 
The  flat-rate  personal  income  in  Romania  risks 
reducing  the  tax  revenue  from  labour  taxation 
and limits the redistributive power of the tax-and-
benefit system. In addition, revenue from property 
taxation,  including  recurrent  taxation,  is  also  well 
below the EU average (see Annex 3). 

Graph A2.3: Primary spending evolution and 
composition 

Source: Eurostat 
Note: Based on economic literature, the categories considered 
to have a greater growth impact include education, R&D, 
health, transport and communication (See Barbiero and 
Cournede (2013), Gemmel et al. (2016), Lupu et al. (2018), 
Cepparulo and Mourre (2020) and OECD (2025)).   

The costs of ageing 

Total  ageing-related  spending  in  Romania  is 
projected  to  rise  by  about  0.5  percentage 
points  (pps)  of  GDP  by  2040  but  to  fall  by 
around  2 pps  by  2070  (see  Table  A2.1).  The 
decline  in  the  long-term  stems  from  a  projected 
fall  in pension  spending, which more than  offsets 
an  expected  rise  in  public  healthcare  and  long-
term care expenditure.  

Public  pension  spending  as  a  percentage  of 
GDP  is  projected  to  decline  slightly  between 
now and 2040 but by about 3 pps in the long 
term.  Between  now  and  2070,  public  pension 
outlays  would  represent  around  7.5%  of  GDP, 
compared with an EU average of about 12%.  

41 

510152030354045200720082009201020112012201320142015201620172018201920202021202220232024Primary expenditureSpending with higher impact on GDP (rhs)-2.00-1.50-1.00-0.500.000.501.001.502.002.503.00HealthSocialprotectionPublicorderEducationTransportR&DGeneralservicesCultureCommunicationEnvironmentDefenceHousingInterestspendingOther economicb)Compositional change (% total spending) since 2019  
  
Table A2.1:  Projected change in ageing-related expenditure in 2025-2040 and 2025-2070 

Source: 2024 Ageing Report (EC/EPC). 

Table A2.2:  Supplementary pension schemes - Scope for expansion 

Source: European Commission. 

Supplementary pension schemes can increase 
the  resilience  of  the  pension  system  by 
diversifying  retirement  income  sources.  In 
Romania,  however,  uptake  of  such  schemes 
remains  modest.  At  the  end  of  2024,  private 
pension  assets  amounted  to  around  9%  of  GDP 
in  supplementary  schemes 
while  participation 
covered  around  70%  of 
the  working-age 
population  (21).  This  coincides  with  rising  both:  (i) 
medium-term  pressures  on  public  pension 
spending;  and  (ii)  a  projected  decrease  in  the 
replacement  rate  by  3.6 pps  between  2025  and 
2040 (Tables A2.2 and A2.3) (22). 

Public healthcare expenditure is projected to 
be  4.5%  of  GDP  in  2025  (below  the  EU 
average of 6.6%) and is expected to increase 
by  0.4  pps  between  now  and  2040  and  by  a 
further 0.2 pps  between 2040 and 2070 (23). 
Public  expenditure  on  long-term  care  is  projected 
to  be  0.4%  of  GDP  in  2025  (well  below  the  EU 
average  of  1.7%)  and  is  expected  to  increase  by 

(21)  Source: OECD Pension Market in Focus 2025. The highest 

participation rate in at least one supplementary pension plan 
is reported.  

(22)  The (gross) replacement rate refers, depending on data 

availability, to both public and private pensions. It is based 
on projections from the 2024 Ageing Report.  

(23)  Key performance characteristics, recent reforms and 
investments of the Romanian healthcare system are 
discussed in Annex 15. 

0.2 pps of GDP between now and 2040 and by a 
further  0.2  pps  of  GDP  between  2040  and  2070. 
The  projected  increase  is  the  result  of  an  ageing 
population  but 
to 
underdeveloped long-term care services (24). 

low  due 

relatively 

is 

National fiscal framework   

The  Romanian  Fiscal  Council  (RFC)  is  of 
average  size  and  has  a  relatively  narrow 
mandate. It monitors compliance with fiscal rules 
and  assesses  the  government’s  macroeconomic 
and  budgetary  forecasts,  including  by  costing  the 
main  discretionary  measures.  It  is  not  involved  in 
long-term  sustainability  analysis  but  will  monitor 
implementation  of  key  provisions  of  the  2024 
pension  reform.  Its  members  are  nominated  by 
several  independent  institutions  and  have  nine-
year  mandates  with  no  staggering. 
the 
Secretariat, only about a third of the 20 available 
positions  are  filled,  indicating  severe  recruitment 
problems,  possibly  linked  to  restrictions  on  pay 
levels.  The  RFC  has  some  issues  with  access  to 
regarding  budget 
information, 
measures. It reports high visibility in the media but 
does  not  perform  any  formal  media  coverage 
analysis. The RFC does not have a developed policy 

in  particular 

In 

(24)  The adequacy and quality of the Romanian long-term care 

system are covered in Annex 12. 

42 

RO17.9-0.20.40.20.00.418.3ROEU24.30.50.30.4-0.30.925.2EURO17.9-2.90.60.40.0##16.0ROEU24.30.20.60.8-0.31.325.6EUageing-related expenditure change in 2025-2040 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalageing-related expenditure change in 2025-2070 (pps GDP) due to:ageing-related expenditure pensionshealthcarelong-term careeducationtotalAssets in 2024 (% GDP)Participation in 2024 (% working-age population)RO8.9-3.667.6ROEU32.4-2.855.9EUGross replacement rate at retirement: (pps change 2025-2040)  
 
 
 
 
 
   
 
 
   
 
Table A2.3:  Fiscal governance database indicators and public accounting maturity 

(1) "The Country Fiscal Rule Strength Index (C-FRSI) shows the strength of national fiscal rules aggregated at the country level 
based on: i) the legal base; ii) how binding the rule is; iii) monitoring bodies; iv) correction mechanisms; and v) resilience to shocks. 
The Medium-Term Budgetary Framework Index (MTBFI) shows the strength of the national MTBF based on: i) coverage of the 
targets/ceilings included in the national medium-term fiscal plans; ii) connected 
ness between these targets/ceilings and the annual budgets; iii) involvement of the national parliament in the preparation of the 
plans; iv) involvement of independent fiscal institutions in their preparation; and v) their level of detail. A higher score is 
associated with higher rule and MTBF strength. 
The score for public accounting reflects the degree of maturity in relation to the International Public Sector Accounting Standards 
(IPSAS). Countries with an accounting maturity of 70% or more in relation to IPSAS are deemed to apply accrual accounting. For 
more information, see the report on public accounting in the EU (COM(2025)746 and accompanying Staff Working Document 
SWD(2025)396)." 
Source: Fiscal governance database, European Commission 

dialogue with the government, possibly due to lack 
of formal arrangements for such a dialogue. 

reviews  are  a 

Spending 
critical  but 
underused  instrument  in  Romania’s  fiscal 
adjustment strategy. Across the board spending 
cuts,  administrative  capacity  and  politics  have 
influenced  how  spending  scrutiny  was  carried  out 
in the past. The Ministry of Finance has committed 
to conducting systematic spending reviews and to 
producing  an  annual 
their 
completion.  Despite  producing  the  strategy  for 
analytical  evaluation  of  public  expenditure  2024-
2030,  there  is  limited  evidence  that  meaningful 
progress was made on spending reviews.  

report  certifying 

cycle. 

Long-term 

investment 

in 
Management  of  public 
Romania  remains  weak  across  the  entire 
investment 
investment 
planning  is  carried  out  mainly  by  line  ministries 
with 
limited  coordination  across  sectors  and 
limited  involvement  by  the  Ministry  of  Finance. 
Mechanisms to support funding availability beyond 
the annual budget year, such as a mechanism for 
appropriations  beyond 
the  budget  year  and 
restrictions  in  diverting  funds  to  other  purposes, 
are  missing.  Ex  post  reviews  of  the  effectiveness 
and efficiency of investment projects are rare and 
not systematically integrated into future planning.    

across the general government sector and five are 
set to do so by 2030 (25). Romania is close to the 
EU  average  (see  Table  2.3)  and  has  implemented 
accrual  accounting  amounting  to  38%  for  social 
security  funds  and  on  medium  term  has  plans  to 
transition towards accrual accounting (26). 

Implementation of the set of reforms 
and investments underpinning the 
extension of the adjustment period   

The CSRs for Romania also encourage the country 
to implement the set of reforms and investments 
underpinning  the  extension  of  the  adjustment 
period.  This  set  of  reforms  is  composed  of:  (i) 
commitments  from  the  RRP;  (ii)  commitments 
extending  previously  existing  RRP  measures;  and 
(iii)  some additional commitments  to  reforms  and 
investments. Considering the  information  provided 
in  the  Annual  Progress  Report,  Table  A2.4  shows 
the  implementation  status  of  the  set  of  reforms 
and investments due in 2025 and the first half of 
2026.  

Accrual  accounting  makes  a  public  body’s 
financial  position  and  performance  more 
transparent and can boost sustainability and 
intergenerational  equity.  Most  (14)  Member 
implemented  accrual  accounting 
States  have 

(25) Report on public accounting in the EU (COM(2025)746 and 
accompanying Staff Working Document SWD(2025)396). 
Countries with an accounting maturity of 70% or more in 
relation to International Public Accounting Standards are 
deemed to apply accrual accounting. 

(26) Annexes 3.1 and 3.4 of SWD(2025)396. 

43 

2024RomaniaEU AverageCountry Fiscal Rule Strength Index (C-FRSI)19.0114.81Medium-Term Budgetary Framework Index (MTBFI)0.800.722025 Public accounting maturity of general government64%65% 
 
 
  
 
Table A2.4:  Implementation of Reforms and Investments underpinning an extension 

(Continued on the next page) 

44 

Special pension reformEntry into force of a  normative act revising special pensions to align them with thecontributory principle.Q3 2024Completed*Public sector wage reformStep 1: Adoption and entry into force of the new legal framework for the remuneration of public officials, ensuring the public wage bill remains, as a share of GDP, in line or below that included in the projections of the medium-term fiscal plan.When the government deficit is below 5 % of GDP:Draft legal act under preparation; entry into force is linked to the government deficit falling below 5% of GDP.Step 1: Preparation of a Report, building on the World Bank report on taxation (prepared under RRP milestone 205) establishing two scenarios for the tax reform, with fully specified measures. Measures should cover all areas of taxation and social contributions.Q1 2025Completed**Step 2: Government adoption of memorandum including specific tax measures based on the above-mentioned report. Measures should be in line with milestones 207, 208, and 237 of the RRP, and objective 1 of the tax reform.Q1 2025Completed** Step 3: Government organises a public debate on the amendments to the Fiscal Code.Q1 2025Completed** Step 4: Implementation and entry into force of the measures on 1 April 2025 at the latest.Q1 2025Completed** Step 5: As referenced in milestone 237 of the RRP, developing an IT system to implement the automated property assessment model for real estate taxation, supporting the new market value-based approach, and operationalising a specialized department with respon sibilities in the field of property taxation.Q4 2025The IT system for the automated property assessment model is under development. Work is ongoing on notary, cadastral and local tax data.Step 1: Implementation of an early detection mechanism for VAT fraud associated with intra-community purchases, transits, and domestic transactions.Q1 2025Implementation continues in 2026, including development of algorithms and strategies for detecting VAT fraud and evasion.Step 2: Implementation of anti-fraud modules for analysing and identifying transactions suspected of carousel fraud (CARUSEL, INDFISC, TRANSPRISC, COMRISC, and RORISC).Q2 2025In progressStep 3: Completion of 7 digitalisation projects, including e-Invoice, SAF-T, e-AMEF, e-DU, e-VAT, DAC-7, and CESOP.Q2 2025Small taxpayers were included in SAF-T, automated D406 validation and notification were implemented, RO e-Factura was extended, and RO e-TVA work focused on pre-filled VAT returns and taxpayer notifications.Step 4: Strengthen oversight of the tax planning mechanism for large taxpayers and the extension of this mechanism to medium-sized taxpayers after the implementation of APIC.Q1 2025Progress on transfer pricing and advance pricing agreements. In 2026, authorities plan to strengthen oversight for large taxpayers, extend it to medium-sized firms, and consolidate the framework.COM assessment 2026MeasureKey stepsRecommended implementation dateReview of the tax frameworkTax administration reform 
 
 
     
 
Table (continued) 

The table focuses on key steps scheduled for completion between the start of the plan and Q4 2026. The progress of each 
backward-looking key step, i.e. those scheduled for completion by 30 April 2026, is classified as either “completed” or “factual 
information provided”. The status of forward-looking key steps in 2026 remains blank unless already completed. Key steps due 
after December 2026 do not appear in the table, as they will be assessed by the Commission in future APRs.  
* These key steps correspond to milestones/targets 202, 234, M392 and 403 of Romania’s RRP.  
** These key steps correspond to milestones/targets 207, 208, 215 and 237 of Romania’s RRP, whose assessment is still pending 
in the context of a payment request under the RRF. The information in the table does not prejudge that assessment.  
Source: Annual Progress Report of Romania and Commission’s assessment.  

45 

Step 5: Integrating and consolidating internal data bases; developing a new system based on the 360-degree profiling concept of taxpayers; ensuring interoperability with the information systems of state institutions.Q4 2025Progress on interinstitutional data exchange. Work continues on Big Data tools and integration to strengthen fiscal risk analysis and build an integrated taxpayer profile.Step 6: Implementation of a modern collection mechanism that provides taxpayers with the option to choose recurring payment of declared tax liabilities.Q4 2026Step 7: Establishment and operationalisation of a specialised structure comprised of experts in IT, econometrics, and financial analysis to quantification risks and tax gaps.Q4 2025In progressStep 1: Create a database and establish a control mechanism for increases exceeding 20% compared to the average costs of public institutions.Q4 2025Completed*Step 2: Conduct yearly thematic expenditure reviews and apply conclusions and recommendations in the budget planning process, in line with the established annual scheduleYearlyCompleted*Step 4: Operationalise the specialised structure within the Ministry of Finance to monitor public expenditure systems using performance indicators and participate in specialised training courses organised with the support of the World Bank Q4 2025In progressStep 5: Establish a legal framework for implementing performance indicators at the level of central and local public authorities. Q4 2025CompletedBusiness Financing ReformReform of the Institutional Framework for Allocating Funds to Support the Business Environment-Private Equity Investment Fund for SME Support.Q2 2026The law operationalising the private-equity investment fund for SME support is under approval.Step 1:  Conducting a diagnostic analysis of the operational expenditure system, the revenue system, and the mechanisms for updating fees, as well as the subsidy system for economic operators.Q3 2025In progressStep 2: Establishing the regulatory framework to enhance the operational expenditure system, improve the management of public assets, introduce expenditure rules, and reduce dependence on the general government budget by Q4 2025.Q4 2025Draft amendments to the Water Law are under review. The IT system for implementation is operational. Draft legal acts on heating and cooling have been submitted to the Commission.Tax administration reformRestructuring the Public Spending System/ Spending ReviewsReform of the Expenditure System for State-Owned Enterprises 
 
   
 
ANNEX 3: TAXATION 

This  annex  provides  an 
indicator-based 
overview of Romania’s tax system. It includes 
information  on  the  tax  mix,  on  competitiveness 
and fairness aspects of the tax system, and on tax 
collection and compliance. In the area of taxation, 
the  2025  CSRs  for  Romania  highlighted  the  need 
to implement the set of reforms and investments 
underpinning  the  extended  adjustment  period  for 
Romania’s  medium-term  fiscal-structural  plan  as 
recommended by the Council on 21 January 2025. 
These  include  a  comprehensive  review  of  the  tax 
framework  covering  all  areas  of  taxation  (e.g. 
microenterprise  tax  reform)  and  modernising  the 
tax administration system. 

is  particularly  true  for 

Romania  continues  to  collect  relatively  low 
tax revenues as a percentage of GDP across 
the  board,  despite a  slight increase between 
2023  and  2024.  In  2024,  Romania’s  total  tax 
revenues  as  a  percentage  of  the  GDP  (27.9%) 
remained  significantly  below  the  EU  average 
(39.4%).  This 
labour 
(although the ratio of social security contributions 
-SSC,  was  closer  to  the  EU  average)  and  capital 
taxes. Revenues from personal income tax (PIT) as 
percentage  of  GDP  stood at  only  one  third  of  the 
EU  average  (2.9%  versus  9.6%).  The  figure  for 
consumption  taxes  remained  closer  to  the  EU 
average,  despite  having 
the  highest  VAT 
compliance  gap  in  the  EU  (see  below).  Romania 
also experiences the largest compliance CIT gap in 
the EU, of about 44% (27). The shadow economy in 
Romania is estimated to be the third largest in the 
EU, standing at 29% of GDP (28). 

Total  recurrent  property  tax  revenues  as  a 
percentage  of  GDP  were  0.4%  in  2024,  thus 
remained  lower  than  the  EU  average  of 
0.9%.  Such  revenues  are 
increase 
substantially  due  to  the  recent  reforms (29).  As  of 
2026,  for 
(with  some 
exceptions),  the  tax  rate  for  buildings  cannot  be 
lower  than  the  rate  set  for  2025;  the  amount  of 
the tax due on residential dwellings is indexed with 

local  property 

likely  to 

taxes 

the  annual  inflation  rate,  in  the  absence  of  which 
penalties  apply;  the  relevant  taxable  value  used 
for  calculating  the  property  tax  was  increased 
(from RON 75–1 000 to RON 201–2 677); and the 
reduction  in  the  taxable  base  depending  on  the 
age  of  the  building  or  number  of  flats  was 
eliminated. The tax on agricultural land (hectare of 
land)  was  also  increased,  depending  on  use  and 
location of the land. The exemption from property 
tax  for  certain  vulnerable  groups,  such  as  people 
with disabilities, was replaced by a reduction in tax 
of 25% or 50% for the private dwellings (30). Also, 
as  of  2027,  buildings  owned  by  legal  entities  will 
be  taxed  as  non-residential  (where  higher  rates 
apply), eliminating the reduced rate for residential 
or mixed-use buildings owned by such taxpayers. 

Graph A3.1: Tax revenue by economic function in 
2024, RO (outer ring) and EU-27 (inner ring) 

Source: Taxation Trends Data, DG TAXUD 

Environmental taxes remained slightly above 
the EU average at 2.4% of the GDP in 2024. 
Reliance  on  energy  taxation  is  strong,  while 
resource  and  pollution  taxes  are  underused  and 
transport  taxes  are  at  half  of  the  EU  average 
(0.5%  vs  0.9%).  A  handling  fee  (logistic  tax)  of 
RON 25  was  introduced  as  of  January  2026  for 
parcels  entering  Romania  with  a  declared  value 
below EUR 150, delivered from outside the EU (31). 

(27)  Based on 2019 data from JRC. For details, see DG TAXUD 
(2025) - The Corporate Income Tax Gap. A European 
approach to measuring losses in corporate tax revenues. 

(28)  Based on 2022 data. For details, see the European 

Parliament (2022) - Taxation of the Informal Economy in the 
EU. 

(29)  Government Emergency Ordinance No 78/2025 amending 
Law No. 239/2025 establishing measures for the recovery 
and efficiency of public resources and for amending and 
completing certain normative acts; published in Official 
Gazette, Part I, No 1172 of 17 December 2025. 

(30)  Government Emergency Ordinance No. 8 of 

27 February 2026 establishing economic recovery measures, 
increasing productive investments and competitiveness, and 
amending and completing certain normative acts in the 
fiscal-budgetary field; published in Official Gazette No 147 
of 25 February 2026. 

(31)  LAW No. 239 of 15 December 2025 establishing measures 
for the recovery and efficiency of public resources and for 
amending and completing certain normative acts; Official 
Gazette No 1160 of 15 December 2025 

46 

51.526.821.645.437.317.2Taxes on labourTaxes on consumptionTaxes on capital 
 
 
   
 
 
 
 
Table A3.1:  Taxation Indicators 

(1) Forward-looking effective tax rate (KPMG). 
(2) A higher value indicates a stronger redistributive impact of taxation. 
(*) EU-27 simple average. 
(**) Forecast value for 2024. EU-27 refers to the median value. For more data on tax revenues as well as the methodology 
applied, see the Data on Taxation Trends webpage. 
Source: European Commission, OECD, ISORA. 

and 

several 

contribution, 

Several  direct  and  indirect  taxes  will  be 
increased  as  of  2026.  For 
taxation  of 
individuals,  until  1 January 2028  pension  income 
exceeding  RON 3 000  is  subject  to  a  10%  health 
insurance 
other 
categories are no longer exempt from SSC. The tax 
rate on gambling gains was increased to 4% (from 
3%) for gains not exceeding RON 10 000 (the first 
bracket),  thus  increasing  respectively  the  amount 
of  tax  due  also  in  the  higher  brackets.  Also  as  of 
2026,  income  from  short-term  rents  for  touristic 
purposes  of  up  to  7  rooms  is  taxed  as  additional 
income  (subject  to  income  tax  and  SSC),  while 
income from renting out 8 rooms or more is taxed 
as income from business activity.  

Some  increases  have  already  applied  as  of 
mid-2025 (32). As of July 2025, and until the end 
of  2026,  the  supplementary  tax  on  turnover  was 
increased  from  2%  to  4%  for  credit  institutions 
with a market share of more than 0.2%. Moreover, 
excise  duties  for  tobacco,  alcohol,  fuel  and  other 
products  increased  as  of  August  2025,  same  as 
the annual  tax vignette for cars (50 EUR per year 
as of 1 September 2025). 

As  of  August  2025,  the  standard  VAT  rate 
increased  to  21%  (from  19%)  and  the 
reduced  rates  of  5%  and  9%  have  been 
increased to 11% (33). While  such changes may 
likely lower the VAT policy gap, they may also have 
a  regressive  effect  on  taxpayers  according  to 
EUROMOD estimates. The reduced VAT rate will no 
longer  apply  to  the  acquisition  and  installation  of 
certain green assets (e.g. heat pumps; photovoltaic 
and  solar  panels,  batteries)  or  to  new  dwellings 
less  than  120 m2  worth  less  than  RON 600 000 
(EUR 120 000)  without  VAT,  although  such 
dwellings may be bought at a reduced rate for one 
more  year,  if  certain  conditions  are  met.  Some 
medical  devices  will  no  longer  be  exempt  from 
VAT.  Finally,  the  VAT  exemption  threshold  was 
increased  from  RON 300 000  to  RON 395 000 
(around  EUR 80 000)  as  of  September  2025,  and 
rules were also introduced to transpose the special 
VAT  scheme  for  small  enterprises  (SMEs)  within 
the EU. 

Romania  has  a  low  corporate  income  tax 
(CIT)  rate  and  offers  some  incentives  for 
businesses.  CIT  is  subject  to  a  flat  rate  of  16%, 
which  is  lower  than  the  EU  average,  with  the 

(32)  Law No 141/2025 on fiscal-budgetary measures, published 

in Official Gazette No. 699 of 25 July 2025. 

(33)  Ibidem. 

47 

2019202220232024202520192022202320242025Tax structureTotal taxes (including compulsory actual social contributions) (% of GDP)26.027.426.727.939.939.739.039.4Taxes on labour (% of GDP)12.011.611.712.720.620.119.920.3of which, social security contributions (SSC, % of GDP)10.610.110.210.913.012.712.713.0Taxes on consumption (% of GDP)10.110.410.210.411.210.910.510.6of which, value added taxes (VAT, % of GDP)6.16.96.76.87.17.47.17.1Taxes on capital (% of GDP)3.95.44.84.88.18.78.58.5Personal income taxes (PIT, % of GDP)2.32.62.52.99.69.49.39.6Corporate income taxes (CIT, % of GDP)2.13.12.32.52.63.23.23.1Total property taxes (% of GDP)0.70.60.60.62.22.11.91.8Recurrent taxes on immovable property (% of GDP)0.50.50.40.41.21.00.90.9Environmental taxes (% of GDP)2.13.82.62.42.62.12.12.1Effective carbon rate in EUR per tonne of CO2 equivalentsnana54.6nanana84.8naTax wedge at 50% of average wage (single person) (*)41.442.341.842.141.732.431.631.531.531.6Tax wedge at 100% of average wage (single person) (*)42.842.842.842.842.840.139.739.939.940.0Corporate income tax - effective average tax rates (1) (*)16.316.316.316.320.019.219.019.3Difference in Gini coefficient before and after taxes and cash social transfers (pensions excluded from social transfers) (2) (*)6.85.66.36.67.88.07.97.8Outstanding tax arrears: total year-end tax debt (including debt considered not collectable) / total revenue (in %) (*)41.234.931.7na31.832.630.7naVAT gap (% of VAT total tax liability, VTTL) (**)30.926.730.029.510.57.38.2naEU-27RomaniaProgressivity & fairnessTax administration & complianceBy tax baseSome tax types 
 
 
 
   
 
effective tax rate stabilised at around 16.3% (3.0 
pps below the EU average).  

tax 

the  optional  substitute 

As  of  tax  year  2026,  the  reduction  of  the 
income  tax  due  by  taxpayers  maintaining  or 
longer 
increasing  own  capital  will  no 
apply (34).  Romania  gradually  reduced  the  scope 
of 
for  certain 
microenterprises  (at  the  same  time  replacing  the 
income  threshold  by  an  accounting  (turnover) 
threshold  of  less  than  EUR 100 000  as  of  2026, 
with transitional rules. Moreover, only one rate will 
apply  for  the  future,  i.e.  1%  on  income.  This  will 
increase  the  number  of  taxpayers  subject  to 
standard  CIT.  Furthermore,  the  (supplementary) 
minimum  tax  applied  so  far  on  large  companies 
is 
with 
reduced to 0.5% of the turnover for tax year 2026 
and will be fully eliminated as of 2027. 

than  EUR 50 million 

turnover  higher 

The Romanian Tax Code offers tax incentives 
for  R&D  activities  such  as  additional 
deductions from taxable income of qualifying 
R&D  expenses  and  accelerated  depreciation. 
The exemption (for the first 10 years) from CIT on 
profits  for  taxpayers  performing  exclusively  R&D 
activities  is  apparently  not  applicable  for  lack  of 
implementing State aid rules. The existing income 
tax  exemption  for  employees  performing  R&D 
activities  seems  to  be  insufficiently  used.  There 
are  also  green  tax  incentives  for  investment  in 
these 
renewable 
incentives,  Romania  had  among  the  lowest  R&D 
intensity  in  the  EU  in  2024  (0.46%  of  GDP 
dropping  from  0.52%  the  previous  year,  see  also 
the  annex  on  innovation  to  business).  Romania  is 
working to put in place processes to ensure higher 
legal  certainty  and  uniform  interpretation  of  R&D 
expenses which qualify for tax deductions. 

sources.  Despite 

energy 

targeted 

Additional  generous  and 
tax 
incentives  were  introduced  with  effect  from 
2026.  These  were  designed  to  stimulate  specific 
sectors, clusters and manufacturing companies for 
products with trade deficits, investments aimed at 
efficiently  using  strategies  and  critical 
raw 
materials,  net  zero  technologies,  R&D,  defence, 
tourism, 
to 
investments 
acceleration  of  innovation  and  digital  transition. 

contributing 

and 

(34)  Government Emergency Ordinance No. 153/2020 
establishing certain tax measures to support the 
maintenance/increase of own capitals and supplementing 
certain legislative acts, published in the Official Gazette of 
Romania, Part I, No. 817 of 4 September 2020 

48 

For  example,  eligible  expenses  (35)  can  benefit 
from  a  depreciation  base increased  by  100%;  tax 
credits  or  grants  for  manufacturing  products  with 
trade  deficit  were  introduced,  and  an  10%  tax 
credit  for  R&D  activities  was  introduced  as  an 
increased 
alternative 
deduction  for  eligible  R&D  costs.  Unused  tax 
credits can be carried forward.  

the  existing  50% 

to 

Flexible  depreciation  and  long-term  credits 
enhance  investment  appeal.  The  accelerated 
depreciation for R&D equipment remains available 
regardless  of  whether  a  company  chooses  the 
10%  tax  credit  or  the  50%  deductibility  option. 
Furthermore,  tax  credits  can  be  claimed  for  up  to 
seven  years  for  eligible  investments  that  aim  to 
efficiently  use  raw  materials,  strategies,  critical 
raw materials, and net zero technologies. A ‘super-
accelerated  depreciation’  scheme  has  been 
introduced,  allowing  a  65%  depreciation  in  the 
first  year  of  use  for  certain  fixed  assets,  such  as 
technological  equipment  and 
livestock  and 
plantations  obtained  or  commissioned  between 
January and December 2026. 

capital  market 

Liquidity  and 
support 
measures  provide  further  financial  relief.  To 
strengthen  companies’  liquidity,  reinvested  profit 
reserves  established  from  2026  on  will  be  tax-
exempt  if  maintained  for  a  five-year  period 
(though normal CIT rules apply if funds are used or 
distributed  before  this  period  ends).  In  a  bid  to 
strengthen  the  capital  market,  an  additional  50% 
deductibility  is  now  granted  for  expenses  related 
to  listing  or  maintaining  trading  on  regulated 
markets,  applicable  in  the  tax  year  following  the 
listing. 

Romania  has  a  flat-rate  tax  system  with  a 
high  uncapped  rate  for  social  security 
contributions,  which  reduces  progressivity. 
This results in a very high labour tax wedge (36) for 

(35)  Eligible tangible and non-tangible assets, for investments 
between RON 5 million and 50 million in the research and 
development of frontier technologies 

(36)  The  tax  wedge  is  an  indicator  of  the  tax  burden  on  labour 
that  can  be  assessed  at  various  levels  of  earnings.  It  is 
defined as the sum of personal income taxes, employee and 
employer  social-security  contributions  and  other  mandatory 
contributions,  expressed  as  a  percentage  of  total  labour 
costs  (composed  of  the  net  wage,  personal  income  tax, 
contributions,  and  other  mandatory 
social 
contributions).  Tax  wedge  data  in  the  2026  country  reports 
are calculated by the Joint Research Centre of the European 
Commission and based on the EUROMOD model, while in the 

security 

 
 
 
 
low-income  earners,  namely  the  highest  of  all 
Member  States  at  41.7%  for  a  single  person 
earning  50%  of  the  average  wage  (vs.  an  EU 
average  of  31.6%)  and  the  second-highest  at 
42.8% for a single person at 67% of the average 
wage  (compared  to  an  EU  average  of  35.8%), 
which may weaken their employment outcomes. In 
contrast, high income earners (single household at 
167% of the average wage) the tax wedge is with 
42.8% relatively low (vs. EU average of 44.1%).  

Graph A3.2: Tax wedge for single and second 
earners as a % of total labour costs, 2025 

Note: The second earner tax wedge shows a household’s tax 
wedge resulting from the wage that a second earner taking 
up a job at 67% of the average wage receives. It does not 
show the total tax wedge of the household. The household is 
assumed to have a first earner at 100% of the average wage 
and no children. For the methodology of the tax wedge for 
second earners, see OECD (2024), Taxing Wages 2024. 
Source: European Commission 

The  low  progressivity  in  the  PIT  system 
reduces  the  redistributive  of  the  tax  and 
benefit  system.  The  tax-and-benefit  system 
reduced  the  Gini  coefficient (37)  in  2024  by  6.6 
points,  which  was  below  the  EU  average  of  7.8 
points.  Recently,  for  the  purpose  of  computing 
income 
the 
independent 
deductibility  threshold  for  the  newly  introduced 
pension  contributions  (i.e.  pan-European  personal 
pension 
pensions 
funds/schemes;  and  voluntary  pension  schemes) 

occupational 

activities, 

products; 

from 

past  country  reports  they  were  based  on  the  OECD  tax  and 
benefit  model.  While  the  underlying  methodology  is  very 
similar, differences in the assumptions can lead to different 
results between both models.  

(37)  The  Gini  coefficient  measures  the  extent  to  which  the 
distribution  of  income  within  a  country  deviates  from  a 
perfectly  equal  distribution.  A  coefficient  of  0  expresses 
perfect equality where everyone has the same income, while 
a coefficient of 100 expresses full inequality where only one 
person has all the income. 

49 

was  set  as  a  separate  tax-exempt  threshold  of 
EUR 400 per year (38). 

on 

of 

Taxation  of  high-value  assets  or  of  certain 
sources 
income  was 
investment 
increased (39).  As  of  2026,  the  income  tax  rate 
selected  high-value  assets (40) 
applied 
increased  from  0.3%  to  0.9%.  Furthermore,  for 
certain  investment  income  the  relevant  tax  rates 
were increased from 10% to 16%. This applies to 
gains  from  the  transfer  of  virtual  currencies  or 
from  securities  and  financial  gold  to  dividend 
income  distributed  as  of  2026.  The  tax  rates  on 
capital  gains  from  securities  (shares/bonds)  and 
derivatives 
intermediaries 
increased  from  1%  and  3%  to  3%  and  6% 
respectively,  if  the  assets  were  held  more  or  less 
than 365 days. 

transferred 

through 

(around 

RON 78.1 billion 

For  2024,  the  foregone  revenue  due  to  tax 
expenditures  (TE)  (41)  amounted  to  4.2%  of 
GDP 
or 
EUR 15.5 billion). This was expected to remain at 
similar  levels  in  2025  and  2026.  Romanian  TE 
reporting covers CIT, PIT, VAT, SSC and local taxes. 
Some of the TEs have been eliminated with effect 
from  2026.  The  abolition  as  of  2025  of  sector-
specific  TEs  (such  as  exemption  from  PIT  for  IT, 
construction  and  agriculture  workers)  was 
expected  to  increase  revenue  by  RON 3.94 billion 
(EUR 0.77 billion)  in  2025.  The  lowering  of  the 
threshold  to  qualify  for  the  micro-enterprises  tax 
regime (of 1% rate) to EUR 250 000 in 2025 and 
to  EUR 100 000  in  2026  is  also  expected  to 
increase revenues (42). 

Romania  has  a  yearly  reporting  practice  on 
TE, but lacks thorough evaluations integrated 
into the annual budget process. The Romanian 
authorities  perform  yearly  TE  reporting  which  is 

(38)  Government Emergency Ordinance No 8/2026 

(39)  LAW no. 239 of 15 December 2025 establishing measures 
for the recovery and efficiency of public resources and 
amending and completing; Official Gazette No 1160 of 
15 December 2025 

(40)  Residential buildings exceeding RON 2.5 million and cars 

exceeding RON 375 000 

(41)  Tax expenditures are tax relief measures or tax concessions 
resulting from a derogation from a benchmark system of a 
given tax in favour of (i) certain taxpayers or (ii) certain 
economic, social or cultural, activities.  

(42)  Fiscal Council – Final Opinion - Budget 2025 - FINAL.pdf 

41.742.842.842.842.82025303540455050100150Tax wedge, % of total labour costsEarnings as % of the average wageSingle earner - ROSingle earner - EU averageSecond earner -  ROSecond earner -  EU average 
   
 
 
made  public  in  the  report  on  the  budget  (43).  The 
report  does  not  however  comprise  a  regular 
evaluation  of  TEs  and  whether  the  intended 
policy objectives  are  met,  which  would  help 
evaluate cost-effectiveness. 

Romania  maintained  a  VAT  compliance  gap 
estimated at around 29.5% of the total VAT 
liability in 2024, the highest in the EU, despite 
a  VAT  policy  gap  significantly  lower  than  the  EU 
average (44).  The  VAT  compliance  gap  has 
consistently  been  among  the  highest  in  the  EU 
over  the  years.  This  reflects  the  administration’s 
long-term 
addressing 
compliance  issues  and  the  informal  economy.  In 
2023, the VAT losses due to missing trader intra-
at 
community 
EUR 292 million (45).  While  a  drop  of  3 pps  in  the 
VAT  compliance  gap  was  estimated  for  2022  (to 
26.7%) compared to 2021, in 2023 and 2024 the 
estimated VAT compliance gap increased again to 
around 30% (46). 

ineffectiveness 

estimated 

fraud 

were 

in 

extended 

As  of  2022,  electronic  reporting  obligations 
(SAF-T) have been mandatory for large firms 
and  were 
to  medium-sized 
enterprises  in  2023  (yearly  income  above 
RON 50 000). Starting in 2025, the system is also 
mandatory  for  small  businesses.  Furthermore,  as 
of  1 January 2025  Romania  made  e-invoicing  for 
B2C  supplies  mandatory  for  established  taxable 
persons,  with  certain  derogations  such  as  the 
postponement  until  1 June 2026  for  individual 
farmers  applying  the  special  VAT  scheme.  E-
invoicing  has  already  been  mandatory 
for 
domestic  B2B  supplies  between  established 
taxable  persons  since  1 July 2024.  On  average, 
the additional combined taxes computed following 
audits amounted to approximately EUR 30 000 per 
in 
audited  taxpayer 
2024 (47). 

in  2025,  the  same  as 

(43)  Ministry of Finances, Budget Report 2024 

(44)  See Romania – Country Fiche, in European Commission 

(2025), Mind the Gap Report 

(45)  VAT compliance gap due to Missing Trader Intra-Community 

(MTIC) fraud, Final report. Phase II 

(46)  VAT gap in the EU - Publications Office of the EU  

(47)  Buletin statistic fiscal nr 3 2025 

50 

Recent  reforms  regarding  ‘undeclared  work’ 
(48)  reflect  that  the 
informal  economy 
remains  a  concern  with 
impact  on  the 
revenue collection. For PIT and SSC, the amount 
of  the  fines  for  ‘contracting’  workers  without 
properly registering the contract  was increased to 
RON 40 000  (EUR 10 000)  per  worker,  without 
exceeding  a  combined  fine  per  employer  of 
RON 1 million  (EUR 200 000),  complementing  the 
existing  penalties  for  ‘under-declared  work  and 
income’. 

Romania  had  high  e-filing  rates  for  VAT 
(99.8%) and CIT (99%), but a low rate for PIT 
(52.9%) (49). Despite such high e-filing VAT rates, 
the  VAT  and  CIT  compliance  gaps 
remain 
(see  above).  Romanian  authorities 
significant 
published the procedure for submitting a pre-filled 
single  tax  return  for  individuals  (Form  212)  to  be 
made  available  by  30 March  of  the  tax  year.  For 
some income categories, a paper declaration may 
still  be  submitted  on  request.  The  submission 
deadline  for  the  annual  CIT  return  has  been 
permanently  extended  to  25 June  (instead  of 
25 March) of the following year. 

Tax arrears are 1 pp.  above the  EU  average, 
despite  a  positive  trend  in  recent  years  and 
the  lack  of  a  tax  recovery  strategy (50).  The 
level  of  outstanding  tax  arrears  (31.7%)  has 
decreased by 10.8 pps since 2018. Romania has a 
practice  of  writing  off  tax  claims  for  VAT,  income 
taxes  and  excise  under  certain  circumstances  and 
does  not  keep  data  on  their  recovery  rate.  The 
same  recovery  rules  and  practices  apply  across 
income  taxes,  excise  duties  and  other 
VAT, 
national  taxes.  Under  its  national  RRP,  Romania 
has  committed  to  making  legislative  changes  on 
insolvency and the recovery of tax claims owed to 
the  tax  authority  (ANAF)  and  other  measures  to 
improve  fiscal  transparency  and  public  reporting 
on  ANAF’s  performance.  The  Insolvency  Law  was 
recently amended (Law 239/2005).  

Romania  receives  support  under  the  EU’s 
Technical  Support  Instrument  to  enhance 

(48)  Law No. 239/2025 on establishing measures to recover and 

streamline public resources and for amending and 
supplementing certain normative acts 

(49)  International Survey on Revenue Administration data. 

(50)  Romanian reply to the Survey for the preparation of EU 

Article 27 (3) of Directive 2010/24 (Tax Recovery Directive). 

 
 
 
tax 

strategic tax administration reforms through 
diagnostic 
administration 
the 
assessment tool. The aim is to identify strengths 
and  areas  for  improvement  in  administration  of 
taxes  upon  international  best  practices,  and  to 
plan  for  reforms  that  will  improve  efficiency  and 
effectiveness. 

51 

 
PRODUCTIVITY 
ANNEX 4: INNOVATION TO BUSINESS  

policy 

Romania’s  research  and  innovation  (R&I) 
performance  remains  weak,  associated  with 
underinvestment,  skills  shortages,  lack  of 
and 
innovation 
coordinated 
governance  deficiencies.  Romania  is  classified 
as an 'emerging innovator' and exhibits the lowest 
innovation  performance  in  the  European  Union. 
Innovation 
According  to  the  2025  European 
Scoreboard (51),  Romania’s 
is 
37.7% of the EU average and also falls below the 
average for emerging innovators. For Romania, the 
2025  country-specific  recommendations  (CSRs) 
to  promote  private 
highlighted 
investment 
sustainable  economic 
development and to invest in innovation to reduce 
the dependency on fossil fuels.  

the  need 
foster 
to 

innovation  score 

innovation.  The 

In  2024,  Romania's  R&D  intensity  stood  at 
just 0.46% of GDP (EU average: 2.24%). This 
was the lowest in the EU and far from Romania’s 
own  target  of  reaching  2%  of  GDP  by  2027  (52). 
This  underfunding,  coupled  with  the 
lack  of 
inadequately 
multiannual  budgeting  and  an 
developed system for performance-based funding, 
has  created  challenging  conditions  for  research 
lack  of  skilled  workers 
and 
research  and 
negatively  affects  Romania’s 
innovation 
the  number  of 
researchers  employed  in  the  public  sector  is 
almost three times lower than the EU average (53). 
Public  policies 
innovation  are 
underdeveloped and the innovation system suffers 
from  governance  deficiencies,  with  no  single 
agency  responsible  for  the  overall  management 
and coordination of innovation policy.  

capacity,  and 

support 

to 

Excellent science 

Romania’s  public  research  base  remains 
weak  due 
to  underinvestment  and  a 
fragmented  funding  system.  Public  R&D 
expenditure  has  been  declining,  with  the  2024 
figures  at  only  0.16%  of  GDP.  This  is  less  than  a 
quarter  of  the  EU  average  of  0.72%.  This 
underinvestment,  coupled  with  fragmented  public 
research  system,  has 
in  a  weak 
foundation  for  public  science (54).  The  public 
funding  portfolio  is  fragmented  and  consists  of 
many  small  instruments  operating  below  optimal 
scale and efficiency.  

resulted 

Romania’s  public  funding  for  R&I  is  also 
characterised  by  a  lack  of  continuity  and 
predictability  in financial support.  The  lack  of 
multiannual  funding  for  R&I  support  instruments 
inhibits  Romania’s  R&I  investments,  making  it 
difficult  to  issue  calls  for  proposals  on  a  regular 
and  predictable basis.  To ensure  coordination  and 
strategic oversight of R&D investments, a National 
Science,  Technology  and  Innovation  Committee 
was  established  in  2023  as  part  of  the  national 
recovery  and 
reform. 
resilience  plan 
However, this has yet to become fully functional. 

(RRP) 

Graph A4.1: R&D intensity (GERD, GOVERD and 
BERD as % of GDP) 

The  digitalisation  of  Romanian  businesses  is 
improving, with companies performing better 
on  integrating  advanced  digital  technologies 
such  as 
cloud  and  AI.  Nevertheless, 
performance on AI adoption remains below the EU 
average  and  further  efforts  are  needed  to  align 
with its Digital Decade targets. 

Source: Eurostat 

(51)  European Innovation Scoreboard, 2025. 

(52)  Government of Romania, 2022, Strategia Națională de 

Cercetare, Inovare și Specializare Inteligentă 2022-2027. 

(53)  The number of researchers (measured in full-time 

equivalents) has remained stagnant since 2009 at 1.6 per 
1 000 of population. This is below the EU average of 4.3 and 
is the lowest figure in the EU. 

funding  has 
Unpredictability  of  public 
created a large degree of uncertainty among 
R&I  performers  and  has  hindered  long-term 
planning  and  projects.  Universities  play  a  very 

(54)  European Commission (2022): PSF Country review of the 

Romanian Research and Innovation System.  

52 

0.470.470.460.520.460.280.290.290.320.290.190.180.170.200.160.000.100.200.300.400.500.6020202021202220232024Total R&D intensity (GERD)Private R&D intensity (BERD)Public R&D intensity (GOVERD+HERD) 
 
 
 
         
 
 
 
in 

role 

increase 

in  public  R&D  and 

limited 
receive 
disproportionately  low  institutional  R&D  funding 
compared  with  other  public  research  actors.  The 
higher  education  sector  carried  out  only  10%  of 
public  R&D  in  2022,  less  than  half  the  EU-27 
average  (55).  Nevertheless,  Romania  has  made 
some  progress  in  improving  the  quality  of  its 
research system, as evidenced by a 38-percentage 
point 
the  number  of  scientific 
publications among the top  10% most-cited since 
2018 (56). Romania has also taken action to boost 
R&D  and  scientific  excellence  in  targeted  areas, 
particularly  in  the  medical  field,  with  the  national 
health  programme  financed  by  cohesion  policy 
including  pilot  investments  in  thematic  public-
private  partnerships  and 
transfer 
facilities  (see  Annex  15).  Overall,  Romania  has 
committed to increasing public R&D expenditure to 
1%  of  GDP  by  2027 (57)  and  is  planning  to 
introduce  a  multiannual  funding  mechanism.  In 
addition,  to  address  the  public  research  system’s 
fragmentation, 
regular  evaluation  of  public 
research  institutes  as  part  of  the  RRP  reform 
started  in  2025.  The  reform  is  expected  to  be 
completed  in  2026,  with  a  need  to  design  and 
implement proper follow-up actions. 

technology 

Business innovation  

limited, 
Innovation  performance  remains 
driven  by  low  private  investment.  Business 
enterprise  expenditure  on  R&D 
(BERD)  has 
stagnated  in  recent  years.  In  2024  it  stood  at 
0.29% of GDP in 2024, approximately one fifth of 
the  EU  average  of  1.49%  and  lacking  robust 
government  support.  BERD  financed  by  the  public 
sector  (national  and  abroad)  as  a  percentage  of 
GDP has stagnated and is one of the lowest in the 
EU.  This  situation  is  particularly  critical  for  SMEs, 
as they invest very little in R&D (0.04% in 2023 vs 
0.43% EU average).  

Romanian  enterprises  tend  to  innovate  less 
and grow less quickly than their competitors 
in  other  EU  countries.  The  number  of  high-
growth  enterprises  is  low  and  decreasing (58),  and 
Romania has by far the lowest share of innovative 
enterprises  in  the  EU.  During  2020-2022,  only 
8.8%  of  Romanian  firms  introduced  product  and 
process 
the  EU 
innovations,  compared  with 
average  of  51.4% (59).  This  is  combined  with  the 
innovators  not  developing 
low  number  of 
innovations 
innovation-active 
non-innovators,  and  few  non-innovators  with  the 
potential to innovate. Overall, the picture is one of 
a  narrow  innovation  system,  with  few  firms 
engaging 
innovation 
processes (60). 

themselves,  few 

supporting 

or 

in 

Low  business  R&D,  weak  science-industry 
collaboration  and  limited  effectiveness  of 
technology  transfer  and  commercialisation 
programmes are reflected by a poor level of 
innovation  outputs.  Patenting  activity  remains 
very  low  and  has  even  decreased  over  the  years. 
Romania’s  patent  applications  filed  under  the 
Patent Cooperation  Treaty  per  billion  euro  of GDP 
declined  from  0.37  in  2018  to  0.24  in  2022  and 
remain far below the EU average (2.81). By joining 
the  unitary  patent  system  in  September  2024, 
Romania took a significant step  towards potential 
increased  patenting  activity,  enabling  innovative 
companies  to  more  easily  protect  their  inventions 
and innovations across Europe. This is in line with 
the 2025 CSR on promoting private investment to 
foster  sustainable  development.  The  number  of 
public-private  co-publications  as  a  percentage  of 
total publications has also stagnated over the past 
decade  and  remains  below  the  EU  average  – 
5.65%  compared  with  7.62%  in  2023.  The  share 
of 
innovating  firms  collaborating  with  higher 
education  institutions  or  research  institutions  is 
one  of  the  lowest  in  the  EU  and  has  been 
decreasing  since  2017 (61).  This  result  can  largely 
be  explained  by  the  underdeveloped  support  for 
technology  transfer  offices  and  by  regulatory 

(55)  World Bank, 2024, Note with the assessment of industry-

academia linkages, good-practice example(s) of estimation 
of resources, and recommendations on key features of a 
potential program to support collaborative research.  

(56)  Science, Research and Innovation Performance of the EU, 

2024. 

(58)  Eurostat, 2024, High growth enterprises and related 

employment by NACE Rev. 2 activity, Statistics | Eurostat. 

(59)  Community Innovation Survey 2022, 

https://ec.europa.eu/eurostat/statistics-
explained/index.php?title=Community_Innovation_Survey_20
22_-_key_indicators.  

(57)  National Strategy for Research, Innovation and Intelligent 
Specialisation 2022-2027 and National RDI Plan 2022-
2027 – PNCDI IV. 

(60)  European Innovation Scoreboard, 2025. 

(61)  ERA Dashboard 2024. 

53 

 
 
 
obstacles  to  the  transfer  of  intellectual  property 
rights  for  researchers  and  entrepreneurs (62).  Few 
or  no  national  statistics  are  collected  on  licensing 
activities  and  the  creation  of  spin-offs  from 
Romanian universities and research institutes. The 
RRP  includes  measures  to  improve  the  regulatory 
framework  to  incentivise  collaboration.  However, 
no  further  measures  were  taken  to  encourage 
universities  and  research  institutes  to  actively 
participate in entrepreneurial initiatives and foster 
technology and knowledge transfer.  

Efforts  to  bridge  the  gap  between  research 
and  business  have  been  hindered  by  limited 
implementation  of  innovation  instruments. 
innovation  has 
Romanian  public  support  for 
four 
remained  weak.  Romania  had  only 
instruments  in  the  2014-2020  EU  multiannual 
financial 
framework’s  policy  mix  specifically 
targeting  firm  innovation  jointly  amounting  to 
EUR 74 million (63). To address this situation, from 
2023  to  2028  Romania  plans  to  spend  around 
EUR 476.3  million  annually  on  private-sector 
innovation  and  public-private  collaboration (64).  In 
addition,  Romania  has  recently  amended  its  R&D 
tax allowances scheme to make it more effective. 
However, the use of the tax incentives still remains 
negligible  (0.007%  of  GDP,  compared  with  0.103 
in  the  EU  in  2021) (65),  indicating  the  need  to 
further  simplify  the  measures  in  place.  Cohesion 
policy  provides  a  strategic  solution  to  the  gap 
between  research  and  business,  with  a  budget  of 
EUR 1.05  billion (66)  dedicated 
long-term 
innovation instruments in Romania (see Annex 18). 
An  interconnected  opportunity  to  bring  innovation 
the 
closer 
development  and  manufacturing  of 
critical 
technologies  under  cohesion  policy.  Part  of  the 

is  provided  by 

the  market 

to 

to 

in 

the 

the 

Strategic Technologies for Europe Platform (STEP), 
the  initiative  includes  projects  worth  EUR 1.07 
billion, expected to be financed in areas such as AI, 
green  hydrogen,  semiconductors  and  critical 
medicines.  Most  of 
investment-focused 
common 
interventions 
agricultural  policy  (CAP)  strategic  plan  prioritise 
innovative  technologies.  However,  Romania’s  CAP 
support 
in 
the  operational  groups 
agriculture 
Innovation 
participating 
Partnership 
approximately 
EUR 20 million  for  2023-2027  and  is  lagging 
behind in terms of implementation and results (67).  

through 
in 
is 

for  cooperation  and 

European 
to 

the 
limited 

innovation 

Romanian 

to 

and 

regional 

responsible 

coordinate 

Romania  has  yet  to  set  up  an  innovation 
facilitate 
agency 
innovation  efforts  and  stimulate  private 
R&D.  Significant 
regional  and  sub-regional 
disparities  in  innovation  performance  persist  in 
Romania  (see  Annex  18).  Regional  development 
agencies 
innovation 
for 
policies  and  investment  lack  the  necessary  skills 
and  report  a  disconnect  between  national-level 
innovation  priorities  and  specific,  place-based 
innovation opportunities and challenges prioritised 
at  regional  level  (68).  This  disconnect  is  a  further 
barrier 
strategic 
coordination  of  innovation  support.  To  address 
these challenges and promote a more coordinated 
and  effective  approach  to  innovation  support,  in 
country-specific 
line 
recommendation  to  promote  private  investment, 
Romania 
is  preparing  to  set  up  a  national 
innovation agency, expected to  start operations in 
2027.  The  agency  is  expected  to  drive  innovation 
and integrate new stakeholders into the Romanian 
research and innovation system. 

achieving 

effective 

2025 

with 

the 

to 

(62)  Kaymaktchiyski, S., Battiston, A. and Jiménez, V.M. editor(s), 
2024, Strategic evaluation of the technology transfer and 
IPR protection systems of Bulgaria, Croatia and Romania and 
recommendations for their enhancement, Publications Office 
of the European Union. 

(63)  World Bank, 2023, Increasing Competitive Funding at the 
System Level and Predictability of Funding Streams at the 
Institutional Level, Functional Analysis with Research 
Support Instruments, and Methodology for Assessing the 
Policy Mix and Functional Analysis. 

Uptake  of  digital  technologies  by  firms  is 
gradually  increasing,  although  performance 
remains  below  the  EU  average  and  further 
efforts  will  be  needed (69).  As  of  2025,  less 
than  half  of  Romanian  SMEs  (44.34%)  have 
achieved at least a basic level of digital intensity. 
While this is a significant increase from 26.78% in 

(67)  Raport anual PS PAC 2023-2027 - Ministerul Agriculturii și 

(64)  World Bank, 2024, ROINNOVATE: Building Blocks for an 

Dezvoltării Rurale. 

Innovation Agency in Romania. 

(65)  OECD, 2024, R&D tax incentives in Romania, 

https://stip.oecd.org/innotax/countries/Romania. 

(66)  Cohesion Open Data Platform, 

https://cohesiondata.ec.europa.eu/. 

(68)  OECD, 2023, Enhancing Strategic Planning and Innovation 
Services: Supporting Romanian Regional Development 
Agencies. 

(69)  Romania 2025 Digital Decade Country Report, European 

Commission. 

54 

 
 
 
business 

ecosystem.  AI 

2023, the level remains well below the EU average 
of 71.39%. More problematic is the level of SMEs 
with  a  very  high  digital  intensity,  where  the  gap 
with  the  EU  average  is  increasing  (2.42%  in 
Romania;  EU  average:  9.06%).  Nevertheless, 
Romania  has  been  slowly  improving  in  adopting 
advanced  digital  technologies  within  the  broader 
Romanian 
uptake 
increased from 3.07% in 2024 to 5.21% in 2025, 
but this is well below the EU level of 19.95%, with 
the  gap  increasing  compared  with  previous  years. 
The  use  of  cloud  computing  registered  the  most 
significant  growth,  up  from  15.52%  in  2023  to 
22.13%  in  2025  (EU  average:  46.69%).  Data 
analytics  solutions  were  used  by  35.07%  of 
Romanian  companies  in  2025,  well  above  the 
2023 level of 21.87% and closing the gap with the 
EU average of 39.85%. 

certifications  and 

simplification  of 

include  efforts 
administrative 

Ongoing  efforts  by  the  government  mostly 
the  business 
target 
environment.  Measures  under  the  RRP  aim  to 
simplify  and  digitise  procedures  for 
issuing 
licences  (following  support  received  through  the 
Instrument  –  TSI), 
EU’s  Technical  Support 
authorisations, 
inspections 
(through  an  ongoing  TSI  project).  The  RRP 
measures  also 
identify 
requirements. 
disproportionate 
These  measures  align  with  the  2025  CSR  on 
promoting private investment to foster sustainable 
development.  Authorities  are  cooperating  with 
European Digital Innovation Hubs to support SMEs 
in  their  digitalisation  process  via  an  SME  mentor 
programme  and  a  mix  of  financial  and  non-
instruments.  Nevertheless,  challenges 
financial 
remain, with companies struggling to identify how 
digitalisation  can  help  their  daily  activities  and  to 
find  the  necessary  capital  to  invest  in  digital 
solutions.  

to 

Entrepreneurial dynamism 

in 

and 

invest 

capital 

supporting 

cohesion  policy  funds.  The  Fund  will  leverage 
financial 
private 
intermediaries 
innovation-driven 
companies  with  potential  for  long-term  growth. 
Other  equity-based  financial  instruments  have 
recently been set up at both national and regional 
levels,  financed  by  cohesion  and  RRP  funding. 
These  include  the  Smart  Growth  programme  and 
Vest Ventures. These instruments have potential to 
address  the  market  shortcomings  by  delivering 
patient  capital 
to  viable  yet  underfunded 
businesses,  facilitating  technological  upgrades, 
expansion and innovation. 

small 

Romanian 
and  medium-sized 
enterprises  face  limited  access  to  funding 
(see Annex 6). Many businesses remain small, with 
limited  potential  to  scale  or  integrate  into  higher 
value-added  economic  chains.  In  addition,  there 
are  regional  and  rural  vs  urban  gaps  in  support 
services. Some regions and rural areas have been 
left with little or no support, little support for late-
stage start-ups, a lack of experienced staff and a 
low  level  of  public  funding  support (70).  In  total, 
cohesion  policy  envisages  EUR 1.59  billion (71) 
worth 
the  growth  and 
for 
competitiveness  of  SMEs.  The  establishment  in 
2024  of  the  ROStartup  Association (72),  under  the 
remit  of  cohesion  policy,  has  been  a  significant 
step  towards  better  coordination  and  support  for 
community  and  capacity  building  for  business 
support  infrastructures  and  to  strengthen  links 
with public research organisations. The Association 
currently  stands  as  an  example  of  how  local 
initiatives  to  unite  the  start-up  ecosystem  can  be 
scaled up beyond the local level. 

support 

of 

innovation 

Romania’s 
procurement 
framework  would  benefit  from  significant 
improvement.  In  the  benchmarking  of  national 
innovation  procurement  policy  frameworks  across 
Europe, Romania is in 22nd position in the EU, with 
a  total  score  of  15.81% (73).  Even  though  the 
(from  12.9%  to 
its  score 
country 
15.81%), it has gone down one position compared 

improved 

Romania’s  local  venture  and  growth  capital 
market remains underdeveloped (see Annex 6). 
Despite  progress 
in  recent  years,  Romania's 
venture  capital  market  still  faces  substantial 
structural  weaknesses.  A  positive  step  towards 
addressing the persistent equity financing gap and 
catalysing 
innovation-driven  enterprise  growth 
comes  from  the  establishment  in  2025  of  the 
Innovation  Romania  Holding  Fund,  co-financed  by 

(70)  Startup Enabler Capability Assessment (SECA): A Toolkit for 
Understanding Startup Ecosystems through the Capabilities 
of Intermediaries, World Bank, 2024. 

(71)  Cohesion Open Data Platform, 

https://cohesiondata.ec.europa.eu/. 

(72)  https://rostartup.com/. 

(73)  ROMANIA. COUNTRY PROFILE – Benchmarking of national 
policy frameworks for innovation procurement, 2024. 

55 

 
 
with the previous benchmarking in 2020, as other 
countries improved their policy frameworks faster. 
The  country’s  performance 
is  below  the  EU 
average  (33.05%)  in  total  and  on  9  of  the  10 
indicators. Romania has so far implemented only a 
few  of  the  policy  measures  to  establish  a 
comprehensive 
innovation 
framework 
procurement.  

for 

in 

opportunities, 

The low number of researchers and shortage 
of skilled workers limit Romania’s innovation 
research  capacity.  The  number  of 
and 
the  public  sector 
researchers  employed 
(measured  in  full-time  equivalents)  has  remained 
stagnant for more than a decade at 1.6 per 1 000 
active  population,  considerably  below  the  EU 
average of 4.3 and placing Romania last of all EU 
limited  career 
countries.  Challenges  such  as 
development 
working 
poor 
conditions  and  low  salaries  for  researchers (74) 
contribute  to  the  unattractiveness  of  researcher 
careers  and  to  brain  drain (75).  Additionally,  the 
number  of  new  graduates 
in  science  and 
engineering  has  stagnated,  which  negatively 
impacts  the  country's  innovation  potential.  This 
issue  is  compounded  by  Romania  having  the 
lowest  percentage  of  population  aged  25-34  to 
have completed tertiary education in the EU. Even 
though  the  proportion  of  Romanians  aged  25-34 
with a tertiary degree increased slightly to 23.2% 
in  2024,  it  remains  significantly  below  the  EU 
average  of  44.1%  and  the  EU-level  target  of 
45% (76).  Romania's  RRP  outlines  various  reform 
and  investment  measures  aimed  at  improving 
governance  of  the  R&I  system.  They  aim  at 
research  careers, 
increasing 
attracting  international  talent  to  the  sector,  and 
creating  centres  of  excellence.  A  new  law  on  the 
status  of  R&I  staff  was  adopted  in  2024,  aiming 
to  create  a  better  environment  for  human 
resources  in  the  public  research  system,  increase 
the  attractiveness  of  research  careers  and  align 
salaries in the sector (77). The reform is planned to 

the  appeal  of 

(74)  PSF Open Final Report, 2022, Implementation Plans for 
Recommendations from the PSF Country Review of the 
Romanian Research and Innovation System. 

be  completed  in  2026  and  needs  to  be  put  in 
financial 
practice, 
resources for universities and research institutes. 

supported  by 

sufficient 

to 

like 

subjects 

approaches 

Entrepreneurship  education 
remains  an 
emerging field in Romania, without a unified 
strategy  to  increase  innovation  readiness. 
Romania  lacks  a  dedicated  national  strategy  for 
entrepreneurship  education.  The  2023  Pre-
University  Education  Law  (78)  explicitly  mentions 
entrepreneurial  competence  as  a  key  skill 
throughout schooling. Romania is among a handful 
of  EU  countries  employing  all  three  classical 
curricula 
entrepreneurship 
education, i.e. (i) as a cross-curricular objective, (ii) 
as a separate compulsory subject, and (iii) infused 
‘Civic  Education’, 
into  other 
‘Economics’ (79). 
‘Technological  Education’  and 
Teacher  competence  frameworks  do  not  facilitate 
entrepreneurs’  involvement  in  entrepreneurship 
education,  as  a  university  degree  is  required  in 
order  to  teach  at  universities (80).  This  limits  their 
involvement  in  entrepreneurship  education  and 
reduces  students'  exposure  to  practical  business 
experience.  Practical  entrepreneurial  experiences 
include  optional  activities  under 
the  Junior 
Achievement  Romania  programme (81)  in  general 
upper  secondary  education,  as  well  as  practice 
firms and the ‘Quality Mark’ school competition for 
education, 
vocational 
In 
entrepreneurship  education 
in 
business  and  economics  faculties,  with  limited 
cross-disciplinary 
Meanwhile, 
challenges persist in bridging theory-practice gaps 
and  engaging  the  business  sector  in  developing 
curriculum  and  skills  intelligence.  Despite  recent 
efforts,  systemic  challenges  persist  in  ensuring 
consistent 
relevant 
entrepreneurial skills for the labour market across 
the entire educational system. 

higher 
is  concentrated 

development 

integration. 

students. 

of 

(78)  Pre-University Education Law No 198/2023 

(https://legislatie.just.ro/Public/DetaliiDocument/271896) and 
Order No 6731/2023 for approving graduate student 
competency profile with descriptors tailored to each 
educational level – primary, lower and upper secondary 
(https://legislatie.just.ro/public/DetaliiDocument/277019).  

(75)  European Commission, 2022, Knowledge Ecosystems in the 
new ERA: Talent circulation and intersectoral mobility: 
Analytical report with a mapping of talent mobility and 
causes of brain drain. 

(79)  European Commission / EACEA / Eurydice, 2025, 

‘Entrepreneurship education at school in Europe – 2025’, 
Eurydice Report, Luxembourg: Publications Office of the 
European Union. 

(76)  Education and training monitor 2025 – Romania, European 

(80)  Higher Education Law No 199/2023. 

Commission 

(81)  Junior Achievement (JA) programme: 

(77)  https://legislatie.just.ro/Public/DetaliiDocument/283972. 

https://www.jaromania.org/.   

56 

 
 
 
Table A4.1:  Key Innovation Indicators 

(1) EU average for the last available year or the year with the highest number of country data. * Break in series 
Source: Eurostat, OECD, DG JRC, Science-Metrix (Scopus database), Invest Europe, European Innovation Scoreboard 

57 

R&D intensity (gross domestic expenditure on R&D as % of GDP)0.450.490.470.460.520.46:2.243.44Public expenditure on R&D as % of GDP0.270.280.190.170.200.16:0.720.64Scientific publications of the country within the top 10% most-cited publications worldwide as % of total publications of the country 3.614.065.286.19:::9.4412.31Researchers (FTEs) employed by public sector (Gov+HEI) per thousand active population1.71.61.61.61.61.6:4.3:International co-publications as % of total number of publications26.6132.6538.0340.0139.7441.03:57.24:Business enterprise expenditure on R&D (BERD) as % of GDP0.170.210.280.290.320.29:1.492.69Business enterprise expenditure on R&D (BERD) performed by SMEs as % of GDP0.090.070.030.040.04::0.470.30Researchers employed by business per thousand active population0.70.50.60.70.91.0:5.9:Patent applications filed under the Patent Cooperation Treaty per billion GDP (in PPS €)0.330.510.330.24:::2.812.20Employment share of high-growth enterprises measured in employment (%):::1.011.03::0.87:SMEs with at least a basic level of digital intensity% SMEs (EU Digital Decade target by 2030: 90%)::::26.78:44.3471.39:Data analytics adoption% enterprises (EU Digital Decade target by 2030: 75%)::::21.87:35.0739.85:Cloud adoption% enterprises (EU Digital Decade target by 2030: 75%)::::15.52:22.1346.69:Artificial intelligence adoption % enterprises (EU Digital Decade target by 2030: 75%)::::1.513.075.2119.95:Public-private scientific co-publications as % of total number of publications4.644.806.06.286.075.65:7.62:Public expenditure on R&D financed by business enterprises (national) as % of GDP0.030.030.020.020.02::0.060.02Total public-sector support for BERD as % of GDP:0.040.030.030.01::0.21:R&D tax incentives: foregone revenues as % of GDP:0.000.010.000.00::0.10:BERD financed by the public sector (national and abroad) as % of GDP 0.050.040.020.030.01::0.11:Venture capital (market statistics) as % of GDP (calculated as a 3-year moving average)0.000.000.010.010.010.01:0.06:Seed stage funding share (% of GDP)0.000.000.000.000.000.00:0.01:Start-up stage funding share (% of GDP)0.000.000.000.000.000.00:0.03:Later stage funding share (as % of GDP)0.000.000.000.000.000.00:0.03:New graduates in science & engineering per thousand population aged 25-34:11.1712.04*12.31*12.84*13.41*:16.82:Graduates in the field of computing per thousand population aged 25-34:2.603.59*3.86*4.29*4.34*:3.84:R&D investment & researchers employed in businessesInnovation outputsDigitalisation of businessesAcademia-business collaborationInnovative talent Public support for business innovationFinancing innovationScience and innovative ecosystemsHeadline indicatorRomania2010201520202022202320242025EU average (1)US 
 
  
 
ANNEX 5: SINGLE MARKET AND INDUSTRY 

The  good  performance  of  the  economy  that 
had  been  under  way  for  a  long  time  has 
almost  stopped  in  the  last  two  years.  The 
economy  is  deindustrialising.  Industrial  output 
went down from a share of 25% of GDP in 2015 
to  17%  in  2024.  Business  environment  remains 
unpredictable.  Business  investment  is  stagnating. 
Business  dynamism  is  below  the  EU  average. 
Business  exit  and  the  efficiency  of  the  insolvency 
framework  are  low.  The  productivity  gap  between 
large companies and SMEs is significant. Access to 
bank  finance  for  SMEs  is  hampered  by  weak 
capitalisation of companies, but also by expensive 
loans coming, among other factors, from low retail 
competition  in  banking.  Self-financing  and  trade 
credit  are  widely  used.  The  GDP  share  of  energy 
intensive industries dropped significantly following 
the  increase  in  energy  prices.  Public  procurement 
is affected by a high share of single bids, pointing 
to  weak  competitive  dynamics  in  several  sectors. 
Restrictively  regulated  professions  may  hamper 
productivity.  

The  2025  CSRs  highlight  the 
lack  of 
predictability  as  a  key  weakness  of  the 
business  environment,  affecting  investment. 
Regulation  is  done  on  an  ad  hoc  basis,  with  only 
impact 
symbolic  stakeholder  consultation  and 
assessment. The administrative burden is high but 
there are no systemic initiatives to tackle it, except 
for  the  reforms  supported  by  the  Recovery  and 
Resilience  Plan  (RRP)  to  ease  entry  into  business. 
Other  relevant  initiatives  require  further  action 
(SME test, single industrial license).  

Business dynamics 

investment 

Business 
is  stagnating.  Total 
investment  has  been  high  for  a  long  time  and 
remained  at high  levels  in  2024  -  25.3%  of  GDP, 
the  second  highest  level  in  the  EU.  But  its 
composition  has  changed 
last  years. 
Business  investment  remained  relatively  stable 
since 2019 (around 13% of GDP) and close to the 
EU average (13.4% vs 12.6% in 2024). Investment 
in  equipment  posted  several  negative  year-on-
rates  after  2016(82).  Public 
year  growth 
investment  has  increased  strongly  from  2.5-3% 
before COVID to 5.5-6% after the pandemic. With 

in  the 

close  to  6%  in  2024,  Romania  has  the  third 
highest  level  of  public  investment  in  the  EU.  EU 
funds absorption has supported those high levels, 
facilitated  by  the  extra  resources  from  the  RRF 
and  the  usually  higher  payments  associated  with 
the  final  years  of  the  Multiannual  Financial 
Framework  (MFF).  Household  investment  is  also 
high in EU comparison since 2017 (6-8% of GDP).  

SMEs  are  very  important  for  the  economy 
but  show  weak  performance. 
In  2024, 
Romanian  SMEs  had  an  average  level  of  value-
added per person employed  that was half that of 
the EU (EUR 27200 vs 54 000) (83). Their share of 
employment  (68.6%)  was  slightly  above  the  EU 
average (65.1%) but much higher for value added 
(60.5% vs 53.6%) (84). The country has a low SME-
intensity:  49  SMEs/1 000  inhabitants,  well  below 
the  EU  average  of  58  (85).  The  productivity  gap 
between large companies and SMEs is significant. 
Value-added  per  person employed  is  around  40% 
higher  in  large  companies  (86).  Micro  firms,  which 
employ  almost  half  of  the  SME  labour  force,  are 
the  least  performing  among  SMEs,  similar  to  EU 
peers.  

Business  exit  and  the  efficiency  of  the 
insolvency  framework  are  low.  Cumulative 
business  entry  and  exit  rate  (business  churn)  for 
2023 (18%) is slightly below the EU figure (19%) 
(87).  The  exit  rate  (6%)  seems  especially  low 
compared with the EU level (8.4%). It may also be 
linked to the fact that the insolvency framework in 
Romania  is  more  rigid  than  in  most  European 
countries  (88).  Insolvency  is  time-consuming,  late 
and  has  limited  impact  in  terms  of  prevention  or 
reorganisation (89). The weight of companies under 

(83)  European  Commission,  Annual  Report  on  European  SMEs 
2024-2025,  p.  14.  The  figure  refers  to  the  non-financial 
business economy. 

(84)  2025 SME Factsheet for Romania. 

(85)  See  p.  11  of  the  Annual  Report  on  European  SMEs  2024-

2025. 

(86)  Calculations based on the data in the SME Factsheet. 

(87)  Eurostat. 

(88)  OECD,  Enhancing 

Insolvency  Frameworks 

to  Support 
Economic  Renewal,  2022,  p.  9;  OECD,  Economic  Survey  of 
Romania,  March  2026.  Business  insolvency  has  by  far  the 
lowest  score  (51.7/100)  among  the  10  areas  considered  in 
the  2025  report  of  the  World  Bank  ‘Business  Ready  for 
Romania’. 

(82)  European Commission, Spring Forecast, p. 195. 

(89)  National  Bank  of  Romania,  Raport  asupra  stabilitatii 
financiare, December 2023, p. 119; December 2025, p. 59-
60. 

58 

 
 
 
 
 
 
insolvency,  on  the  other  hand,  is  limited  (1.7%  of  
GVA,  4.5%  of  assets).  The  government  has 
recently adopted minimum levels of capitalisation 
for  SMEs  and  dissolution  measures  for  inactive 
firms.  The  EU  rules  on  insolvency  had  been 
transposed into national legislation by mid-2022.  

Business environment 

The  2025  CSRs  highlight  the 
lack  of 
predictability  as  a  key  weakness  of  the 
business  environment,  affecting  investment 
(90). Investment is a long-term business and needs 
predictability.  The  government  adopted  several 
packages of measures in the last three years that 
have significantly changed the rules for both SMEs 
and  large  companies.  Preparation  time  left  for 
businesses was very short or non-existent. The use 
of  emergency  ordinances  by  the  government  is 
extensive.  200  ordinances  have  been  adopted  in 
2024,  which  gives  an  almost  30%  increase  on 
2023(91).  Emergency  ordinances 
represented 
25,5%  of  all  primary legislation  adopted  in  2025 
(see Annex 7). The 2025 recommendation focuses 
on  three  areas  (see  also  Annex  7  Effective 
Institutional Framework):  

Stakeholder  consultation.  Business  associations 
are  more  active.  The  government  sought  more 
feedback  from  enterprises.  Several  problematic 
legislative  provisions  for  companies  have  been 
removed following consultations. But there are still 
surprises: no follow up on agreed measures or new 
measures  adopted  which  have  never  been 
discussed. 

Effective impact assessments. Stakeholders report 
missing  and  inadequate  impact  assessments  (92). 
With  RRF  support,  the  authorities  have  adopted  a 
new  legislative  framework  for  the  SME  test,  but 
further  efforts  are  required  to  facilitate 
its 
practical application. (93).  

(90)  See CSR 3/2025. 

Streamlined  administrative  procedures.  The  share 
of firms with a relatively large proportion of their 
employees working on regulatory assessment and 
compliance  is  the third  highest in  the  EU (94).  The 
government has delivered on its RRP commitment 
to  ease  the  requirements  for  setting  up  a 
company.  The  single  industrial  license,  benefitting 
from  support  under 
the  Technical  Support 
Instrument (TSI) and RRF, has made progress. The 
new  framework  envisages  tacit  approval,  a  one-
stop-shop  and  coordination  among 
the  19 
authorities  involved.  However,  an  encompassing, 
whole-of-government  agenda  for  simplification  is 
not in place, partly because of missing resources.  

Access to bank finance for SMEs is hampered 
by weak capitalisation of companies but also 
by  expensive  loans  coming  from  low  retail 
competition in banking. Self-financing and trade 
credit  are  widely  used.  Trade  credit  is  16  times 
larger  than  short-term  loans  from  banks,  placing 
Romania  top  of  the  EU  for  this  metric.  Weak 
capitalisation among companies and, for medium-
sized  SMEs,  unprofessional  management  (e.g. 
absence  of  a  chief  financial  officer)  should  be 
addressed  to  improve  bankability.  On  the  other 
hand,  more  than  half  of  the  entrepreneurs 
perceive  bank  loans  as  expensive  (see  Savings, 
Investment, and Access to Finance annex) and the 
main  barrier  to  access.  Three  quarters  of  the 
companies  in  Romania  have  not  taken  out  any 
loans denominated in lei. The average interest rate 
for  new  loans  was  above 9%  in  September  2025 
(95).  The  tougher  macroprudential  rules  set  up 
during  the  financial  crisis;  the  high  risk  premium 
demanded by foreign owned banks; the significant 
crowding high-risk credit by the government make 
credit  expensive.  Weak  competition  is  also  a 
contributing factor to making the loans expensive. 
Retail banking, together with notaries and cement, 
are  the  three  sectors  where  competition  pressure 
is  weakest (96).  Nationally  owned  entities  seem  to 
have a higher exposure to SMEs. The new Bank for 
the 
Investment  and  Development,  which 
national promotional bank, set up with RRP and TSI 
support,  may  help  SMEs  access  finance.  It  has 
nevertheless  to  learn  the  lessons  from  previous 
national  support  programs  –  mostly  untargeted, 

is 

(91)  2025  Rule  of  Law  Report  for  Romania,  Commission  Staff 

(94)  EIB Investment Survey 2025. 

Working Document, p. 16.   

(95)  National  Bank  of  Romania,  Survey  on  Access  to  Finance  - 

(92)  2025 Rule of Law Report for Romania. 

December 2025, p. 14. 

(93)  No  SME  test  has  been  applied  to  the  very  significant 

(96)  Competition  Council,  Competition  developments 

in  key 

legislative changes adopted in the last three years.   

sectors, 2025, p. 78. 

59 

 
 
 
financing 

a new business 

providing stimulus mainly to commercial activities. 
The  national  medium-term  fiscal-structural  plan 
includes 
support 
measure. This reform  foresees the  establishment 
of  an  Investment  Fund  for  the  support  of  the 
private  equity  business  for  SMEs,  a  new  legal 
framework to support strategic investments in the 
manufacturing 
legal 
framework for granting special purpose grants for 
manufacturing.  

industry,  and  a  new 

SMEs  are  affected  by  late  payments  from 
the  public  sector.  Romania  stands  out  in  the 
2025 SAFE survey in terms of the number of SMEs 
reporting late payments from public entities (32%, 
the  second  highest  share  in  the  EU).  As  in  the 
previous  edition,  there  is  no  data  for  2025  for 
Romania  concerning  average  payment  periods  in 
G2B  and  B2B  transactions.  In  April  2024  the 
European  Commission  initiated  an  infringement 
procedure  against  Romanian  public  health 
authorities  for  failing  to  correctly  apply  the  EU 
Late  Payment  directive 
to 
pharmacies.  

for  payments 

to 

compared 

2023. FTTP 

Romania remains an  EU  leader  in  gigabit 
connectivity,  but  struggles  with  ensuring  5G 
coverage,  despite  the  progress  registered 
(fibre-to-the-premises) 
since 
coverage in 2024 was at 95.74%, well above the 
EU  average  of  69.24%. A  similar  situation can  be 
seen for fixed very high-capacity networks (VHCN), 
with  Romania  registering  95.88%  coverage  in 
2024 
the  EU  average  of 
82.49%. Remarkably,  Romania  registered  similar 
levels  of  coverage  for  both  categories  in  rural 
areas,  with  FTTP  levels  at  93.48%  (EU  average 
58.78%) and VHCN levels of 93.62% (EU average 
61.89%).  Growth  for  both  categories  has  been 
slow,  with  telecom  operators  reaching  a  limit  in 
cost  effectiveness  in  extending  network  coverage 
in the remaining areas. Additional incentives could 
be  explored  between  the  telecom  operators  and 
the  national  authorities  to identify ways  to  get 
closer to the 2030 target of 100% coverage. While 
the  situation  has  been 
improving,  Romania 
underperforms  in  terms  of  5G  coverage.  In  2024, 
46.75% of Romanian households were covered by 
5G connectivity, a substantial increase from 2023 
(32.75%),  but significantly under  the  EU  average 
of  94.35%. This  is  mainly  due  to  relatively  low 
demand  (most  needs  are  met  by  existing  4G 
networks  and  only  38.33%  of  harmonised 
spectrum  has  been  assigned),  the  high  level  of 
investment needed to replace the existing network 

compared to revenue per user and limited support 
measures to facilitate 5G extension and take-up.  

Single Market 

face 

challenges 

procurement 

public 
to 

Romania’s 
system 
over 
continues 
transparency, efficiency and competition. Key 
issues include persistently high single-bid tenders, 
weaknesses  in  planning  and  tender  preparation 
that  can  reduce  participation  and  persistent 
capacity  gaps  across  a  highly  decentralised 
system.  The  OECD  2025  report  (97)  finds  that 
Romania  has  integrity  and  risk  controls  but  they 
are  often  applied  late  and  in  an  uncoordinated 
way, focusing on formal compliance checks rather 
than 
improving 
problems 
outcomes. 

preventing 

and 

A  key  concern  is  the  persistently  high  share 
of  single  bids,  pointing  to  weak  competitive 
dynamics  in  several  sectors.  Romania  records 
one  of  the  highest  single-bid  rates  in  the  EU, 
reaching 49% in 2025, which is well above the EU 
median  of  27%.  Single  bids  show  different 
sectoral  patterns  depending  on  the  metric  used. 
One  metric,  focused  on  risk  by  sector,  shows 
elevated single-bid rates in utilities and in a set of 
specialised markets, including certain professional 
services (consultancy, R&D), textiles, basic metals, 
and some specialised services. In addition, another 
metric,  focused  on  the  sectoral  contribution  to 
total 
shows  medical 
awards, 
equipment/health, forestry and local authorities as 
the most problematic sectors. Single-bid rates are 
highest 
bands 
intermediate 
(approximately  EUR  150  000  to  EUR  5  000  000) 
and  lower  for  the  highest-value  contracts.  Higher 
rates  are  also  observed  for  public  undertakings 
and  entities  controlled  by  central  or  regional 
authorities.  The  World  Bank’s  2025  study  on  EU 
public  procurement  competition 
identifies,  for 
Romania,  a  skewed  distribution  of  awards,  with 
many  one-off  winners  alongside  a  sizeable  group 
of repeat winners, consistent with concentration of 
awards in parts of the market. 

single-bid 

value 

in 

The  direct  awards 
indicator  shows  a 
significant  break  in  series  in  2024–2025. 
After  standing  at  22%  in 2023,  the  rate  reported 

(97) Managing Public Procurement Risks in Romania | OECD 

60 

 
 
in the Public Procurement Data Space (PPDS) falls 
to below 1% in 2024 and 2025, reflecting late and 
incomplete reporting. This reduces the reliability of 
monitoring  and  limits  the  scope  for  an  evidence-
based assessment of procurement performance in 
Romania. 

to 

The  effects  of  measures 
improve 
performance  have  yet  to  be  observed. 
Romania is continuing with reforms (supported by 
the  RRP  and  TSI)  to  streamline  procedures  and 
strengthen 
institutional  capacity.  Studies  and 
surveys  highlight  persistent  skills  gaps  among 
many local authorities and challenges in preparing 
and  running  procedures.  Reported  barriers  to 
subjective 
participation 
include 
technical 
qualification  and  selection  criteria, 
specifications perceived as difficult to comply with 
or  not  aligned  with  needs,  unrealistic  cost 
estimation,  short  time  limits  for  bid  preparation, 
and low confidence the likelihood of a fair chance 
to win. The OECD 2025 report also highlights that 
data from e-procurement systems is not yet used 
systematically enough to monitor risk patterns and 
competition outcomes or to target interventions to 
the 
and 
procedures. 

weakest-performing 

authorities 

rigid 

or 

There  are  significant  regional  disparities  in 
running public procurement procedures.  Over 
half  of  Romania’s  public  procurement  contracts 
were  concentrated  in  just  ten  counties  (98),  with 
Bucharest and Cluj alone accounting for more than 
50%  of  total  contract  value  and  almost  40%  of 
the  number  of  contracts.    Ten  counties  account 
altogether  less  than  7%  of  all  contracts.  The 
practice  shows  that  there  is  a  limited  number  of 
specialists 
transparent  and 
competitive process in the small municipalities and 
high turnover. Project preparation and planning are 
weak at both national and local level.  

conduct  a 

to 

Several  measures  are  being  implemented  to 
address  these  issues,  in  line  with  the  Public 
Procurement  National  Strategy  2023–2027, 
notably  on  professionalisation,  digitalisation 
and  centralisation. Competency  frameworks  for 
procurement  roles  are  publicly  available,  while 
structural 
on 
professionalisation  (including  the  absence  of  a 
dedicated  special  status  for  procurement  staff, 
career/managerial  pathways  and 
incomplete 

constraints 

remain 

responsibilities  for 

fragmentation  of 
training 
delivery and certification). On centralisation and e-
procurement  under 
the  RRF,  seven  central 
purchasing bodies are operational, with framework 
agreements  and  call-offs  underway  for  standard 
categories  and  an  expansion  in  2025  of  centrally 
purchased 
New 
functionalities, 
including  electronic  evaluation 
forms,  expanded  dynamic  purchasing  system 
functionalities,  and  electronic  contract,  e-invoice 
and e-payment, have been introduced.  

categories 

users. 

and 

and 

strategic  procurement, 

institutional 
On 
arrangements have been put in place through 
the  competence  centre structure  established 
within  the  procurement  authority  in  late 
internal 
2024 
redeployment  in  2025.  Measures  have  been 
adopted  on  green  public  procurement  (including 
criteria  for  12  product  categories  and  a  national 
programme for 2025–2030), while work on social 
and  innovation  procurement  continues,  with  some 
actions delayed. 

through 

staffed 

in  and  participated 

Businesses’  views  on  corruption  risks  in 
public  procurement  are  above  the  EU 
average.  In  Romania,  75%  of  companies  (EU 
average: 58%)  consider tailor-made specifications 
for  particular  companies  in  public  procurement 
procedures,  and  70%  (EU average:  53%)  conflicts 
of interest in the evaluation of bids, 'very' or 'fairly 
widespread' practice. Among companies that have 
experience 
in  a  public 
procurement procedure, 37% think that corruption 
has prevented them from winning a public tender 
or  a  public  procurement  contract  in  practice  (EU 
average:  25%)  (99).  45%  of  businesses  perceive 
the 
the  public 
procurement  review  body  (The  National  Appeals 
Settlement  Council)  to  be  ‘very’  or  ‘fairly  good’ 
when it is reviewing public procurement cases (100). 
Romania  received  support 
the  EU’s 
Technical  Support  Instrument  to  implement  the 
integrity  and  anti-corruption  framework,  including 
reducing 
in  public 
the 
procurement.  

risk  of  corruption 

independence  of 

level  of 

through 

Romania’s eProcurement landscape and data 
for 
quality 

issues  highlight 

the  need 

(99)  European  Commission,  2025,  Flash  Eurobarometer  555, 

Ec.europa.eu. 

(100) European  Commission,  2025,  EU  Justice  Scoreboard, 

(98)  National Agency for Public Procurement, data for 2023. 

Ec.europa.eu 

61 

 
 
 
service. 

eSubmission 

cross-border  procurement, 

interoperable  systems,  common  standards 
and  stronger  data  governance.  Romania’s 
centralised  eProcurement service  allows  economic 
operators  to  use  a  single  system  to  access  all 
national  public  procurement  procedures.  However, 
issues 
concerning 
remain,  creating  complexity  and  barriers 
to 
participation  for  firms  of  other  Member  States. 
This  is  specifically  relevant  for  the  relatively  high 
rate  of  foreign  economic  operators  registered  in 
Romanian’s 
This 
fragmentation  underscores  the  need  to  introduce 
interoperability and common standards. The once-
only  principle  is  only  partially  implemented  at 
national level (see Annex 7), and buyers across the 
EU 
relevant 
evidence.   Romania  has  one  dedicated  service  for 
public  procurement  data  which 
is  used  for 
statistical  reporting  and  monitoring  of  the  public 
procurement  system.  However,  it  does  not  fully 
(e.g.  
cover 
including 
contract 
performance).  Reinforcing  data  collection  and 
analysis  will  contribute  to  the  objective  of 
supporting  a  data-driven  management  of  the 
public procurement lifecycle (101).  

the  public  procurement 

lack  digital  access 

understand 

lifecycle 

invoices 

still 

to 

to 

Corruption and fraud have been identified by 
the national authorities as risks in the public 
procurement  process,  with  some  measures 
ongoing  to  address  them.  Procurement 
is 
considered  a  sector  with  a  high  risk  of  corruption 
with  75%  of  Competition  Council  investigations 
concerning  public  procurement  procedures.  The 
Court  of  Accounts  submits  that  most  corruption 
cases, alongside bid-rigging and overpricing, seem 
to  take  place  mostly  at  local  level.  It  pleads  in 
favour of more training on ethics for local officials, 
in  particular  mayors.  Through  the  EU’s  TSI,  the 
Competition Council is fighting bid rigging in public 
procurement 
and 
improve 
competition  for  public  contracts.  The  number  of 
integrity warnings issued by the electronic system 
in  public 
to  prevent  conflicts  of 
procurement  continued  to  be  stable.  Work  is 
ongoing  under  the  RRP  to  digitalise  the  public 
procurement process. Electronic submission forms, 

compliance 

interests 

to 

(101)European  Court  of  Auditors,  Special  Report  28/2023: Public 
Procurement  in  the  EU.  Less  competition  for  contracts 
awarded for works, goods and services in the 10 years up to 
2021,  2023, Special  report  28/2023:  Public  procurement  in 
the EU 

with 

automated 

electronic  tender  evaluation,  dynamic  purchasing 
qualification 
procedures 
assessment, and tools for e- contracts, e-invoicing, 
e-payments and contract management have been 
introduced,  and  the  Electronic  Public  Procurement 
interconnected  with 
System 
registers  of  other  public  institutions.  With  the 
support  of  the  EU’s  Technical  Support  Instrument, 
Romania  has  identified  fraud  and  corruption  risks 
in all stages of the public procurement process. 

is  now 

(SEAP) 

Romania performs well in transposing Single 
Market legislation. Romania has a transposition 
deficit of 1% (in line with both the EU average of 
1.1%  and  the  1%  target  set  by  the  EU  Council). 
The  percentage  of  Single  Market  directives 
incorrectly  transposed  (conformity  deficit)  is  at 
0.4% (third best performance among the Member 
States).  The  number  of  pending  Single  Market 
in  Romania  and 
infringement 
the 
cases 
infringement  proceedings 
average time to solve 
are slightly  above  the  EU  average.  Romania 
resolved  86%  of  all  SOLVIT  cases  it  handled  as 
lead centre (EU average of 84.6% in 2025).  

in 

The compliance of products circulating in the 
Market (102) is key to ensuring a level-playing 
field  for  law-abiding  companies  and  the 
safety of consumers. In Romania, the number of 
market  surveillance  investigations  has  increased 
compared with 2019. In 2025, national authorities 
the  EU  system  for  market 
reported  – 
surveillance 
of 
a 
26.7 investigations  per  one  million  inhabitants, 
which  is  lower  than  the  EU median  of 136.2. The 
in 
number 
absolute  terms,  which  may  also  be  the  result  of 
insufficient  IT  national  interoperability  to  the 
ICSMS  system.  The  upcoming  revision  of  the 
Market Surveillance Regulation will upgrade ICSMS 
to a fully interoperable EU digital platform.  

notifications remains limited 

(ICSMS) 

total 

of 

– 

the 

ensuring 

National  Standardisation  Bodies  are  central 
European 
that 
to 
Standardisation  System  operates  effectively 
and  contributes  to  removing  structural  barriers-
such as the “Terrible Ten”-that continue to limit the 
full  potential  of  the  Single  Market  and  the 
competitiveness of EU industry. However, evidence 
the  Romanian  Standardisation 
suggests 

that 

(102)Part  of  the  barriers  highlighted 

in  the Single  market 
strategy (‘Terrible Ten’)  and  the 2026  Annual  Single  Market 
and Competitiveness Report. 

62 

 
 
 
  
 
 
Association  faces  persistent  resource  constraints, 
which risk slowing down standardisation processes 
and  limiting  stakeholder  participation.  Without 
targeted  investment,  Romania  risks  falling  behind 
in  standardisation,  which could  ultimately  weaken 
its industrial competitiveness and its ability to fully 
benefit  from  the  opportunities  of  the  Single 
Market. 

despite being a significant EU producer. The prices 
for  the  large  consumers  were  even  higher.  The 
hardest  hit  sectors  were  manufacturing  of  basic 
metals  (-24%  compared  to  2021),  chemicals  (-
18%)  and  wood  (-16%).  If  the  share  of  energy-
intensive industry  hovered  around  4-5% in  2018-
2021,  it  declined  steeply  to  2.8%  by  2023  (see 
also Annex 9). 

Access to the Single Market is an opportunity 
that  many  SMEs  in  Romania  could  exploit 
better.  Romania’s  trade  integration  (goods  and 
services)  into  the  Single  Market  is  above  the  EU 
average (28% of GDP vs 26%). The bulk of intra-
EU exports in value terms (60%) came from large 
companies, which indicates that SMEs have scope 
to improve their presence on the single market.  

Graph A5.1: Manufacturing output: total and 
selected sectors, index (2021=100), 2015-2024 

Restrictively 
regulated  professions  may 
hamper productivity. Regulatory restrictions in a 
number of professions remain stricter in Romania 
than  the  EU  average,  creating  additional  costs, 
especially  for  SMEs,  while  lowering  productivity. 
This  applies 
in  particular  to  civil  engineers, 
tourist  guides,  and 
architects,  accountants, 
notaries.  Lawyers  are  also  subject  to  legal  form, 
incompatibility 
and  multidisciplinary 
restrictions, all of which affect the potential of the 
innovation.  The  fragmented 
legal  sector  for 
system 
their 
activities  seems  to  be  a  barrier  to  their  free 
movement  and  hampers  the  efficiency  of  service 
provision.  

regulating  civil  engineers  and 

rules 

Industry and economic security  

The  economy  is  deindustrialising.  Industry 
went from a share of 25% of GDP in 2015 to 20% 
in 2020 to 16.8% in 2025. It is now slightly below 
the EU average. Manufacturing dropped from 20% 
of  GDP  in  2016  to  11.9%  in  2025.  Construction 
held  better  and  registered  the  highest  share  in 
GDP  in  the  EU  in  2024  (7.9%)  and  2025  (8.7%). 
These high levels of construction are also boosted 
by infrastructure.  

The GDP share of energy-intensive industries 
dropped  significantly  following  the  increase 
in  energy  prices.  In  recent  years,  Romania  has 
seen an increase in energy prices. Electricity prices 
for businesses were the third highest in the EU in 
the  first  half  of  2025;  second  highest  for  gas, 

63 

Source: Eurostat 

is  made 

The  automotive  industry  is  a  crucial  sector 
for  Romania.  Automotive  is  the  top  industrial 
sector with 13-14% of GDP and 1/3 of exports. It 
accounts  for  as  much  as  half  of  manufacturing. 
With more than half a million cars a year, Romania 
ranks  6th  to  8th  among  the  biggest  producers  in 
the EU, on a par with Hungary and Italy. The sector 
has  moved  up  the  value-added  chain.  70%  of 
everything  for  Dacia  cars 
locally 
(everything  except  design).  The  external  economic 
environment creates significant challenges for the 
future.  40%  of  manufactured  exports  go  to 
Germany. The weakening of the German economy 
is  affecting  the  automotive  sector  as  well  as 
Romanian  industry  in  general.  Three  factors  may 
be  key  in  keeping  a  strong  automotive  sector  in 
Romania:  support  for  innovation  in  the  sector  by 
mobilising  the  favourable  on-paper  framework 
(103);  affordable  energy;  phasing  out  the  special 
minimum income tax on turnover. The government 
has  acted  on  the  latter  by  halving  the  rate  for 

(103) See OECD, Economic Survey for Romania, 2026, p. 102. 

607080901001101201301402015201620172018201920202021202220232024ManufacturingManufacture of wood and of products of wood and cork, except furniture;manufacture of articles of straw and plaiting materialsManufacture of paper and paper productsManufacture of chemicals and chemical productsManufacture of rubber and plastic productsManufacture of other non-metallic mineral productsManufacture of basic metals 
     
 
2026  (0.5%  instead  of  1%)  and  committing  to 
remove it from 2027 on.    

crucial 

is 
and 

for 
coordination 
the  moment, it has 

Romania could  improve  its  performance  in 
implementing  the  Net-Zero 
Industry  Act 
(NZIA). Romania  has  designated a  single  point  of 
streamlining 
contact,  which 
among 
communication 
not 
stakeholders. 
confirmed any Net-Zero Strategic Projects and has 
not established a national contact point to manage 
applications  that  could facilitate the  advancement 
of  those  projects.  Finally,  Romania  has  not 
expressed  an  interest  in  the  acceleration  valleys 
described in NZIA regulation. 

For 

is 

coordinating 

Romanian  manufacturing’s  dependence  on 
imports of critical raw materials is low. With 
9%  of  material  inputs  stemming  from  imports  in 
2024  (EU  average:  22%),  Romania  is  the  least 
vulnerable  to  supply  chain  disruptions  of  all  EU 
Member States. Its index of strategic dependencies 
on raw materials in 2024 was one of the lowest in 
the  EU,  suggesting  that  its  sources  of  supply  are 
well  diversified.  Through  a  multi-country  TSI 
project,  Romania 
industrial 
capabilities for supply chains resilience, to enhance 
the  security  of  EU  supply  chains,  with  a  focus  on 
reducing  dependencies  on  non-EU  countries  for 
critical  raw  materials  and  strategic  industrial 
products.  Additionally,  Romania 
is  addressing 
(CRMs)  and  CRM-rich 
raw  materials 
critical 
products  in  several  national  laws  and  initiatives. 
The  “National  Strategy  for  Non-Energy  Mineral 
Resources, Horizon 2035” was adopted at the end 
the 
of  2024.  Romania’s  efforts 
expected  rise  in  demand  for  CRMs  also  include 
increased investment in R&D and education via its 
national Circular Economy Action Plan. The country 
may  be  a  source  of  critical  raw  materials  for  the 
green  transition,  but  certification  and  exploitation 
for these materials remain difficult. Permitting for 
CRM  works  well  in  Romania  (60  days,  well  below 
the  EU  target  of  27  months).  The  country  has 
three projects under the Critical Raw Materials Act.  

to  contain 

64 

 
 
 
 
 
 
 
 
 
 
Table A5.1:  Single Market and Industry 

Source: (1) Eurostat, (2) EIB Investment Survey, (3) EIF SME Access to Finance Index, (4) Intrum Payment Report, (5) SAFE survey, 
(6) OECD, (7) data up to 2024: Single Market and Competitiveness Scoreboard, 2025: Commission calculation based on TED data, 
accessible at the Public Procurement Data Space (PPDS) (*) the value represented here under EU average is the median, (8) Single 
Market and Competitiveness Scoreboard, (9) European Commission calculations. 

65 

POLICY AREA20212022202320242025EU-27 average66.768.173.272.876.2100.012.413.013.013.413.412.64.14.45.45.96.03.9Business environment and simplification16.822.730.131.035.034.00.270.370.230.25-0.430.100.080.320.14-0.1911.712.214.5--17.49.215.416.4--13.6from private entities in the previous or current quarter---44.946.547.1from public entities in the previous or current quarter---29.832.115.931.733.630.328.127.840.7-----0.0503239424449271724221162.90.30.20.8110.911.20.20.41.186.993.29192.38684.63032322828250.21310.43370.27870.24310.24230.146226.527.129.0--32.723.924.225.825.4-25.210.19.99.29.0-22.41.51.51.51.3-12.2RomaniaINDICATOR NAMEBusiness environment and investmentProductivity and investmentLabour productivity (GDP per hour worked in PPP terms), % of EU271Business investment (share of GDP)1Public investment (share of GDP)1Impact of regulation on long-term investment, % of firms reporting business regulation as a major obstacle2SME liquidityEIF Access to Finance for SMEs index - loans3EIF Access to Finance for SMEs index - equity3Late paymentsPayment gap - corporates B2B, difference in days between offered and actual payment4Payment gap - public sector, difference in days between offered and actual payment4Share of SMEs experiencing late payments, %5Industry and economic securitySingle Market IntegrationEU trade integration, average(intra-EU imports + intra EU exports)/GDP, %1EEA Services Trade Restrictiveness index6Public procurementSingle bids, % of total contractors7*Direct awards, % of negotiated procedures7*ComplianceTransposition deficit, % of all directives not transposed8Conformity deficit, % of all directives transposed incorrectly8SOLVIT, resolution rate per country, %8Number of pending infringement proceedings8Energy-intensive industriesElectricity prices for non-household consumers1Electrification (electricity as a share of total energy consumption in industry)1Share of energy from renewable sources (renewable energy generation as a share of overall energy consumption)1Critical raw materialsMaterial import dependency, %1Circular material use rate1Operational cleantech manufacturing capacity in 20259 - Solar PV (c: cell, w: wafer, M:module), GW- - Electrolyzer, GW- - Heat pump assembly - - Battery, GW2.0 
 
 
 
     
 
ANNEX 6: SAVINGS, INVESTMENT AND ACCESS TO FINANCE 

Table A6.1:  Savings and Investments Union summary diagnostic 

Source: OECD (pensions), Eurostat (households' financial wealth), FISMA CMU dashboard (VC and PE), national sources (capital 
taxation). End-2024. 

in  Romania 

the  need 
to 

Romanian companies rely more than their EU 
peers  on  internal  funding,  despite  operating 
in a business environment that is comparable 
with  the  EU  average  for  structure  and  size. 
This  is  largely  because  non-financial  corporations 
have limited  capital.  For  Romania, the  2025  CSRs 
highlighted 
to  promote  private 
foster  sustainable  economic 
investment 
development.  In  this,  the  role  played  by  the 
financial sector as an enabler of economic growth 
is  key.  The  financial  sector 
is 
dominated  by  banks,  which  are  well  placed  to 
channel  funds  to  the  economy,  yet  Romanian 
capital  markets  still  have  significant  room  for 
growth. One obstacle to its expansion is the limited 
level of households’ financial assets and their low 
investments  in  capital  markets  products.  Non-
banking  intermediaries  are  still  underdeveloped 
and  have  conservative 
investment  strategies, 
which does not support equity, bonds, and venture 
capital  and  private  equity  investments.  Romania 
shows some weaknesses in the main indicators of 
progress  towards  the  policy  goals  of  the  Savings 
and  Investments  Union  (see  Table  A6.1).  The 
authorities  have  undertaken  several  initiatives  to 
address  some  of  these  challenges,  including  a 
national  strategy  for  the  development  of  the 
Romanian  capital  market  for  the  period  2023-
2026 (104). 

(104) National strategy. 

66 

Business landscape and company 
funding 

Romania’s  corporate  landscape,  in  terms  of 
structure and size, is similar to the European 
average. Micro firms represent 94.2% (105) of the 
total  number  of  firms,  employ  32.1%  of  the 
working  population  and  provide  26.2%  of  total 
value  added  (VA).  Large  enterprises  employing 
over 250 staff make up only 0.2% of all firms but 
provide  employment  to  31.4%  of  the  active 
population  and  39.5%  of  the  economy’s  VA  (see 
Annex 5 for more details). This business landscape 
has  concrete 
the  corporate 
implications  for 
sector’s demand for funding. 

The Romanian corporate sector heavily relies 
on internal financing. According to the 2025 EIB 
Investment  Survey:  CESEE  overview (106),  internal 
sources  accounted  for  the  greatest  proportion  of 
the funds invested by Romanian companies (71%), 
followed  by  external  sources  (24%),  with  the 
remainder (5%) coming from intra-group financing 
–  compared  with  EU  averages  of  66%,  25%  and 
9%,  respectively.  According  to  the  survey,  many 
Romanian  firms  (74%)  were  satisfied  with  their 
overall  level  of  investment  over  the  last  three 
years, but 18% reported having invested too little, 
a  number  which  is  higher  than  the  EU  average 
(12%).  Romanian  firms  continue  to  focus  the 
largest  share  of  their  investments  on  replacing 

(105) SME Performance Review - Internal Market, Industry, 

Entrepreneurship and SMEs. 

(106) See EIB Investment Survey 2025: CESEE overview. 

Main featuresRelative EU positioningAssets at 8.9% of GDP (32.3% in the EU)10-year real return of 1.0 (1.4% in the EU)Low pension assets yield a high real return.EUR 11 915 per capita (EUR 85 090 in the EU)o/w 5.8% in listed shares and bonds (7.6% in the EU)o/w 2.6% in investment funds (11.0% in the EU)o/w 1.2% in life insurance (13.4% in the EU)o/w 13.7% in  pension claims (13.6% in the EU)A low share of households' very low financial assets is invested in equity and in capital markets. No savings and investment account.VC at 0.007% of GDP (0.064% in the EU)PE at 0.035% of GDP (0.487% in the EU)Very low venture capital and low private equity investments.Capital gains tax of 3% or 6% if held less than 365 days. Dividends are taxed at 16% while interest income tax is 10%. Interest income from public debt is exempted in certain cases.Dividends are taxed higher than interest income and interest income from public debt is exempted1-34-1011-1718-2425-27Colours indicate the country's relative ranking based on five groups, ranging from the three best to the three worst performers. The relative ranking as regards an SIU diagnostic topic derives from a consistent cross-country comparison, the starting point of which is the average of the underlying main features.TopicAsset-backed pension schemesHouseholds' financial assetsVenture capital (VC)Private equity (PE)Capital taxation 
 
 
 
 
 
 
 
     
 
capacity  (including  existing  buildings,  machinery, 
equipment and IT) (45% vs an EU average of 54%) 
rather  than  expanding  it  (34%,  vs  an  EU  average 
of 23%). 

the  private  banking  sector  and  enhancing  overall 
access to finance. 

Graph A6.1: Composition of non-financial 
corporations' funding 

by 

rely 

Borrowing 

companies 

relatively 
Romanian 
moderately  on  debt  finance  to  fund  their 
activities. 
non-financial 
corporations  (NFCs)  in  Romania  (including  loans, 
trade credit and bonds)  reached just 37% of GDP 
in  2024,  which  is  significantly  below  the  EU 
average  of  about  81%  (see  Graph  A6.1).  Trade 
credit  and  advances  represent  a  major  proportion 
of  their  liabilities  (almost  11%  of  NFC  funding  in 
Romania,  as  compared  with  just  under  4%  on 
average 
liability 
interlinkages between companies and exposure to 
the risk of non-payment by customers. One of the 
reasons  behind  this  type  of  financing  is  the  low 
level  of  capital  held  by  many  NFCs,  which 
constrains  their  access  to  external  finance  – 
10.2% of firms report being finance-constrained in 
2025,  vis-à-vis  the  EU  average  of  6.1%  (107). 
Under-capitalised 
the 
the 
deterioration  of  payment  discipline 
economy,  as they account for approximately 56% 
of total overdue payments of firms (108). 

the  EU),  which  creates 

companies’ 

drive 

in 

in 

It 

(NDB)  has 

is  developing 

To  improve  access  to  finance,  the  National 
Development  Bank 
recently 
become  operational  under  the  recovery  and 
its 
resilience  plan  (RRP). 
financing  products  to  address  financing  gaps,  in 
particular  for  SMEs,  innovative  firms  and  viable 
infrastructure 
– 
encompassing loan portfolio guarantees, individual 
guarantees  and  direct  lending  –  targets  projects 
with high growth and job creation potential. NDB’s 
operational initiatives, such as the EUR 233 million 
Regional  Participation  Fund (109),  which  combine 
low  interest  loans  with  grant  components,  aim  to 
support  SMEs  and  move  private  capital  into 
underserved  segments,  thereby  complementing 

projects. 

strategy 

Its 

(107) EIB (2025), Investment Survey Romania. Finance-constrained 
firms  include  those  whose  loan  applications  were  rejected 
(7.6% of the total 10.2%), those that received less financing 
than requested (1.5%), those that ultimately did not take up 
the 
it  was  too  expensive  (0.8%),  and 
loan  because 
discouraged firms (0.4%). 

(108) Financial Stability Report, December 2025 - Overview. 

(109) Fondul  de  Participare  Regional  |  Banca  de  Investiții  și 

Dezvoltare. 

67 

Source: Eurostat. End-2024. 

Size and structure of the financial 
sector 

The  Romanian  financial  sector  is  dominated 
by  banks.  By  the  end  of  2024,  Romanian  banks’ 
assets reached 52% of GDP (see Graph A6.2), well 
above  any  other  segment  of  the  financial  sector, 
but  also  well  below  the  EU  average  of  251%, 
making  it  the  smallest  banking  sector  in  the  EU 
relative  to  GDP.  Foreign  presence  is  predominant 
and accounts for almost 63% (110) of bank assets. 
The  banking  sector  has  been  consolidating 
recently,  with  smaller,  less  profitable  and  under-
larger  credit 
capitalised  banks  acquired  by 
institutions.  The  concentration  in  the  banking 
sector  now  appears to  be  slightly  higher  than the 
EU  average,  with  the  top  five  monetary  financial 
institutions  (MFIs)  representing  around  62%  of 
total  bank  assets (111).  The  insurance  and  pension 
funds sector as well as the investment funds play 
a very limited role in financial intermediation (see 
the section below on institutional investors).  

low  degree  of 
Romania  shows  a  very 
financial 
could  be 
This 
intermediation. 
explained  by:  (i)  a  large  proportion  of  companies 
with equity below the regulatory threshold limiting 
their  access  to  bank  finance,  which  according  to 

(110) Banking structure | ECB Data Portal. 

(111) Banking structure | ECB Data Portal. 

050100150200250ROEU% of GDPLoansTrade credit and advancesBondsListed sharesUnlisted sharesOther equity 
 
   
 
the  National  Bank  of  Romania  amounted  to  one 
third  of  the  companies (112);  (ii)  weak  payment 
discipline  in  the  economy;  (iii)  low  rates  of  bank 
account  ownership (113),  particularly  among    low-
income  individuals  outside  the  labour  force;  and 
(iv) a modest degree of financial literacy.  

Graph A6.2: Capital markets and financial 
intermediaries 

segment  of 

Romanian 
still  have 
capital  markets 
significant  room  for  growth.  The  market 
capitalisation  of  listed  equity  reached  12.4%  of 
GDP  at  Q2-2025  (see  Graph  A6.2),  which  is  well 
below  the  EU  average  of 67.9%.  Despite  this, the 
trend  has  been  positive  since  the  second  half  of 
2023 (114).  Romania  has  passed 
legislative 
measures (115)  to  simplify  the  listings  process  in 
terms  of  both  procedures  and  timelines,  which 
contribute  to  addressing  the  CSR  on  promoting 
private  investment.  The  Romanian  RRP  includes  a 
measure  providing  financial  support  to  firms 
intending to list on the stock exchange, but interest 
in  the measure has  been limited. NFCs  accounted 
for  83%  of  the  market  capitalisation,  which 
implies  that  the  stock  market  in  Romania  is 
predominantly  geared  towards  funding  the  non-
The 
financial 
outstanding  volume  of  debt  securities  reached 
46%  of  GDP  at  end-2024,  which 
is  also 
significantly  below  the  EU  average.  Bonds  issued 
by the government accounted for 95% of the total, 
meaning  that  the  amount  of  corporate  bonds  is 
marginal.  The  market 
infrastructure  mainly 
comprises the Bucharest Stock Exchange, which is 
a  joint  stock  company  owned  by  institutional  and 
private investors. Depozitarul Central is the Central 
Security  Depository  (CSD)  for  Romanian  equities, 
municipal  and  corporate  bonds  and  investment 
funds units, and SaFIR is the CSD for government 
securities.  To  stimulate  regional  markets, in  2024 
eight  central  and  eastern  European  stock 
(Bratislava,  Bucharest,  Budapest, 
exchanges 
Ljubljana,  Zagreb,  Sofia,  Warsaw  and  Skopje), 
together with the EBRD, signed a memorandum of 
understanding  (MoU),  which  was  followed  by 
another  MoU  signed  by  the  finance  ministers  of 
these eight countries.  

economy. 

the 

(112) Financial Stability Report, December 2025 - Overview. 

(113) Global Findex Database 2025. 

(114) Autoritatea de Supraveghere Financiară - Evoluția pieței de 
capital din România în primul semestru din anul 2025. 

(115) Law No 11/2025. 

Source: ECB, OECD, AMECO. End-2024. 

Households’ participation in capital 
markets 

is 

the 

low 

investment 

income  and  a 

One  obstacle  to  the  expansion  of  Romania’s 
capital  markets 
level  of 
households’  financial  assets  and  their  even 
capital  markets 
in 
lower 
products.  Retail 
investment  remains  modest 
compared  with  other  EU  countries,  partly  due  to 
limited  disposable 
cultural 
preference  for  traditional  savings  methods,  such 
as bank deposits and non-financial assets (mainly 
real estate). As of end-2024, Romanians have the 
lowest  financial  assets  per  capita  in  the  EU,  at  c. 
EUR 11 900,  vs  an  EU  average  of  c.  EUR 85 000 
(see Graph A6.3). Romanian households’ aggregate 
financial  assets  stood  at  63%  of  GDP,  which  is 
below  the  EU  average  of  212%.  Households  held 
almost  42%  of  this  financial  wealth  in  cash  and 
bank  deposits,  as  opposed  to  32%  on  average  in 
the  EU (116).  Romanian  household  investments 
across  all  other  categories  of  financial  assets  are 
significantly  below  the  EU  average.  For  example, 
investments 
insurance  and  pension  funds, 
relative to GDP, are almost six times smaller than 
the  EU  average.  Direct  holdings  of  bonds  and 
listed  equity  are  also  significantly  lower,  both  in 
nominal  amounts  per  capita  and  relative  to  GDP 
(0.3%  in  Romania  vs  2.4%  in  the  EU,  in  nominal 

in 

(116) Households - statistics on financial assets and liabilities - 

Statistics Explained - Eurostat. 

68 

Non-financial corporationsFinancial corporationsNon-financial corporationsMFIsInsurance  and pension fundsOther financialsGovernmentMFIsPension fundsInsurance corporationsInvestment funds0102030405060   Listed equity               Bonds                        Assets by sector% of GDP 
 
   
 
listed  equity).  Personal 

amounts per capita, for bonds, and 0.4% vs 4.1% 
taxes 
for 
distinguish between dividends (taxed at 16%) and 
interest  income  (taxed  at  10%).  Capital  gains  are 
taxed  at  3%  or  6%  if  the  assets  are  held  less  or 
more than 365 days (see Annex 3).  

income 

financial  knowledge  and 

Romania  ranks  comparatively  low  in  the  EU 
financial 
for 
inclusion.  According 
the  Global  Findex 
to 
database  (117),  account  ownership  in  Romania 
remains the lowest in the EU. The lack of financial 
knowledge is a barrier to increasing retail-investor 
participation  in  capital  markets  and  to  helping 
companies explore alternatives to traditional bank 
financing.  According  to  the  2023  Eurobarometer 
survey (118),  only  13%  of  Romanians  have  a  high 
level  of  financial  knowledge  (vs  26%  for  the  EU 
average), 57% have a medium level (vs 50%), and 
the remaining 30% possess a low level (vs 24%). 
At the same time, Romania scored better than the 
EU  average  for  financial  behaviour  in  terms  of 
choosing  products  (65%  completely  agree  to 
consider whether they can afford it vs 51% in the 
EU),  keeping  track  of  expenses  (57%  completely 
agree  to  do it  vs  49% in the  EU)  and  setting  and 
striving to achieve long-term financial goals (30%  
completely agree vs 21% in the EU). 

Several  recent  initiatives  aim  to  address 
these  challenges.  One  of  the  objectives  of  the 
national  strategy  for  the  development  of  the 
capital markets 2023-2026 (119) is to increase the 
participation  of  individual  investors  in  capital 
markets.  This  strategy  contributes  to  addressing 
the  CSR  on  promoting  private  investment.  In 
addition,  the  government  adopted  in  2024  a 
national  strategy  for  financial  education  with  a 
2030  target  date (120)  as  the  framework  for 
improving  financial  education  across  three  main 
target groups: children and young people up to 25 
years,  the  adult  population,  and  businesses.  This 
aligns  with  the  legislative  recognition  of  financial 
education  in  school  curricula  (121),  where  it  has 
been  compulsory  for  eighth-grade  students  since 

2020/21, though broader exposure remains limited 
due  to  integration  within  optional  modules,  socio-
human subjects, and uneven teacher preparedness 
despite  several  training  initiatives.    Romania  has 
put  in  place  two  retail  sovereign  tax  free  bond 
and 
issuance 
TEZAUR (123))  to  increase  retail  participation  in 
financial markets, offering bonds in both EUR and 
RON,  with  different  maturities.  However,  there  is 
no individual savings and investment account with 
a  simplified  and  advantageous  tax  treatment,  as 
recommended by the Commission (124).  

(FIDELIS (122) 

programmes 

Graph A6.3: Composition of households' financial 
assets 

Source: Eurostat. End-2024. 

The banking sector: resilience and 
financing of the economy 

The  banking  sector  in  Romania  is  highly 
profitable,  well-capitalised  and  has  a  strong 
liquidity  position.  The  system-wide  capital  ratio 
stood  at  23%  in  Q3-2025,  well  above  the  EU 
(see  Table  A6.2).  Romanian  banks' 
average 
profitability  remained  high 
though 
earnings  are  expected  to decline  as  interest  rates 
continue  to  normalise.  Banks  also  maintained  a 
very  strong  liquidity  position,  with  a  net  stable 
funding  ratio  at  186%  and  a  liquidity  coverage 

in  2025, 

(117) Global Findex Database 2025. 

(118) Monitoring the level of financial literacy in the EU - July 

2023 - Eurobarometer survey. 

(119) National Strategy. 

(122) Fidelis ONLINE - TREZOR - MF. 

(123) Government bonds FIDELIS - TREZOR - MF. 

(120) The National Financial Education Strategy 2024-2030 has 

been adopted | Ministry of Education and Research. 

(121) Law No 198/2023 on Pre-university Education. 

(124) Commission Recommendation (EU) 2025/2029 of 

30 September 2025 on increasing the availability of savings 
and investment accounts with simplified and advantageous 
tax treatment. 

69 

050100150200250020406080100ROEUROEUper capita (000 EUR) (lhs)% of GDP (rhs)Currency and depositsInsurance and pension fundsInvestment fundsBondsListed sharesUnlisted sharesOther equityHH Debt (liability) 
 
     
 
ratio at 243.2% in Q3-2025(125). Asset quality has 
deteriorated  recently  with  a  marginal  increase  in 
the non-performing loan (NPL) ratio to 3% in Q3-
2025.  The  banks’  asset  quality  outlook  is  subject 
to increased uncertainty due to the current conflict 
in the Middle East and its impact on energy prices 
and economic growth. 

Despite  the  overall  favourable  situation, 
Romanian banks face several challenges. The 
sovereign-bank  nexus  has  strengthened  in  recent 
years.  Romanian  banks’  exposure  to  domestic 
general  government  debt  has  further  increased, 
reaching  the  highest  level  among  EU  countries  at 
about  24.6% (126)  of  total  assets  in  November 
2025.  In  addition,  banks  (as  well  as  NFCs)  face 
global 
stemming 
other 
geopolitical  uncertainties  and 
tensions, 
domestic macroeconomic imbalances, the need to 
adapt  to  climate  change,  the  amplification  of 
cyber risks and rapid digitalisation.  

challenges 

trade 

from 

to 

the  private 

Credit  growth 
sector 
accelerated  in  2025  although  the  overall 
level of private sector credit-to-GDP remains 
the  lowest  in  the  EU  (see  Table  A6.2).  The 
increase  was  driven  by  consumer  loans  which 
accelerated  rapidly,  at  a  double-digit  rate,  due  to 
the  significant  increase  in  nominal  incomes,  as 
well as to corporate credit growth, while mortgage 
lending was subdued. 

Role of non-bank financial 
intermediaries 

The  Romanian  insurance  sector  is  relatively 
small  and  invests  predominantly  in  fixed-
income  instruments.  The  insurance  sector  is 
dominated  by  non-life  insurers,  whose  liability 
structure  overall  does  not  favour  asset  allocation 
to  equity  and  other  long-term  and  high  yield 
assets.  The  Romanian  insurance  sector,  that  has 
experienced  turbulence  in  recent  years,  ranks  last 
in  the  EU  in  terms  of  assets  as  a  percentage  of 
GDP  (2.1%  in  Q3-2025  compared  with  53.9%  on 
average in the EU) (see Table A6.2). The insurance 

(125) Data categories | ECB Data Portal. 

(126) ECB total assets and ECB holdings of debt securities 

sector is highly concentrated, both in terms of the 
types  of  insurance  offered  (mainly  car  insurance) 
and in terms of the significant market shares held 
by  a  relatively  small  number  of 
insurance 
companies.  According  to  data  from  the  European 
Insurance  and  Occupational  Pensions  Authority 
(EIOPA) (127),  as  of  Q3-2025,  Romanian  insurance 
companies  primarily 
in  fixed-income 
financial  instruments,  mainly  government  bonds 
(1.2%  of  GDP),  most  of  them  Romanian,  while 
corporate bonds were the equivalent of just 0.1% 
of  GDP.  Equity  investments  were  even  smaller,  at 
0.01% of GDP.  

invested 

The  private  pension  sector  is  developing. 
Since  its  creation  in  2007,  the  Romanian  private 
increasingly 
pension  sector  has  played  an 
important  role,  complementing  the  public  pension 
system.  There  are  two  main  categories  of  private 
pension  schemes.  The main  one  (called  pillar  2  in 
Romania) must be  joined by individuals under the 
age of 35 and represents 96% of private pension 
funds’ assets. The other one (pillar 3) is voluntary. 
Together,  pillar  2  and  pillar  3  pension  schemes’ 
assets amounted to EUR 37.3 billion at the end of 
September  2025,  up  by  23%  compared  with 
September  2024 (128).  There  are  no  occupational 
pension  funds,  even  though  the  framework  exists 
(called  pillar  4  in  Romania).  Romania  does  not 
operate  a  formal  nationwide  pension  tracking 
system  that  consolidates  all  pension  sources  in 
one  place  for  individuals, in  line  with Commission 
Recommendation (129). Total pension assets (public 
and  private)  stood  at  8.9%  of  GDP  vs  an  EU 
average  of  32.3%  in  2024  (see  Table  A6.2). 
Romania  adopted  in  2025  a  law  (130)  that  limits 
withdrawals after 2027 to 30% of an individual’s 
total private pension savings (in pillars 2, 3 and 4) 
as  a  lump  sum  upon  retirement.  The  previous 
system  allowed  retirees  to  withdraw  the  total 
amount  of  their  private  pension  savings  at  once 
when  they  reached  the  retirement  age  of  65. 
Moreover, 
pillar 2 
contribution  rate  currently  stands  at  4.75%  of 
gross  wage,  up  from  3.75%  as  of  January  2024 

Romania’s  mandatory 

(127) Insurance statistics - European Insurance and Occupational 

Pensions Authority. 

(128) Financial Supervisory Authority - 2025 - Private Pension 

Reports. 

(129) Commission Recommendation (EU) 2025/2384 of 

20 November 2025 on pension tracking systems, pension 
dashboards and auto-enrolment. 

. 

(130) Law 2/2026. 

70 

 
 
 
of 

and 

innovative 

and 0.064% of GDP, respectively. This means that 
funding  available  for  start-ups  and  high-growth 
companies  is  limited.  This  is  partly  due  to  the 
relatively  small  size  of  institutional  investors  and 
their  conservative  investment  strategies.  Another 
reason  is  that  Romania  also  has  the  lowest  level 
of  research  and  development  (R&D)  expenditure 
as a percentage of GDP in the EU, which limits the 
creation 
technological 
companies,  and  hence  the  need  for  VC  funding 
(see  Annex  4).  In  recognition  of  these  challenges, 
one of the key objectives of the national  strategy 
for the development of the capital markets 2023-
2026  is  to  stimulate  the  growth  and  maturity  of 
the  PE  and  VC  markets,  fostering  an  ecosystem 
that  can  better  support  the  country’s  innovative 
and  high-potential  companies  and  connect  them 
with  investors.  In  this  framework,  to  further 
promote  alternative 
(AIFs) 
following  a  PE  or  VC  investment  strategy  the 
authorities  are  in  the  process  of  revising  and 
legislation  on  AIF  by  making  AIF 
secondary 
arrangements 
in 
for  professional 
Romania  more  flexible  and  simplified,  as  well  as 
and 
increasing 
harmonisation  of  the  legislation  applicable  to 
collective  investment  undertakings.  This  initiative 
contributes 
the  CSR  on 
promoting private investment. 

towards  addressing 

investment  funds 

predictability, 

investors 

clarity, 

the 

following the increase implemented under the RRP 
pension reform.  

in  shares.  At 

invest  mainly 

Private  pension  funds 
in 
government  bonds,  and  only  a  relatively 
the  end  of 
small  portion 
September  2025,  Pillar  2  assets  were  mainly 
invested  in  government  bonds  (65%  of  total 
assets),  with  only  25%  invested  in  listed  shares 
and  0.09%  non-listed  shares (131).  This  asset 
allocation is not bound by the limits included in the 
applicable  legislation.  According  to  the  OECD (132), 
it  could  be  linked  to  the  approach  taken  by  the 
financial  market  supervisor  when  classifying  the 
pension  funds  in  different  risk  categories.  To 
assess  the  risks  of  a  fund,  the  different  asset 
classes  are  weighted  by  their  corresponding  risk. 
The  weights  assigned  by  the  supervisor  could  be 
hampering long-term investments in the economy. 
Pillar 3 pension schemes are also heavily invested 
in  government  bonds  pattern  despite  being 
allowed more freedom in allocating assets. 

The  investment  funds  sector  in  Romania  is 
less  developed  than  in  other  EU  countries, 
due  to  factors  such  as  a  less  mature 
financial market, lower financial literacy and 
lower  overall  wealth.  Investment  funds  assets 
amounted  to  only  3.1%  of  GDP  in  Q4-2025 (133). 
On the other hand, the fund management industry 
in  Romania  tends  to  invest  more  in  equity  and 
deposits  than  its  European  peers:  43.3%  of  total 
assets  were  allocated  to shares  and  other  equity, 
30.8%  to  debt  securities,  15.4%  to  deposits  and 
9.6% to investment fund units. 

Venture capital ecosystem 

remains 

Romania’s  domestic  venture  and  growth 
capital  market 
significantly 
underdeveloped  and insufficient to  meet the 
potential  financing  needs  of 
innovative 
companies.  In  2024,  PE  (private  equity)  and  VC 
(venture capital) stood at just 0.035% and 0.007% 
of GDP, well below the EU average figures of 0.5% 

(131) Financial Supervisory Authority - 2025 - Private Pension 

Reports. 

(132) Capital Market Review of Romania (EN). 

(133) See Assets and liabilities of investment funds | ECB Data 

Portal. 

71 

 
 
 
Table A6.2:  Financial sector indicators 

(1) Annualised data. EU data for credit growth and pension funds refer to the EA average. 
Source: ECB, Eurostat, European Insurance and Occupational Pensions Authority, DG FISMA CMU dashboard, AMECO. 

72 

20182019202020212022202320242025-Q3EUTotal assets of MFIs, % of GDP50.950.056.758.254.953.252.149.1246.1Common equity Tier 1 ratio17.719.021.819.919.219.520.519.816.8Total capital adequacy ratio19.721.023.522.222.422.723.523.020.2Overall NPL ratio, % of all loans5.04.33.93.42.82.52.63.01.9NPL ratio, loans to NFCs8.87.36.65.54.13.74.14.93.5NPL ratio, loans to HHs5.14.44.54.03.73.83.53.32.1Return on equity ratio113.612.39.013.115.716.817.716.49.6Loans to NFCs, % of GDP11.611.011.612.412.812.211.911.229.3Loans to HHs, % of GDP13.913.414.013.812.410.910.910.643.6NFC credit growth rate, %9.36.06.720.019.112.810.110.02.5HH credit growth rate, %10.97.04.79.76.03.911.814.62.6Stock market capitalisation, % of GDP--8.411.49.013.512.713.769.9Initial public offerings, % of GDP0.000.000.000.000.000.000.00-0.06Market funding ratio28.528.328.826.324.524.724.2-49.7Private equity, % of GDP0.1750.2050.1270.0860.0360.0410.035-0.487Venture capital, % of GDP0.0010.0040.0050.0070.0070.0080.007-0.064Financial literacy, composite index-----47.5--45.5Bonds, % of HHs' financial assets1.82.02.21.82.02.42.7-2.8Listed shares, % of HHs' financial assets2.42.32.03.83.13.33.1-4.8Investment funds, % of HHs' financial assets4.44.53.43.52.42.12.6-11.0Insurance/pension funds, % of HHs' financial assets12.914.214.114.413.715.115.8-27.8Total assets of insurers, % of GDP2.22.12.22.01.91.92.12.153.9Pension assets, bn EUR---18.720.226.431.3-5813.8Pension assets, % of GDP---7.87.28.28.9-32.310y real return average of pension assets, %-----1.71.0-1.4Pension funds assets, ECB (% of GDP)---------1-34-1011-1718-2425-27Colours indicate performance ranking among the 27 EU Member States.Banking sectorNon-banking sector 
 
 
 
  
 
ANNEX 7: EFFECTIVE INSTITUTIONAL FRAMEWORK 

institutional  framework 

An  effective 
is 
essential  for  competitiveness.  This  requires 
public  trust  built  on  integrity,  quality  legislation, 
regulatory  simplification  and  efficient  services  for 
people  and  businesses.  For  Romania,  the  2025 
recommendations  highlighted 
country  specific 
challenges  with  the  quality  and  effectiveness  of 
public  administration  and  the  predictability  of 
for 
including 
decision-making, 
appropriate  stakeholder  consultations,  effective 
impact 
streamlined 
administrative procedures. 

assessments 

need 

and 

the 

Public trust 

Graph A7.1: Trust in justice, regional / local 
authorities and in government 

(1) EU-27 since 2019; EU-28 before 
Source: European Commission, Standard Eurobarometer 
surveys 

Public  trust  in  Romania  is  below  the  EU 
average. Trust in regional and local authorities is 
highest,  although  it  fell  in  2025.  Trust  in  justice 
also  declined  sharply  in  2025  (Graph  A7.1).  Both 
people  and  companies  retain  confidence  in  the 
public administration’s ability to handle their data 
securely and responsibly (134). 

(134) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services. 

73 

Quality of lawmaking and 
implementation 

improvement.  All  draft 

Romania has a formal framework to develop 
quality  legislation,  but  there  is  scope  for 
further 
laws  and 
regulations  require  an  accompanying  explanatory 
note  describing  the  rationale  and  likely  impacts. 
However, the quality of these notes varies greatly 
between  and  within  institutions,  despite  overall 
improvement  in  the  last  years.  The  Consultative 
Council  for  the  Impact  Assessment  of  Normative 
Acts, set up in 2022, needs to further improve its 
capacity  to  ensure  an  adequate  quality  control 
(135). The absence of a formal requirement for the 
legislator  to  assess  the  level  of  compliance  when 
developing 
legislation  weakens  the  ability  to 
monitor  the  implementation  of  legislation  (Table 
A7.1).  The  legislative  backlog  had  reached  1 500 
draft  laws  when  the  new  parliament  was  elected 
in December 2024.  

which 

remain 

Shortcomings  persist  in  practice  for  public 
consultations, 
often 
formalistic. Consultations lack early engagement 
in  the  policy  cycle  and  are  usually  conducted  on 
draft legislation (136). Ministries are required by law 
to publish all draft legislation for feedback on their 
website. Civil society organisations and businesses 
that  public  consultation  often 
still  consider 
remains  a  box-ticking  exercise,  with  very  tight 
deadlines  and 
their 
the  general 
comments.  An 
public 
transparency 
consultations, applies in emergency situations (137), 
(138).  The  e-
which 
Consultare platform (139), which aims to centralise 
legislation,  was 
public  consultations  on  draft 
further  improved  with  new  features  but  is  still 
seen  as  non-user-friendly  by  civil  society 
organisations  and  businesses.  Under  Romania’s 

exception 
obligations, 

is  still  frequently  used 

to 
including 

little  consideration 

for 

(135) Annual report on the impact assessments of regulation 

adopted by the Romanian government in 2024. 

(136) The World Bank, 2025, Report on Mapping the Functional 

Relationships between the Consultative Council, the General 
Secretariat of the Government and Line Ministries, and 
Streamlining and Consolidation Recommendations. 

(137) Government Decision 1173/2022 of 21 September 2022.  

(138) European Commission, 202,5 Rule of Law Report, Chapter on 
Romania, and country visit to Romania, February 2026. 

(139) https://e-consultare.gov.ro/. Funded under the RRP. 

00.10.20.30.40.50.60.70.80.9AutumnSpringAutumnSpringSpringAutumnWinterSummerWinterSpringWinterSummerAutumnSpringAutumnSpringAutumnSpring202520242023202220212020201920182017Justice,  legal system EU-27Justice,  legal system RORegional or local public authorities EU-27Regional or local public authorities ROGovernment  EU-27Government  RO 
 
    
 
 
 
 
Table A7.1:  Romania. Selected indicators on better regulation practices for primary legislation 

Source: OECD, 2025, Regulatory Policy Outlook 2025 [https://doi.org/10.1787/56b60e39-en] and Better Regulation across the 
European Union 2025. 

(RRP),  a  public 
recovery  and  resilience  plan 
dashboard  on  the  level  of  transparency  of  public 
institutions  was  developed  (140).  The  RRP  also 
includes  the  adoption  of  a  2026-2030  plan  for 
better regulation aimed  at improving public policy 
planning, 
impact  assessment  and  stakeholder 
consultation process. 

Ex  post  evaluation  of  legislation  is  well 
below  the  EU  average.  It  is  neither  systematic 
nor consistent, despite available guidance. Ex post 
evaluation  of  government  emergency  ordinances 
with significant impact is required two years after 
their  adoption,  while  further  evaluations  can  be 
conducted on an ad hoc basis at the government’s 
request (141). 

Legislative  unpredictability  and  regulatory 
burden  are  primary  concerns  for  businesses 
(142).  Government  emergency  ordinances  continue 
to be used frequently, accounting for 25.5% of all 
primary legislation adopted in 2025, compared to 
29.3% in 2024 and 21.6% in 2023 (143). Constant 
legal  framework  further 
amendments  to  the 
undermine 
(see 
Annex 18)  and the business environment. While  a 

local  administrative  capacity 

(140) https://info-transparenta.gov.ro/. 

(141) OECD, 2025, Better Regulation Practices across the European 

Union 2025, OECD Publishing, Paris, 
https://doi.org/10.1787/6f007516-en. 

(142) Fact-finding Semester visit to Romania, January 2026. 

(143) Legislative Council database. 

whole-of-government  approach  for  simplification 
is  missing,  some  measures  have  been  launched 
(see Annex 5). 

Public service delivery and 
digitalisation  

Graph A7.2: Most time-consuming aspects of 
service delivery 

Source: European Commission, 2026, Flash Eurobarometer 
surveys 567 and 568 on satisfaction with administrative 
services. 

Romania  has  made  good  progress 
in 
digitalising  its  public  services  but  still  faces 
significant  challenges  with  the 
level  of 
satisfaction  of  people  and  businesses.  Only 
22%  of  businesses  are  satisfied  with  the  public 
administration 
(EU:  42%),  placing 
Romania  lowest  in  the  EU.  Moreover,  64%  of 
businesses  declared  that  they  had  experienced 
increased operational costs due to challenges with 

services 

74 

0%10%20%30%40%50%Time forresponsesApplicationformsDocumentspreparationTime forresponsesApplicationformsLegislationandobligationsPeopleBusinessesEUTools for smart legislation: Share of possible impacts assessed for all primary laws when developing legislation 1Regulators are required to identify and quantify the benefits of a new primary law0Regulators are required to identify and assess the impacts of alternative non-regulatory options0Tools for effective implementation: when developing laws, regulators are required to:Assess the level of compliance0Identify and assess potential enforcement mechanisms1Specify the methodology of measuring progress in achieving the law's goals1Oversight of better regulation: There is an external  body responsible for reviewing the quality of RIAs and of ex post evacuations 1There are publicly available assessments of the effectiveness of RIA in modifying regulatory proposals 1There are reports on the level of compliance by government department with the requirements of RIA0There are indicators on the percentage of ex post evaluations that comply with guidelines0The effectiveness of ex post evaluations in improving the regulatory stock has been assessed in the last five years0 
 
   
 
      
 
Table A7.2:  Digital Decade key performance indicators: availability of digital public services 

(1) Digital Decade target by 2030: 100. (2) Publishing year, data were collected in the previous year. 
Source: European Commission, State of the Digital Decade report 2025 

public  administration  services.  Overall,  people  are 
more  satisfied  with  public  services  (44%),  just 
below the EU average. However, the perception of 
public  administration  as  slow  in  service  delivery 
remained  unchanged  between  2023  and  2025, 
and  52%  of  people  cite  public  administration 
processing  time  as  the  most  time-consuming 
aspect,  marking  a  huge  gap  with  the  EU  average 
(Graph A7.2). In addition, they report that clarity on 
procedures  would  improve  interaction  with  public 
administration  (61%  versus  44%  at  EU  level). 
Some  45%  of  businesses  mention  processing 
delays  as  their  main  challenge  in  dealing  with 
public services (144). 

The  availability of  digital  public  services  for 
people  increased  in  the  last  year  but  is  still 
significantly  below  the  EU  average  (Table 
A7.2). Similarly, the availability of electronic health 
records has increased considerably from 59 to 75 
but is still below the EU average of 83 (145). While 
people can in theory access their electronic health 
records  via  an  online  portal  (see  Annex  15),  few 
manage to do so as the platform is outdated, and 
mobile  access  is  not  available.  Moreover,  not  all 
data  types  are  available  and  less  than  50%  of 
healthcare  providers  are  connected  and  supplying 
data.  A  new  Health  Insurance  IT  platform  is 
expected in 2026 under the RRP investments. The 
share of e-government  users remains very low at 
25%,  compared  to  the  EU  average  of  76%,  and 
fell  1%  in  2025  compared  to  2024  (146).  One  in 
five  people  claim  to  have  never  used  digital 
services,  the  highest  share  in  the  EU.  This  can  be 
explained  by  the  fragmented  nature  of  public 

(144) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services. 

(145) European Commission, 2025, Digital decade e-health 

indicator study. 

public 

the  RRP 

institutions 

is  addressing  by 
services,  which 
connecting 
the 
through 
government  cloud.  Low  digital  adoption  can  also 
be  explained  by  the  underperformance  in  basic 
digital skills, in which Romania ranks last in the EU 
(147). Just under 5% of individuals in Romania have 
used  their  eID  to  access  services  provided  by 
public  authorities  (EU:  46%)  (148),  which  should 
improve with the ongoing RRP investment in eIDs. 
Moreover,  71%  of  people  agreed  that  public 
administration  repeatedly  asks  for  the  same 
personal  data.  This  is  also  reflected  by  the  low 
level (27%)  of pre-filled forms for key life events 
(149). 

Digital  public  services  for  businesses  have 
improved  but  the  gap  with  the  EU  remains 
high  (Table  A7.2).  The  National  Trade  Register 
digital  portal  provides  a  fully  online  company 
registration  process,  and  73%  of  Romanian 
businesses  report  regular  use  of  digital  public 
administration  services  (EU:  68%)  (150).  However, 
the  platform’s  user-friendliness  remains  low,  due 
to the need for repetitive data entry, limited status 
tracking,  manual  post-registration  procedures  and 
insufficient  automation  and  validation  features 
(151).  In  2025,  the  government  approved  changes 
to urban planning and  construction procedures, to 
simplify  the  process  and  to  speed  up  investment. 
The  adoption  of  the  Code  of  Spatial  Planning, 

(147) European Commission, 2025, Romania 2025 Digital Decade 

Country Report. 

(148) Eurostat, 2025, Use of electronic identification (eID), 

isoc_eid_ieid. 

(149) European Commission, 2025, Romania 2025 Digital Decade 

Country Report. 

(150) European Commission, 2026, Flash Eurobarometer surveys 
567 and 568 on satisfaction with administrative services 

(151) European Commission, forthcoming, Simplification of key life 

(146) European Commission, 2025, eGovernment Benchmark. 

events. 

75 

EU-272023202420252025485263824550558657597583Digital public services for citizens (0 to 100)Digital public services for businesses (0 to 100)Access to electronic health records (0 to 100)Romania 
 
 
 
  
 
Urbanism  and  Construction 
is  an  upcoming 
in  the  RRP.  Moreover,  the  single 
milestone 
industrial  licence  reform  was  adopted,  and  the 
new  framework  will  become  operational  once  the 
supporting  digital  platform  is  completed.  The 
Office for Industrial License has also been set up, 
and  Romania  mapped  commerce  and  services 
licences that could be potentially brought together 
under  the  same  office  (152).  Key  challenges  that 
non-harmonised 
companies 
legislation  and  procedures,  excessive  paperwork 
(153).  No 
and 
comprehensive online system is currently available 
for building and environmental permits (154).  

non-transparent 

processes 

include 

face 

Romania is not yet ready to enable the cross-
border  exchange  of  data  and  documents 
between  authorities  through  the  EU  once-
only technical system (OOTS) (155). When once-
only  enabled  services  (156)  become  accessible, 
people  and  businesses  will  no  longer  have  to 
search  for  their  data,  download  and  upload 
documents manually across e-government portals 
in  different  Member  States.  There  is  potential  for 
Romania to be more actively involved in the OOTS 
community and continue the Romanian roll-out of 
the  Single  Digital  Gateway  Regulation  to  connect 
authorities  to  the  OOTS,  foster  cross-border 
exchanges  and  encourage  cooperation  between 
related EU-wide projects. 

Civil service 

learning  and  continuous 

training 
Adult 
remain  a  challenge  for  civil  servants.  The 
proportion of civil servants who participate in adult 
learning is below the EU average (15.6% vs 19.0% 
in  2025).  The  gap  with  the  EU  is  particularly 
striking for young civil servants (18.0% vs 27.7%). 
However, the proportion of civil servants with post-

secondary  education  has  been 
rising  since 
2021 (157).  Romania  has  developed  a  digital 
competence framework for civil servants, linked to 
HR processes and ICT capacity planning (158). 

of  2026 

Human  resource  management  reforms  are 
ongoing,  although  implementation  is  slow. 
The RRP includes measures on organising national 
recruitment  competitions  for  civil  servants  and 
introducing  competence-based  frameworks  for 
recruitment,  evaluation  and  career  development, 
alongside  digitalising  HR  management  systems. 
The  public  administration  reform  adopted  at  the 
streamline 
beginning 
decentralisation, 
competency-based 
introduce 
performance  evaluations  for  civil  servants,  limit 
temporary  leadership  appointments,  cut  advisory 
staff  and  reduce  personnel  spending  by  10% 
across  central  institutions  (159).  The  new  2025–
2030 national strategy for innovation in the public 
sector  proposes  measures  to  create  a  culture  of 
innovation  in  public  administration,  increase  the 
innovation  capacity  of  public  institutions  and 
ensure  collaborative  governance  of  innovation 
processes (160). 

aims 

to 

Integrity  

Although  the  perception  of  corruption  when 
doing business in Romania remains very high, 
the  reported  level  of  experienced  corruption 
is  only  slightly  above  the  EU  average.  The 
figures  indicate  an  acute  integrity  challenge  for 
the business environment, with 90% of companies 
saying  corruption  is  widespread  (EU:  63%)  and 
claiming  that  overly  close  links  between  business 
and  politics  lead  to  corruption  (EU:  76%).  72% 
report  that  corruption  is  a  problem  when  doing 
business  –  more  than  double  the  EU  average  of 

(152) OLI.GOV.RO – Oficiul pentru Licență Industrială, with support 
from the EU’s Technical Support Instrument and the RRP. 

(153) OECD, 2O26, Business Licensing Reforms in Romania. 

(154) World Bank, 2024, Subnational Business Ready in the 

European Union 2024: ROMANIA, p.26. 

(155) European Commission, Once-Only Technical System 

Acceleratormeter, Ec.europa.eu. 

(156) Procedure types under Annex II of the 

SDGR (2018/1724/EU) and directives 2005/36/EC, 
2006/123/EC, 2014/24/EU and 2014/25/EU. 

(157) European Commission, Eurostat, 2026, European Union 

Labour Force Survey, Employed persons by economic activity 
(NACE Rev. 2) (2008-2026). 

(158) Project funded by the Technical Support Instrument: 
European Commission, World Bank, and Romanian 
Government Join Efforts to develop a digital competency 
framework for the Romanian civil servants - Reforms and 
Investments. 

(159) Government Emergency Ordinance No. 7 of 24 February 

2026. 

(160) Government Decision No. 1062 of 5 December 2025. 

76 

 
 
 
35%  (161).  Procurement  remains  a  sector  with  a 
high  risk  of  corruption  (162)  (see  also  Annex  5). 
Slightly  more  companies  report  being  asked  or 
expected  to  offer  gifts  or  extra  payments  for 
permits,  services,  or  procurement  (Romania:  14%; 
EU:  10%),  while  confidence  that  bribing  senior 
officials is appropriately punished is merely in line 
with the EU average (34% vs 33%) (163). 

Court  of  Cassation  and  Justice  on  the  statute  of 
limitations resulted in many corruption cases being 
closed and convictions being annulled. 

Justice 

its 

(165).  A 

integrity  framework. 

Romania  has  made  significant  progress  in 
strengthening 
It 
introduced  rules  on  lobbying  for  Members  of 
Parliament,  imposing  transparency  requirements 
for meetings with third parties (164). Under the RRP, 
a  code  of  ethics  for  government  members  was 
adopted  in  2025,  which  includes  provisions  on 
law  regulating  revolving  doors 
gifts 
introduced  pre-  and  post-employment  restrictions 
for  officials  for  a  period  of  12  months  (166).  In 
Romania, confidence in whistleblower protection is 
comparatively  strong,  with  42%  of  businesses 
rating  it  as  effective  (EU:  29%).  This  is  supported 
by the National Integrity Agency’s role as the main 
external  reporting  channel  and  its  efforts to  raise 
awareness  about  the  whistleblower  framework 
among companies. 

The  authorities  maintain  a  positive  track 
record  in  combating  corruption,  including  in 
high-level  corruption  cases.  The  National  Anti-
Corruption  Directorate  achieved  similar  results  as 
in  2024  in  addressing  its  backlog,  but  its  overall 
workload  remains  high  (5 556  criminal  cases  per 
year).  Some  114  criminal  cases  were  resolved 
by indictment and  80  cases  by  plea  agreements 
(167). The  implementation  of  rulings  by  the  High 

(161) European Commission, 2025, Flash Eurobarometer survey 
557 on businesses’ attitudes towards corruption in the EU 
and selected enlargement countries. 

(162) European Commission, 2025 Rule of Law Report. 

(163) European Commission, 2025, Flash Eurobarometer survey 
557 on businesses’ attitudes towards corruption in the EU 
and selected enlargement countries 

(164) Law No. 197/2025 amending Article 12 of Law No. 96/2006 

on the Status of Deputies and Senators. It introduces 
mandatory use of RUTI (Unique Interest Groups’ 
Transparency Register). 

(165) Law No. 49/2025 amending and supplementing the 
Government Emergency Ordinance No. 57/2019 and 
amending Article 1(1) of Law No. 251/2004. 

(166) Law No. 189/2025 amending and supplementing Law No. 

176/100 and Law No. 144/2007. 

(167) Figures provided by the National Anti-corruption Directorate. 

to 

The 

time 

estimated 

The justice system performs well in terms of 
efficiency.  The time  taken  to  reach  a  decision  in 
civil and commercial cases at first instance courts 
decreased (from 218 days in 2023 to 180 days in 
resolve 
2024). 
administrative  cases  at  first 
instance  courts 
increased  (from  387  days  in  2023  to  410  in 
2024).  The  quality  of  the  justice  system  is 
average.  Measures  are  being  taken  to  address 
human resources shortages in the judiciary, whilst 
the  rate  of  vacancies  remains  an  important 
concern for magistrates (168). The legal aid system 
remains underfunded. Romania’s justice system is 
moderately digitalised. The RRP includes measures 
on introducing electronic case allocation within the 
prosecution  service,  as  well  as  making  full use  of 
electronic  communication  within  the  courts  and 
the prosecution service. Romania performs well in 
digital solutions to initiate and follow proceedings 
in  civil/commercial  and  administrative  cases,  as 
well  as  in  the  general  public’s  online  access  to 
published  judgments.  However,  it  lags  behind  on 
arrangements  for  producing  machine-readable 
judicial  decisions.  Following  public  debates  in 
December 2025(169), the government had set up a 
Committee  for  the  Review  and  Revision  of  the 
Justice  Laws  to  discuss  further  improvements 
within the judiciary. However, following a decision 
by  the  High  Court  of  Cassation  and  Justice  (170), 
its  work. 
this  Committee  has 
Magistrates 
about 
raised 
promotions,  delegations  and  secondments  of 
magistrates,  the  composition  of  governing  boards 
in 
investigation  and 
prosecution of corruption offences in the judiciary 
(171).  Adoption  of  the  law  to  extend  the  term  of 

courts  and  efficient 

suspended 

concerns 

have 

(168) See survey organised by the Superior Council of Magistracy, 

Dec. 2025. European Association of Judges (2026). 

(169) In the wake of the broadcasting of the Recorder 

documentary on “Captured Justice”. 

(170) Decision not published yet. 

(171) Concerns raised by 900 magistrates in a public letter. See 

also Presidency of the Republic: ’Summary of the comments 
submitted by magistrates and other actors in the judicial 
system on the functioning of justice, the independence of 

77 

 
 
 
 
office  of  high-ranking  prosecutors  and  render  it 
non-renewable,  as  recommended  by  the  Venice 
Commission to strengthen their independence, was 
suspended. Judicial police officers are still obliged 
to report on their activity to the Minister of Internal 
Affairs (172). 

magistrates and the mechanisms regarding the career of 
magistrates’. And magistrates’ associations, written and oral 
contributions to the 2026 Rule of Law Report. 

(172) For  a  more  detailed  analysis  of  the  performance  of  the 
justice  system  in  Romania,  see  the  upcoming  2026  EU 
Justice  Scoreboard  and  the  upcoming  2026  Rule  of  Law 
Report. 

78 

 
 
SUSTAINABILITY 
ANNEX 8: INDUSTRY DECARBONISATION, CIRCULARITY AND CLIMATE MITIGATION 

in 

for 

support 

includes 

investments 

rail  services  and  measures 

Romania  still  faces  challenges  on  industry 
decarbonisation,  road  transport  emissions, 
air  pollution  and  waste  management.  To 
reduce  the  greenhouse  gas  emission  intensity  of 
Romania’s  manufacturing  industries  (among  the 
highest 
industrial 
the  EU)  and  maintain 
competitiveness, deliberate policy action is needed. 
This 
in 
modernisation,  access  to  funding  and  upskilling 
the  workforce.  Road  transport  emissions  need  to 
be tackled as they are increasing rapidly. Action on 
this front would include improving public transport, 
modernising 
to 
promote  the  renewal  of  car  fleets  and  e-vehicle 
rollout.  Air  pollution  and  waste  management  are 
critical environmental, public health and economic 
challenges  in  Romania.  The  issues  are  driven  by 
rapid,  often  unregulated  urbanisation  and 
inefficient  waste  management  infrastructure.  In 
2025,  Romania  received  a  recommendation  to 
invest in environmental infrastructure. Investments 
in waste and circular economy and in sectors with 
an  impact  on  air  pollution  are  not  progressing 
sufficiently  and  have  been  reduced  both  in  the 
recovery  and  resilience  plan  and  under  regional 
policy. This reflects administrative capacity issues, 
weak  governance  and  the  institutional  setup, 
including  the  local  public  administration  and  the 
lack of technical expertise/green skills. Romania is 
paying 
closed  and 
for  not  having 
rehabilitated  illegal  and  substandard  landfills  and 
is not on track to meet the recycling targets. It has 
significantly 
in  waste 
infrastructure. The underlying root causes are poor 
strategic  planning  and  lack  of  administrative 
capacity,  weak  governance,  lack  of  coordination 
between  the  central  and  local  level  and  a  lack  of 
technical expertise. 

investment 

reduced 

fines 

from  industry  fell  by  44.4%  between  2000  and 
2023 (from 36 to 20 MtCO2eq). This is linked to a 
decrease in emissions from energy use per unit of 
product and process emissions per unit of product 
(a reduction of 21 MtCO2eq each). These decreases 
were significant, more than offsetting the increase 
linked to Romania’s much bigger economic activity 
(24 MtCO2eq) and the emission intensity of energy 
used (3 MtCO2eq) (174).  

intensity 

in  the  EU. 

Romania’s  manufacturing  industry  still  has 
one  of  the  highest  levels  of  greenhouse  gas 
emission 
In  2024, 
manufacturing  generated  21%  of  all  GHG 
emissions in Romania, against 26% for the whole 
EU  (175).  That  same  year,  manufacturing  also 
generated  a  lower  share  of  gross  value  added  in 
Romania,  approx.  14.5%,  against  the  EU  average 
of  16%  (176).  However,  GHG  emission  intensity  is 
noticeably higher in Romania than the EU average 
(approx.  465 g/EUR  versus  approx.  312 g/EUR  – 
adjusted  for  inflation).  This  is  over  16.5%  higher 
than 2023 levels (when the emission intensity was 
approx. 399 g/EUR) (177). Eurostat data for energy-
intensive  industries  in  2024  show  that  they 
accounted  for  almost  78%  of  manufacturing 
emissions  in  Romania,  against  the  EU  average  of 
over 84%.   

which is key to preserving competitiveness on the path 
towards climate neutrality as mandated by the European 
Climate Law. A broader perspective on the current 
competitiveness challenges facing Romania's manufacturing 
industry is provided in Annex 5. For a more detailed 
description of greenhouse gas emissions from industry, see 
European Commission (2025), 2025 Country Report - 
Romania, Commission staff working document, SWD (2025) 
205 final, Brussels, 4.6.2025, Annex A7. Clean industry and 
climate mitigation. 

Industry decarbonisation 

(174)Romania's climate action strategy. 

Greenhouse gas emissions from industry  

(175) Data collected from Eurostat, online data code: 

env_ac_ainah_r2. Manufacturing includes all divisions of the 
“C” section of the NACE Rev. 2 statistical classification of 
economic activities, link here. 

The  high  greenhouse  gas  intensity  of  the 
Romanian economy reflects a lack of support 
policies (173).  Greenhouse  gas  (GHG)  emissions 

(176) Data collected from Eurostat, online data code: 

nama_10_a10. Manufacturing includes all divisions of the 
“C” section of the NACE Rev. 2 statistical classification of 
economic activities, link here. 

(173) This Annex discusses the transition of Romania's 

manufacturing industry, specifically its energy-intensive 
industries, to low-carbon and net-zero modes of production, 

(177) Data collected from Eurostat, online data code: 

env_ac_aeint_r2. Manufacturing includes all divisions of the 
“C” section of the NACE Rev. 2 statistical classification of 
economic activities, link here. 

79 

 
 
 
 
 
 
 
 
The  gross  added  value  of  energy-intensive 
industries  to  the  economy  has  plateaued, 
however. Over the same period, the economy as a 
whole  and  the  added  value  of  the  manufacturing 
sector in general has been growing. 

Policies to promote industry decarbonisation  

industry 

industry 

the  clean 

transition 

is 
Romania’s  clean 
hampered  by  the  lack  of  a  clear  strategic 
framework  and  better  access  to  EU  funds. 
The  barriers  to  a  shift  to  cleaner  technologies 
frequently mentioned by business include delays in 
receiving funding to support their investments. On 
a  broader  scale,  industries  lack  strategic  direction 
on 
transition.  Romania's 
industrial  strategies (178)  provide  an  incomplete 
picture  of  the  challenges  faced  by  industry  as  it 
moves  towards  climate  neutrality.  The  national 
energy  and  climate  plan  does  not  include  a 
pathway  for  2030  and  beyond  to  support  the 
process  of  industrial  decarbonisation.  Both  the 
energy and climate plan and Romania’s long-term 
strategy for 2050 contain few concrete measures 
to  curb  industry  greenhouse  gas  emissions  and 
lack  a 
institutional 
responsibilities  and  realistic  targets  for  resources 
and  infrastructure (179).  The  country's  hydrogen 
strategy  (drawn  up  with  support  from  the  EU’s 
Technical  Support  Instrument)  and  the  recovery 
and  resilience  plan  (RRP)  provide  guidance  on 
its 
industrial  decarbonisation,  but  achieving 
objectives 
implementation, 
requires  effective 
including  through  supporting  infrastructure  and 
financing frameworks. Further analysis (180) finds a 
lack  of  realistic  cost  assessments,  clear  action 
plans and funding support proposals – short of EU 
funds  -  and  few  details  on  available  technology 
options.  A  sequenced  set  of  policy  actions  to 
manage the industrial transition is needed, as the 
industry  cannot  bear  the  costs  alone.  Expert 
recommendations  propose  designing 
carbon 
contracts  for  difference  schemes,  using  different 
carbon  capture  and  storage  technologies,  or 

clear  designation 

of 

(178) The national industrial strategy 2024-2030, the national 
energy and climate plan, and the long-term strategy for 
climate neutrality. 

(179) CLUBUL CLIMATIC – următorul pas după includerea României 

în grupul țărilor dezvoltate? 

(180) https://www.epg-thinktank.org/wp-

content/uploads/2024/09/EPG-SLIDE-DECK-The-cost-of-
Romanias-Industrial-Transition-30.09.pdf.  

80 

adopting  a  national  action  plan  for  green  public 
procurement. 

in  modernising 

lines.  Many  manufacturing 

Underinvestment 
the 
economy  is  constraining  the  capacity  of 
Romania’s  businesses  to  embrace  clean 
production  technologies.  According  to  SME 
associations (181),  over 
the  past  35  years, 
Romanian  businesses  have  received  insufficient 
support  to  modernise  outdated,  energy-intensive 
production 
firms 
operate  inefficient  equipment  with  high  operating 
low  productivity  and  weak  export 
costs, 
competitiveness  compared  to  their  peers.  Energy 
inefficiency is compounded by the lack of modern 
monitoring  systems, 
limiting  the  capacity  to 
contain  costs  and  reinvest.  The  misalignment 
between the funding available and business needs 
creates  a 
industrial 
modernisation,  energy  efficiency  and  reducing 
greenhouse gas emissions. 

structural  barrier 

to 

Skill  obsolescence  is  another  barrier  to  the 
clean industry transition in Romania.  There is 
scope  to  increase  investment  in  social  policies,  to 
provide  policy  support  for  comprehensive  re-
skilling  and  upskilling  programmes  and 
to 
modernise  collective  bargaining.  Under  the  RRP, 
investments provide support for people to develop 
the  skills  and  competencies  needed  for  the  green 
transition. 

Reduction of effort sharing emissions 

Compliance  with  effort  sharing  limits  with 
domestic measures 

is  projected  to  overachieve  its 
Romania 
effort  sharing  target 
its 
emission  allocations  for  2021-2030  appear 
its  effort  sharing 
insufficient  to  cover 
emissions  in  the  entire  period (182).  In  2024, 

in  2030,  but 

(181) Information from the 2026 European Semester fact-finding 

mission. 

(182)The  national  GHG  emission  reduction  target  is  set  out  in 
Regulation (EU) 2018/842 (the Effort Sharing Regulation). It 
applies  jointly  to  buildings  (heating  and  cooling),  road 
transport,  agriculture,  waste  and  small  industry  (known  as 
the effort sharing sectors). The emissions from effort sharing 
sectors for 2024 are based on approximated inventory data. 
The  final  data  will  be  established 
in  2027  after  a 
comprehensive  review.  Projections  about  the  impact  of 

 
 
 
 
greenhouse  gas  emissions  from  Romania’s  effort 
sharing sectors  are expected  to have been 19.6% 
above  2005  levels.  By  2030,  with  current  and 
planned  policies  and  measures,  these  emissions 
are  expected  to  decrease to  15.3%,  resulting in  a 
surplus  of  2.6  percentage  points  relative  to  the 
2030  target,  12.7%.  Romania  is  projected  to 
exceed 
limits 
its  effort  sharing  emissions 
temporarily  over  the  2021-2030  period.  It  could 
bridge  part  of  the  gap  with  own  unused  annual 
emission  allocations  from  other  years  but  would 
also  need  transfers  of  allocations  from  other 
Member  States  to  achieve  compliance  with  the 
Effort  Sharing  Regulation.  Progressing  towards 
climate 
swift 
implementation of Romania's additional measures. 

neutrality 

require 

will 

share 

coordination 

body  with 

greenhouse 

Recent  national  research  shows  that  a 
significant 
gas 
of 
emissions  reductions  in  Romania  since  1990 
were  due  to  disruptive  economic  changes 
rather  than  to  decarbonisation  policies (183). 
According  to  the  same  assessment,  short-term 
needs  (2025-2027)  include  transposing  the  ETS2 
legislation,  adopting  its  social  climate  plan  and 
passing  a  climate  law  with  binding  targets  and  a 
predictable  framework  for  industry.  A  dedicated 
planning, 
climate 
monitoring  and  modelling  capacity  would  also  be 
to  support  ministries,  ensure  policy 
needed 
the 
coherence  and  avoid  fragmentation. 
to 
medium 
decarbonise  heavy  industry  by  investing  in  clean 
technology,  hydrogen  infrastructure  and  carbon 
capture  and  by  leveraging  EU  funding.  In  the 
meantime,  converting  the  transport  and  building 
sectors  to  electricity  would  require  action  to 
consolidate  the  electricity  grid  and  renewable 
storage  capacity.  Romania  has  committed  to  the 
target  of  climate  neutrality  by  2050. 
EU's 
However,  it  still  relies  mainly  on  fossil  fuels  to 
meet  its  energy  needs.  The  above  study  also 
highlighted  the  economic  security  benefits  of 
fuel  dependence  by  using 
reducing 

(by  2030),  a  priority 

fossil 

term 

In 

is 

current  policies 
(‘with  existing  measures’,  WEM)  and 
additional  policies (‘with  additional  measures’,  WAM)  as  per 
Romania’s  2025  reporting  under  Article  17  of  Regulation 
(EU)  2018/1999  (the  Governance  Regulation).  Also  see 
European  Commission  (2025),  Climate  Action  Progress 
Report  2025  –  Technical  Information,  Commission  staff 
working  document,  Brussels,  Chapter  9  (pp.  111ff.),  and  in 
particular Tables 25 and 26.  

electricity,  local  renewables  and  nuclear  power,  in 
Romania and beyond.  

Sustainable transport 

Graph A8.1: Greenhouse gas emissions in the 
effort sharing sectors, 2005, 2023, and 2024 

Source: European Environmental Agency. 

transport  emissions 

in  Romania 
Road 
continue to rise  at a  fast pace.  In  2024,  road 
transport  generated  31%  of  Romania’s  effort 
sharing  emissions,  a  132%  increase  from  2005 
levels, the highest increase in the EU. The year-on-
year increase from 2023 to 2024 was particularly 
strong, reaching 54 percentage points above 2005 
levels. 

transport 

fossil 
rapidly 

fuel-
Road 
is  highly 
(184). 
dependent  and  expanding 
the  dominant  form  of 
Passenger  cars  are 
transport,  with  car  ownership  expected  to  rise 
further as incomes grow. Public transport use has 
fallen  over  the  last  decade  while  car  travel  rose 
faster than in other countries in the region. The car 
fleet  is  old  and  emission-intensive  and  electric 
vehicles  make  up  less  than  1%  of  the  fleet,  well 
below  the  2030  target  of  31%.  Although  there  is 
in  general  a  weak  link  between  fuel  and  vehicle 
taxes, Romania is working, under a measure in its 
RRP,  on  phasing  out  time-based  road  charges  in 
July 2026 and bringing in distance-based charges 
for  freight  vehicles (185).  This 
represents  an 
important  step  towards  achieving  the  'polluter 
pays' principle, although the tariffs applicable from 
July  2026 (186)  do  not  fully  exempt  zero-emission 
trucks  from  the  infrastructure  charge,  as  allowed 

(184) OECD Economic Survey 2026. 

(185)Law No. 226/2023 on levying of certain tariffs on the 

national road network of Romania. 

(183) Starea Climei; Romania; 2025. 

(186)ORDIN 1925 10/10/2025 - Portal Legislativ. 

81 

0102030405060708090100200520232024MtCO2eDomestic transport (excl. aviation)Buildings (under ESR)AgricultureSmall industryWaste 
 
  
 
under  EU  law  until  30 June 2031.  The  fiscal 
package  could  be  consolidated  to  give  a  real 
economic  incentive  for  people  and  businesses  to 
shift to low and zero-emission vehicles. 

The  overdependence  on  private  vehicles 
stems partly  from the lack  of or inadequate 
public  transport  and  rail  services.  Romania’s 
rail  network  has  suffered  from  decades  of 
underinvestment.  Most  of  the  11 000 km  of 
Romania's railway network is in a precarious state. 
Trains  barely  reach  an  average  speed  of  55 km/h 
(passenger trains) and 16 km/h (freight trains), far 
below  the  EU  average.  The  service  is  marked  by 
frequent  delays  and  a lack  of maintenance. Much 
of  the  infrastructure  is  in  poor  condition,  forcing 
speed  restrictions  that  make  trains  exceptionally 
slow (187). The rolling stock is also largely obsolete 
–  around  70%  of  locomotives  and  a  third  of 
wagons  have  exceeded  their  service  life.  Poor 
service  quality  combined  with  a  focus  on  road 
transport  in  past  policies,  has  driven  passengers 
and  logistics  firms  away  from  rail.  Road  and  car 
transport  dominate  (carrying  roughly  82%  of 
passengers  against  only  15%  by  rail  in  2020), 
reflecting the lack of investment and focus on rail 
by  successive  governments (188).  The  share  of  rail 
freight  in  inland  transport  has  also  decreased  by 
7.7%  between  2018  and  2024 (189).  The  lack  of 
charging infrastructure for heavy goods vehicles in 
Romania risks becoming a significant bottleneck to 
the  uptake  of  electric  lorries.  In  2025,  the  fleet 
included  only  75  battery  electric  heavy  goods 
vehicles  and  one  plug-in  hybrid  electric  heavy 
vehicle (190)). 

Sustainable industry 

Circular economy 

Romania’s  circular  economy  action  plan 
adopted in 2023 (with support from the EU’s 
Technical  Support  Instrument)  its  and  RRP 
are  ambitious,  but  implementation  remains 

uneven  and  the  adoption  of  secondary 
materials  is  slow.  The  action  plan  sets  out  a 
national  vision  to  speed  up  the  transition  to  a 
circular economy, with measures designed for the 
nine  economic  sectors  with  the  greatest  potential 
for  circularity  in  Romania's  economy:  agriculture 
and  forestry,  automotive,  construction,  food  and 
textiles,  electrical  and 
beverages,  packaging; 
and 
electronic 
wastewater.  It  is  also  based  on  52  priority 
measures  scheduled  to  be  rolled  out  between 
2024  and  2032.  The  aims  include  massively 
reducing  the  use  of  primary  raw  materials  and 
boosting resource efficiency, but progress remains 
uneven across sectors.  

equipment,  waste,  water, 

On  the  one  hand,  Romania  ranks  among  the 
EU worst performers on recycling rates, with 
12.4%  of  municipal  waste  recycled  (against 
the  EU  average  of  47.9%)  in  2023,  88%  of 
construction  and  demolition  waste  recovered 
(against  the  EU  average  of  89%)  and  31.6%  of 
plastic  packaging  recycled  (below  the  EU  average 
of  40.3%  in  2021).  Romania  is  also  behind  on 
patents  filed  related  to  recycling  and  secondary 
raw materials. In 2019, it filed eight patents (rising 
to  12.3  in  2020,  still  far  below  the  EU  average). 
The  country’s  innovation  pace  tracked  by  patent 
applications lags behind other EU Member States. 

for  2.3%  of 

On  the  other  hand,  despite  employment 
levels  plateauing  (191),  the  circular  economy 
sector  accounted 
total 
employment in 2023 (2.3% in 2014), slightly 
above  the  EU  average  of  2%.  Although  per 
capita  material  consumption  has  increased  by 
12%  over  the  past  five  years  (192)  and  resource 
productivity has in parallel nearly doubled (a 45% 
increase from 2019 to 2024), the volume of waste 
generated is decreasing and the use of secondary 
materials  grew  only  marginally  from  11.7%  to 
14.8%  over  the  past  10  years,  underscoring 
persistent  reliance  on  primary  resources  (193), 
Romania's  rate  of  adoption  of  secondary  raw 
materials  is  low,  significantly  behind  the  EU 
average. In 2023, its circular material use rate was 
just  1.3%,  the  lowest  in  the  EU  (EU  average 

(187) Romanian transport infrastructure: A roller coaster ride. 

(188) Saracia din transporturi in Romania. 

(189) Statistics | Eurostat. 

(191)Circular economy sector covers the recycling sector, repair 
and reuse sector and rental and leasing sector. Eurostat 
definition code [cei_cie011]. 

(190) https://alternative-fuels-observatory.ec.europa.eu/transport-

mode/road/romania 

(192)Eurostat, Material footprints, 2024.  

(193)Eurostat, circular material use rate. 

82 

 
 
 
figure  has 

11.8%).  This 
remained  broadly 
unchanged  or  even  slightly  decreased  in  recent 
years (194).   

Romania has scope to develop its fiscal tools 
to  promote  circular  practices,  raise  revenue 
and  reduce  waste.  Total  environmental  tax 
revenue is above the EU average (2.7% of GDP in 
2022,  EU  average:  2%).  The  data  on  taxes  on 
pollution  and  resources  were  not  available  (195). 
With  support  from  the  EU’s  Technical  Support 
Instrument, Romania is exploring options for green 
taxation  and  for  implementing  the  carbon  border 
adjustment  mechanism. 
environmental 
taxation  options  are  being  discussed  with  the 
government and stakeholders, not only in terms of 
impacts,  but  also 
expected 
economic and social impacts. 

environmental 

The 

fees  are  paid 

Romania’s  waste 
sector  also  applies 
producer  responsibility  fees  covering  tyres, 
packaging,  electrical  and  electronic  goods, 
and  batteries.  These 
to 
environmental  funds  or  collective  compliance 
lack  of  consistent 
the 
schemes.  However, 
reporting, 
reinvestment 
and 
transparency 
mechanisms  limits  their  effectiveness  in  steering 
behaviour  or  supporting  environmental  objectives. 
This  underlines 
target 
the  scope 
environmental  charge  revenues  and 
integrate 
them  as  part  of  a  broader  framework  for  the 
circular  economy  –  especially  in  the  waste  and 
water sectors. 

to  better 

The  recent  introduction  of  a  landfill  tax 
seems  like  a  step  forward,  albeit  a  small 
step. The PAYT (pay-as-you-throw) system is only 
partly 
local 
administrations.  Romania  has  not  yet  adopted  a 
national  plastic tax. Reaching its circular economy 
objectives  would  require  additional  investment  of 
EUR 42 billion (196). 

(covering  66%  of 

in  place 

Romania has made limited progress on waste 
management.  The  country's  reliance  on  waste 
disposal  in  landfills  is  still  too  high.  Despite 

(194)Environmental Implementation Review 2025 Register of 

Commission Documents - SWD(2025)322. 

(195)Environmental Implementation Review, Country Report for 

Romania, p.  SWD(2025)322_0 (36).pdf. 

(196) Environmental Implementation Review, 2025 country report 

for Romania, eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52025SC0322. 

Romania  having  made  some  progress  on  closing 
substandard or illegal landfills, progress has been 
too slow, and it is paying the consequent financial 
penalties. Despite some progress in improving and 
extending  the  separate  collection  of  waste  and 
using economic instruments such as the extended 
producer responsibility, Romania is not on track to 
meet  the  recycling  targets.  It  has  significantly 
reduced  investments  in  waste  infrastructure  and 
Romania  is  one  of  the  Member  States  at  risk  of 
missing  both  the  municipal  waste  and  the 
packaging waste targets for 2025. It has obtained 
a  postponement  of  the  target  deadline  on 
preparing municipal waste for reuse and recycling 
(i.e. by 2030 instead of 2025). The country is also 
at  risk  of  not  meeting  the  2035  target  of 
municipal  waste  landfilled.  The  national  waste 
management  plan  is  currently  being  revised  and 
the  41  county  waste  management  plans  and  the 
management  plan  for  Bucharest  municipality  will 
also be revised (197).  

Bioeconomy industry 

In  Romania,  the  average  value  added  by 
bioeconomy  sub-sectors  increased  between 
2018  and  2023.  Bio-based  chemicals  and 
plastics  saw  the  highest  growth  in  value  added 
(11.6%  on  average  between  2018  and  2023) 
(198),(199).  Overall  employment  in  the  bioeconomy 
has  fallen.  However,  among  the  bioeconomy  sub-
sectors, bio-based chemicals and plastics and food 
and beverages showed a different trend, recording 
growth  in  total  employment  between  2018  and 
2023  (3.6%  and  0.5%  on  average  (200).  Labour 
productivity  in  the  bioeconomy  –  measured  as 
value  added  per  person  employed  –  stood  at 
25.8%  of  the  national  average  and  it  has  been 
decreasing from 27.3% in 2018 (201).   

Research  and  development  (R&D)  business 
expenditure  from  bioeconomy-relevant  sub-
sectors  has  grown  more  than  the  overall 
R&D business expenditure in Romania (12.8% 

(197)Environmental Implementation Review, 2025 Country Report 

for Romania, eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52025SC0322. 

(198)Bioeconomy  subsectors:  bio-based  chemicals  and  plastic, 
bio-based textiles, food and beverages, wood and furniture. 
(199)Joint  Research  Centre,  Developments  of  Economic  Growth 
and Employment in Bioeconomy Sectors across the EU, Link. 

(200) Ibid. 

(201) Ibid. 

83 

 
 
 
compared to 9.2% on average between 2018 
and 2023(202). Romania has a developed network 
of  clusters  and  organisations  that  support  the 
bioeconomy  and  bio-based  research,  innovation 
and industrial (203). 

Zero-pollution industry 

Over  the  past  decade,  Romania  has  made 
little progress in reducing key air pollutants. 
It  is  taking  measures  to  ensure  cleaner  energy 
production,  tighten  up  vehicle  emission  standards 
and  improve  industrial  technology,  however.  The 
emissions of several air pollutants have decreased 
significantly  in  Romania  since  2005,  while  GDP 
continues  to  grow.  Romania  has  met  its  emission 
reduction commitments for 2020–2029 for the air 
pollutants 
organic 
compounds,  sulphur  dioxide  (SO2)  and  ammonia 
(NH3),  but  has  not  met  the  commitments  for 
nitrogen oxides (NOx) or PM2.5. Romania does not 
properly monitor air quality in all zones. It does not 
invest  sufficiently  in  measures  to  reduce  air 
pollution  in  line  with  the  National  Air  Pollution 
Control  Programme  and  has  not  developed 
sufficient air quality plans.  

non-methane 

volatile 

On  industrial  emissions,  although  Romania 
has the 10th highest level of damages in the 
EU,  it  ranks  sixth  on  emission  intensity, 
above  the  EU  average.  The  main  industrial 
sources  of  emissions  to  air  are  the  energy  sector 
and  the  mineral  industry  for  NOx  emissions,  the 
waste  management  and  chemical  sector  for  dust 
emissions,  and  the  energy  sector,  metals  sector 
and mineral sector for SO2 and heavy metals. The 
EEA  has 
the 
installation manufacturing iron and steel in Galati, 
as one of the 30 industrial facilities in Europe that 
generated  the  highest  absolute  damage  costs 
from emissions of the main air pollutants and GHG 
over the 10-year period from 2012–2021 (204). 

identified  Liberty  Galati  SA, 

(202)Joint Research Centre, Business expenditure in Research and 

Development (R&D) in the EU bioeconomy, Link,. 
(203) BIC Country Report - Mapping Romania's biobased 

potential_0.pdf 

to 

continues 

fine  particulate  matter 

Romania 
grapple  with 
significant  air  pollution  costs  (205).  The  EEA 
estimates  that  in  2023,  1 233  years  of  life  were 
lost  per  100 000  inhabitants  attributable  to  air 
pollution due to PM2.5 concentrations that exceed 
the  World  Health  Organization’s  air  quality 
guideline  levels  (206).  Air  pollution  in  the  form  of 
ozone  and 
(PM2.5) 
exposure  accounted  for  an  additional  6%  of 
deaths, higher than in most EU countries (207). This 
underscores the potential benefit of further action, 
particularly  in  industrial  regions,  energy-intensive 
industries  and  urban  transport  corridors.  Further 
action  in  these  areas  would  help  reflect  more 
accurately  the  impact  road  transport  has  on  air 
pollution  such  as  congestion  charges  in  cities, 
pedestrian and low-emission zones.   

Water  pollution 
from  agriculture  and 
industry  also  remains  a  critical  challenge. 
Romania  has  achieved  improvements  in  water 
pollution  including  a  73%  reduction  in  industrial 
heavy  metal  releases  (cadmium,  mercury,  nickel 
and lead), a 16% reduction in total organic carbon, 
a 32% reduction in phosphorus emissions to water 
since  2010  and  a  16%  decrease  in  total  organic 
carbon emissions, as reported under the Industrial 
Emissions  Directive  (208).  However,  97.6%  of 
surface  waterbodies  are  reported  to  have  good 
chemical  status  (209).  Failure  to  achieve  good 
chemical  status  is  mostly  due  to  ubiquitous 
persistent  bio-accumulative  and  toxic  substances, 
which  are  difficult  to  address  and  often  have 
transboundary  sources.  In  Romania,  these  are 
mainly  mercury  and  polybrominated  diphenyl 

(205) NEC evaluation support study final report 
(https://op.europa.eu/en/publication-detail/-
/publication/f2e22a18-cccf-11f0-8da2-
01aa75ed71a1/language-en).  

Table 2-36: Illustrative of costs and benefits over evaluation 
period using the outputs of the ‘new counterfactual’ analysis 
(2025 prices, EUR million, discounted to 2016), column 
Benefit-cost ratio – VOLY. 

(206) EEA, 2025, Harm to human health from air pollution in 

Europe: burden of disease status, 2025, Link.   

(207) European Commission, 2025, State of Health in the EU 

Romania Country Health Profile 2025, p.4, affaf991-adcd-
4ff6-a3d8-01f9b988139d_en. 

(208) European Environmental Agency (EEA) - Water pollutant 
releases changes from 2010 to 2022 for the EU Member 
States. 

(204)European Commission, Environmental Implementation 
Review (2025), Romania country report.  EUR-Lex - 
52025SC0322 - EN - EUR-Lex. 

(209) Third River Basin Management Plan for Romania, 02/2025 

eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52025SC0020 

84 

 
 
 
ethers.  Water pollution  by  industry  imposes direct 
and indirect costs of EUR 6 million a year (210), not 
yet sufficiently borne by the polluters.   

The  total  economic  cost  of  industrial  air 
in  Romania  was  estimated  at 
pollution 
EUR 11  billion  in  2021  (211).  The  estimated 
investment  needs  for  air  pollution  control  and 
noise control amount to around EUR 2.1 billion per 
year,  of  which  approximately  EUR  1.3  billion  is 
currently covered, leaving a gap of about EUR 805 
million annually (about 0.28% of GDP), largely  on 
measures to tackle clean air and noise (212). 

(210) European Commission: Directorate-General for Environment, 
IEEP, Green taxation and other economic instruments – 
Internalising environmental costs to make the polluter pay 
(p. 36, Table 5), 2021, Link. 

(211)The cost to health and the environment from industrial air 

pollution in Europe, 2024 update. EEA. The costs reported are 
computed in terms of value of a statistical life.    

(212) 2025 Environmental Implementation Review (SWD(2025) 

303 final), country report – Romania. 

85 

 
 
 
Table A8.1:  Key clean industry and climate mitigation indicators: Romania 

Sources and notes: Industry decarbonisation: All data are from Eurostat; data following the UNFCCC Common Reporting 
Format (CRF) are from the European Environment Agency (EEA), republished by Eurostat. (1) Sectors covered: all divisions of 
section C - Manufacturing - of the NACE Rev. 2 statistical classification of economic activities, except C19 (manufacture of coke 
and refined petroleum products). (2) GHG emissions as per UNFCCC Common Reporting Framework (CRF) categories 1.A.2 - fuel 
combustion in manufacturing in industries and construction (that broadly correspond to the broadly correspond to the NACE 
sections C - Manufacturing and E - Construction, excluding C-19),  and CRF2 - industrial processes and product use. The figures 
shows the emissions in the 1.A.2 category as a share of the sum of CRF1.A.2. and CRF2 emissions. (3) Sectors covered: CRF 1.A.2 
as described above. Gross value added (GVA) data in the denominator aligned in sectoral coverage, in 2020 prices. (4) Sectors 
covered: NACE section C excluding C19. (5) Nominator: NACE divisions C17, 20, 23, 24; denominator: NACE section C excluding 
C19 (see above). (6) GVA (denominator) in 2020 prices. Reduction of effort sharing emissions: Data source: European 
Environment Agency, greenhouse gas data viewer; European Commission, Climate Action Progress Report, 2025. For details, see 
the footnote in the "Reduction of effort sharing emissions" section. Sustainable road transport: (7) Source: Eurostat; (8) Source: 
European Alternative Fuels Observatory; (9) Source: Eurostat. For all climate mitigation indicators, the trend arrows compare the 
latest available data (year t) with the data four years earlier (t-4). Sustainable industry: Bioeconomy value added, employment 
and productivity: JRC, Developments of Economic Growth and Employment in Bioeconomy Sectors across the EU. Bioeconomy 
R&D business expenditure: JRC, Business expenditure in Research and Development (R&D) in the EU bioeconomy. Damage cost for 
industrial pollution: EEA, The costs to health and the environment from industrial air pollution in Europe, 2024. Water industrial 
pollutants releases: EEA, Industrial releases of pollutants to water and economic activity in the EU-27, 2024. Water chemical 
status: WISE, Surface water bodies: Chemical status, 2024 and WISE Groundwater bodies: chemical status, 2024. Other indicators: 
Eurostat. For circular economy indicators, the trend arrows compare the latest available data (year t) with the data two years 
earlier (t-2). 

86 

Climate mitigationTrendIndustry decarbonisation201820192020202120222023202420182023GHG emissions intensity of manufacturing production, g/€ (1)555561647614531399465330-Share of energy-related emissions in industrial GHG emissions (2)51.450.852.653.055.957.7-55.557.9Energy-related GHG emissions intensity of manufacturing and construction, g/€ (3)357.0352.0420.4402.3387.6313.5-203.9163.0Share of electricity and renewables in final energy consumption in manufacturing, % (4)32.431.730.029.330.531.732.042.843.9Energy intensity of manufacturing, GWh/€ (4)1.861.891.992.001.791.381.381.271.05Share of energy-intensive industries in manufacturing production, % in GVA (5)11.9910.7610.2614.0713.5311.139.64--GHG emissions intensity of production in sector [...], g/€ (6)- paper and paper products (NACE C17) 878          933          788                 988            1 233               517           615             722             619            - chemicals and chemical products (NACE C20) 4 833       4 902       5 595              4 630         3 447               2 348        2 795          --- other non-metallic mineral products (NACE C23) 4 264       4 706       5 536              4 740         5 296               4 545        5 165          2 495          2 352         - basic metals (NACE C24) 4 281       4 565       6 346              4 486         3 678               1 616        1 500          2 842          3 099         Reduction of effort sharing emissions201820192020202120222023202420182023GHG emission reductions relative to base year, % -2.3-4.7-5.519.6- domestic road transport47.351.047.256.669.077.5131.8-1.4-5.6- buildings-0.7-0.61.015.06.75.024.0-20.3-33.520052021202220232024TargetWEMWAMEffort sharing: GHG emissions, Mt; target, gap, %78.276.574.573.993.6-12.7%-8.9%-15.3%Sustainable road transport2018201920202021202220232024202520182021New zero-emission vehicles, electricity motor, % (7)0.460.932.255.239.0010.636.481.038.96Number of publicly accessible AC/DC charging points (8)--47710971479272345667112446956n/aShare of electrified railways, % of total (9)37.4337.4537.4637.4937.9838.0038.0055.4756.49Sustainable industryTrendEU-27Circular economy transition20182019202020212022202320242018latest dataMaterial footprint, tonnes per person23.528.029.130.730.229.131.714.813.7Circular material use rate, %1.6            1.4           1.5                  1.5             1.5                    1.5             1.311.612.2Resource productivity, €/kg0.5            0.4           0.4                  0.4             0.5                    0.6             0.62.13.0Employees in circular economy2.3            2.42.4                  2.8             2.3                    2.3             -2.12.0Patents in circular economy11.58.0           12.5                12.3           12.312.0Recycling rate           11.1           11.5                  12.2             12.3                   12.3            12.4 :46.4048.1Plastic recyling 43%31%30%32%-:-41%42%Construction and demolition waste (CDW) recovery 74-888889Bioeconomy industry 2018201920202021202220232024CAGR 2018-202320182023Value added, million EUR14 15915 10714 30917 66517 90719 407-5.4%642 438863 436Employment, total number of people employed2 403 9562 306 3912 187 0302 199 4632 160 0292 153 960--1.8%17 649 04017 085 642ProductivityValued added per worker, thousand EUR5.96.56.58.08.39.0-7.3%36.450.5Valued added per worker, % of national average27.327.827.731.327.625.8--62.270.7R&D business expenditureTotal bioeconomy (biomass producing and converting sectors)14142020262812.8%15 67223 335Total R&D business expenditure6086176056908111 033-9.2%196 587259 525Zero pollution industry201820192020202120222023202420182021Damage cost for industrial pollution13.511.810.911.0---414.9352.7Water industrial pollutants releases 2021change (2010)2021change (2010)2021change (2010)2021change (2010)4 706       -73%6 815 300       -28%18 764 200      -16%619 910      -32% Water chemical statusGood2 955              Good (%)1.0                    Poor71.0Poor (%)2%EUTOCPhosporusRomaniaRomaniaCd, Hg, Ni, Pbnitrogen 
 
  
 
ANNEX 9: AFFORDABLE ENERGY TRANSITION 

In  2025,  Romania  took  important  steps  to 
support the deployment of renewable energy. 
It managed to increase the flexibility of its energy 
systems, reducing the risk of episodes of excessive 
electricity  prices,  and  it  removed  the  regulatory 
price  caps  on  electricity.  Romania  made  limited 
progress on energy efficiency, reducing its reliance 
on  fossil  fuels  and  phasing  out  fossil  fuel 
subsidies. 

The  2025  country-specific  recommendations 
highlighted  the  need  for  Romania  to:  reduce 
its reliance on fossil fuels by speeding up the 
roll-out  of  renewable  energy;  increase  grid 
capacity;  strengthen  cross-border  electricity 
connections; advance regulatory reforms that 
de-risk  clean  energy  projects;  and  increase 
transparency and efficiency in the permitting 
process.  The  recommendations  also  highlighted 
the  need  to  phase  out  fossil  fuel  subsidies  in  the 
heating  sector  and  invest  in  energy  efficiency, 
taking into account regional disparities, such as the 
impact on the coal  regions. They  also encouraged 
Romania  to  wind  down  the  emergency  energy 
support  measures  in  force,  using  the  related 
savings to reduce the government deficit. 

Energy prices and costs 

Partly  as  a  result  of  the  retail  energy  price 
caps (213),  household  energy  prices 
in 
Romania have stabilised and remained below 
the  EU  average,  whereas  non-household 
consumer prices have increased slightly since 
2024.  In  the  first  half  of  2025,  household 
electricity  and  gas  prices  in  Romania  remained 
below  the  EU  average,  at  EUR 0.1918/kWh  and 
EUR 0.0559/kWh  respectively.  Industrial  electricity 
prices  (EUR 163/MWh)  have 
increased  slightly 
since 2024 and reached EU levels (EUR 164/MWh), 
while  non-household  gas  prices  have  also 
increased  but  remained  below  the  EU  average. 
While  61%  of  the  electricity  price  for  industry  is 
accounted  for  by  wholesale  cost,  network  cost, 
carbon  cost  and  taxes  represent  19%,  11%  and 
9% respectively of the electricity bill. 

Graph A9.1: Electricity and gas prices for 
household and non-household consumers, first 
half of 2025 

(i) For household consumers, the consumption band is DC for 
electricity and D2 for gas. 
(ii) For non-household consumers, the consumption band is ID 
for electricity and I4 for gas. VAT and recoverable charges are 
not displayed for non-household consumers as these are 
typically recovered by businesses. This also applies to the ‘% 
of taxes and levies’, which is shown excluding VAT and 
recoverable charges for non-household consumers. 
(iii) ‘Without taxes and levies’ indicates the retail price 
excluding all taxes and levies. It always includes the 
energy/supply and network cost components, which are not 
disaggregated in Eurostat’s six-monthly price dataset. 
Source: Eurostat 

Final  energy  prices  in  Romania  in  the  first 
half  of  2025  were  unbalanced:  for  large 
businesses,  electricity  was  3.4  times  more 
expensive  than  gas,  with  disproportionately 
high  taxes  and 
(excluding  VAT) 
levies 
accounting for 9% of electricity bills and 1% 
of  gas  bills.  Excluding  taxes  and  levies,  the 
electricity-to-gas price ratio would have decreased 
to  3.1,  signalling  a  negative  balancing  effect  of 
Romania’s 
fiscal  measures.  For  household 
consumers, the  impact  of taxes  and  levies  on  the 
electricity-to-gas price ratio is similar (214). 

Driven by its continued dependence on fossil 
fuel-fired  generation  and  limited  non-fossil 
flexibility,  Romania’s  wholesale  electricity 
prices  averaged  EUR 110/MWh  in  2025  (EU 
average:  EUR 85/MWh) (215), 
fourth 
highest  in  the  EU.  Fossil  fuels  maintained  their 
structural  role  as  the  dominant,  and  costly, 
marginal  price-setting  technology  (66%  of  price-

the 

(213) Eurostat. 

(215)Ember. 

(214) Analysis based on Eurostat data from the first half of 2025. 

87 

 
 
 
 
 
 
setting  hours  for  29.4%  electricity  generation 
capacity in 2025). 

Flexibility and electricity grids 

electricity 

day-ahead 

Average 
prices 
increased by 5% in 2025 amid rising natural 
gas  procurement  costs.  The  short-run  marginal 
costs (216) of natural gas in the EU increased from 
EUR 96/MWh  in  2024  to  nearly  EUR 103/MWh  in 
2025.  Although  daytime  prices  have  fallen  in 
recent  years  owing  to  the  growing  penetration  of 
solar  power,  Romania  remains  vulnerable  to 
severe  price  spikes  during  peak-demand  hours. 
Falling  solar  output  in  the  evening  and  early 
morning, 
limited  non-fossil 
flexibility,  has  led  to  a  significant  ramp-up  of 
thermal  plants  to  cover  the  supply–demand  gap. 
in  Romania 
As  a 
averaged  EUR 156/MWh  in  2025  –  down  17% 
from 2024, but significantly above the EU average 
of EUR 121/MWh. 

result,  price  spreads (217) 

combined  with 

Graph A9.2: ow-carbon electricity generation vs. 
electricity wholesale prices, 2025 L 

Romania  is  part  of  the  Core (218)  and  South-
East  Europe (219)  capacity  calculation  regions 
(CCRs) (220). Member States should ensure that at 
least  70%  of  technical  cross-border  capacity  is 
available  for  trading.  In  the  Core  region,  Romania 
is not meeting this target and has a derogation in 
place that limits the cross-zonal capacity available 
In  the  South-East  Europe  CCR, 
for  trading. 
influenced  by 
electricity 
exchanges  at  nearby  bidding  zone  borders, 
including the Western Balkan countries. Romania is 
a  net  electricity 
its  own 
importer 
consumption), exporting volumes to Moldova, while 
importing significant volumes from Hungary.  

flows  are  heavily 

(7%  of 

a 

had 

2025, 

Romania 

In 
12.72% 
interconnection  level,  marking  a  significant 
reduction  compared  to  the  previous  two 
years  (16.34%  in  2024  and  18.27%  in 
2023) (221). In 2025 the interconnection level was 
below  the  2030  interconnection  target  (15%). 
Preliminary  data  from  the  beginning  of  2026 
indicated  that  the 
level  had 
improved, reaching 15.71%. 

interconnection 

Romania  has  several  projects  of  common 
interest  in  electricity  transmission  that  also 
have a priority status under the Central and 
South-Eastern  Europe  Energy  Connectivity 
(CESEC)  High-Level  Group.  These  are:  (i)  the 
Cernavodă-Stâlpu  and  Gutinaş-Smârdan  internal 
lines  as  part  of  the  Black  Sea  corridor  with 
Bulgaria;  (ii)  the  Porţile  de  Fier-Reşiţa,  Reşiţa-
Timişoara/Săcălaz  and  Arad-Timişoara/Săcălaz 
internal  lines;  (iii)  cross-border  interconnections, 
such as the Reşiţa-Pančevo line as part of the Mid 
Continental  East  Corridor  with  Serbia;  and  (iv) 

(218) Core is the CCR which covers central European countries, 

namely Belgium, Czechia, Germany, France, Croatia, Hungary, 
the Netherlands, Austria, Poland, Romania, Slovenia, Slovakia 
and, once connected, Ireland. 

(219) South-East Europe is the CCR to which Bulgaria, Greece and 

Romania belong. 

(220) A CCR is a group of countries which calculate the cross-

border electricity trade flows together. 

(221) Source: For 2026, ENTSO-E Winter Outlook 2025-2026 (DG 
ENER calculations based on import interconnection capacity 
and generation capacity data reported for 19:00, 10 January 
2026). 

Unavailable data for Cyprus and Malta. Wholesale price is 
given as average of day-ahead electricity prices over 2025. 
EU-27 average is calculated as consumption-weighted. EU 
low-carbon share is calculated out of total EU electricity 
generation. Low-carbon share by country is calculated out of 
total public electricity generation. Low-carbon includes 
renewables and nuclear. 
Source: Eurostat 

(216)Short-run marginal costs (SRMCs) are the sum of the variable 
costs  associated  with  producing  electricity  using  hard  coal 
and  fossil  gas.  These  are  fuel  costs,  carbon  costs  and 
variable  operating  and  maintenance  costs.  Estimates  are 
provided by Ember. 

(217)‘Spread’  refers  to  the  difference  between  the  highest  and 
lowest hourly day-ahead electricity prices in a single day. 

88 

 
 
 
 
 
interconnection  between  Isaccea  (Romania)  and 
Artyz  (Ukraine),  included  on  the  second  Union 
PCI/PMI list.     

The  completion  of  the  infrastructure  is  also 
integration  of  Moldova’s 
supporting  the 
power  system  into  the  European  electricity 
market  and 
its  security  of  supply  by 
providing  two  electricity  transmission  lines: 
Isaccea-Vulcăneşti-Chişinău 
(construction 
works  completed  in  December  2025)  and 
Suceava–Bălţi.  In  addition,  the  CARMEN  project 
of  common  interest,  which  received  a  Connecting 
Europe  Facility  grant  in  2026,  plays  a  key  role  in 
relieving  structural  congestion  on  the  Romania-
Bulgaria  border,  increasing  security  of  supply  and 
enabling  higher  cross-border  exchanges.  This 
project  complements  internal  reinforcements  on 
both  sides  of  the  border  and  supports  more 
efficient  market 
region.  
integration 
Furthermore,  Romania  has  increased  investments 
in distribution grid modernisation, supported by EU 
funds  (including  the  Modernisation  Fund)  and 
European Investment Bank loans. 

the 

in 

Romania  has  taken  steps  to  develop  a 
hydrogen  market.  With  support  from  the  EU’s 
TSI,  Romania  and  Bulgaria  are  creating  the 
groundwork  for  a  joint  project,  including  the 
development  of  the 
legal  framework  for  a 
comprehensive  regional  green  hydrogen  market, 
its  national 
after  Romania  has  developed 
hydrogen strategy and action plan. 

The national framework for the permitting of 
is  well 
infrastructure  projects 
energy 
structured.  However,  the  coordination  between 
various  public  authorities  across  different  levels 
seems  difficult.  The  administrative  procedures 
involved in energy infrastructure development are 
very complex. Moreover, the permitting framework 
does  not  yet 
the  hydrogen  and  CO2 
infrastructure  into  account.  There  is  room  further 
streamlining  environmental  assessments  and 
reducing the duration of procedures.  

take 

in  self-energy 
Despite  some  progress 
consumption, 
empowerment 
consumer 
remains  limited  in  Romania.  The  number  of 
prosumers  is  rapidly  increasing,  having  reached 
281 496  by October  2025  (a  52%  increase  year-

regarding 

on-year (222)).  On  the  other  hand,  no  noticeable 
the 
been  made 
progress  has 
participation of individuals in energy communities. 
The  latest  data  indicate  that  there  are  only  two 
energy  communities 
the  country.  While 
in 
initiatives  exist  for  energy  communities,  the  legal 
framework 
is  not  sufficiently  clear  and  the 
procedures  for  setting  up  such  communities  are 
often viewed by the interested parties as complex. 
In  November  2025,  domestic  legislation  was 
passed  in  order  to  provide  greater  legal  certainty 
(Government Emergency Ordinance 59/2025). 

Romania has no explicit legislation on energy 
sharing,  despite 
its  efforts  to  redefine 
prosumers  and  promote  direct  energy  sales. 
Romania received support from the EU’s Technical 
Support  Instrument  (TSI)  to  promote  renewable 
energy  communities  and  demand-side  response. 
The country is experiencing some delays in its plan 
to deploy smart meters: At the end of 2025 smart 
meter rollout stood at only 34.5% (223). 

storage 

electricity 

Romania’s 
capacity 
reported  in  its  final  national  energy  and 
climate  plan  (NECP)  is  around  16.2 MW. 
Romania  has  taken  some  steps  to  promote  the 
installation  of  electricity  storage,  in  particular 
power  battery  storage,  but  deployment  is  very 
slow,  lack  of  adequate  electricity  storage  being 
perceived  as  a  significant  obstacle  to  the  further 
deployment of RES. 

regulatory 

framework 

Romania’s 
still 
presents  barriers  to  the  development  of 
flexible resources, hindering the participation 
of  demand-side  response  (DSR)  and  other 
distributed  energy  resources.  Romania  allows 
DSR  and  storage  to  sell  and  buy  electricity  in  the 
intraday  markets,  although 
day-ahead  and 
participation  is  limited.  DSR  and  storage  are  also 
allowed to participate in ancillary services and are 
to  provide  congestion  management 
eligible 
transmission  system  operators. 
to 
services 
Aggregators,  including  independent  aggregators, 
are  allowed  to  participate  in  those  markets  and 
services,  but  their  involvement  is  restricted  by 

(222) ANRE, Cum Devii Prosumator, 

https://anre.ro/consumatori/energie-electrica/cum-devin-
prosumator/. 

(223) Source: ANRE, Raport privind stadiul implementării sistemelor 

de măsurare inteligentă a energiei electrice la data de 
31.12.2025  

89 

 
 
Graph A9.3: Romania’s installed renewable 
capacity vs electricity generation mix 

regulatory and market barriers, such as the limited 
deployment  of  smart  meters  or  the  lack  of  a 
proper legal framework. 

than 

In  2025  the  number  of  hours  with  negative 
doubled 
electricity  prices  more 
compared to 2024 (from 85 to 174) (224). RES 
curtailment and the associated costs do not seem 
to  be  monitored  in  Romania  (this  is  flagged  by 
ACER  as  a  weakness  in  Romania’s  2024  country 
sheet) (225). 

ratio 

price 

In  2024,  electricity  accounted  for  15.8%  of 
Romania’s  final  energy  consumption,  below 
the EU average of 23.4%, and this share has 
remained  largely  unchanged  in  the  past 
decade (226),  partly  due  to  an  unfavourable 
that 
electricity-to-gas 
disincentivises  electrification  and 
cost-
effective  decarbonisation.  When  it  comes  to 
households, electricity accounts for 16.1% of final 
energy consumption, while in industry it represents 
29.1% (see also Annex 8). For the transport sector, 
this  share  remains  negligible,  at  1.3%.  Further 
progress 
is 
required  in  order  to  cost-effectively  decarbonise 
the economy and bring the benefits of affordable 
renewable energy generation to consumers. 

in  electrification  across  sectors 

Renewables and long-term contracts 

In  2025  renewable  energy  installed  capacity 
increased  in  Romania  by  15.7% (227),  a  clear 
progress  compared  to  the  previous  year, 
driven  mostly  by  solar  capacity,  which  grew 
by 46,5%. In 2025 the share of RES in electricity 
generation in  Romania  was  48.9%,  slightly  higher 
than  the  EU  average  (47%)  (228).  Nuclear  energy 
represented  21.7%,  raising  the  share  of  low-
carbon electricity to 70.6%. 

(224) Source: Ember. 

(225) ACER – Country_Sheets_MMR_Retail_2024.pdf. 

(226) CAGR (compound annual growth rate) of −0.89% between 
2015 and 2024 and minimum/maximum share of 15.4% and 
17.1% respectively (source: Eurostat). 

(227) IRENA – Renewable Capacity Statistics 2026 

Electricity mix is given as net electricity generation (gross 
electricity production minus consumption of power stations’ 
auxiliary services). Electricity produced in pumped hydro 
plants is excluded from total net electricity production, as it 
was previously counted as electricity produced from another 
source. 
“Other” includes renewable municipal waste, solid biofuels, 
liquid biofuels, and biogas. 
Source: IRENA, Eurostat 

The  Romanian  recovery  and  resilience  plan 
(RRP)  includes  measures  to  accelerate  the 
deployment  of  renewable  energy,  such  as 
investments  in  new  renewable  power  production 
capacity (wind and solar) and in electricity storage, 
as  well  as  reforms  aimed  at  decarbonising  the 
energy  system,  to  facilitate  the  use  of  state  land 
as acceleration areas for investments in renewable 
energy sources (RES).  

In  2025,  with  the  support  of  the  EU’s  TSI, 
Romania’s  RRP  and  the  Modernisation  Fund, 
Romania  launched  its  second  contract-for-
difference  (CfD)  auction  for  renewables.  The 
auction resulted in the allocation of  2 700.63 MW 
of  new  renewable  energy  capacity,  consisting  of 
1 218.38 MW for onshore wind and 1 482.25 MW 
for  solar  photovoltaic.  Subsequently,  Romania 
launched a third CfD auction, resulting in a further 
318.8 MW  of  onshore  wind  capacity  being 
awarded (229)).  With  support  from  the  EU’s  TSI, 
Romania is preparing the secondary legislation for 
offshore wind development in the Black Sea. 

So far, Romania does not have a market for 
(PPAs).  The 
power  purchase  agreements 
Romanian  authorities  indicated  that  they  did  not 
have  accurate  data,  as  most  PPAs  are  concluded 
under directly negotiated contracts. However, they 
estimated  that  the  number  of  PPA  contracts 

(228)Eurostat 2026 

(229) Contracte pentru Diferența (CfD) – Ministerul Energiei. 

90 

 
 
 
 
increased  significantly in 2025. Stakeholders view 
PPAs  as  an  important  tool,  long  awaited  by  the 
industry,  to  support  investment  in  the  RES  sector, 
and  deplore  their  underdevelopment.  Beyond 
possible 
the  pipeline  of 
renewable  energy  projects  is  too  constrained  to 
allow  for  sufficient  supply  to  feed  a  PPA  market, 
and  Romania  is  not  fully  integrated  into  the 
European guarantees of origin system. 

regulatory  barriers, 

Energy efficiency 

Romania  made  no  progress  in  terms  of 
reducing  its  energy  consumption,  despite 
some  measures  aimed  at  increasing  energy 
efficiency.  In  2024  final  energy  consumption 
(FEC) in Romania increased by 0.2%, compared to 
2023,  to  23.35 Mtoe,  reversing  the  slight  decline 
since 2019. However, Romania’s FEC in 2024 was 
in 
its  expected 
contribution in 2030. [According to the trajectory in 
the  Romanian  NECP,  FEC  in  2024  should  have 
been 23.8 Mtoe.] 

line  with  the  trajectory  to 

Since  2019,  FEC  has  decreased  substantially 
in  industry  (− 24.3%)  and  decreased  slightly 
in  services  (− 1.4%)  and  in  the  residential 
sector  (− 4.1%).  However, 
increased 
substantially in the transport sector (+ 16.3%). 

it  has 

For  the  residential  sector,  the  decrease  in 
(− 4.1% (230))  has  been  driven, 
FEC 
in 
particular,  by  changes  in  heating  behaviour, 
which  overcompensated  for  the  impact  of 
having  new,  larger  buildings  constructed  in 
the  meantime (231). 
long-term 
indicates  a  9% 
renovation  strategy 
reduction  by  2030  (compared  to  2020  levels). 
Romania  submitted  its  draft  national  building 
renovation plan, indicating a clear commitment to 
setting  up  a  predictable  pathway  towards  an 
energy-efficient  and  decarbonised  building  stock, 
currently responsible for 40% of total final energy 

Romania’s 

(LTRS) 

(230) Based on Eurostat energy balances, adjusted for compliance 
with the methodology used for monitoring the progress 
made towards the Energy Efficiency Directive (Directive (EU) 
2023/1791) targets. 

(231) Based on the breakdown tool of the ODYSSEE-MURE EU 
project available at https://www.indicators.odyssee-
mure.eu/decomposition.html. 

91 

consumption, and therefore the importance of the 
sector in increasing the country’s energy security. 

country’s 

Heating  and  cooling  account for  76% (232)  of 
the 
final  energy 
residential 
renewables 
in  2023,  with 
consumption 
supplying  29% (233)  of  the  total  energy  used 
for heating and cooling in all sectors. 

Since  electricity  in  Romania  was  3.5  times 
more  expensive  than  gas  in the  first  half of 
2025,  end  users  choosing  a  heat  pump  for 
heating save energy but pay more. There is a 
lack  of  data  on  sales  and  installations  of  heat 
pumps in Romania (234). 

Romania  has  not  reported  any  ecodesign  or 
energy  labelling  checks  since  2010.  This  is  a 
major breach of its legal obligations and a serious 
threat  to  the  business  playing  field,  consumer 
benefits  and  the  EU’s  environmental  and  energy 
goals. 

Security of supply and diversification 

Despite  progress  in  renewables,  Romania’s 
overall energy mix in 2024 remained heavily 
reliant on fossil fuels, with oil accounting for 
36%  and  natural  gas  for  26.7%  of  the 
energy  mix (235)(236),  while 
renewables 
(together  with  biofuels)  accounted  for 
19.6%.  There  is  little  change  compared  to  the 
previous year and, overall, still less than one third 
of  the  country’s  energy  mix  (19.6%  renewables 
and 9.2% nuclear) comes from non-fossil sources 
of energy. The recent efforts made by Romania to 
decarbonise its energy sector are not yet reflected 
in its energy mix. 

(232) Eurostat, 2025. 

https://data.europa.eu/data/datasets/uvygjkxev6pywqwbgmg
wyg?locale=en. 

(233) Eurostat, 2025. 

https://ec.europa.eu/eurostat/databrowser/product/view/SDG_
07_40?lang=en&category=sdg.sdg_07. 

(234) European Heat Pump Association (EHPA), 2025. 

https://ehpa.org/market-data/. 

(235)Electricity and heat have been excluded to avoid double 
counting, focusing on primary energy sources. 

(236) Gross inland consumption, Eurostat. 

 
 
 
Romania  covers  most  of  its  natural  gas 
demand  from  domestic  production  and  has 
diversified  the  sources  of  import  for  the 
remaining  part.  Romania  does  not  need  to 
develop  new  cross-border  gas  infrastructure  for 
security-of-supply reasons. The country completed 
the  Tuzla-Podișor  pipeline,  to  bring  natural  gas 
from the Black Sea into BRUA. Maximising the use 
of  existing  infrastructure  is  essential  for  the 
security  of  supply  of  the  entire  south-eastern 
European  region.  In  this  context,  the  CESEC  High-
Level  Group 
into  the  gas  quality 
harmonisation  process  with  a  view  to  removing 
regulatory obstacles that impede use of the trans-
Balkan  pipeline.  Romania’s  engagement  in  this 
process is essential in view of the important role it 
plays in security of supply in the region. 

looking 

is 

Romania  expects  Neptun  Deep  to  become 
operational  in  2027,  significantly  increasing 
its  domestic  production  of  natural  gas.  With 
plans  to  increase  domestic  natural  gas  supplies 
and  gradually  phase  out  coal  and  lignite  power 
generation, Romania aims to build additional gas-
fired energy capacity by 2030, in particular 2.4 GW 
of  natural  gas-powered  combined-cycle  gas 
turbine  capacity  and  900 MW  of  natural  gas-
powered combined heat and power capacity. 

Nuclear energy is an essential component of 
Romania’s  energy  mix.  Romania  has 
two 
CANDU 6  (650 MW)  nuclear  reactors  in  operation 
at the Cernavodă site, commissioned in 1996 and 
2007, generating 21.3% of the country’s electricity 
in  2024,  providing  stable  baseload  power  and 
contributing  to  national  energy  security  and 
decarbonisation objectives. 

Romania  is  planning  to  increase  the  use  of 
nuclear energy through: i) refurbishment (life 
extension)  of  the  two  existing  CANDU  units; 
ii)  construction  of  two  additional 
large 
reactors  (CANDU  Units  3  and  4)  at  the 
Cernavodă  site;  and  iii)  deployment  of  small 
modular  reactors  (SMRs).  Romania  plans  to 
construct a nuclear SMR with an installed capacity 
of 462 MW at Doicești. The Doicești SMR project 
is 
implementation  but 
requires  robust  financing  mechanisms  and  the 
development  of  domestic  and  regional  supply 
chains.  As  a  pioneering  licensing  case,  its  success 
depends  on  EU-wide  regulatory  convergence 
and  knowledge-sharing  to  overcome  development 
targeted  workforce 
hurdles. 

Furthermore, 

transitioning 

toward 

upskilling  is  essential  to  ensure  timely  project 
delivery. 

Although 
in  July  2025  Romania  ended 
regulated  electricity  prices,  in  response  to 
the  regional  conflict  in  the  Middle  East,  on 
5 March  2026  the  Romanian  government 
adopted  an  emergency  ordinance  extending 
the  use  of  capped  prices  for  natural  gas for 
households until 31 March 2027. Romania also 
capped  fuel  mark-ups  at  2025  averages,  limited 
retail  price  hikes  to  once/day,  restricted  oil/diesel 
exports,  cut  biofuel  blending  (8→2%),  reduced 
diesel  excise  (−30  bani/L),  added  progressive 
solidarity  taxes  on  oil  revenues  (1.5-9.9%  above 
Brent  $70/bbl),  and  extended  transport  and 
  Romania  has  also 
agriculture  diesel  aid. 
implemented a windfall tax on oil companies when 
Brent  prices  exceed  $70/barrel  and  provided  0.85 
lei/litre diesel subsidies for transport companies.  

Fossil fuel subsidies 

In  2024,  environmentally  harmful (237)  fossil 
fuel  subsidies  without  a  planned  phaseout 
before  2030  represented  0.30% (238)  of 
Romania’s  GDP  (239).  This  relatively  low  value 
reflects the planned phaseout of capped prices for 
natural  gas  (in  2027)  and  financial  support  for 
high-efficiency  gas-fired  cogeneration  in  district 
heating  (in  2028).  Fossil  fuel  subsidies  without  a 
planned  phaseout  before  2030  which  do  not 
specifically  address  energy  poverty  or  genuine 
energy  security  concerns  include:  subsidies  for 
heating  supplied  to  households;  an  excise  tax 
reduction on gas oil used in agriculture; and excise 
tax  exemptions  on  natural  gas  consumed  by 
households. Additionally, Romania’s 2023 effective 
carbon  rate  (240) averaged  EUR 54.6  per  tonne  of 

(237) Explicit fossil fuel subsidies (e.g. direct transfers) and implicit 
fossil fuel subsidies (i.e. tax expenditures linked to forgone 
tax revenues that have an identifiable fiscal impact for the 
central budget) that support fossil fuel energy production, 
transmission and/or consumption. 

(238) European Commission calculation based on underlying data 
from the Study on energy subsidies and other government 
interventions in the EU – 2025 edition, Enerdata. 

(239) 2024 gross domestic product at market prices, Eurostat. 

(240) The effective carbon rate is the sum of carbon taxes, ETS 
permit prices and fuel excise taxes, representing the 
aggregate effective carbon rate paid on emissions. 

92 

 
 
CO₂,  below 
EUR 84.80 (241). 

the  EU  weighted  mean  of 

(241) OECD (2024), Pricing Greenhouse Gas Emissions 2024. 

93 

 
 
ANNEX 10: CLIMATE ADAPTATION, PREPAREDNESS AND ENVIRONMENT 

to 

of 

and 

growth, 

country 

change 

economic 

is  highly  exposed 

Climate 
environmental 
degradation  are  putting  increasing  pressure 
on Romania’s economy and social well-being. 
The 
rising 
temperatures,  droughts,  heatwaves  and  flooding 
that  are  incurring  important  economic  costs.  A 
driver 
Romania’s 
manufacturing and agricultural sectors are among 
the main causes of Romania’s water management 
issues.  The  state  of  nature,  ecosystems  and  soils 
are at risk of degrading, posing significant risks to 
the  economy  and  competitiveness.  Romania  has 
institutions  and 
in  building 
made  progress 
financing  for  climate  adaptation,  but  this  remains 
fragile.  Funding  still  depends  heavily  on  external 
sources,  the  institutional  approach  is  fragmented, 
and  adaptation  is  not  yet  fully  integrated  into 
economic  and  budgetary  policies.  Cooperation 
between  local  authorities,  academia  and  civil 
society  is  still  limited,  while  weak  links  between 
research  and  public  administration  reduce  the 
scientific basis of policy. 

to 

recent 

received 

Romania 

improvement 
had 
invest 

The  necessary  reforms  and  investments  in 
water  and  biodiversity  are  still  insufficient, 
in  water 
despite 
projects. 
the 
in  environmental 
recommendation 
infrastructure.  Investments  in  water  management 
and  resilience  and  in  biodiversity  have  been 
significantly reduced in the last version of the RRP. 
This  indicates  problems  with  strategic  planning 
and administrative capacity, weak governance and 
local  public 
institutional  setup, 
administration, 
technical 
and 
expertise/green skills. 

including 

lack 

of 

in 

a 

nights  per  year  compared  to  the  historical 
baseline.  Heatwaves  have  a  substantial  negative 
impact  on  economic  activity  by 
reducing 
productivity,  while  also  increasing  heat-related 
illnesses  and  work  absenteeism,  and  causing 
infrastructure  such  as 
disruptions  to  critical 
transport and water supply systems (242). 

Half  of  Romania’s  urban  population  will  be 
affected by extreme heat waves by 2040. The 
maximum  temperature  difference  between  the 
centre  of  Bucharest  and  the  adjacent  rural  areas, 
caused by the urban heat island effect, is between 
+3 and +8 degrees (243). Rising temperatures have 
also  contributed  to  an  increasing  frequency  and 
intensity of droughts and desertification processes. 
On  average,  between  2019  and  2023,  about  6% 
of  cropland  area  was  impacted  by  drought  in 
Romania (244). 

The  country  will  need  to  invest  EUR  2.1 
(245)  up  to  2050  for 
billion  per  year 
adaptation  and  resilience.  This  includes  41% 
for  its  ecosystems  (246),  30%  for  infrastructure 
(247),  13%  in  health  (248),  12%  in  food  (249)  and 
4.2%  in  economy  and  finance  (250).  Taken  against 

(242) OECD Draft Economic Surveys of Romania 2026. 

(243) State of Climate Romania 2025 - Starea Climei - România 

2025 FINAL.pdf - Google Drive. 

(244) European Environment Agency, 2024. 

(245) European  Commission:  Directorate-General  for  Climate 
Action,  Monteleone,  L.,  Roberti,  G.,  Fossati,  F.,  Davies,  W.  et 
al., Assessment  of  EU  and  Member  States  adaptation 
investment  needs  –  Study  on  the  macro-economic  impacts 
transition, 
of 
2026, https://data.europa.eu/doi/10.2834/2895769. 

climate 

the 

Climate adaptation and preparedness 

Romania is highly exposed to climate change 
require  significant 
impacts,  which  will 
investments across sectors. It is particularly 
exposed to river floods, droughts, heatwaves 
and  landslides.  Over  the  period  2020-2024,  the 
country  experienced,  on  average,  more  than  18 
additional days of heat stress exposure compared 
to the reference period of 1981-2010. This brings 
the  total  to  48  heat  stress  days  annually,  placing 
Romania  among  the  countries  most  affected  by 
heatwaves. The average number of tropical nights 
(temperatures  exceeding  20 °C)  nearly  doubled 
over  the  same  period,  reaching  on  average  13 

(246) Soil 

restoration  measures,  biodiversity  protection  and 
pollinator  measures,  wildfire  prevention,  coastal  ecosystem 
restoration  such  as  dune  and  saltmarsh  measures,  habitat 
connectivity and grassland restoration. 

(247) Flood protection, building retrofits, transport infrastructure. 

(248) Occupational health and safety measures to protect workers 
from  heat  stress  -  modified  work  schedules,  shaded  rest 
areas,  and  protective  equipment,  wastewater  treatment 
upgrades  are  the  second  largest  category,  wildfire  disaster 
response,  urban  cooling  and  green  infrastructure,  infectious 
disease  monitoring  and  early  warning  systems,  training  of 
health professionals in disaster management. 

(249) Adaptation  in  the  food  sector  is  primarily  a  matter  of 
safeguarding  agricultural  productivity  (crop  and  livestock 
adaptation measures). 

(250) This means property and insurance markets, risk transfer 

mechanisms and climate finance instruments, or adaptation 
of climate-sensitive industries (such as winter tourism). 

94 

 
 
 
 
investments 

its  GDP,  Romania  is  close  to  the  EU  average  as 
regards  its  investment  needs  (0.5%  of  GDP). 
However,  the  country  will  need  a  much  larger 
share  of 
(compared  to  the  EU 
average) allocated for economy and finance (4.2% 
vs 1% for the EU) and health (13% vs 10% for the 
EU).  Given  this,  investments  in  these  two  sectors 
deserve  more  attention,  considering  the  large 
needs gap compared to the EU average. 

Adaptation  is  increasingly  being  integrated 
into  policy  objectives,  but 
significant 
implementation  challenges  remain.  Climate 
adaptation, resilience and mitigation is covered by 
the  Ministry  for  Environment,  Water  and  Forests, 
along  with  other  line  ministries  responsible.  In 
2024,  Romania  adopted  the  national  strategy  for 
adaptation to climate change (SNACS) 2024-2030 
(with  a  broad  view  to  2050)  (251).  The  strategy 
aligns  with  the  EU  adaptation  strategy  and  the 
including  both  sector-
European  Green  Deal, 
specific  and  cross-sector  methods.  It  targets  13 
key sectors, including agriculture, water resources, 
energy,  health,  air  quality  and  transport,  to 
mitigate  vulnerabilities  to  climate  impacts.  The 
strategy  also  contains  a  national  action  plan (252), 
which  sets  out  more  precise 
implementation 
actions,  funding  lines  and  responsible  ministries. 
However,  the  interventions  do  not  differentiate 
between mitigation and adaptation measures. The 
timeline for the implementation of measures lacks 
precision and prioritisation according to a climate-
risk  assessment.  The  plan  does  not  include  a 
mechanism 
and  monitoring 
reporting 
advancement  and  investments  or  for  assessing 
results, which weakens accountability. The strategy 
is  supported  by  a  website  (RO-ADAPT)  (253)  with 
adaptation-related 
and 
best 
documentation. 

practices 

for 

The  2024  national  climate  adaptation 
strategy  explicitly  calls  for 
integrating 
climate adaptation measures into all sectors, 
transport  and 
including 
agriculture, fisheries and aquaculture, but this only 
recently  started  to  take  effect.  This  strategy 
highlights  as  priorities  reinforcing  roads,  railways 
and bridges and the adaptation of the agricultural 

land-use  planning, 

(251) STRATEGIE 14/08/2024 - Portal Legislativ. 

sector  and  rural  areas  to  withstand  extreme 
weather and limit losses. 

Romania  also  set  up  an  Interministerial 
Committee on Climate Change in 2022 to act 
as  the  main  forum  for  intragovernmental 
coordination of green policies. It is responsible 
for  setting  climate  change  priorities,  proposing 
technical  solutions  and  facilitating  the  adoption 
and  implementation  of  cross-sectoral  measures. 
However, it does not convene (254). 

The  European  Climate  Law  encourages 
Member  States  to  adopt  a  national  climate 
law to transform the strategic commitments 
undertaken  at  European  level  into  a  binding 
legal  framework.  Romania  does  not  have  a 
national climate law, as the government considers 
that  the  existing  strategies  provide  a  sufficient 
framework.  However,  these  commitments  do  not 
to  prevent 
have 
regression or inconsistencies between policy cycles 
(255)(256). 

the  necessary 

legal  force 

A  draft  climate  law  tabled  in  June  2024 
included  legally  binding  targets  and  the 
establishment  of  a  scientific  advisory  body. 
However,  only  the  Scientific  Advisory  Council  on 
Climate  was  retained  in  the  final  law,  which  has 
yet 
founded  and  become 
to  be 
operational (257). 

formally 

The  number  of  cities  participating  in  the 
Covenant  of  Mayors  has  slightly  increased, 
as  has  the  number  of  Romanian  cities  and 
municipalities  that  have  developed  tailored 
local adaptation strategies. Furthermore, some 
municipalities  and  regions  are  participating  in  the 
EU Mission on Adaptation to Climate Change. 

Despite  these  efforts,  the  OECD  notes  the 
need  for  clear  mandates  to  overcome 
institutional  fragmentation.  It  recommends  as 
a  priority  to  improve  governmental  coordination, 
strengthen  data  gathering,  up-skill  human 
local  action  through 
resources  and  empower 

(254) Romania's climate action strategy. 

(255) Starea Climei 2025, Adaptarea la efectele schimbarilor 

climatice. 

(256) Co-ordination of green policies at the centre of government 

(252) STRATEGIE 14/08/2024 - Portal Legislativ, Annex 4. 

in Romania (EN). 

(253) RO-ADAPT Platform. 

(257) OECD Economic Survey 2026. 

95 

 
 
 
(258).  A  second 
accrued  vertical  coordination 
recommendation  focuses  on  creating  a  legally 
binding  climate  resilience  framework  to  promote 
long-term  policies,  prioritise  climate  resilience 
through  strategic  planning  and  strengthen  green 
budgeting  practices.  The  third  layer  encouraged 
strengthening  evidence-based  climate  policies 
development,  engaging 
inhabitants  and  non-
governmental  stakeholders  in  developing  climate 
the  development  of 
policies  and  supporting 
climate resilient policies by mainstreaming climate 
considerations in the policy development process. 

Romania is significantly impacted by climate 
risks, and unlike many EU Member States the 
insurance  coverage  there  remains 
low. 
Between  1980  and  2024,  Romania  recorded  just 
under EUR 24 billion in economic losses caused by 
weather  and  climate-related  extreme  events,  of 
which  only  1%  were  insured  losses  (vs  19%  for 
the  EU).  Romania  also  belongs  to  a  group  of 
countries with the highest share of damages from 
natural  catastrophes  in  relation  to GDP.  Damages 
from  extreme  weather  events  (floods,  droughts 
and heatwaves) will only rise in Romania. This will 
have  significant  economic  effects,  lowering  the 
gross value added (GVA) by almost EUR 4 billion in 
2029 (rising from EUR 1.54 billion in 2025). This is 
in 
significantly  higher  than  the  EU  average 
percentage  terms  (259)  for  Romania  vs  0.78%  in 
2029  for  the  EU).  Romania  also  has  one  of  the 
largest  insurance  protection  gaps  for  natural 
catastrophes (low insurance penetration and high-
risk estimation), being surpassed only by Italy and 
Greece.  The  biggest  risks  were  from  earthquakes 
and  floods,  and  the  insurance  penetration  for 
these risks is under 25% (lowest category labelled 
in  the  European 
Insurance  and  Occupational 
Pensions  Authority  (EIOPA)  dashboard).  During 
2024  and  2025,  Romania  dealt  with  some  of 
its worst  floods in  at  least two  decades,  causing 
burst riverbanks, collapsed bridges and damage to 
thousands of homes. 

The transport vulnerability index of the TEN-
T  network  to  climate  change  has  been 
assessed to be one of the highest in the  EU. 
Romania  has  the  highest  transport  vulnerability 

(258) Co-ordination of green policies at the centre of government 

in Romania (EN). 

(259) Usman, Parker & Vallat (2025), Dry-roasted NUTS: early 

estimates of the regional impact of 2025 extreme weather, 
Link. 

transport 

(260).  The  risk  is  especially  high  due  to  the  quality 
the  general 
infrastructure  and 
of 
adaptation  preparedness  –  meaning  that  general 
disaster prevention or relief measures (not related 
to  transport)  are  insufficient  and  likely  to  affect 
the  transport  sector  and  the  TEN-T  in  case  of  a 
crisis.  The  low  resilience  is  also  due  to  logistics 
performance, meaning that in the event of a crisis, 
it  is  unlikely  the  country  can  respond  and  sustain 
its  infrastructure  (as  happened  in  February  2026 
during an intense snowfall). Interoperability on the 
Romanian  TEN-T  is  also  low  –  an  important 
determinant of the network’s response capacity in 
in  the  event  of  disruption.  Finally,  the  country’s 
economic  capacity  score  means  that  Romania 
lacks the resources and administrative capacity to 
effectively  respond  to  and  recover  from  climate-
related disruption. 

Romania  has  seen  a  significant  increase  in 
the  number  of  fires,  as  well  as  the  areas 
burnt,  with both  numbers  rising  significantly 
since 2019(261). This increase is due in significant 
part  to  human  activity  and  land  use.  The  country 
has  introduced  legislation  to  combat  it,  including 
the national forest strategy 2030 and an updated 
Forestry  Code,  which  strictly  regulate  the  use  of 
fire 
is  also 
land  management.  Romania 
strengthening  early  detection,  preparedness  and 
response  capacities  to  limit  the  impact  of  fires 
when they do occur. The country operates a multi-
layered  early  warning  system  that  combines 
meteorological  risk  indices,  satellite  monitoring 
through  the  European  Forest  Fire  Information 
System, and public alerts via the RO-ALERT system 
(262). 

in 

(260) European Commission: Directorate-General for Mobility and 
Transport, Support study on the climate adaptation and 
cross-border investment needs to realise the TEN-T network, 
Publications Office of the European Union, 2024, 
https://data.europa.eu/doi/10.2832/7839720. 

(261) According to EFFIS, in 2025 the number of fires and the area 
burnt were considerably lower in 2025 than the 2006-2024 
average. 

(262) World Bank. 2025. Romania – Management of Wildfire Risk. 

Washington, D.C.: World Bank Group   

96 

 
 
 
 
Water resilience 

Romania  is  increasingly  exposed  to  water-
including  severe 
risks, 
related  climate 
droughts,  more  frequent  flash  river  floods 
and  significant  shifts 
in  seasonal  flow 
patterns.  These  trends  are  already  negatively 
impacting local communities, critical infrastructure, 
and  water  operators  across  the  country.  Romania 
is  a  flood  prone  country.  Projections  indicate  that 
these pressures will intensify in the future, leading 
to  greater  flood-related  damage  (263).  Water 
scarcity  in  Romania  is  mainly  due  to  depleted 
groundwater  reserves  and  the  poor  management 
of  water  mains.  The  regions  most  affected  are 
primarily in the southeastern and eastern parts of 
the  country,  especially 
in  rural  areas.  Some 
municipalities  in  Romania  have  restricted  water 
access  due  to  scarcity.  These  areas  experience 
more  frequent  and  intense  droughts,  exacerbated 
by  climate  change  and  inefficient  infrastructure. 
The  national  water  exploitation  index  plus  (WEI) 
(264), a measure of how much water is being used 
compared  with  the  total  renewable  freshwater 
resources  available  for  a  given  territory  and 
period, indicates significant pressure on renewable 
freshwater  sources  that  Romania  is  confronted 
with (265). 

As  shown  by  the  JRC  European  Drought  Risk 
Atlas,  Romania  already  has  relatively  high 
risks,  and  projections  show  an  increase  in 
risks  (e.g.  for  agriculture,  water  supply, 
terrestrial  and 
hydropower  production, 
freshwater  ecosystems).  Water  scarcity  can 
have  disruptive  effects  on  many  sectors  of  the 
economy,  with 
in 
agriculture,  reduced  production  from  aquaculture, 
reduced  power  generation  from  hydropower  and 
thermal  energy  as  well  as  problems  for  water-
intensive processes in industry. 

reduction  of  crop  yields 

Romania  is  one  of  the  Member  States  with 
the  highest  risks  of  drought  impact  for 
largest 
agriculture 

in  Europe,  with  the 

(263) Developing flood mapping procedure through optimized 

machine learning techniques. Case study: Prahova river basin, 
Romania - ScienceDirect. 

(264) Eurostat, Water exploitation index, plus (WEI+), Link. 

(265) European Drought Risk Atlas, JRC. 

average  annual  relative  reduction  in  crop 
yield (in %) due to droughts (in particular for 
wheat,  barley,  maize  and  rice).  While  in  2023 
only  3.9%  (266)  of  usable  agricultural  land  was 
irrigable, compared to the 9.9% EU average, in the 
future,  the  irrigated  area  and  water  consumption 
for  irrigation  are  expected  to  increase.  Using  CAP 
funds, 
sustainable 
finances 
modernisation of irrigation installations and would 
benefit  from  more 
in  rainwater 
storage capacities and water recycling.  

investments 

Romania 

the 

Water  productivity  in  Romania  (267)  stood  at 
EUR 24  per  m³  of  abstracted  water  in  2023, 
below the EU-27 average of EUR 153 per m³, 
reflecting inefficiencies in abstraction-heavy 
sectors  like  manufacturing  and  agriculture. 
These  inefficiencies  pose  competitiveness  risks, 
especially  during  peak  seasons.  In  2023,  public 
water  supply  accounted  for  16.2%  of  freshwater 
abstraction,  with  manufacturing  at  43.8%  and 
agriculture  at  34.8,  showing  the  need  to  continue 
increasing the efficiency of water use, with priority 
for  the  most  water-consuming  sectors.  There  is 
progress to address the inefficiencies of water use 
in  agriculture  by  using  funds  from  the  rural 
development programme 2014-2020 and the CAP 
strategic  plans  2023-2027  for  the  modernisation 
of  irrigation  systems  which  potentially  reduce  the 
water  consumption  by  minimum  5-8%.  It  should 
be noted that Romania’s fisheries and aquaculture 
sectors  operate  under  pronounced  environmental 
challenges.  The  Black  Sea 
and 
is  affected  by  climate  change, 
environment 
eutrophication, 
biodiversity 
and 
degradation. 

structural 

pollution 

Since  2014,  abstraction  has  risen  by  25%, 
driven  by  increased  reliance  on  surface 
water  (40%  of  abstraction  in  2023)  rather 
than groundwater. The quantitative risk analysis 
reveals  that  the  highest  average  annual  increase 
in  drought-induced  water  abstraction  is  currently 
estimated  in  Romania,  in  addition  to  Spain  and 
France (268). 

(266) PMEF Data Explorer. 

(267) Water  productivity  is  a  metric  that  is  calculated  by  dividing 
GDP  (in  chain-linked  volume)  by  total  water  abstraction.  It 
indicates the average economic value (GDP) a Member State 
creates for each unit of water it takes from nature. 

(268) Rossi, L., Wens, M., De Moel, H., Cotti, D., Sabino Siemons, A., 

Toreti, A., Maetens, W., Masante, D., Van Loon, A., 
Hagenlocher, M., Rudari, R., Naumann, G., Meroni, M., Avanzi, 

97 

 
 
 
 
in  all 

improvement 

The  assessment  of  the  third  river  basin 
management  plan  (RBMP),  covering  from 
2021 to 2027, indicates that there has been 
a  slight 
in  the  ecological 
status/potential of surface water bodies and 
a  slight  deterioration 
in  their  chemical 
status, compared with the status reported in 
the  second  RBMP  (269),  covering  years  2016  to 
2021. Approximately 67% of surface waterbodies 
have  good  ecological  status/potential  and  87.7% 
to  achieve  good  ecological 
are  expected 
status/potential  by  2027.  Two  of 
the  four 
Romanian coastal water bodies show deterioration 
of  their  ecological  status  in  the  biological  quality 
elements  since  the  second  RBMP  and  even  more 
since the first RBMP. There is a continued pressure 
four  coastal 
of  nitrogen  conditions 
waterbodies  since  the  second  RBMP.  The  river 
basin specific pollutants also have some negative 
impacts  on  the  status  of  two  coastal  waters.  A 
driver  of  economic  growth,  Romania’s  agricultural 
sector  is  also  one  of  the  main  reasons  for 
Romania’s  water  issues.  According  to  the  third 
is 
river  basin  management  plan,  agriculture 
considered to be one of the main sources of point 
and  diffuse  pollution  with  nutrients,  organic  and 
hazardous substances present in surface water. On 
one  hand,  the  sector  relies  heavily  on  water  for 
irrigation,  and  the  quality  and  quantity  of  water 
can  significantly  affect  the  crop  yields.  On  the 
other  hand,  agriculture  contributes  to  water 
pollution  through  the  runoff  of  fertilisers  and 
pesticides. This affects not only the quality of the 
water,  but  also  the  environment  more  generally. 
On  a  positive  note,  some  progress  has  been 
achieved  on  nutrient  conditions,  with  82%  of 
surface  water  bodies  achieving  good  status  for 
nitrogen conditions in the 3rd RBMP, against 68% 
in the 2nd RBMP, and 82% of surface water bodies 
achieving good status for phosphorus conditions in 
the 3rd RBMP, against 70% in the 2nd RBMP (270). 

in 

Romania  has  one  of  the  lowest  compliance 
rates with EU water legislation, in particular 
with  regard  to  the  Drinking  Water  Directive 
and 
the  Urban  Wastewater  Treatment 
Directive,  and  faces  the  highest  investment 
needs  to  reach  and  maintain  compliance. 
Romania  has  one  of  the  lowest  drinking  water 
connection  rates 
the  EU.  The  Romanian 
population  connected  to  the  public  water  supply 
system was 77.6% in 2024, compared to 63.7% in 
2015.  Although  the  quality  of  140  underground 
water bodies is monitored, the quality of the water 
its  availability  during 
in  private  homes  and 
summer  season  in  the  droughts-affected  regions 
(271). 
is  not  directly  monitored  by  Romania 
Local/regional  studies  from  academia  show  high 
variations  and  sometimes  worrying  results  that 
show that this water is unfit for drinking (272)(273). 

system 

Romania’s 
is 
drinking  water 
characterised  by  a  significant  urban-rural 
divide.  There  are  ongoing  efforts  to  improve 
infrastructure  using  EU  funds,  particularly  the 
European Agricultural Fund for Rural Development, 
which  financed  the  expansion  with  5 700 km  of 
the  public  water  supply  network  and  used  water 
infrastructure in rural areas during the 2014-2020 
additional 
programming 
EUR 500 million are allocated in the CAP strategic 
plans 2023-2027 for LEADER initiatives, which can 
finance investments in the drinking water supply. 

period. 

An 

Romania  is  making  extensive  use  of  EU 
funding  to  address  longstanding  challenges 
in  its  water  sector,  including  insufficient 
network  coverage,  ageing  infrastructure  and 
compliance  gaps  with  EU  environmental 
acquis.  Romania  continues  to  struggle  with 
incomplete  public  water  supply  connections.  It 
continues  to  be  confronted  with  the  highest 
investment  needs 
reach  and  maintain 
compliance,  despite  an  acceleration  in  absorption 

to 

F., Isabellon, M. and Barbosa, P., European Drought Risk Atlas, 
Publications Office of the European Union, Luxembourg, 
2023. Link 

(269) EU Commission, 2025, Third River Basin Management Plans 
Second Flood Hazard and Risk Maps and Second Flood Risk 
Management Plans Member State: Romania, Link. 

(271) Peticila, A., 2019, Universal screening of private wells water 

quality in the Muntenia Region, Romania, SIMI, Link. 

(272) Bălc, R., Roba, C.-A., Moldovan, M., Zglobiu, O. R., Roșian, G., & 
Vasilian, L., 2025, Hydrochemical Characterisation and 
Assessment of Groundwater Suitability for Drinking and 
Irrigation Purposes in Sângeorz-Băi Area, Bistrița-Năsăud 
County (Romania), Sustainability, 17(20), 9238, Link. 

(270) ,WISE Freshwater – Freshwater Information System for 
Europe, by selecting for "quality element", respectively 
nitrogen conditions and phosphorus conditions, and for 
"Management Plan (RBMP)’, respectively 2nd or 3rd, Link 

(273) Rosu, Cristina & Roba, Carmen & Pistea, Ioana & PAUL, 

ROMINA, 2016, GROUND WATER QUALITY FROM PRIVATE 
WELLS. CASE STUDY: TARNA MARE - SATU MARE COUNTY. 
Aerul şi Apa: Componente ale Mediului. 2016, Link. 

98 

 
 
 
the 

upgrading 

expansion, 

to  enhance 

of  EU  funds  recently.  It  is  implementing  a  large-
scale extension programme as part of its recovery 
&  resilience  plan  (RRP),  cohesion  policy  funding, 
local  actions  financed  by  the  CAP  strategic  plans 
as  well  as  reforms  of  the  water  sector.  It  has 
allocated  around  EUR 2.94  billion  under  the 
European  Regional  Development  Fund  (ERDF)  and 
the  Cohesion  Fund  (CF)  for  investments  in  water 
infrastructure  during  2021-2027  programming 
periods  and  around  EUR 400  million  through  the 
revised RRP, though with a significant downscaling 
from  the  original  RRP.  The  funding  is  intended  to 
and 
support 
rehabilitation  of  water  supply  networks,  reinforce 
system  resilience  and  ensure  compliance  with  EU 
water  quality  standards.  The  level  of  investment 
shows  Romania’s  commitment  to  leveraging  EU 
cohesion  policy 
the 
resources 
sustainability, efficiency and territorial equity of its 
water services. Further efforts would contribute to 
stepping  up  the  extension  and  modernisation  of 
infrastructure, 
drinking  water  and  wastewater 
including 
to  ensure  a 
rural  areas,  and 
sustainable  service  at  a  reasonable  price.  The 
Romanian RRP has identified some key reforms to 
support the water sector, notably by strengthening 
the  regulatory  framework  for  the  sustainable 
management  of 
the  water  and  wastewater 
sectors,  and  accelerating  public  access  to  quality 
services.  The  significant  leakage  rate  of  water 
supply systems highlights the need for investment 
in  network  infrastructure.  In  addition,  under  a  TSI 
2025  support  project,  the  National  Regulatory 
Authority for Public Utilities Services (ANRSC) aims 
to  reduce  water  losses  for  sustainable  water 
management. This is all the more important since 
Romania loses more than 565 million cubic metres 
of  drinking  water  each  year  through  its  public 
distribution  networks  (274).  As  a  result,  nearly  50 
per  cent  of  the  volume  is  classified  as  non-
leaks,  ageing 
revenue  water,  attributable  to 
infrastructure,  metering 
unmetered 
consumption or theft (275). 

errors, 

in 

(274) According to official data for 2024 submitted to the 

European Commission under the EU Drinking Water Directive 
(EU) 2020/2184. The data, covering 47 large regional water 
operators, indicate that out of approximately 1.23 billion 
cubic metres of water introduced into the system, only 
around 661 million cubic metres were billed. 

(275) Losses are described as structurally high and concentrated 
among a limited number of operators, with 10 companies 
accounting for almost 58 per cent of total losses. In some 
areas, losses exceed 30 000 cubic metres per kilometre of 
network per year. 

99 

Treatment 

compliance  plan 

Compared  to  2020,  Romania  has  slightly 
decreased its compliance rate with the Urban 
Wastewater 
Directive 
(91/271/EEC)  reaching  12.8(276)  (from  15.4%  in 
2020).  Romania  still  remains  one  of  the  Member 
States  with  the  lowest  compliance  (277).  The 
forecast for investment needed (in the accelerated 
for  water  and 
national 
in 
wastewater  approved  by  the  Government 
December  2022)  of  around  EUR 7  billion 
is 
planned  to  be  financed  for  urban  wastewater 
infrastructure  in  the  period  2022-2030  from 
different  funding  sources  (mainly  the  European 
Union's  Recovery  and  Resilience  Facility,  Cohesion 
funds  and  national  funds).  Looking  ahead,  the 
investments  planned  for  the  period  2021-2027 
systems 
for 
are  much  higher 
(EUR 7 931.45  million)  and  for  treatment  plants 
(EUR 3 010.84  million)  than  past 
investments 
made  from  2012  until  2020  (EUR 977.03  million 
for the collecting systems and EUR 199.35 million 
for the treatment plants (278). 

collecting 

In  this  sector,  Romania  has  increased  its 
investments  recently,  in  particular  with  the 
support of cohesion funds. This should result in 
positive improvements that will become evident in 
next reporting rounds. 

Nature restoration 

Romania’s  economy  is  structurally  exposed 
to  nature  loss  because  it  is  dependent  on 
ecosystem  services.  37%  of  gross  value  added 
relies  directly  on  the  ecosystem  –  though  this  is 
below the EU average of 44%. This vulnerability is 
forestry, 
in 
particularly 
construction, water and the healthcare sector (279). 

agriculture, 

acute 

Despite  Romania’s 
rich  biodiversity  – 
reflected in 23.5% of its territory and 21.5% 
of  its  marine  areas  designated  as  protected 

(276) EEA compliance dashboard, accessed on 23/02/2026 

(available here: Register - UWWTD). 

(277)UWWTD compliance (2022), internal documents. 

(278) Based  on  2022  data  reported  by  Member  States  on  the 
implementation of Directive 91/271/EEC, internal documents. 

(279) Dataset from JRC, based on  The EU economy’s dependency 

on nature, JRC (2024). 

 
 
 
construction 

areas  –  some  habitats  and  species  are 
currently  under  pressure.  While  fish  stocks 
remain  sensitive  to  environmental  variability, 
enhancing the sustainable management of marine 
and  aquatic  ecosystems  and  strengthening 
monitoring,  data  collection  and  fisheries  control, 
remain  essential  to  safeguard  long-term  sector 
viability.  Agriculture  along  with  urban  expansion 
and  infrastructure  development  put  by  far  the 
greatest  pressure  on  habitats.  For  species,  the 
development, 
of 
infrastructure and the extraction and cultivation of 
living  resources  are  the  main  pressures.  Despite 
the  availability  of  funds,  Romania  has  made 
almost  no  progress  on  adopting  management 
plans  for  Natura  2000  sites,  with  nearly  half  of 
the plans still missing. There is a lack of progress 
on  effectively  managing  these  sites  and  updating 
the existing outdated management plans, showing 
administrative  capacity  issues.  Efforts  have  been 
carried  out  to  restore  some  of  the  degraded 
peatlands. Romania is considering these peatlands 
priorities  for  the  designation  of  new  Sites  of 
Community Importance (SCIs) (280). 

and 

use 

Romania needs to take further steps to align 
with  key  targets  of  the  EU  biodiversity 
strategy.  It  is  in  the  process  of  updating  the 
national  strategy  and  action  plan  for  biodiversity 
conservation  (281).  As  far  as  the  national  nature 
restoration  plan  is  concerned,  Romania  is  not  on 
track  to  deliver  it  by  September  2026.  It  has 
secured  technical  assistance  funding,  but  the 
development of the plan itself has not yet started 
due to administrative procedures. It is to be noted 
that  Romania  has  taken  action  to  set  up  a  legal 
framework  for  strictly  protected  areas  as  part  of 
its RRP, in line with the EU biodiversity strategy. 

Nature  degradation  in  some  parts  of  the 
country is further amplified by invasive alien 
species,  with  22  recorded  in  Romania  in  2024 
(282),  inflicting  significant  estimated  damages  of 
EUR 1.04  billion,  primarily  affecting  agriculture 

(283).  At  the  same  time, 
and  public  health 
eutrophication  –  a  threat  to  biodiversity  and 
ecosystem  integrity  –  has  only  slightly  improved, 
with the areas at risk declining from 96% to 92% 
since  2005(284).  Nitrogen 
from 
agriculture  and  industrial  combustion  remains  a 
critical driver of this degradation. 

deposition 

Romania  has  still  a  significant  persistent 
biodiversity  finance  gap.  Romania  faces  an 
estimated  EUR 3  billion  shortfall  in  funding  (285). 
Despite  significant  from  CAP  and  cohesion  policy, 
the  shortfall  underscores  the  need  for  increased 
investment in habitat restoration. 

Sustainable agriculture and land use 

Romania’s  carbon  removals  fall  short of  the 
level  of  ambition  needed  to  meet  its  2030 
target  for  land  use,  land  use  change  and 
forestry  (LULUCF).  To  meet  its  2030  LULUCF 
target,  additional  carbon  removals  of  -2.4  million 
tonnes of CO2 equivalent (CO2eq) are needed (286). 
Recent  trends  show  that  LULUCF  removals  have 
been  slowly  decreasing  since  2020  in  Romania 
and the latest available projections show a gap to 
target  of  almost  2  million  tonnes  of  CO2eq  for 
2030.  Thus,  additional  measures  are  needed  to 
reach  the  2030  target.  However,  the  National 
Energy  and  Climate  Plan  (NECP)  does  not  provide 
sufficient information on how public funding (CAP, 
State  aid)  and  private  financing  through  carbon 
farming  schemes  are  used  to  reach  the  LULUCF 
target.  It  lacks  information  on  the  status  and 
progress 
levels  and 
geographically  explicit  datasets  needed  to  ensure 
the  robustness  of  net  removal  estimates.  In 
addition  to 
increasing  LULUCF  net  removals, 
further  investments  in  healthy  forests  and  soils 
are  key  to  building  resilient  bio-based  product 
value  chains  and  enabling  a  growing,  competitive 
continued 
EU 

in  ensuring  higher  tier 

bioeconomy. 

particular 

In 

(280)European Commission, Environmental Implementation 

Review for Romania, 2025. Link 

(283) Economic  Cost  of  invasive  alien  species  across  Europe 
(2021),  NeoBiota  and  Report  ‘Update  of  the  costs  of  not 
implementing EU environmental law’ (2025). 

(284) Eutrophication caused by atmospheric nitrogen deposition in 

Europe. EEA (2024). 

(281) National strategy and action plan for biodiversity 

(285) European, Commission, Environmental Implementation 

conservation. Link 

Review for Romania, 2025. Link 

(282) European Commission, 2025, Environmental Implementation 

(286) National LULUCF targets of the Member States in line with 

Review, Romania Country Report. Link. 

Regulation (EU) 2023/839 Link. 

100 

 
 
 
improvements  in  the  monitoring  system  of  net 
removal  data  and  will  be  crucial  in  supporting 
timely and effective action in the sector.   

share  of  agricultural 

Romania’s 
land 
increasing  slowly. 
is 
organically  farmed 
Between  2012  and  2024  it  rose  from  2.10%  to 
6.16%  (287).  With  this  pace,  Romania  is  not 
sufficiently  contributing  to  achieving  the  25%  EU 
wide 
target  by  2030.  3.35%  of  Romanian 
agricultural land features landscape  elements like 
woods  and  grasslands.  The  estimated  rate  of  soil 
loss  by  water  erosion  is  higher  than  threshold  of 
2 t/ha.  It is  also  affected by  wind  erosion  but  not 
so affected by tillage erosion (288). 

in  groundwater 

Romania  faces  environmental  and  public 
health  risks  due  to  persistent  agricultural 
pollution  pressures  and  rapid  transfer  of 
contaminants 
systems. 
Romania’s functional  urban area has considerably 
expanded  in  the  last  few  years,  with  net  land 
taken  between  2018-2021  accounting 
for 
2 240 ppm/year  of  the total  urban  surface  of  the 
country, the highest level in the EU. Most land has 
been  taken  from  pastures  and  arable  land  (289). 
Romania  was  one  of  the Member  States  with  the 
highest increases in land take in commuting areas. 
It should nevertheless be noted that among the EU 
Member  States,  the  functional  urban  area  (FUA) 
showed  one  of  the  lowest  rates  of  artificial  area 
per capita in 2018. Romania also experienced one 
of  the  largest  increases  in  artificial  surfaces  in 
protected  areas  of  suburban  areas.  This  ongoing 
‘land  take’  and  the  associated  soil  sealing  causes 
resilient  ecosystems,  decreased  carbon 
less 
sequestration and impaired flood protection. 

There  are  still  some  pressures  on  water 
quality  in  Romania.  Under  the  EU  Nitrates 
Directive,  24.8%  of  Romania’s  groundwater 
monitoring  stations  recorded  average  nitrate 
concentrations  exceeding  25 mg/l  between  2016 

(287) Context indicator C.33 Agricultural area under organic 

farming. 

(288) European Commission, EUSO Soil Degradation 

Dashboard.https://esdac.jrc.ec.europa.eu/esdacviewer/euso-
dashboard/ 

(289) EEA, Net land take in cities and commuting zones in Europe. 

Link 

relatively 

and  2019  (290).  12.6%  recorded  concentrations 
above 50 mg/l,  the EU threshold for safe drinking 
water. This trend underscores systemic agricultural 
pressures,  despite  Romania’s 
low 
livestock density – 0.34 livestock units per hectare 
in 2023 (291) compared to the EU average of 0.75. 
With  a  6%  increase  in  agricultural  ammonia 
emissions between 2018 and 2023, underscores a 
degradation  in  emission  control,  nitrate  pollution 
nutrient 
gaps 
persists, 
management 
is  also 
evidenced  in  the  third  river  basin  management 
from 
plan  which  has 
agriculture  as  an 
for 
groundwater/surface waters that is affecting these 
(293)294. 

the 
(292).  This 

important  pressure 

identified  nutrients 

strategies 

indicating 

in 

Pesticide  contamination  levels  do  not  seem 
well reported. Agriculture is considered to be one 
of the main sources of point and diffuse pollution 
with  nutrients,  organic  and  hazardous  substances 
present  in  surface  water.  However,  contamination 
from  pesticides  is  not  sufficiently  monitored  and 
reported.  The  third  river  basin  management  plan 
presents  an  overview  of  the  quantified  gaps  and 
how  much  the  planned  measures  are  expected  to 
achieve in terms of closing the gaps for pesticides. 
Pesticides  not  only  threaten  aquatic  ecosystems 
but  also  pose  long-term  risks  to  human  health 
through  contaminated  drinking  water  and  food 
chains.  At  the  same  time,  Romania  reports  a  soil 
contamination  level  below  the  European  average, 
as 38% of the concentration of pesticides exceeds 
0.05 mg kg-1, compared to 57% in the EU.295 

(290)https://www.eea.europa.eu/en/analysis/indicators/nitrate-in-

groundwater-8th-eap  EEA,  2025,  Nitrate  in  groundwater  in 
Europe, Link. 

(291)Livestock density index, Eurostat. 

(292)Source: Eurostat, Ammonia emissions from agriculture, Link. 

(293) European Commission, Environmental Implementation 

Review for Romania, 2025. Link 

(294) Pesticides residues in European agricultural soils, JRC 

Technical Report 

(295) Ibid. 

101 

 
 
 
Table A10.1:Key Adaptation Indicators 

(Continued on the next page) 

102 

Sustainable agriculture and land use:EU-272012-20182018-2021latest dataYearly net land taken by Member State1 319      2 240      670            [ppm of total urban surface per Member State]Land conversion in functional urban area [% of total land taken from 2018-2021]Arable land46%Complex and mixed cultivation1%Forests1%Herbaceous vegetation associations3%Open spaces with little or no vegetation0%Pastures48%Permanent crops1%Water0%Wetlands0%201920202021202220232024latest dataNitrates in groundwater (5)14.014.214.514.915.5[mgNO₃/l]Livestock density0.350.340.75(number of livestock units per hectare of utilised agricultural area)Ammonia emissions 94%94%94%95%96%-94%[% of total utilised agricultural area]Pesticide contamination on rivers and lakes water bodiesrivers0%27%[% of monitoring sites with pesticides exceeding thresholds, 2018-2023]lakesn.d.18%Pesticide contamination in soil 38%57%[% of samples with a concentration over 0.5 mg/Kg⁻¹]Net greenhouse gas removals from LULUCF (6)-46733.8-49110.3-47791.9-45686.1-46424.8--198 421 [ktCO₂-eq] 
 
 
  
 
Table (continued) 

(1)  EFFIS (European Forest Fire Information System). Link. 
(2) The climate protection gap refers to the share of non-insured economic losses caused by climate-related disasters, based on 
modelling of the risk from floods, wildfires, windstorms, and the insurance penetration rate. Scale: 0 (no protection gap) – 4 (very 
high gap). EIOPA, 2025, Dashboard on insurance protection gap for natural catastrophes. 
(3) Measures total water consumption as a percentage of the renewable freshwater resources available for a given territory and 
period. Values above 20 % are generally considered to be a sign of water scarcity, while values equal or greater than 40 % 
indicate situations of severe water scarcity. 
(4) European Commission, 2024, seventh Implementation Report from the Commission to the Council and the European 
Parliament on the implementation of the Water Framework Directive (2000/60/EC) and the Floods Directive (2007/60/EC) (Third 
River Basin Management Plans and Second Flood Risk Management Plans). 
(5) Indicator refers to concentrations of nitrate (NO3) in groundwater, measured as milligrams per litre (mg NO3/L). Nitrate can 
persist in groundwater for a long time and accumulate at a high level through inputs from anthropogenic sources (mainly 
agriculture). The EU drinking water standard is limited to 50 mg NO3/L to avoid threats to human health. 
(6) Net removals are expressed in negative figures, net emissions in positive figures. Reported data are from the 2025 
greenhouse gas inventory submission. 2030 value of net greenhouse gas removals as in Regulation (EU) 2023/839 – Annex IIa. 
Source: Eurostat, EEA, JRC 

103 

Sustainable agriculture and land use:EU-272012-20182018-2021latest dataYearly net land taken by Member State1 319      2 240      670            [ppm of total urban surface per Member State]Land conversion in functional urban area [% of total land taken from 2018-2021]Arable land46%Complex and mixed cultivation1%Forests1%Herbaceous vegetation associations3%Open spaces with little or no vegetation0%Pastures48%Permanent crops1%Water0%Wetlands0%201920202021202220232024latest dataNitrates in groundwater (5)14.014.214.514.915.5[mgNO₃/l]Livestock density0.350.340.75(number of livestock units per hectare of utilised agricultural area)Ammonia emissions 94%94%94%95%96%-94%[% of total utilised agricultural area]Pesticide contamination on rivers and lakes water bodiesrivers0%27%[% of monitoring sites with pesticides exceeding thresholds, 2018-2023]lakesn.d.18%Pesticide contamination in soil 38%57%[% of samples with a concentration over 0.5 mg/Kg⁻¹]Net greenhouse gas removals from LULUCF (6)-46733.8-49110.3-47791.9-45686.1-46424.8--198 421 [ktCO₂-eq] 
 
  
 
FAIRNESS 
ANNEX 11: LABOUR MARKET 

of 

employment 

Romania’s  labour  market  is  improving,  but 
persistent participation gaps, adverse demographic 
trends  and  weak  activation  measures  hinder  the 
outcomes, 
improvement 
productivity  and  competitiveness.  In  2025,  the 
country-specific  recommendations  for  Romania 
highlighted  the  need  to  strengthen  the  labour 
market  participation  of  women  and  young  people 
by  improving  the  effectiveness  of  active  labour 
market  policies (ALMPs)  and  increasing  enrolment 
of young children in early childhood education and 
care.  Economic  growth  remains  subdued,  and 
employment  growth  is  still  constrained  by  the 
under-representation of women, young people and 
persons with disabilities in the labour market, and 
by  limited  access  to  skills  development  and 
employment  opportunities  for  the  population.  As 
Romania  works 
its  2030 
target,  mobilising  untaped 
employment 
potential, 
regional  disparities  and 
improving  job  quality  will  be  key  to  supporting  a 
more robust and inclusive labour market. 

towards  achieving 

rate 
tackling 

The 
labour  market  has  shown  gradual 
improvement, but low participation continues 
to  weigh  on  overall  employment  outcomes. 
The employment rate has risen in recent years but, 
at 69.0% in 2025, it was among the lowest in the 
EU  (EU:  76.1%)  and  below  the  national  2030 
employment  rate  target  (74.7%).  Labour  force 
participation declined by 0.3 pps in 2025 to 67.1% 
and  is  among  the  lowest  in  the  EU  (EU:  75.7%). 
The  unemployment  rate  increased  by  0.7  pp  in 
2025 and lies slightly above the EU average (6.1% 
vs  6.0% in  the  EU).  The  long-term  unemployment 
rate  also  rose  by  0.3  pp  in  2025  and  lies  above 
the EU average (2.1% vs 1.9%).  

Regional  disparities  and  strong  rural-urban 
divide  in  employment  are  still  significant.  In 
2025,  the  gap  between  the  regions  with  the 
highest and lowest employment rates (Bucharest-
Ilfov  –  81.1%,  and  the  South-West  Oltenia– 
61.7%) was 19.4 pps. Employment dropped across 
most  regions  during  the  year,  with  the  largest 
decreases  in  South-West  Oltenia  (-1.8  pps)  and 
North-West 
in  Centre  the 
employment  rate  increased  by  1.6  pps.  These 
regional 
structural 
differences  in  economic  opportunities,  population 
growth  and  foreign  investment  intensity  between 
the capital and the rest of the country. In Romania, 
23% of workers are employed in agriculture – the 

(-1.5  pps),  while 

disparities 

result 

from 

highest  share  in  the  EU.  However,  in  2025  the 
employment  rate  in  rural  areas  was  18.9  pps 
lower  than  in  cities  (60.7%  vs  79.6%).  Self-
employment  is  common  in  rural  areas  (32.1%), 
which  is  often  linked  to  subsistence  farming  or 
small-scale trade. This can be coupled with limited 
economic diversification, poor public transport and 
restricted access to education in rural areas.  

Graph A11.1: Key labour market indicators 

Source: Eurostat, LFS [lfsi_emp_a, une_rt_a, lfsi_neet_a, 
une_ltu_a] 

is  the 

Women’s  participation  in  the  labour  market 
is still low. In 2025, the gender employment gap 
was among the highest in the EU (18.7 pps vs EU: 
9.6  pps),  and  significantly  higher  in  rural  areas 
than  in  cities  (26.7  pps  vs  9.1  pps).  One  notable 
ICT  sector,  where  Romania 
exception 
performs  above  the  EU  average  (in  2024,  27.8% 
of ICT specialists were women compared with the 
EU average of 19.5%). Yet in 2024, ICT specialists 
represented  only  2.7%  of  employment  against 
5.0%  in  the  EU.  Women’s  participation  in  the 
labour force (57.8 % vs 71.1% in the EU in 2025) 
is  also  among  the  lowest  in  the  EU.  Low  female 
participation  is  driven  by  limited  enrolment  of 
children  under  three  years  of  age 
in  early 
childhood education and care (11.1% vs EU: 40.5% 
in 2025), particularly in rural areas (see Annex 13). 
Limited access and few regulatory disincentives to 
part-time  work  (performed  by  2.9%  of  the  total 
number of employed people in Romania compared 
with  the  EU  average  of  7.1%  in  2024)  constitute 

104 

010203040506070800510152025303520092010201120122013201420152016201720182019202020212022202320242025%%ROActivity rate 20-64 (rhs)Unemployment rate 15-74 (lhs)Long-term unemployment rate 15-74 (lhs)Youth unemployment rate 15-24 (lhs)NEET rate 15-29 (lhs) 
 
 
  
 
 
additional  barriers  for  individuals  to  combining 
work  with  care  responsibilities,  which  mainly 
affects  women.  With  the  support  from  the 
Recovery  and  Resilience  Facility 
(RRF),  110 
nurseries  will  be  constructed,  and  at  least  25 
complementary services will be made available, in 
particular in disadvantaged localities. 

Young  people  struggle  to  enter  into  formal 
reached 
employment.  Youth  unemployment 
26.1% in 2025 and was among the highest in the 
EU  (EU:  15.2%),  after  a  long  period  of  increase 
since  2018.  The  rate  of  young  people  neither  in 
employment nor in education and training (NEETs) 
fell  to  19.2%  but  was  nonetheless  among  the 
highest  in  the  EU  (EU:  11.0%).  It  was  also 
significantly  higher  in  rural  areas  than  in  cities 
(27.7%  vs  7.2%).  High  school  drop-out  rates  and 
misalignment  between  the  education  system  and 
labour market needs (296)) are big drivers of youth 
Inadequate 
unemployment 
outreach  activities 
these 
challenges. 
reform  was 
implemented under the RRF to prevent and reduce 
early  school  leaving  in  the  compulsory  education 
system,  and  2 300  schools  have  received  support 
to reduce the risk of drop-out. 

further  exacerbate 

(see  Annex  13). 

regard,  a 

this 

In 

Employment remains limited for persons with 
disabilities and for Roma. In 2025, the disability 
employment gap increased by 0.6 pp and reached 
45.4%,  which  is  21.2  pps  above  the  EU  average 
(24.2%).  Incentives  and  support  for  persons  with 
disabilities to help them look for work are limited, 
and their labour market participation at the end of 
their careers (55-64) is one of the lowest in the EU 
(24.3%  vs  EU:  55.1%  in  2024).  Roma  remain 
under-represented in the labour market, with only 
59% of them engaged in paid work, 10 pps below 
the rate for the general population (69%). In 2024, 
42%  of  young  Roma  were  neither  in  employment 
nor  in  education  and  training,  compared  with 
19.4%  of  young  people  on  average.  The  rate  of 
perceived discrimination is rising, hindering labour 
market 
report 
integration:  27%  of  Roma 
discrimination  when  looking  for  work  (+17  pps 
since 2016) and 24% at work (+18 pps) (297)).  

ALMPs  are  not  efficient,  and  there  is  not 
enough  funding  to  tackle  employment  gaps. 

reflects 

The  exiting  activation  measures  are  ineffective  in 
bringing  people  from  under-represented  groups 
into  employment,  which 
insufficient 
targeting and funding. Romania spends by far the 
least in the EU on labour market policies (298), with 
total  expenditure  decreasing  markedly  over  the 
years – from 0.13% of GDP in 2020, to 0.09% in 
2023  and  0.05%  in  2024 (299).  Over  90%  of  the 
funding  is  allocated  to  employment  subsidies, 
less  effective  than  other 
which  tend  to  be 
measures,  and  only  around  7%  is  allocated  to 
training  (EU:  44%  and  28%  respectively  in  2020) 
(300).  Limited  staff  capacity  of 
the  public 
employment  services,  coupled  with  inadequate  IT 
tools  and  quality  services,  further  undermine  the 
reach and effectiveness of activation policies. 

Romania  is  making  use  of  EU  funds  to 
improve  employment  outcomes.  The  European 
Social  Fund  Plus  (ESF+)  supports  measures  to 
facilitate access to the labour market through the 
national  ‘Education  and  Employment’  programme. 
Under-represented  and  disadvantaged  groups  are 
provided  with 
integrated  packages  of  active 
measures, including support services to help them 
find a job,  and vocational training programmes. A 
total of 44 000 young people, of whom 3 960 are 
Roma,  will  benefit  from  the  national  youth 
employment  incentive  schemes.  ESF+  funding  is 
also  used  to  support  the  creation  of  jobs  for 
vulnerable  and  marginalised  groups  through  647 
social  economy  enterprises.  The  Romanian  CAP 
Strategic Plan 2023–2027 allocates about EUR 5.8 
billion  to  rural  development.  These  funds  support 
economic  diversification, 
infrastructure 
(including  transport),  and  social  and  education 
services aiming to support 36 000 young farmers 
and create around 12 000 additional jobs.  

local 

Public  employment  services  are  being 
modernised,  but  some  challenges  persist. 
With  combined  support  from  the  ESF+  and  the 
RRF,  Romania  is  reforming  its  public  employment 
services  by  strengthening  their  human  resources, 
improving 
including 
service 
digitalisation,  and  enhancing  their  visibility.  Some 
275 000  jobseekers  and  87 000  employers  are 
expected to benefit from the modernised services 
until  2029.  However,  there  is  still  scope  for 

quality, 

their 

(296) OECD, 2025, Review of Labour Market and Social Policies: 

(299) Romanian Public Employment Service (ANOFM), Activity 

Romania 2025. 

Report 2024. 

(297) EU Fundamental Rights Agency (FRA), Roma Survey 2024 

(300) Labour Market Policies (LMP) Database, 2020 data. 

(298) Labour Market Policy (LMP) Database, 2020 data. 

105 

 
 
 
improving the funding, efficiency and targeting of 
ALMPs,  and  particular  attention  should  be  paid to 
labour  market  integration  of  under-represented 
groups.  Expanding  outreach  and  strengthening 
mobile teams, with particular focus on rural areas, 
based  on  the  good  practices  put  in  place  during 
the INTESPO (Registration of Youth in the Records 
of  the  Public  Employment  Service)  project,  could 
help further improve employment outcomes. 

Labour shortages are still well below the EU 
average.  Romania’s  job  vacancy  rate  remained 
stable at 0.6% in Q4-2025 and significantly below 
the  EU  average  of  2.1%,  and  below  its  pre-
pandemic  level  of  1.0%  in  Q4-2019.  Consistent 
with this, a small share of employers expect labour 
to  constrain  production:  6.7%  of 
shortages 
companies  in  the  services  sector  (vs  EU:  22.8%), 
6.4%  in  industry  (EU:  17.5%)  and  13.8%  in  the 
construction sector (EU: 27.9%) (301). These shares 
are  lower  than  before  the  pandemic  across  all 
sectors.  The  macroeconomic  skills  mismatch 
indicator (302)  fell  slightly  to  22.1%  in  2024  from 
22.6% in 2023 and remains above the EU average 
that  promote 
of  19.3%.  Prioritising  policies 
workforce 
reskilling, 
training,  upskilling  and 
including  through  individual  learning  accounts, 
could help tackle labour and skills shortages.  

in  2026(303).  Real  wages 

Despite strong wage growth, in-work poverty 
remains  high.  Wages  grew  by  8.2%  in  2025, 
following  an  increase  of  17.3%  and  20.3%  in 
2024  and  2023  respectively.  This  growth  rate  is 
projected  to  have  further  decelerated  to  drop  to 
4.9% 
increased 
marginally,  by  1.4%  in  2024,  below  the  EU 
average (1.7%) and are expected to turn negative 
in  2026  (-1.9%).  The  statutory  minimum  wage 
surged  by  59%  between  January  2022  and 
January  2026,  an  increase  by  more  than  15%  in 
real  terms.  Nonetheless,  in-work  poverty  remains 
well  above  the  EU  average  (10.8%  vs  8.3%  in 
2025). At the same time, robust wage growth has 
raised  competitiveness  concerns:  over  the  past 

(301) Source: European Business and Consumer Surveys, data until 

October 2025. 

(302) The macroeconomic skills mismatch indicator measures the 
discrepancy between employment outcomes for workers 
with low, medium, and high levels of skills (represented by 
qualification levels, with ISCED 0-2 – low, 3-4 –medium and 
5-7 – high). Source: F2 own calculations. 

decade,  wage  growth  has  been  well  above  the 
level  indicated  by  macroeconomic  fundamentals, 
and  unit  labour  costs  have  increased  significantly 
(from 9.9% in 2022, to 16.2% in 2023 and 18% in 
2024) before easing in 2025 at 3.8%. While export 
market  shares  continued  to  increase  in  recent 
years  (2021-2023),  sustained  wage  rises  may 
increasingly weigh on competitiveness.  

that 

faces 

leaving 

suggest 

adverse 

demographic 
Romania 
developments  and  an  outflow  of  talent. 
Demographic  projections 
the 
country’s  population  will  decrease  by  4.4  million 
until  2100  (compared  with  the  2022  figure) (304). 
Outward  mobility 
is  also  high:  2.5  million 
Romanian  citizens  of  working  age  were  living  in 
another  Member  State  in  2025,  and  emigration 
reached  a  decade  high  in  2023,  with  324 000 
people 
(compared  with 
the  country 
293 000  in  2022).  The  outflow  of  talent  is 
particularly  pronounced  among  highly  skilled 
workers,  with  the  share  of  graduates  moving 
abroad  reaching  15.7%  in  2022.  To  compensate 
for  these  losses,  Romania  increasingly  relies  on 
migrant workers through admission quotas: at the 
end  of  2024,  more 
than  100 000  non-EU 
nationals  held  residence  permits  for  employment, 
up  from  52 000  in  2022  (which  marks  a  94% 
total 
increase), 
employment, up from 0.6% in 2022 (305). Together, 
the  demographic  decline  and  talent  outflow  are 
placing  growing  pressure  on  Romania’s  labour 
market  and  competitiveness.  With  support  from 
the  Technical  Support  Instrument,  the  Romanian 
authorities  are  updating  the  procedural  and 
legislative  framework  in  the  field  of  migration 
management to tackle the current situation. 

to  1.2%  of 

corresponding 

Several factors weigh on job quality. Romania 
has  a  significantly  higher  share  of  low-wage 
earners  than  the  EU  average  (23.9%  vs  14.7% in 
2022)  and  one  of  the  highest  shares  of  workers 
with  atypical  working  hours  (40.0%  vs  32.6%)  in 
2025.  Moreover,  adult  (25-64)  participation  in 
learning  is  very  low  and  below  the  EU  average 
(19.1% vs 39.5%), limiting skills development and 
career  progression.  These  factors,  coupled  with 
one of the highest gender employment gaps in the 
EU  and  high  in-work  poverty,  undermine  overall 
job quality. Additional challenges persist regarding 

(304) Eurostat, 2023, Population projections in the EU. 

(303) Based on the European Commission Spring 2026 economic 

(305) OECD, 2025, Reviews of Labour Market and Social Policies: 

forecast. 

Romania 2025. 

106 

 
 
 
access  to  social  protection  for  non-standard 
workers and self-employed people (see Annex 12).  

The 

and 

56.7% 

social 

(2024) 

reported 

improvements, 

Despite 
dialogue 
continues  to  face  challenges.  Trade  union 
density  and  employer  organisation  density  stood 
at 
(2017) 
21.3% 
respectively (306). 
collective 
bargaining  coverage  rate  is  27.96%  (2023) (307). 
The  new  Social  Dialogue  Law,  supported  by  the 
recovery  and  resilience  plan,  came  into  force  in 
2023  and  brought  several  significant  changes  to 
lowering 
the  previous 
representativeness  thresholds and opening access 
to  collective  bargaining  to  self-employed  people. 
While  the  Law  introduces  a  number  of  positive 
changes,  some  persisting  issues  include  the  low 
rate  of  collective  bargaining  coverage  and  an 
insufficient level of  genuine involvement of social 
partners.  The  problem  of social  dialogue in  state-
owned  companies  also  needs  to  be  addressed. 
There  is  scope  for  further  capacity  building  of 
social  partners  in  addition  to  the  EUR  78  million 
from ESF+. 

framework,  such  as 

in  energy-intensive  sectors 
Employment 
remains  significant 
in  Romania.  Energy-
intensive  industries  accounted  for  5.0%  of  total 
employment in 2025, one of the highest levels in 
the  EU (EU:  3.5%).  At  0.7%,  the  share  of  people 
employed  in  the  mining  industry  is  also  relatively 
large  –  the  second  highest  among  all  Member 
States,  with  around  50 000  workers.  In  2023, the 
emission  intensity  of  gross  value  added  was 
double  the  EU  average.  At  the  same  time,  the 
employment  share  of  the  environmental  goods 
and  services  sector  was  2.4%  in  2023,  below  the 
EU  average  of  2.7%,  but  not  low  in  a  regional 
context.  Moreover,  Romania 
to 
experience  some  of  the  largest  GDP  losses in  the 
EU  from  heat-stress-related  productivity  impacts, 
with  outdoor  professions  particularly  at  risk. 
Improving  working  conditions  as  part  of  climate 
adaptation  measures  is  key  to  maintaining  job 
quality and competitiveness.  

is  expected 

(306) The OECD/AIAS database on Institutional Characteristics of 
Trade Unions, Wage Setting, State Intervention and Social 
Pacts (ICTWSS), version 2.0. 

(307) According to the data transmitted by Romania under 

Article 10(2) of the EU Directive on Adequate Minimum 
Wages. 

107 

 
 
ANNEX 12: SOCIAL POLICIES 

Social  conditions  continue  to  improve  in 
Romania,  yet  significant  poverty  and  social 
exclusion  challenges  persist.  The  2025 
country-specific 
recommendations  encouraged 
Romania  to  reduce  poverty  and  social  exclusion 
risks by extending social protection and improving 
its  effectiveness,  including  through  better  access 
to quality essential and enabling services, focusing 
integrated  social,  health,  educational  and 
on 
employment  services,  in  particular  for  Roma  and 
other  disadvantaged  groups,  while  maintaining 
fiscal  sustainability.  Despite  recent  progress  and 
various  policy  frameworks,  further  efforts  would 
help advance towards the 2030 poverty reduction 
target,  notably  by  ensuring  better  coverage  and 
adequacy  of  the  social  protection  system.  Access 
to  social,  health,  educational,  long-term  care  and 
employment services remains limited and uneven, 
particularly  in  rural  areas  and  for  Roma,  affected 
by  educational  and  spatial  segregation.  A  more 
responsive  and 
efficient,  adequately  funded, 
integrated delivery of services would be beneficial. 
Addressing  these  challenges  would  significantly 
contribute 
competitiveness, 
Romania’s 
prosperity and inclusive sustainable growth. 

to 

Rural  areas  and  vulnerable  groups  still  face 
significant poverty and social exclusion risks. 
The  percentage  of  people  at  risk  of  poverty  or 
social  exclusion  (AROPE)  has  decreased  at  one  of 
the  fastest  rates  in  the  EU,  dropping  by  8.7 
percentage  points (pps)  between  2019  and  2025. 
At  27.4%,  however,  it  remains  well  above  the  EU 
average  of  20.8%.  Romania  made  good  progress 
toward  its  national  2030  target  of  reducing  the 
number  of  people  facing  poverty  or  social 
exclusion risks by 2 532 000 compared to 2019 (-
1 863  000).  However,  territorial  disparities  stand 
out:  the AROPE rate is much higher in rural  areas 
(39.8%)  compared  to  cities  (13.7%),  one  of  the 
largest  rural-urban  divides  in  the  EU.  Uneven 
economic  opportunities  and  access  to  services 
contribute  to  these  stark  regional  disparities,  with 
AROPE  rates  reaching  8.0%  in  the  south-east 
compared  to  13.6%  in  Bucharest-Ilfov  in  2025. 
This  risk  is  higher  for  those  with  a  low  level  of 
education (54.7%), part-time workers (55.7%) and 
the  self-employed  (55.7%).  Among  older  people 
(aged 65 and over), 27.9% were at risk of poverty 
or  social  exclusion  (vs  EU  19%).  Persons  with 
disabilities  also  face  significantly  higher  risks 
(37%  vs  EU  28.8%).  In  2024,  the  at-risk-of-
poverty  (AROP)  rate  for  Roma  was  68%,  10 pps 
lower than in 2021, but still much higher than the 
national  AROP  rate  (19.0%).  Overall,  in  2025,  the 

relative median at-risk-of-poverty gap was 25.5% 
(vs  EU  22.5%),  underlining  the  importance  of 
efforts  to  reduce  the  depth  of  poverty.  Romania 
has  a  far-reaching  policy  framework  in  place, 
including  the  2022-2027  national  strategy  on 
social  inclusion  and  poverty  reduction (308),  along 
with 
specific 
vulnerable  groups  such  as  children,  homeless 
people,  Roma,  persons  with  disabilities  and  older 
(309).  A  comprehensive  approach,  as 
persons 
outlined in the EU anti-poverty strategy, could help 
address  the  multiple  dimensions  of  poverty  and 
achieve the national anti-poverty target. 

strategies 

targeting 

sectoral 

Child  poverty  decreased  but  remains  among 
the highest in the EU.  In 2025, the AROPE rate 
for  children  reached  32.4%  (EU:  24.3%).  Children 
in households where the parents have a low level 
of  education  or  with  three  or  more  dependent 
children  are  especially  vulnerable.  Roma  children 
also remain disproportionately affected, with 75% 
at risk of poverty in 2024. By 2030, Romania aims 
to reduce the number of children at risk of poverty 
or  social  exclusion  by  500 000  compared  with 
2019 levels and has already achieved a reduction 
of 263 000. Romania adopted a national European 
Child  Guarantee  (ECG)  action  plan  in  2023  and  is 
committed  to  its  implementation.  However,  long-
term progress is jeopardised by low participation in 
early  childhood  education  and  care,  and  unequal 
access 
to  quality  education,  housing  and 
healthcare.  Moreover,  declining  child  vaccination 
rates (78-79%, down  from  86-95% in  2015)  and 
growing  concerns  over  mental  health  should  be 
monitored.  Adequate  budget  allocations  and  an 
evidence-based  monitoring  system  are  key  to 
delivering on ECG commitments. 

Despite  improvements,  the  social  protection 
system still responds ineffectively to poverty 
and social exclusion risks.  In 2024, the impact 

(308)Strategia naţională privind incluziunea socială şi reducerea 
sărăciei pentru perioada 2022–2027 (mmuncii.ro).  

(309)National strategy “protected children, safe Romania” 2023-
2027; national strategy for the inclusion of the homeless 2022-
2027; national strategy on preventing the institutionalisation of 
adults with disabilities and accelerating the de-
institutionalisation process; national strategy on long-term care 
and active ageing 2023-2030; national health strategy; national 
strategy for employment 2021-2027, including its 2021-2027 
action plan, Strategy of the Government of Romania for the 
Inclusion of Romanian Citizens Belonging to the Roma Minority 
for the period 2022–2027 

108 

 
 
 
 
 
 
low: 

in  2024, 

individuals 

of social transfers (excluding pensions) on poverty 
reduction was 21.7%, among the lowest in the EU 
(EU  average:  33.2%).  Expenditure  on  social 
protection  also  remains  among  the  lowest  in  the 
EU  (13.6%  of  GDP  in  2023  vs  19.6%  in  the  EU), 
with  only  a  small  fraction  allocated  to  social 
assistance  and  unemployment  benefits.  Adequacy 
remains 
receiving 
minimum  income  benefits  had  a  net  income  of 
only 9.4% of the AROP threshold, and only 14% of 
the net income of a low-wage worker (EU:  56.3% 
and  50%  respectively).  Under  its  recovery  and 
resilience  plan  (RRP)  commitments,  the  minimum 
inclusion 
in 
January  2024,  aiming 
to  combine  a  more 
adequate  and  effective  social  benefits  system 
with  non-monetary  support  services.  In  March 
2024,  the  social  reference  indicator  (SRI)  was 
raised  to  account  for  inflation  and  set  for  annual 
updates, but the 2025 indexation suspension risks 
eroding benefit adequacy. 

income  (VMI)  programme  began 

low-income  workers 

Social  protection  coverage  remains  low  for 
certain groups, increasing their poverty risks. 
Workers  in  non-standard  forms  of  employment 
(including  casual  and  seasonal  workers)  and,  to 
some  extent,  the  self-employed  (e.g.  farmers), 
receive  minimal  protection.  Participation 
in 
voluntary  insurance  schemes  among  the  self-
employed  and 
remains 
minimal,  due  to  low  trust  in  the  system  and 
irregular  incomes.  Less  than  2%  of  those  in 
employment  and  at  risk  of  poverty  (before  social 
benefits)  received  benefits  in  2025,  with  the  rate 
falling below 1% for self-employed people at risk 
of  poverty.  Over  one  third  (38.2%)  of  self-
employed  people 
face  material  and  social 
deprivation  (EU:  7.1%)  and  their  AROP  rate  is 
48.4% (EU: 20.1%). Moreover, about 4 in 10 self-
employed  people  work  for  a  single  employer 
(making  them  economically  dependent),  which 
represents  6.5%  of 
(EU: 
1.5%) (310).  Only  10.8%  of  unemployed  people 
(those  unemployed  for  less  than  12  months) 
received  benefits  in  2025  (vs  37.7%  in  the  EU). 
Finally, 52.7% of unemployed people face material 
and  social  deprivation  (EU:  36.3%)  and  69.9%  of 
people  in  quasi-jobless  households  are  at  risk  of 
poverty (EU:  64.4%). Hence, additional policy steps 
would  be  beneficial  to  improve  the  coverage  and 
adequacy of social protection and related services, 

total  employment 

strengthen 
sustainability. 

resilience 

and 

ensure 

fiscal 

a 

and 

ratio 

other 

trends 

(excluding 

The  pension  system  faces  challenges  from 
demographic 
declining 
contribution  capacity.  The  aggregate  pension 
replacement 
social 
benefits) (311)  reached  0.47  in  2025  (EU:  0.60).  In 
2024,  the  severe  material  and  social  deprivation 
rate for older people (65 and over) was one of the 
highest in the EU (19.2% vs EU: 4.9%), and higher 
than  for  the  working-age  population  (14.6%).  A 
new  public  pensions  law,  supported  through  the 
RRP  and  effective  since  September  2024, 
increased  the  adequacy  of  low  and  medium 
pensions  and  the  social  indemnity  for  pensioners, 
with additional legislation to support persons with 
disabilities. However, pension adequacy remains a 
challenge 
to 
predominantly 
employment. 
non-standard 
Demographic  trends  could  put  financial  pressure 
on the pension system, as the population aged 65 
and over is projected to increase from 3.7 million 
to  4.3  million,  while  the  working-age  population 
(20-64) is set to decrease by 30% to 7.8 million in 
2070 (312).  

for  agricultural  workers  due 

Graph A12.1: Impact of social benefits (excluding 
pensions) on poverty reduction 

Reduction in AROP rate due to social benefits. 
Source: Eurostat (ilc_li02, ilc_li10) 

services 

Access  to  quality  social,  employment,  and 
educational 
limited, 
especially  in  rural  areas,  smaller  cities  and 
some  regions.  The  availability  of  licensed  social 
services  across  Romania  is  uneven,  ranging  from 
172  licensed  services  in  Cluj  county  (i.e.  one 

remains 

(311)Defined as the gross median individual pension income (for 
the age group 65–74) relative to gross median individual 
earnings from work (for the aged 50–59). 

(310) European Working Conditions Survey, 2024. 

(312) 2024 Ageing Report – Country Fiche for Romania  

109 

10152025303540201920202021202220232024EU 27RO 
 
   
 
(1 

Its 

strategy. 

RRP-supported 

service per 4 300 inhabitants), to as few as 22 in 
service  per  22 000 
county 
Mehedinți 
inhabitants) (313).  Marginalised 
communities, 
including Roma, face significant gaps in access to 
these  services.  In  2024,  Romania  adopted  a 
reform to improve the quality of social assistance 
and  care  services  as  well  as  the  protection  of 
beneficiaries (314).  The  reform  is  underpinned  by 
2022-2030 
the 
success 
‘deinstitutionalisation’ 
depends  on  appropriate 
institutional  backing, 
adequate funding, monitoring and the adoption of 
secondary  legislation,  especially  for  the  ‘funds 
follow 
the  beneficiary’  mechanism.  Despite 
progress  in  deinstitutionalisation,  a  substantial 
proportion  of  adults  with disabilities  still  reside in 
large  and  small-scale  institutions,  while  non-
residential community-based services and support 
remain  scarce.  Around  EUR 2.28  billion  from 
cohesion  policy  funds  is  available  to  improve 
service  accessibility  and  quality.  A  flagship 
initiative  to  scale  up  integrated  social,  health  and 
educational services in 2 000 disadvantaged rural 
communities  started  in  2025,  supported  by  the 
European Social Fund+ and the European Regional 
Development  Fund.  The  2023-2027  CAP  strategic 
plan also allocates EUR 500 million to community-
led  development  initiatives  supporting  access  to 
infrastructure (315).  Effective 
health  and  social 
implementation (316)  would  benefit  from  strong 
coordination  across  government 
levels,  closer 
cooperation  between  key  ministries,  meaningful 
involvement of Roma NGOs and communities, and 
stronger 
and 
against 
segregation. 

antigipsyism 

action 

long-term  care  services 
Availability  of 
remains  insufficient,  particularly  for  home 
care and independent living for persons with 
disabilities. Romania has one of the highest rates 
of  self-reported 
(LTC)  needs 
(56.5%  vs  26.6%  in  the  EU  in  2019),  but  one  of 
the lowest public expenditure levels (0.3% GDP vs 
1.7%  GDP  on  average  in  the  EU) (317)  and  home-
care coverage rates (4.7% of people aged 65 and 

long-term  care 

over used home care vs 28.6% in the EU in 2019). 
Access  to  healthcare  and  LTC  (see  Annex  15)  is 
hampered  by  the  shortage  of  qualified  staff  (0.6 
workers per 100 people aged over 65 vs 3.2 in the 
EU) and weak social protection for LTC, resulting in 
high unmet needs (61.6% vs 46.6% in the EU) and 
excessive  reliance  on  informal  carers.  Territorial 
gaps  in  access  persist,  with  rural  and  remote 
communities  often  relying  on  scarce,  uneven  and 
low-quality services. For example, only 369 out of 
949  centres  providing  services  for  persons  with 
disabilities  are  located  in  rural  areas,  where  50% 
of  the  total  live (318).  Non-residential  community-
based  care  is  still  scarce  and  often  unaffordable, 
delaying the deinstitutionalisation and transition to 
independent living of persons with disabilities (319). 
As  part  of  the  RRP,  Romania  adopted  an  LTC 
strategy  for  2023-2030 (320)  to  help  older  people 
live  longer  independently  and  improve  access  to 
LTC services for those in need; cohesion policy and 
its 
RRP 
implementation. Improved coordination is required 
to  address  delays  in  implementing  the  strategy, 
especially 
the  most 
vulnerable,  but  also  for  those  with  moderate 
needs.  Additional  steps  to  address  the  growing 
mental  health  challenges (321)  in  the  country,  as 
well  as  to  strengthen  the  LTC  workforce,  would 
also be beneficial.  

funds  are  available 

to  ensure  access 

support 

for 

to 

and 

poverty 

Energy 
pose 
transport 
challenges  for  the  fair  green  transition.  In 
2025, 11.9% of the population was unable to keep 
their  homes  adequately  warm,  above  the  EU 
average  of  8.8%.  People  at  risk  of  poverty  were 
more  affected  (21.4%  vs  19.6%  in  the  EU). 
Similarly,  17.7%  of  individuals  faced  arrears  on 
utility  bills  in  2024  (EU:  7.0%),  an  increase  of 
10.42 pps since 2021. The upcoming extension of 
the EU emissions trading system to buildings and 
road transport (ETS2) may put additional pressure 
on  the  most  vulnerable  households,  due  to 
expected  price  increases  for  households  that  rely 

(313) Registry of accredited/licensed services, Ministry of Labour, 

Family, Youth and Social Solidarity. 

(314) Law 100 of 18 April 2024. 

(315) RO CAP Plan 2023-2027 – Chapter 5.3 LEADER.  

(316) 2022-2027 strategy for the inclusion of Romanians 

belonging to the Roma ethnicity.  

(317)2024 Ageing Report. 

(318)Registry of accredited/licensed services, Ministry of Labour, 
Family, Youth and Social Solidarity. 

(319) https://www.esn-eu.org/social-services-index/2024/romania. 

(320)National long-term care and active aging strategy 2023-
2030. 

(321) OECD (2025), OECD Reviews of Health Systems: Romania 
2025, OECD Reviews of Health Systems, OECD Publishing, 
Paris, https://doi.org/10.1787/f52e4a98-en. 

110 

 
 
 
thus 

to  20% 

(EU:  5.5%), 

on  fossil  fuels (322).  From  July  2025,  Romania 
replaced  energy  price  caps  with  electricity 
vouchers  for  vulnerable  consumers.  Since  2021, 
additional  measures  have  supported  vulnerable 
households  by  reducing  heating  costs  in  winter 
and  subsidising  energy  bills  year-round.  In  2025, 
8.1% of the population could not afford a personal 
car 
limiting  mobility.  This 
constraint is further exacerbated by the decline in 
alternatives:  the  percentage  of  public  transport  in 
land  passenger  travel  decreased  from  27%  in 
in  2022.  Overall,  Romania’s 
2011 
transport 
infrastructure  and  public 
transport 
system may not adequately meet the needs of the 
population,  particularly 
low-income  households 
and  persons  with  disabilities.  Rural  inhabitants 
(46%  of  the  population)  often  lack  effective 
access to public transport (40% of rural areas are 
‘transport-deficient’  vs  22%  in  the  EU) (323)  and 
therefore rely more on private cars, with high costs 
for  both  users  and  the  environment.  Moreover, 
11.7% of people in rural areas could not afford a 
car (EU: 3.7%) in 2025 and, among those at risk of 
poverty,  car  unaffordability  increased  to  27.1 % 
(EU:  16.5%) (324).  As  ETS2  is  expected  to  increase 
transport  fuel  prices  in  Romania,  strengthening 
affordable and accessible public transport is key to 
supporting  affected  households.  From  2026,  the 
European  Social  Climate  Fund  will  assist 
vulnerable  households  and  micro-enterprises 
investments  and 
through  energy  efficiency 
improved  access  to  zero-  and 
low-emission 
mobility. 

(322) Final energy consumption of Romanian households consisted 
of35% fossil fuels, 14.9% electricity and 38.9% renewables 
and biofuels in 2023. The majority of passenger cars are 
petrol and diesel vehicles, representing approximately 98.6% 
of the total in 2023 [road_eqs_carhab]. 

(323) Direct EU Cohesion Data Explorer (Filter: "Romania" + "Rural 

Transport") 

(324) No data on public transport accessibility in Romania exist on 

the Commission’s Transport Poverty Hub because it is 
unclear whether any data exist on Romania’s national access 
point (set up as part of Delegated Regulation (EU) 
2017/1926 (the MMTIS Delegated Regulation)). 

111 

 
 
ANNEX 13: EDUCATION AND SKILLS 

The 

2025 

the  basic  skills  and 

Strengthening Romania’s education and skills 
system  requires  sustained  efforts  to  boost 
long-term competitiveness and reduce social 
exclusion. 
country-specific 
recommendations  for  Romania  highlighted  the 
need  to  improve  participation  in  early  childhood 
education  and  care  and  tackle  skills  shortages  by 
boosting 
labour-market 
relevant  skills  of  the  workforce,  as  well  as 
improving  stakeholder  engagement  and  making 
best  use  of  skills  intelligence  in  education  and 
skills  policies.  Despite  promising  measures  to 
increase participation in early childhood education 
and care (ECEC) and improve access to educational 
services,  particularly  in  rural  areas,  coordinated 
action  is  still  needed  to  deliver  lasting  results. 
While  Romania  has  introduced  major  education 
and  skills  reforms  to  optimise  skills  development, 
challenges  persist 
in  enhancing  basic  skills, 
particularly  among  disadvantaged  students  and 
in  aligning 
students  with  disabilities,  and 
educational  outcomes  with  labour  market  needs. 
The  persistent  urban-rural  divide  at  all  levels  of 
education  further  deepens  these  disparities  in 
skills  development,  as  nearly  half  of  Romanians 
live in rural areas. There are ongoing reforms and 
investments  with  EU  support  to  address  early 
school  leaving,  tertiary  education  attendance  and 
the 
relevance  of  vocational 
education and training (VET), notably in the context 
of  the  green  and  digital  transition.  However, 
additional  and  adequate  support  remain  essential 
despite fiscal budgetary measures.  

labour-market 

for  children  aged  3 

Low   and   unequal   participation   in     ECEC 
undermines early  childhood development.  In 
2024,  enrolment 
to 
compulsory  primary  education  rose  slightly  to 
76.5%,  still  significantly 
lower  than  the  EU 
average  (95%)  and  the  2030  EU-level  target 
(96%). Although  education  has  been  compulsory 
from the age of four since  2023,  shortages  of 
facilities  and 
constrain 
participation. Lower  participation  persists  among 
Roma  children  despite  recent  improvements (1), 
and  in  rural  areas  due  to limited  availability and 
accessibility     of     ECEC     services.   In    2024, 
for 
formal 
participation 
children under three was  11.4%, far  below the  EU 
average 
in 
2025 (EU:  40.5%). This  affects  women’s  labour 
market participation. 

39.2%, decreasing to 11.1% 

childcare 

continue 

staff 

of 

to 

in 

Despite  promising  ECEC  measures,  access 
and  quality  remain  insufficiently  developed. 

network  with 

A  unitary  ECEC  system,  introduced  in  2022 
under the recovery and resilience plan (RRP), 
is  being  implemented  to  improve  quality.  As 
part  of  this,  the  ESF+  SU-ETIC  project  Unitary 
System  for  Inclusive  and  Quality  Early  Childhood 
Education,  launched  in  2025,  will  develop  quality 
standards  and  mentoring  for  educators  and 
teachers.  With  support  from  the  Recovery  and 
Resilience  Facility  (RRF),  Romania  is  expanding  its 
ECEC 
25 
complementary services for disadvantaged groups, 
and  staff  training  programmes.  A  new  bachelor's 
programme  in  early  childhood  education  (325), 
starting  in  2026/2027,  will  create  a  dedicated 
professional pathway to address the growing need 
for  ECEC  teachers.  Nevertheless,  ECEC  remains 
limited,  especially  in  rural  areas  and  for  children 
with  disabilities,  while  staff  shortages  and 
turnover  affect  quality.  Gaps  in  staff  training, 
quality  assurance  and  outreach  to  disadvantaged 
communities limit accessibility.  

crèches, 

110 

in 

Low  basic  skills  among  young  Romanians 
hinder  competitiveness  and  human  capital 
development.  Over  40%  of  15-year-olds  do  not 
reach  minimum  proficiency 
in  mathematics 
(48.6% vs EU average: 29.5%), reading (41.7% vs 
EU:  26.2%),  and  science  (44%  vs  EU:  24.2%) (326) 
The underachievement rates have been among the 
highest 
the  EU  since  2012.  Only  4% 
demonstrated advanced skills in mathematics (EU 
average:  7.9%),  2%  in  reading  (EU:  6.5%),  and 
1.4%  in  science  (EU:  6.9%),  limiting  the  pool  for 
innovation  and  excellence.  Romania’s  national 
programme  to  prevent  and  reduce  functional 
illiteracy  will  develop  a  student  assessment 
framework,  strengthen  teacher  competences  and 
pilot  an  intervention  mechanism  for  students, 
which  was  initiated  in  2025  with  ESF+  support. 
However,  effective  implementation  and  national 
upscaling remain to be seen. 

The  lack  of  basic  skills  reveals  systemic 
issues  in  teaching  quality  and  curriculum 
implementation.  While  83%  of  recent  initial 
teacher education (ITE) graduates rate their overall 
training  positively,  satisfaction  with  general 
pedagogy  training  specifically  has  declined  since 

(325) Order 7841/2024. 

(326) OECD, 2023, PISA 2022 Results (Volume 1): The State of 

Learning and Equity in Education. 

112 

 
 
 
 
to 

rapidly 

evolving 

reform  package 

impactful,  suggesting  challenges 

2018 (from 87% to 69%) (327). Access of teachers 
to induction rose from 30.5% to 66.4% since 2018 
(EU average: 66%). However, only 23.6% of novice 
teachers  report  having  an  assigned  mentor  in 
2024,  revealing  uneven  implementation.  Despite 
mandatory  continuous  professional  development 
(CPD),  only  59.8%  of  teachers  found  recent 
training 
in 
adapting 
teaching 
environments  and  implementing  the  2012/2013 
competence-based  curriculum  for  primary  and 
lower-secondary  education.  The  upper-secondary 
curriculum is being revised with support from ESF+ 
and  the  Technical  Support  Instrument  (TSI)  to 
strengthen  the  implementation  of  a  competence-
based  approach.  Further 
improvements  could 
include  integrating  basic  skills  across  all  subjects 
and  preventing  curriculum  overcrowding.  The 
recently  adopted 
(‘Educated 
Romania’)  with  RRF  support  seeks  to  strengthen 
pedagogical  preparation  and  professionalise 
teacher  entry  through  a  compulsory  master’s  in 
pedagogy  with  school-based  practicum,  enhanced 
induction and mandatory mentoring. From 2025, a 
compulsory  teacher  framework  will  guide  career 
development  and  set  ITE/CPD  quality  standards. 
However,  teacher  shortages  persist,  especially  in 
rural and small schools and in science, technology, 
engineering  and  mathematics  (STEM)  subjects. 
This is due to unattractive rural working conditions, 
a  limited  supply  of  STEM  graduates  and  private 
sector  competition.  Additionally,  few  teachers  are 
trained  to  work  with  children  with  disabilities 
and/or  special  education  needs  (328).  Romanian 
teachers  report  high  overall 
job  satisfaction 
(95.8%  vs  EU  average:  89.9%)  and  significantly 
improved salary satisfaction following 2023-2024 
pay  increases  (57.2%  vs  23.3%  in  2018;  EU 
average:  37.3%),  with  actual  salaries  15%  higher 
than those of tertiary-educated workers (but 15% 
lower  than  the  EU  average)  (329).  However,  recent 
budgetary  measures  impact  teachers’  working 
conditions,  including  frozen  salaries  since  late 
2024  (330),  a  50%  reduction  in  extra  teaching 

hourly pay, a two-hour increase in teaching hours, 
and larger class sizes across all levels (331). 

background 

in  mathematics, 

Socio-economic 
and  Roma 
marginalisation continue to drive basic skills 
gaps.  There  are  stark  disparities,  with  57.8%  of 
students  from  the  poorest  quartile  lacking  basic 
skills 
reading  and  science 
simultaneously,  compared  to  just  9%  for  those  in 
the  richest  quartile  (332).  Educational  equity  is 
among  the  lowest  in  the  EU,  with  only  3.7%  of 
disadvantaged  students  performing  well  in  basic 
skills (EU  average:  16.3%)  compared  to  38.7%  of 
their  advantaged  peers  (333).  Parents’  education 
strongly  shapes  outcomes,  with  only  4%  of  those 
aged  25-64  whose  parents  did  not  finish  upper 
secondary  school  reaching  education  (334).  School 
segregation  remains  critical,  with  43%  of  Roma 
students in schools (335) and only 31% of children 
with disabilities attending mainstream school. This 
learning 
exacerbates  marginalisation 
disadvantages.  Romania  has  adopted  a  new 
monitoring framework with TSI support to identify 
and help combat school segregation, but effective 
implementation remains crucial. 

and 

vary 

lower 

outcomes 

Education 
considerably 
between urban and rural areas. Around 45% of 
Romania’s  population  lives  in  rural  areas,  where 
education  outcomes  lag  behind  those  in  cities, 
further  challenged  by  a  fragmented  school 
network. Romania has the largest rural-urban gaps 
in basic skills in the EU, with rural students scoring 
in 
substantially 
mathematics, 
(see 
Graph A13.1),  while  representing  42%  of  primary 
and  lower-secondary  students.  Only  68.4%  of 
adults  have  completed  primary  education  (vs 
94.6%  in  cities)  and  6.4%  have  attained  tertiary 
education (vs 34.6% in cities) (see Annex 19). The 
ESF+/ERDF-funded  project 
‘Integrated  service 
provision  in  rural  communities’  aims  to  provide 
educational support alongside other social services 

than  urban  students 

reading, 

science 

and 

(327) OECD, 2025, Results from TALIS 2024: The State of 

Teaching; also for other data in this paragraph unless 
indicated. 

(331) Law 141/2025 of July 25, 2025, implemented through Order 

5.197/2025 of August 6, 2025. 

(332) OECD, 2023, PISA 2022. 

(328) European Commission, Directorate-General for Justice and 
Consumers, Human European Consultancy, Pascu, G. and 
Cojocaru, A., 2025, European Semester 2025-2026 country 
fiche on disability equality – Romania.  

(329) OECD, 2025, Education at a Glance 2025. 

(330) Emergency ordinance 156/2024 of December 2024. 

(333) Achieving level 4 or above in one of the PISA domains 
(Commission calculations based on OECD 2022 PISA). 

(334) OECD,2024, Education at a Glance 2024.  

(335) European Union Agency for Fundamental Rights, 2025, 

Rights of Roma and Travellers in 13 European countries: 
Perspectives from the Roma Survey 2024. 

113 

 
 
 
in 2 000 rural communities (see Annex 12) to help 
address gaps in rural educational outcomes.  

Graph A13.1: Difference in average basic skills 
performance between schools in urban and rural 
areas 2022, Romania and EU 

Source: PISA 2022 Urban-Rural Score Gaps 

High  rates  of  early  school  leaving  and  out-
of-school  children  restrict  access  to  further 
education and the labour market, reinforcing 
poverty. The share of young adults (aged 18-24) 
who  left  education  and  training  early  increased 
overall,  peaking  at  16.8%  before  declining  to 
15.5% in 2025, close to 2020 levels, while the EU 
average declined steadily from 10% to 9.1%. Early 
school  leaving  remains  particularly  high  in  rural 
areas  (23.7%  vs  4.6%  in  cities),  in  towns  and 
suburbs (16.3%), and, despite some improvement, 
among Roma (336). Moreover, in 2024 early school 
leaving  concerned  61.6%  of  young  people  with 
disabilities  (EU:  24.6%).  Through  the  national 
programme  for  reducing  school  dropout  (PNRAS), 
financed  under  the  RRF,  2 300  schools  receive 
support  for  educational,  remedial  and  preventive 
activities  in  grades  5-8,  with  45%  of  schools 
selected  under  the  first  lot  showing  improved 
in  national 
participation  and 
rates (337). 
evaluations,  and 
Similar measures are expected to be  rolled out in 
primary  education  under  the  ESF+,  although  the 
project is delayed. However, with more children out 
of  school  (338)  and  limited  results  from  second-

performance 
reduced  dropout 

(336) Fundamental Rights Agency, 2025, Roma upper-secondary 
completion rose from 22% in 2021 to 34% in 2024. 

(337) Ministry of Education, 2025, Evaluation of the National 
Programme for Reducing School Dropout - Round I, 
conducted by the World Bank: Positive results for the 
Romanian education system. 

(338) National Institute of Statistics (INSSE): In 2022, only 83.9% 
of children of primary school age (6-10) were enrolled in 
school (vs 90.5% in 2015) (INSSE, code scl102a). Raportul 
de analiză și eficientizare a cheltuielilor publice în domeniul 
educație. 

targeted 

outreach 

chance  measures, 
and 
reintegration  measures  (including  enforcement  of 
compulsory 
insufficient. 
Educational  disparities  limit  career  opportunities 
and 
(see 
Annex 10). 

intergenerational  poverty 

education) 

reinforce 

remain 

Limited alignment of VET with labour market 
needs  can  contribute  to  skills  gaps  and 
constrain  competitiveness.  Although  a  high 
share  of  upper-secondary  students  attend  VET 
(61.2%  vs  52.9%  EU  average  in  2024),  the  slow 
uptake of work-based learning and dual VET limits 
its labour-market relevance. In 2025, only 9.1% of 
recent  VET  participants  had  work-based  learning 
during their training (vs EU average: 66.0%), while 
only  63.4%  of  those  who  had  recently  completed 
VET  were  employed  (EU  average:  80.2%),  mainly 
due  to  weak  involvement  of  businesses  and 
limited  use  of  skills  intelligence  in  policymaking 
(339). Of Romania’s upper secondary VET students, 
35.9%  (EU  average:  36.6%)  were  in  STEM,  of 
whom 36.5% were female (EU: 15.4%), suggesting 
potential 
future  skill  demands. 
Strengthening  VET’s  labour-market  relevance  and 
making  use  of  digital  and  AI  technologies  would 
improve  employment  outcomes,  particularly  for 
students  from  disadvantaged  backgrounds,  and 
improve  inclusion  of  students  with  disabilities. 
With demand for highly skilled labour projected to 
grow strongly by 2035, persistent skills gaps could 
lead  to  labour  shortages  and  weaker  innovation, 
productivity and competitiveness.  

to  address 

Persistent  low  tertiary  attainment  points  to 
to  advanced  skills 
structural  barriers 
development.  Tertiary  attainment  among  those 
aged  25-34  stood  at  23.0%  in  2025,  broadly 
stagnant  over  the  last  decade  and  far  below  the 
EU  average  of  44.8%  and  the  2030  EU-level 
target  of  45%.  Stagnation  over  the  past  decade 
has  been  driven  by  high  early  school  leaving,  low 
participation  of  disadvantaged  students,  high 
dropout  rates  (especially  among  VET  graduates 
pursuing higher education studies) due to financial 
barriers  and  misalignment  between  upper-
secondary  and  higher  education  pathways,  and 
emigration (340). To improve participation, Romania 
is 
implementing  the  national  programme  for 
reducing  university  dropout  (PNRAU),  with  its 

(339) European Commission, 2025, Education and Training Monitor 

(340) OECD, 2025, Education and Skills in Romania. 

114 

020406080100120140MATHEMATICSREADINGSCIENCEPISA Scoreboard RomaniaEU-22 
   
 
 
methodology  adopted  in  2025.  This  includes  the 
ESF+  co-funded  'First  student  in  the  family' 
programme,  supporting  young  students  with 
scholarships  and  housing/meal  assistance,  career 
counselling,  and  remedial  education.  It  is  already 
showing  good  progress  towards  the  target  of 
10 000  students  supported.  ESF+  will  also 
compensate  for  reduced  social  scholarships  in 
2025-2026  due  to  fiscal  consolidation.  While  the 
‘First  student  in  the  family’  programme  aims  to 
improve  accessibility  and  retention,  its  impact  on 
students  with  disabilities 
limited. 
Additionally,  ongoing  RRP  investments  in  student 
infrastructure, 
accommodation  and  university 
alongside 
education 
infrastructure  upgrades,  aim  to  enhance  the 
learning  environment.  To  boost  access  for  VET 
participants  and  labour-market  relevance,  five 
integrated  VET  campuses  are  being  funded  under 
IT 
the  RRP, 
in  VET 
laboratories  and  practice  workshops 
schools.  However,  challenges  remain,  including 
weak  institutional  governance  and  underfunded 
research (see Annex 4). 

including  further  equipping  of 

ERDF-funded 

remains 

tertiary 

The  number  of  STEM  graduates  remains 
below  demand  despite  high  enrolment. 
Romania  is  close  to  the  proposed  EU  targets  in 
tertiary  STEM  education,  with  30.9%  of  students 
enrolled  in  STEM  fields  in  2023  (EU  average: 
26.9%)  and  37.4%  of  them  being  women  (EU: 
32.2%).  However,  low  overall  participation  and 
high  dropout  rates  resulted  in  only  19.0  STEM 
graduates (ISCED 5-8) per 1 000 people aged 20-
29  in  2023  (EU  average:  22.4).  ICT  enrolment  is 
improving,  with  4.5%  of  doctoral  students  in  ICT 
(EU  average:  3.8%)  and  33.1%  of  them  being 
women  (EU:  24.3%).  Despite  these  gains,  labour 
market  forecasts  for  2022–2035(341)  predict  that 
Romania will have one of the highest increases in 
demand  for  STEM  professionals 
in  the  EU. 
Persistently  high  dropout 
rates  and  STEM 
education  misaligned  with  economic  needs  may 
mean this demand is not fully addressed.  

improvements, 

Despite  recent 
low  adult 
learning  participation  hampers  innovation 
and  productivity.  Between  2016  and  2022, 
Romania  experienced  a  substantial  improvement 
in  the  adult  learning  participation  rate,  having 
already achieved the 2030 national skills target in 

low  among 

2022 (342). Data from the labour force survey (LFS) 
also point to an increase between 2022 and 2024. 
Although  substantial  progress  was  made,  the 
participation rate remains among the lowest in the 
is 
EU 
(19.1%  vs  EU  average:  39.5%)  and 
lower-
particularly 
secondary  education 
(3.7%),  the  unemployed 
(5.2%),  and  those  living  in  rural  areas  (7.7%)(343). 
Private sector employees still have limited lifelong 
learning  opportunities,  with  only  17.5%  of 
businesses  providing  some  form  of  continuing 
vocational education and training (344). This reflects 
the private sector’s weak engagement in upskilling 
and lifelong learning. 

those  with 

Skills shortages continue to affect Romania’s 
green transition and the wider economy. Skills 
shortages  are  particularly  present 
in  sectors 
relevant  to  the  green  transition,  in  particular  the 
construction  sector.  In  2023,  84%  of  small  and 
in  the  construction 
medium-sized  enterprises 
sector  indicated  that  skills  shortages  held  them 
back  in  general  business  activities  (345).  Workers’ 
participation  in  education  and  training  in  energy-
intensive  industries  increased  from  2.2%  in  2015 
to 20% in 2025, well above the EU average (12%) 
(346)  which  shows  a  positive  trend  towards 
addressing these challenges.  The macroeconomic 
skills mismatch indicator  (347) increased slightly to 
22.5%  in  2025  compared  to  22.1%  in  2024  but 
remains  above  the  EU  average  of  19.2%.  The 
demand  for  highly  skilled  workers  is  forecast  to 
grow  by  26% (348).  Misalignment  between 
workforce skills and employer needs is reported as 

(342) European Commission, 2025, Education and Training Monitor 

2025. 

(343) European Commission, 2025, Education and Training Monitor 

2025. 

(344) [trng_cvt_01s] Enterprises providing training by type of 

training and size class - % of all enterprises. Data available 
for 2020, unclear when 2025 data will be published.  

(345) Eurobarometer 509, 2023, European Year of Skills: Skills 

shortages, recruitment and retention strategies in small and 
medium-sized enterprises.  

(346) The macroeconomic skills mismatch indicator measures the 
dispersion of employment rates across skill groups (proxied 
by qualification levels, with ISCED 0-2 low; 3-4 medium and 
5-7 high). Source: European Commission own calculations. 

(347) The macroeconomic skills mismatch indicator measures the 
dispersion of employment rates across skill groups (proxied 
by qualification levels, with ISCED 0-2 low; 3-4 medium and 
5-7 high). Source: European Commission own calculations. 

(341) Cedefop, 2025, Skills forecast 2025. 

(348) Cedefop, 2025, Skills forecast 2025.  

115 

 
 
 
and 

certifications 

pilot  individual  learning  accounts,  roll  out  micro-
improve 
credential 
quality assurance. The RRP includes investments to 
upskill/reskill  employees  in  SMEs,  provide  digital 
skills training for civil servants, and disadvantaged 
communities  in  local  libraries  turned  into  digital 
skills hubs. However, the latter investment, initially 
expected to reach 100 000 people, was reduced in 
the latest RRP amendment. 

one  of  the  key  constraints  for  businesses  (349). 
With  support  from  the  EU’s  TSI,  Romania  aims  to 
implement  a  competence-  and  evidence-based 
national  curriculum  in  general  education  that  is 
more aligned to labour market needs.  

Romania  faces  a  major  digital  skills  deficit, 
which poses a risk for economic development 
and social inclusion. In 2025, less than one third 
of the population had basic digital skills (31.8% vs 
EU  average:  60.4%),  with  74%  of  14-year-olds 
lacking  essential  computer  and 
information 
literacy  skills (EU-22  average:  43%),  far  from  the 
EU  target  of  only  15%  by  2030.  This 
is 
compounded  by  one  of  the  EU’s  largest  socio-
economic gaps in digital skills, at 57 pps based on 
parents’ educational status (EU average: 40.9 pps). 
The  RRP  provides  funding  for  digital  equipment, 
resources  and  teacher  training  in  schools,  while 
also supporting at least 60 universities to enhance 
their  digital  infrastructures,  digital  skills  of  staff 
and 
Romania’s 
digitalisation  efforts  are  hindered  by  digital  skills 
gaps,  particularly  among  the  rural  and  older 
population  and  people  with  disabilities,  risking 
exclusion  from  the  labour  market  and  public 
services. 

students, 

curricula. 

and 

has 

skills 

intelligence 

Romania is actively addressing challenges in 
adult  learning  and  skills  gaps  under  a  new 
strategic  framework.  Romania  is  performing 
poorly  in  the  2024  European  Skills  Index  (350) 
measuring  skills  development,  activation  and 
matching  of  national  skills  systems.  However, 
Romania’s 
been 
strengthened  through  the  ESF-funded  ReCONECT 
project,  which  developed  a  graduate  tracking 
tool,  a  policy 
system,  a  skills  anticipation 
evaluation  dashboard  and  a  national 
labour 
demand  forecast  until  2028.  The  implementation 
of  adult  learning  strategies  developed  by  the 
Ministry  of  Labour  and  the  Ministry  of  Education 
has gained momentum in 2024, largely supported 
by  the  ESF+  and  the  RRP.  Large-scale  upskilling 
projects targeted at employees (e.g. ‘Keep Up’ and 
‘Digital  skills  for  the  labour  market’)  and  low-
skilled 
individuals  (‘Basic  package  for  people 
with/without  a  low  level  of  education’)  are  being 
implemented, with the potential to reach over 100 
000  people.  The  strategies  also  include  plans  to 

(349) Eurobarometer on SMEs, 2023, World Bank Private Sector 

Diagnostic 

(350) Cedefop, European Skills Index (2024) 

116 

 
 
ANNEX 14: SOCIAL SCOREBOARD 

Table A14.1:Social Scoreboard for Romania 

Update of 4 May 2026. Members States are categorised based on the Social Scoreboard according to a methodology agreed with 
the EMCO and SPC Committees. Please consult the Annex of the Joint Employment Report 2026 for details on the methodology 
(https://employment-social-affairs.ec.europa.eu/joint-employment-report-2026_en). 
Source: Eurostat 

117 

19.115.531.819.218.74.3769.06.12.1178.827.432.421.745.45.011.12.9Critical situationTo watchWeak but improvingGood but to monitorOn averageAdult participation in learning (during the last 12 months, excl. guided on the job training, % of the population aged 25-64, 2022)Equal opportunities and access to the labour marketBest performersBetter than averageEarly leavers from education and training(% of  the population aged 18-24, 2025)Young people not in employment, education or training(% of the population aged 15-29, 2025)Gender employment gap(percentage points, population aged 20-64, 2025)Income quintile ratio (S80/S20, 2025)At risk of poverty or social exclusion (AROPE) rate (% of the total population, 2025)Employment rate(% of the population aged 20-64, 2025)Unemployment rate(% of the active population aged 15-74, 2025)Long term unemployment(% of the active population aged 15-74, 2025)Gross disposable household income (GDHI) per capita growth(index, 2008=100, 2024)At risk of poverty or social exclusion (AROPE) rate for children(% of the population aged 0-17, 2025)Dynamic labour markets and fair working conditionsSocial protection and inclusionShare of individuals who have basic or above basic overall digital skills(% of the population aged 16-74, 2025)Impact of social transfers (other than pensions) on poverty reduction(% reduction of AROP, 2025)Children aged less than 3 years in formal childcare (% of the under 3-years-old population, 2025)Self-reported unmet need for medical care (% of the population aged 16+, 2025)Disability employment gap (percentage points, population aged 20-64, 2025)Housing cost overburden (% of the total population, 2025) 
 
 
 
  
 
 
ANNEX 15: HEALTH AND HEALTH SYSTEMS 

life 

resulting 

expectancy 

distribution 

geographical 

Romania’s  health  system  faces  significant 
challenges  that  need  to  be  addressed  to 
improve  the  health  of  its  population,  social 
fairness  and  productivity.  Challenges  include 
from  high 
low 
preventable  and  treatable  mortality  and  limited 
access  to  care.  These  issues  are  caused  by: 
(i) inadequate  allocation  of  resources,  reflected  in 
and  weak 
poor 
organisation  and  management  of  healthcare 
delivery; (ii) a limited focus on prevention, primary 
care  and  outpatient  services;  and  (iii) persistent 
shortages  of  healthcare  workers,  resulting  in 
limited access to care, particularly in primary care 
in  rural  and  remote  areas.  The  2025 
and 
country-specific 
(CSRs) 
highlighted  the  access  challenges,  in  particular 
those  related  to  ‘quality  essential  and  enabling 
services’,  including  health,  in  particular  for  Roma 
and 
groups,  while 
maintaining fiscal sustainability.  

recommendations 

disadvantaged 

other 

Graph A15.1: Treatable mortality 

Age-standardised death rate - mortality that could be avoided 
through optimal quality healthcare. 
Source: Eurostat (indicator: hlth_cd_apr) 

Life  expectancy  at  birth  in  Romania  was 
among  the  lowest  in  the  EU  in  2024,  and  in 
2022  avoidable  mortality  was  among  the 
highest.  There  is  still  a  large  gender  gap  in  life 
expectancy  in  Romania,  with  men  living  7.5 years 
less than women on average. This is partly due to 
men’s  greater  exposure  to  risk  factors  such  as 
smoking  and  very  high  alcohol  consumption.  In 
2023,  the  rate  of  treatable  mortality  was  one  of 
the  highest 
the  EU,  suggesting  serious 
shortcomings  in  the  effectiveness  of  the  health 
system.  Moreover,  Romania  has  seen  a  very 
limited decline in the mortality rate from treatable 
causes  over  the  last  10 years.  The  treatable 
mortality  rate  reached  more  than  twice  the  EU 
average in 2022, and the gap widened during the 

in 

system 

(cardiovascular 

pandemic  (see  Graph A15.1).  Diseases  of  the 
diseases 
circulatory 
(CVDs))  were  the  main  cause  of  death  in  2023. 
The  2024-2030  national  strategy  to  combat 
cardiovascular  and  cerebrovascular  diseases, 
published  in  October  2024,  sets  out  integrated 
measures 
diagnosis, 
prevention, 
treatment  and  patient  rehabilitation.  Romania 
participates  in  several  EU4Health-funded  joint 
actions  that  aim  to  reduce  the  burden  of 
cardiovascular  diseases,  cancer,  diabetes  and 
respiratory diseases (351).  

early 

for 

reducing  preventable  mortality. 

Preventable  mortality  was  also  very  high  in 
2023. Romania is among the countries allocating 
the  smallest  shares  of  health  expenditure  to 
prevention.  Despite  limited  resources,  prevention 
efforts  were  strengthened  in  2024  through  the 
introduction  of  a  primary  care  screening  tool.  The 
‘Riskogramme‘  aims  to  reduce  high  levels  of 
avoidable  mortality  and  is  designed  for  adults 
aged  40 years  and  over  to 
identify  chronic 
conditions  (such  as  circulatory  diseases,  cancer 
and  diabetes)  as  well  as  behavioural  risk  factors 
(including  alcohol  use  and  smoking).  However, 
Romania still lacks a comprehensive, multisectoral 
approach to primary prevention, which is essential 
to 
Influenza 
vaccination among people aged 65 years and over 
was  less  than  half  the  EU  average  in  2022  and 
2023.  Immunisation  against  measles  is  declining, 
with  one  of  the  lowest  rates  in  the  EU  in  2024. 
Between  1 August  2024  and  31 July  2025, 
Romania accounted for 67% of all measles cases 
reported  in  the  EU,  reflecting  the  impact  of 
persistently  low  vaccination  coverage  (352).  Policy 
measures  have 
increase 
vaccination  uptake.  The  2023-2030  National 
Vaccination  Strategy  was  adopted  in  2023,  most 
vaccines  were  made  free  of  charge,  and  the 
human 
vaccination 
programme  was  relaunched  in  2020,  but  HPV 
coverage still remains below the EU average.  

recently  aimed 

papillomavirus 

(HPV) 

to 

Preventable  mortality  in  Romania  is  closely 
linked to lifestyle risk factors.  A large portion 
of  the  population  is  overweight,  with  childhood 
obesity  rates  among  the  highest  in  the  EU. 
Romania  is  among  the  countries  that  had  the 
highest  levels  and  saw  the  largest  increases  in 
alcohol consumption between 2010 and 2022. The 

(351) EUnetCCC Joint Action; Home - Jane 2. 

(352) ECDC (2025), Measles and Rubella monthly report. 

118 

207.6208.6235.1254.7215.0199.794.889.291.793.389.786.8201420192020202120222023per 100 000 populationRomaniaEU 
 
     
 
 
 
country  also  has  one  of  the  highest  shares  of 
people not eating fruit or vegetables at least daily 
and not engaging in physical activity. 

These  poor  health  outcomes  negatively 
affect Romania’s workforce, productivity and 
competitiveness. 
In  Romania,  mortality  at 
working age as a proportion of total mortality was 
among the highest in the EU in 2024, exacerbating 
the  effects  of  population  ageing  on  a  shrinking 
labour  force.  Expanding  preventive  action  could 
deliver  health  gains  that  would  help  mitigate  this 
impact.  For  example,  preventing  all  deaths  from 
non-communicable  diseases 
in  Romania  –  in 
particular  CVDs  –  would  result  in  a  1.8%  gain  in 
working-life  years  from  2022  to  2040  (vs  0.9% 
for  the  EU,  see  Graph A15.2).  This  is  among  the 
highest potential  increases  across  Member  States 
and  would  save  about  3 228 300 life  years 
between  2022  and  2040.  This  increase  would 
mitigate  an  otherwise  expected  7%  reduction  of 
the  workforce  due  to  population  ageing,  equal  to 
the EU average (353). 

The 

care. 

system 

Romania had one of the highest hospital bed 
densities  in  the  EU  in  2023,  accompanied  by 
high  discharge  rates,  although  much  of  the 
infrastructure  is  outdated  and  undergoing 
major  modernisation.  In  2023,  health  spending 
per  inhabitant  was  among  the  lowest  in  the  EU, 
with the largest share going on inpatient care and 
remains 
health 
day 
hospital-centric. Avoidable hospital admissions for 
many  chronic  conditions  are  high,  reflecting 
long-standing  gaps  in  primary  care  capacity  and 
coordination.  Despite  the  national  health  strategy 
for 2023-2030 aiming to strengthen the role  and 
improve  the  performance  of  outpatient  care, 
progress has been limited, and a substantial share 
of  healthcare  resources  continues  to  be  directed 
towards hospital care. The persistently low level of 
investment 
is  also 
the  health 
accompanied  by  limited  per  capita  investment  in 
infrastructure.  However,  the  Romanian 
health 
recovery and resilience plan (RRP) aims to expand 
the  capacity  of  health  services  and  support 
essential  investments  within  the  health  sector. 
include  upgrading  health 
Major 
infrastructure 
construction  or 
renovation  of  hospitals,  integrated  community 
centres, outpatient care units and family planning 
for  healthcare 
offices.  Significant 

initiatives 

through 

funding 

sector 

the 

in 

(353) EC/OECD, State of Health in the EU: 2025 Synthesis Report. 

is  also  planned  under 

(EUR 3.6 billion) 
the 
2021-2027  cohesion  policy  funds  to  address  key 
access  and  quality  challenges  highlighted  in  the 
2025  CSR. 
funding  will  modernise 
infrastructure  and  medical  equipment,  strengthen 
screening  programmes  and  invest  in  primary, 
community-based services. 

This 

Graph A15.2: Potential gains in working-life years 
from prevention, between 2022 and 2040 

Source: EC/OECD, State of Health in the EU: 2025 Synthesis 
Report 

strengthen  health 

is  advancing 
to 

long-term  health 
Romania 
reforms 
system 
resilience,  but  the  sustainability  of  these 
reforms is challenged by long-term financing 
constraints.  Public  spending  on  health  rose 
sharply before and after the COVID-19 pandemic, 
but its share of total  government expenditure fell 
from 13.8% in 2019 to 11.7% in 2023. This raises 
concerns about the long-term financing of reforms 
outlined  by  Romania  for  the  2023-2030  period. 
Antimicrobial  resistance  (AMR)  is  a  major  public 
health threat in Romania, as in other EU countries. 
Romanians  have  long  ranked  among  the  highest 
consumers  of  antibiotics  in  the  EU.  In  2024, 
antibiotic consumption reached 25.2 defined daily 
doses  (DDDs)  per  1 000  population  per  day, 
exceeding pre-pandemic levels. The country is not 
on track to achieve its 2030 reduction target (354). 
To  curb  uncontrolled  antibiotic  use,  Romania 
introduced  enhanced  monitoring  rules  in  2024 
requiring pharmacists to systematically record and 
report  prescription  and  dispensing  data,  with  the 
aim  of  tracking  the  trends.  Romania  is  also 
involved  in  the  Joint  Action  on  Antimicrobial 

(354) National target set by the Council Recommendation on 

stepping up EU actions to combat antimicrobial resistance in 
a One Health approach, 2023/C 220/01. 

119 

0.8%0.5%0.9%0.3%0.1%0.1%0.0%0.5%1.0%1.5%2.0%RomaniaEUCancerCVDDiabetes and chronic lower respiratory disease 
 
     
 
Table A15.1:Key health indicators 

*The EU average is weighted for all indicators except for doctors and nurses per 1 000 population, for which the EU simple 
average is used based on 2023 data (or latest available). Doctors’ density data refer to practising doctors in all countries except 
Greece, Portugal (licensed to practise) and Slovakia (professionally active). Density of nurses: data refer to practising nurses (EU 
recognised qualification) in most countries except Portugal (licensed to practice) and Slovakia (professionally active). Latest data 
update on nurses for Belgium and Sweden: 2022; for France: 2021; for Luxembourg: 2017. 
** latest available 10-year trend: ratio 2023/2014 or 2024/2013; a factor of 2.00 means that it has doubled in 10 years. 
***’Available hospital beds’ covers somatic care, not psychiatric care. 
Source: Eurostat 

Resistance  and  Healthcare-Associated  Infections 
(355).  

Poor access to outpatient care is a key driver 
of  Romania’s  high 
levels  of  treatable 
mortality.  Romania  devoted  one  of  the  lowest 
shares  of  health  spending  to  primary  care  in  the 
EU in 2023. Limited primary care capacity pushes 
many  patients  to  rely  on  emergency  departments 
as  the  main  entry  point  to  specialist  services, 
resulting 
visits. 
Inadequate outpatient care further restricts access 
to  healthcare,  a  concern  highlighted  in  the  2025 
CSR. Greater integration and coordination between 
primary, outpatient and hospital care are identified 
in  the  National  Health  Strategy  2023-2030  as 
important  areas  for  development,  with  effective 
implementation  seen  as  an  important  enabling 
factor.  

emergency 

avoidable 

in 

in 

to  healthcare 

remains  uneven, 
Access 
especially 
rural  areas  and  among 
disadvantaged groups, with financial barriers 
playing a major role. Romania’s health benefits 
package  is  broad,  and  in  2023  public  financing 
covered almost all inpatient care – well above the 
EU  average  –  while  public  coverage  of  outpatient 
care was in line with the EU average. By contrast, 
only  about  half  of  pharmaceutical  spending  was 
publicly  financed,  and  public  coverage  of  dental 
care  was  well  below  the  EU  average.  Dental 

(355) EU-JAMRAI 2 funded by the EU4Health Programme. 

average 

services  are  covered  only  for  children,  veterans 
and patients with chronic conditions. Relatively few 
dentists  are  contracted  by  the  National  Health 
Insurance  House  (356),  contributing  to  high  unmet 
needs  for  dental  care,  particularly  among  people 
at risk of poverty, as also noted in the 2025 CSR. 
Although  unmet  needs  for  medical  care  fell  from 
5.2% in 2023 to 2.2% in 2024, they rose again in 
2025 (2.9%). Financial barriers and travel distance 
remain key factors, alongside pronounced income-
related  and  rural-urban  disparities  (including  for 
Roma). Romania has one of the largest gaps in the 
EU  in  unmet  needs  between  rural  areas  and  the 
national 
Income 
disparities  are  stark:  around  5%  of  people  above 
the  poverty  threshold  reported  unmet  needs, 
compared  with  17%  among  those  below  the 
threshold.  Moreover,  access  to  mental  healthcare 
remains  limited,  and  community-based  mental 
health  services  are  still  under  development  under 
the  2024-2029  action  plan.  Out-of-pocket  (OOP) 
payments have risen since 2019, reaching 23% of 
total  health  spending  in  2023,  well  above  the  EU 
average  (15%).  Nearly  60%  of  these  payments 
were for pharmaceuticals, followed by dental care 
and outpatient services. To mitigate costs, in 2023 
the  government  increased  the  income  threshold 
for  pensioners  eligible  for  reduced  medicine  co-
payments to EUR 321 per month. 

(see  Annex 18). 

(356) OECD/European Observatory on Health Systems and Policies 
(2025), Country Health Profile 2025: Romania. State of 
Health in the EU. 

120 

2020202120222023202410-year change**EU average* (latest year) Cancer mortality per 100 000 population260.3243.2240.8241.5n.a.0.88233.1 (2023)Mortality due to circulatory diseases per 100 000 population 918.21 005.4 924.5 787.1n.a.0.83313.0 (2023)Current expenditure on health, purchasing power standards, per capita1 4431 6461 6131 776n.a.2.323834.9 (2023)Public share of health expenditure, % of current health expenditure 80.3 78.3 77.8 76.2n.a.0.9780.6 (2023)Spending on prevention, % of current health expenditure 2.03.72.81.3n.a.0.723.7 (2023)Available hospital beds per 100 000 population*** 627 634 640 641n.a.1.06440 (2023)Doctors per 1 000 population*3.33.53.63.7n.a.1.354.3 (2023)*Nurses per 1 000 population* 0.8 0.9 0.9 1.0n.a.1.767.6 (2023)*Mortality at working age (20-64 years), % of total mortality21.621.320.821.020.50.8914.3 (2023)Consumption of antibiotics in the community and hospital sectors,      defined daily doses per 1 000 inhabitants 25.2 25.7 27.6 27.4 25.20.9020.3 (2024) 
 
 
 
     
 
In  2023, 

Shortages  of  health  personnel,  especially  of 
general  practitioners  (GPs),  constrain  care 
availability,  with  more  severe  impacts  in 
rural and remote areas. In 2023, the number of 
practising nurses per 1 000 population was among 
the  lowest  in  the  EU.  Romania  also  had  a 
comparatively  very 
low  number  of  nursing 
graduates in relation to its population (one fifth of 
there  were 
the  EU  average). 
3.7 physicians  per  1 000  population  in  Romania, 
compared  with  an  EU  average  of  4.3.  Retention 
challenges  continue  to  exacerbate  shortages  of 
doctors  and  nurses, impacting  on  the  accessibility 
of  health  and  long-term  care  (see  Annex 12). 
Despite  having  a  higher  density  of  medical 
graduates than the EU average, emigration among 
health  professionals  contributes  significantly  to 
workforce  shortfalls.  In  2023,  GPs  accounted  for 
18%  of  the  physician  workforce,  below  the  EU 
average  of  20%.  The  share  of  GPs  within  the 
medical workforce has been below the EU average 
since  2018  (357).  This  reflects  two  reinforcing 
pressures: low interest in primary care among new 
doctors, especially for working in rural areas, and a 
high  rate  of  retirement  among  current  GPs.  The 
latter  is  likely  to  persist,  as  two  in  five  GPs  are 
over  60 years  of  age  (358).  Romania  has  adopted 
measures to support retention, notably substantial 
salary increases for doctors in public hospitals, but 
progress in addressing workforce challenges in the 
primary  care  sector  remains  limited.  Under  the 
Romanian RRP, the 2022–2030 Human Resources 
Strategy  aims  to  improve  working  conditions, 
strengthen workforce planning and attract staff to 
underserved  areas.  RRP  measures  also  include 
health  worker  training  and  management  capacity, 
while  cohesion  policy  funds  invest  in  upskilling 
targeted  practitioners  to  improve  the  accessibility 
and effectiveness of primary care. 

By  utilising  support  from  the  EU’s  Technical 
Support Instrument, Romania aims to improve the 
digital competencies of health and care providers. 
Meanwhile, Romania’s health system digitalisation 
and  the  uptake  of  e-health  tools  still  lag  behind 
other  EU  countries  and  are  uneven  across  the 
population.  The  shares  of  people  accessing  their 
personal  health records online and of those using 
online health services (excluding phone) instead of 
in 
in-person  consultations 
Romania  in  2024  compared  with  2022  but  are 
well  below  the  EU  average.  This  illustrates  the 
generally low level of digital literacy in the country 
(see Annex 13). Moreover, major differences in the 
use  of  these  tools  are  observed  according  to 
people’s  socio-economic  background.  Romania  is 
currently  working  on  building  new  national 
integrated  e-health 
systems  while  actively 
joint  actions  funded  by  the 
participating 
EU4Health 
promoting 
and 
digitalisation (359).  

in 
programme 

increased 

further 

Romania’s  pharmaceutical  sector 
is  of 
comparatively modest economic significance. 
in  pharmaceutical  manufacturing 
Employment 
remains among the lowest in the EU, and Romania 
is  among  the  EU  countries  that  report  the  lowest 
public 
spending  on  health  R&D,  despite 
investments from cohesion policy funds under the 
Strategic Technologies for Europe Platform (STEP). 
The  numbers  of  European  patents  (360)  granted 
and  of  clinical  trials  (361)  per  million  population 
were  also  limited  and  below  the  EU  average, 
in  2024. 
despite  some  slight 
Regarding 
the 
industry  maintains  a  modest  share  of  extra-EU 
exports  (3.4%  in  2025  vs  13.8%  for  the  EU 
average), although there was a positive increase in 
2024 compared with 2023 (3.5% vs 1.3%). 

trade  and  commercialisation, 

improvements 

to 

yet 

has 

embrace 

Romania 
the 
opportunities  offered  by  e-health,  especially 
for  hard-to-reach  areas.  Investments  to  boost 
the  digital  transformation  of  Romania’s  health 
sector are planned under the 2021-2027 cohesion 
policy  and  as  part  of  the  RRP,  in  particular  to 
strengthen 
health 
institutions,  improve  data  management,  enhance 
access  to  health  data  and  reduce  fragmentation. 

capacity 

across 

digital 

(357) Country Health Profile 2025: Romania 2025 – see earlier 

footnote. 

(358) Country Health Profile 2025: Romania 2025 – see earlier 

footnote. 

(359) Second Joint Action Towards the European Health Data 

Space – TEHDAS2 - Tehdas https://tehdas.eu/. 

(360) European Patent Office: Statistics & Trends Centre | epo.org.  

(361) US National Library of Medicine, https://clinicaltrials.gov. 

121 

 
 
 
ANNEX 16: HOUSING 

The  Romanian  housing  market  is  geared 
towards  owner-occupied  housing,  with  most 
rentals being informal and no legally secured 
tenant  protection.  With  the  high  ownership 
rates,  policies  tend  to  focus  on  homeownership. 
However,  the  lack  of  rental  protection  could 
negatively  impact  the  chances  of  a  healthy  and 
larger  formal  rental  market  developing,  which 
would  be  particularly  beneficial  for  young  and 
older  people,  people  with  disabilities,  vulnerable 
groups, such as Roma, mobile workers and expats. 
A  formal  rental  market  would  also  create  better 
conditions  for  private  investment  in  new  supply 
and in renovation. 

Housing affordability has generally improved 
in  Romania  over  the  past  ten  years,  but  an 
affordability  gap  persists.  House  prices  in  the 
past  decade  grew  less  rapidly  than  household 
incomes.  However,  in  absolute  terms,  purchase 
affordability  remains  constrained  by  low-income 
levels  and  high  interest  rates.  While  the  rental 
market is rather small and largely informal, rental 
affordability  pressures  are  substantial,  especially 
in urban areas. 

Housing costs have decreased but still weigh 
heavily  on  living  standards  as  do  energy 
costs.  The  house  price-to-income  ratio  has 
declined  over  the  past  decade,  thereby  improving 
housing  affordability. 
line  with  this,  the 
In 
proportion  of  people  facing  housing  costs  that 
exceed  40%  of  their  total  disposable  household 
income  has  decreased  in  recent  years,  amid 
steady  growth  in  income  levels,  but  is  still  more 
pronounced  for  those  at  risk  of  poverty.  In  2024, 
households  experiencing  poverty  spent  more  than 
twice  as  much  of  their  disposable  income  on 
housing  compared  with  other  households.  The 
same  is  true  for  energy  bills,  where  sudden  price 
hikes,  in  particular,  affect  households  in  poverty 
the most. People with disabilities often face higher 
housing and energy costs due to accessibility  and 
increased  energy  needs  for  medical  equipment, 
mobility devices and temperature regulation. 

lived 

Poor  housing  conditions  remain  widespread.  
In  2024,  40.7%  of  Romanians 
in  an 
overcrowded  household  vs  16.9%  in  the  EU.  For 
those  at  risk  of  poverty,  more  than  half  are 
affected  vs  28.9%  in  the  EU.  This  indicates 
insufficient  housing  supply  relative  to  household 
needs.  People  with  disabilities  continue 
to 
experience  inequality  in  housing  conditions  and 
limited  access  to  accessible  housing  and  support. 

Thus,  many  adults  with  disabilities  live  with  their 
parents  or  in  institutions  owing  to  a  lack  of 
accessible  (social)  housing  in  the  community. 
Despite  improvements,  Romania  still  has  one  of 
the highest severe housing deprivation rates in the 
EU, with almost 1 in 10 people living in homes that 
are  overcrowded  and  have  a  leaking  roof,  damp 
walls,  floors  or  foundations  or  rot  in  window 
frames  or  floors.  This  is  the  case  particularly  in 
rural  areas,  and  for  those  under  the  poverty 
threshold.  This 
inadequate 
infrastructure,  limited  access  to  services  and 
marginalisation, especially in informal settlements. 
Furthermore,  in  2023,  a  relatively  high  proportion 
of  the  population  and  of  those  below the poverty 
threshold  (15.4%  and  43.3%,  respectively)  (362). 
While  keeping  homes  affordable,  especially  for 
those  at  risk  of  poverty,  it  would  be  beneficial  to 
improve not only housing quality  and accessibility 
but  also  access  to  essential  and  social  inclusion 
services. 

largely  due  to 

is 

Housing market developments 

Romania  has  the  highest  home  ownership 
rate in the EU. Around 94% of people lived in an 
owner-occupied  dwelling  in  2024(363),  compared 
with  an  EU  average  of  70%  (364).  This  pattern 
reflects the mass privatisation of state housing in 
the 1990s. 

Despite a noticeable increase in house prices 
from  2014  to  2025  (69%,  with  an  average 
annual  growth  rate  of  6.3%),  the  price 
increase  has  remained  consistently  below 
income  growth.  This  has  resulted  in  a  declining 
price-to-income  ratio  and  increased  affordability 
(365).  Nevertheless,  purchase  affordability  is  still 
constrained  by  income  levels  and  high  interest 
rates. While purchasing a 100 m2 apartment would 

(362) Purchasing power parities, price level indices, nominal and 

real expenditures by analytical categories - based on COICOP 
1999[prc_ppp_ind__custom_17966005]. 

(363) The  home  ownership  rate  is  the  percentage  of  people  who 
lived in an owner-occupied dwelling. Full definition available 
here (Eurostat). 

(364) European Commission: Eurostat, ‘Distribution of population 

by tenure status, type of household and income 
group’[ilc_lvho02]. 

(365) European Commission calculations based on Eurostat 

(2025). 

122 

 
 
 
 
 
cost 40% of a homeowner’s average income over 
at  least  20  years  in  most  Romanian  NUTS  3 
regions, in most western European countries this is 
the  case  only  in  a  minority  of  regions.  Mortgage 
repayment  periods,  even  for  small  dwellings, 
frequently  exceed  30  years  when  one  third  of 
income  repayments  (366).  The  uptake  of  housing 
loans is very limited in the country, with only 1.5% 
of  the  population  living  in  a  mortgage-backed 
apartment, vs the EU average of 22%. 

Romania’s  rental  housing  market  remains 
small  and  informal,  reflecting  the  country’s 
exceptionally  high  homeownership  rate  and 
the  limited  affordability.  Rental  affordability 
pressures  are  substantial,  particularly  in  urban 
areas.  While  only  6%  of  the  population  lives  in  a 
rental  unit (Eurostat, Distribution of population by 
tenure  status,  type  of  household  and  income 
group), the actual proportion appears to be higher 
when  accounting  for  the  informal  market  (for 
which, by definition, no reliable statistics exist). For 
small  dwellings  (around  25 m²),  rents  in  some 
cities  absorb  more  than  two  thirds  of  average 
incomes,  while  affordability  challenges  are  even 
higher  for  standard-sized  units  (around  45 (367)). 
The rapid growth of short-term rentals could result 
in a further tightening of the urban rental  supply, 
with  demand  (excluding  hotels)  having  increased 
by  120%  from  2019  to  2024(368)).  That  was  the 
highest  increase  in  the  European  Union,  with  the 
EU  average  increase  being  66.8%.  However,  the 
starting  point  was  significantly  lower  than  in 
Member  States  of  comparable  size  in  the  region, 
such  as  Hungary  and  Poland.  This  surge  could 
reduce  the  availability  of  the  long-term  rental 
stock,  potentially  affecting  rent  levels  for  local 
residents.  Moreover,  weak  contract  registration 
enforcement  on  the  landlord  side,  combined  with 
limited  incentives  for  tenants  to  register  (e.g. 
tenants  can  choose  a  general  practitioner  (369)  or 
enrol  their  children  in  in  a  given  school  (370) 

(366) ESPON (2025). HOUSE4ALL - Access to Affordable and 

Quality Housing for All: Main Report. 

(367) ESPON (2025). HOUSE4ALL - Access to Affordable and 

Quality Housing for All: Main Report. 

(368) Calculation based on Eurostat, Short-stay accommodation 

offered via collaborative economy platforms - experimental 
statistics. Available here (last accessed on 06/02/2026). 

(369) Law No 157/2008 supplementing Article 218(2) of Law No 
95/2006 on healthcare reform, published in the Official 
Gazette of Romania, Part I, No 557 of 23/08/2008. 

(370) Ministry of Education, Ministerial Order No 4019/2024, 

published in Official Journal, Part I, No 247 of 22/03/2024. 

without  being  registered  does  not  encourage  the 
formalisation  of  rental  contracts  and  instead 
favours informal arrangements. 

Despite a slight recovery as of 2024, housing 
supply  remains  subdued.  The  number  of 
building  permits  issued  has  been  declining  since 
2022,  while  construction  costs  have  been 
increasing  since  2021  (371).  After  reaching  its 
lowest level since 2016, the number of residential 
building  permits  issued  started  to  increase  again 
at  the  beginning  of  2024  (see  Graph  A16.1).  A 
the  provision  of 
remains 
particular  gap 
accessible  housing,  as  acknowledged 
in  the 
national strategy for the inclusion of persons with 
disabilities (372). 

in 

Graph A16.1: House supply indicators in RO since 
2005 

Source: Eurostat 

Urban-rural  disparities  persist,  with  housing 
price  pressures  concentrated  in  major  urban 
centres,  especially  Cluj-Napoca.  The  city  has 
become  the  most  expensive  housing  market  in 
Romania. In 2021, the average purchase price was 
around EUR 1 760 per square metre, substantially 
higher  than  the  EUR  1,200  average  price  of  the 
ten (373). Currently, house prices appear to be well 
above  2021 
in  big  cities. 
levels,  especially 
Considering the steady price increases, investing in 
renovations, 
an 

in  supply 

increase 

through 

(371) European Commission calculations based on Eurostat 

(2025). 

(372) National strategy for the rights of persons with disabilities 

‘An equitable Romania’, 2022-2027. 

(373) World Bank (2021). Cluj-Napoca Housing Strategy. 

123 

0.00.51.01.52.02.53.03.54.04.5801301802302803303800507091113151719212325% of GDPIndex (2005 = 100)Residential building permits in m2, indexResidential buildings producer prices, indexInvestment in dwellings (right-hand side axis) 
 
     
 
repurposing and new construction could take some 
pressure off the markets. 

among 

electricians) 

related 
are 

Romania  reported 
labour  shortages  for 
several  construction-related  occupations  in 
trade  workers 
2024.  Building  and 
(excluding 
the 
occupational  groups  with  shortages,  indicating 
(374). 
unmet  demand  for  construction 
Structural 
issues  such  as  skills  mismatches, 
demographic  pressures  and  a  shortage  of 
appropriately  trained  workers  can  contribute  to 
shortages,  including  in  the  construction  sector. 
Nonetheless, labour  shortages  in  Romania  remain 
well below the EU average (see Annex 11). 

labour 

Structural policies 

Romania’s  stocks  of  public  and  social 
housing are among the lowest in the EU. As of 
2021,  96%  of  Romania’s  total  housing  stock  is 
privately owned, while the state holds just 1.46% - 
one of the lowest proportions of public housing in 
the EU. 

According 

The  social  housing  stock  is  limited  and 
unevenly  managed. 
to  2025 
estimates, only 14.41% of all local governments in 
Romania  own  or  administer  social  housing, 
amounting  to  18 292  units,  or  0.018%  of  the 
national total. As social housing management is a 
responsibility of local governments, data on social 
housing  difficult  to  collect.  At  the  same  time,  the 
demand is very high, particularly for social housing 
(375). Actual demand is probably  even higher, as a 
lack  of  availability,  as  well  as  administrative  and 
informational barriers may prevent eligible people 
from  formally  applying.  Romania’s  previous  social 
housing  construction  programme  for  2007-2022 
(set up by Law 114/1996) increased the stock only 
marginally,  with  3 911  social  housing  units  built 
nationwide.  The  2022-2030  national  housing 
strategy  (Strategia  Nationala  a  Locuirii)  aims  to 
deliver  around  40 000  social  housing  units  by 
2050. 

improving 

Romania  has  worked  on 
its 
building  codes  and  regulations  to  adapt  the 
housing  stock  for  the  future.  This  includes 
updating  seismic  regulations  due  to  the  country's 
vulnerability  to  earthquakes,  with  new  guidelines 
to  make  buildings  more  resilient  to  seismic 
activity (376). The Energy Efficiency Law (121/2014) 
and 
have  mandated 
improvements  in  insulation,  heating  systems  and 
overall  energy  performance.  Although 
legal 
standards,  such  as  NP  051-2012,  define  clear 
accessibility requirements for the construction and 
renovation  of  both  public  and  private  buildings, 
enforcement is inconsistent (377). 

regulations 

related 

is  relatively  high 

The  vacancy  rate 
in 
Romania  and  there  is  no  dedicated  policy  to 
tackle  it.  National  vacancy  data  are  scarce  (378), 
with  only  associated  indicators,  such  as  labour 
market  tightness,  overcrowding,  social  housing 
shortage  and  housing  quality  deficits,  being 
reported. However,  there is a persistent  mismatch 
between  urban  centres,  which  attract  population, 
and areas with many rural homes (often inherited 
older  houses)  that  remain  unused.  Romania  has 
occasionally adjusted tax incentives or subsidies to 
promote homeownership (see Annex 3). 

that 

promotes 

legislation 

Romania  has launched initiatives to improve 
housing affordability and availability. As part 
of its recovery and resilience plan (RRP), Romania 
the 
adopted 
implementation  of 
the  2022-2050  national 
housing  strategy  and  its  action  plan.  The  national 
housing  strategy  aims  to  increase  access  to 
suitable  housing  for  vulnerable  groups,  especially 
young  people,  people  with  disabilities,  people  in 
informal  settlements  and  homeless  people.  The 
RRP  includes  investments  in  new  housing  for 
young  people  from  vulnerable  communities  and 
for  healthcare  and  education 
groups,  and 
marginalised 
professionals 
in 
communities.  Cohesion  policy 
funds  support 
energy-efficient  construction  and  renovation,  as 
well  as 
the  purchasing/renovation  of  social 
housing. These funds also support local authorities 
in  addressing  informal  settlements.  At  the  same 

working 

(374) ELA EURES report on Labour Shortages and Surpluses 2024. 

(375) 2021 Ministry of Development, Public Works and 

Administration, quoted also in the ESPON report 2025 
european-compendium-of-housing-policies.pdf. 

(376) World Bank 2025 Romania - Management of Earthquake 

Risk | GFDRR. 

(377) Accessible and sustainable housing for persons with 
disabilities, Georgiana Pascu, Ana Cojocaru, European 
Disability Expertise, to be published. 

(378) ESPON 2024. 

124 

 
 
 
time,  appropriate  monitoring  of  progress,  as  well 
as  sufficient  financing  for  implementation  of  the 
legislative  frameworks  have  not  yet  been  fully 
ensured.  There  is  still  scope  to  improve  housing 
market  regulation  and  zoning  policies  by:  (i) 
requiring a minimum percentage of affordable and 
social  housing  units 
infrastructure 
developments; (ii) enforcing minimum accessibility 
targets;  (iii)  flexibilising  the  purchasing  of  social 
housing;  (iv)  fostering  public-private  partnerships 
and 
(v) 
strengthening  the  implementation  of  the  2022-
2027  national  strategy  for  the  social  inclusion  of 
the homeless. 

involvement; 

in  new 

society 

civil 

and 

Vulnerable groups 

While there are no data available on waiting 
lists  in  Romania,  the  estimated  housing 
needs  among  the  most  vulnerable  are  high. 
This  includes  people  living  in  deprivation  and 
overcrowded  conditions,  people  with  disabilities 
living in institutions, as well as people in informal 
or unsuitable housing situations. In 2022, at least 
393  informal  settlements  inhabited  by  71 965 
people were identified (379), with the actual number 
likely larger. The need is high among young people: 
57.1%  of  people  aged  18–34  live  with  their 
parents  (EU  average:  49.6%).  Romania  also  had 
one  of  the  highest  rates  of  severe  housing 
deprivation among at-risk young people aged 20–
29 in 2023, at 35%, vs the EU average  of 13.8% 
(380).  Housing  needs  are  high  for  people  leaving 
institutional care: according to national authorities, 
nearly  3 000  young  people  leave  the  special 
protection  system  annually.  Over  15 000  people 
with  disabilities  are  estimated 
remain 
institutionalised  in  (381)  housing  solutions  for  their 
deinstitutionalisation  (382).  Additionally,  victims  of 
domestic  violence  and  human  trafficking  are 

to 

(379)https://documents1.worldbank.org/curated/en/09906212301
3526907/pdf/P1761690122ece050b24e0994a1005f38c.p
df 2022 World Bank Report on Informal Settlements. 

(380) Severe housing deprivation rate by age, sex and poverty 

status [ilc_mdho06a__custom_20278915]  

(381) National Authority for the Protection of the Rights of Persons 

with Disabilities, ‘Statistici’ (Statistics), 
https://anpd.gov.ro/web/transparenta/statistici/. 

382 National Authority for the Protection of the Rights of Persons 

with Disabilities, ”Statistici” (Statistics), 
https://anpd.gov.ro/web/transparenta/statistici/ 

among  those  who  need  the  most  urgent  support. 
As  of  March  2026,  approximatively  200,000 
refugees  with  temporary  or  similar  protection 
status, primarily from Ukraine, were registered. The 
Romanian  authorities  estimated  the  number  of 
homeless  people  (including  children)  at  around 
17 000  people  in  2025.  Children’s  housing  needs 
are assessed in the 2023 national child guarantee 
action plan,  and its success depends on sufficient 
funding and support services. 

than 

the  general  population,  which 

Roma households continue to face bad living 
conditions.  56%  of  Roma  households  lived  in 
housing  deprivation  in  2024,  compared  with  21% 
for 
is  an 
improvement  from  83%  in  2016.  At  the  same 
time,  86%  of  Roma  people  lived  in  overcrowded 
households  in  2024,  vs  41%  of  the  general 
population,  which 
the  76% 
is  worse 
registered in 2016. Moreover, 28% of Roma live in 
inside  the 
households  without  running  water 
dwelling,  compared  with  14%  of  the  general 
population,  and  23%  of  them  reported  being 
discriminated 
for 
against  while 
housing (383).  Long-standing  policy  commitments, 
including  most  recently  under  the  2021-2027 
national  Roma  inclusion  strategy,  are  in  place. 
However, 
clear 
accountability  for  local  authorities  and  sufficient 
investment  are  still  needed  to  ensure  the  timely 
delivery  of  suitable  accommodation  and 
to 
address  systemic  discrimination 
in  access  to 
housing. 

implementation, 

looking 

strong 

(383) Fundamental Rights Agency, Roma Survey 2024. 

125 

 
 
 
Graph A16.2: Housing affordability selected indicators 

Source: Eurostat and European Commission calculations.  The overburden rate should be read together with the tenure structure 
(homeowner, tenants), that may differ across country and regions. 

EU  funding  support  is  available  to  address 
housing  issues,  in  particular  for  the  most 
vulnerable. More than EUR 190 million has been 
made  available  to  improve  access  to  housing  for 
marginalised communities and groups through the 
social  inclusion  and  dignity  programme,  which  is 
financed  through  the  2021-2027  cohesion  policy 
funds.  The  programme  includes:  (i)  support  for 
housing  needs  identified  at  community  level  by 
local action groups; (ii) support for people living in 
informal  settlements;  (iii)  providing  access  to 
social  housing  to  vulnerable  children,  people  with 
disabilities and older people; and (iii) measures to 
assist  the  homeless.  Additional  EUR  206  million 
from the cohesion policy funds were also allocated 
for  social  housing  following  the  mid-term  review. 
Within  the  South  Muntenia  Regional  Programme 
there are EUR 5 million supporting investments in 
social  housing  Romania  will  continue  to  benefit 
from the Social Climate Fund to support vulnerable 
households  impacted  by  the  introduction  of  the 
Emissions  Trading  System  2  Directive.  The 
Romanian  RRP 
includes  several  measures  to 
support  social  and  affordable  housing,  including 
via  the  national  housing  strategy  and  the  2022-
2050  action  plan,  as  well  as  investments  in 
housing 
for  vulnerable  young  people  and 
professionals  working  in  health  and  education.  In 
addition, Romania benefits from technical support 
provided through the Technical Support Instrument 
to  improve:  (i)  data  collection,  management  and 
sharing  approaches  in  the  field  of  social  housing; 
(ii)  allocation  criteria  and  prioritisation  of 
beneficiaries;  (iii)  investment  and  management 
approaches  for  the  social  housing  stock  at  local 
level; and (iv) the regulatory and policy framework 
for  the  administration  and  governance  of  the 
social housing sector. 

The  LGBTQ+  community  faces  discrimination 
in  accessing  secure  housing  in  certain  areas 
(384).  The  lack  of  tenant  protection  measures  in 
general  exacerbates  the  unfair  treatment.  The 
promotion  of  inclusive  housing  options  could 
further support this minority. 

for 

remain 

housing 

barriers 

high 
in 
Accessibility 
residential 
people  with 
disabilities.  While  a  national  accessibility 
standard  (385)  (applying  to  new  constructions, 
major  renovations  and  public  and  private  housing 
developments)  exists  for  public  buildings  and 
urban  spaces,  its  implementation  is  lagging.  In 
addition,  accessibility  standards  address  only 
physical  disabilities  but  not  other  forms  of 
disability (intellectual or sensorial disabilities). 

(384) The 2024 Fundamental Rights Report, Fundamental 

RightsAgency 

(385) Ministry of Development, Public Works and 

Administration,Norm on the adaptation of civil buildings and 
urban spacesto the individual needs of persons with 
disabilities, codeNP 051-2012 – Revision of NP 051/2000, 
https://www.mdlpa.ro/userfiles/reglementari/Domeniul_XVII/1
7_23_NP_051_2012.pdf     

126 

 
 
 
 
HORIZONTAL 
ANNEX 17: SUSTAINABLE DEVELOPMENT GOALS 

social 

fairness 

This  annex  assesses  Romania’s  progress  on 
the  sustainable  development  goals  (SDGs) 
along  the  dimensions  of  competitiveness, 
and 
sustainability, 
macroeconomic stability. The 17 SDGs and their 
related  indicators  provide  a  policy  framework 
under  the  UN’s  2030  Agenda  for  Sustainable 
Development.  The  aim  is  to  end  all  forms  of 
inequalities  and  tackle  climate 
poverty,  fight 
change  and 
the  environmental  crisis,  while 
ensuring that no one is left behind. The EU and its 
Member  States  are  committed  to  this  historic 
global  framework  agreement  and  to  playing  an 
active  role  in  maximising  progress  on  the  SDGs. 
The graph below is based on the EU SDG indicator 
set developed to monitor progress on the SDGs in 
the EU. 

On  SDGs  linked to  competitiveness,  Romania 
is  improving  on  SDG 8  (Decent  work  and 
economic  growth)  and  SDG 4 
(Quality 
Education) but is moving away from the goal 

Graph A17.1: Progress towards the SDGs in Romania 

for  SDG 9  where  the  developments  do  not 
bring  it  into  line  with  the  EU  average. 
Romania  needs  to  catch  up  with  the  EU 
for  all  competitiveness-related 
average 
SDGs.  On  SDG 8,  although  the  percentage  of 
young  people  not  in  employment,  education  or 
training  fell  from 20.9%  to  19.2%  between  2019 
and  2025,  the  figure  remains  well  above  the  EU 
average  of  11%  in  2025,  down  from  12.8%  in 
2019.  On  quality  education 
the 
percentage  of  adults  with  at  least  basic  digital 
skills rose from 27.8% in 2021 to 31.8% in 2025, 
but  it  is  still  significantly  lower  than  the  EU 
average  of  60.4%  in  2025,  up  from  53.9%  in 
2021. Romania also needs to catch up with the EU 
average  on  SDG 9  (0.46%  of  GDP  expenditure  on 
R&D; EU average: 2.24% in 2024). To address the 
challenges 
to  productivity,  Romania’s 
recovery  and  resilience  plan  (RRP)  supported  the 
organisation of a full professional route for higher 
technical  education,  while  providing  funds  for  the 
construction of integrated campuses for vocational 

(SDG 4), 

linked 

For a detailed progress assessment towards the various SDGs, see the annual Eurostat report ‘Sustainable development in the 
European Union’; for extensive data on the short-term SDG progress of EU countries, see Key findings – Sustainable development 
indicators; for an interactive visualization of SDG progress of EU countries, see SDG country overview. A high status does not 
mean that a country is close to reaching a specific SDG, but signals that it is doing better than the EU on average. The progress 
score is an absolute measure based on the indicator trends over the past five or six years. The calculation does not take into 
account any target values, as most EU policy targets are only valid for the aggregate EU level. Depending on data availability for 
each goal, not all 17 SDGs are shown for each country. 
Source: Eurostat, latest update of 29 April 2026. Data refer mainly to the period 2019-2024 or 2019-2025. Data on SDGs may 
vary across the report and its annexes due to different cut-off dates. 

127 

 
 
 
 
 
 
 
education  and  training, to  digitalise  the  education 
process  to  improve  digital  skills  for  students  and 
teachers and support research and innovation. 

and  public  buildings  such  as  administrative 
buildings, schools and medical facilities.  

is 

Romania 
improving  on  several  SDGs 
related  to  sustainability  (SDGs 11,  12,  13, 
14)  but  needs  to  catch  up  with  the  EU 
average  on  all  of  them,  except  SDG  14.  The 
country  is  moving  away  from  three  SDGs  (6,  9, 
15),  while  it  performs  well  and  is  above  the  EU 
average on SDG 14 (Life below water). On SDG 12 
(Responsible  consumption  and  production),  the 
material  footprint  was  31.7 tonnes  per  inhabitant 
in  2024,  compared 
to  an  EU  average  of 
13.7 tonnes.  On  SDG 11  (Sustainable  cities  and 
communities),  the  number  of  road  traffic  deaths 
per  100 000  persons  was  7.8  in  2024,  compared 
with  an  EU  average  of  4.4.  The  recycling  rate  of 
municipal waste in 2023 was 12.4% against an EU 
average  of  47.9%.  On  SDG 9, 
the  patent 
the  European  Patent  Office 
applications 
remained  at  8  per  million  inhabitants  from  2019 
to  2025,  while  the  EU  average  rose  from  152  in 
2019 to 156 in 2025. 

to 

rose 

capita 

(SDG 8) 

Romania is improving on all SDGs related to 
macroeconomic  stability  (SDGs 8,  16,  17). 
from 
Real  GDP  per 
EUR 11 760  in  2019  to  EUR 13 190  in  2025  -
measured in chain linked volumes (2020). The EU 
average  in  2025  was  EUR 34  110.  However,  the 
country  faces  challenges  related  to  trust 
in 
institutions,  with  its  Corruption  Perceptions  Index 
score up from 44 in 2019 to 45 in 2025, while the 
EU  average  fell  from  64  in  2019  to  62  in  2025. 
The  index’s  scale  runs  from  0  (highly  corrupt)  to 
100  (very  clean).  Romania  performs  well  on 
SDG 17  (Partnership  for  the  goals).  The  RRP  is 
expected  to  further  improve  the  fight  against 
corruption  and  help 
in  public 
administration. 

increase  trust 

As the SDGs form an overarching framework, any 
links  to  relevant  SDGs  are  either  explained  or 
depicted with icons in the other annexes.  

(SDG 8),  Romania 

Romania  made  progress  on  SDGs  related  to 
social fairness. For no poverty (SDG 1), good 
(SDG 3),  gender 
health  and  well-being 
(SDG 5),  and  decent  work  and 
equality 
economic  growth 
is 
improving but needs to catch up with the EU 
average.  For  affordable  and  clean  energy 
(SDG  7),  Romania  performs  well,  above  the 
EU  average.  While  the  percentage  of  the 
population  at  risk  of  poverty  or  social  exclusion 
decreased from 36.1% in 2019 to 27.9% in 2024, 
it was still above the EU average of 21% in 2024 
(down  from  21.8%  in  2019).  The  percentage  of 
unmet  needs  for  medical  care  decreased  from 
4.9%  to  2.2%  over  that  period.  Romania’s  track 
record on gender equality is concerning compared 
to  the  rest  of  the  EU.  In  2025,  women  held  only 
in  national  parliament  and 
22.0%  of  seats 
government  compared  with  the  EU  average  of 
33.6%.  For  SDG 7,  the  RRP  aims  to  support  clean 
energy 
energy-efficiency 
renovation.  The  Romanian  RRP  supports  the 
deployment  of  renewable  energies  sources  (RES) 
through  investments  in  new  RES  facilities  and 
subsidising  RES  production  and  storage  for 
households.  Energy  efficiency  renovations  are 
boosted  through  the  Renovation  wave  component 
with the establishment of a renovation wave fund, 
a grant voucher scheme for renovations of private 

production 

and 

128 

 
ANNEX 18: COMPETITIVE REGIONS 

Regional development trends 

Romania  has  seen  strong  convergence  with 
the  EU  average  in  terms  of  GDP  per  head 
(PPS), much of which has been driven by the 
capital region. Bucharest stands out for its path 
towards  economic  convergence  with  the  EU,  even 
amidst  the  overall  strong  convergence  of  all 
Romanian  regions  since  accession  to  the  EU. 
Economic  convergence  with  the  EU  began  in  the 
first  decade  after  Romania’s  accession  in  2004, 
but it  further  accelerated after  2015,  highlighting 
the  strong  recovery  of  all  Romanian  regions  after 
the  economic  and 
financial  crisis.  Despite 
Romania’s  continued  convergence  with  the  EU  in 
GDP  per  head,  regional  disparities  within  the 
country  remain  significant.  This  is  mostly  due  to 
differences  between  the  capital  and  the  other 
regions in terms of demographic dynamics, labour 
productivity, investment, and employment. 

in 

labour  productivity. 

Disparities  in  GDP  per  head  between  the 
capital  and  the  rest  of  the  country  reflect 
disparities 
The 
evolution  of  labour  productivity  in  Romania  (see 
Graph  A18.1)  shows  that  all  regions  have  been 
catching  up  with  the  EU  average  over  the  last 
decade.  However,  labour  productivity  in  2023 
(measured  as  GDP  per  hour  worked)  still  varied 
extensively  between  regions,  with  the  Bucureşti-
Ilfov  capital  region  being  above  the  EU  average 
(143%), while  Nord-Est,  at 44%, still considerably 
lagged behind (see Map A18.1 and Annex 11). 

Agriculture  and  industry  still  account  for  a 
very  significant  share  of  GDP 
in  some 
Romanian 
regions.  The  country’s  sectoral 
structure differs substantially from that of the EU-
27  as  a  whole.  Agriculture  accounts  for  21%  of 
employment,  well  above  the  EU  average  of  4%, 
and  is  the  single  largest  employer  in  Nord-Est 
(where  it  accounts  for  41%  of  all  employment), 
(25%). 
Sud-Vest  Oltenia 
Employment 
and 
construction  are  also  above  the  EU  average,  with 
the  Vest  and  Centru  regions  exhibiting  especially 
high shares of employment in industry at 34% and 
30%, respectively. Services also make a significant 
contribution to gross value added in all regions but 
are  especially  concentrated  in  the  north-west  of 
the country.  

(33%)  and  Sud-Est 

in  manufacturing 

rates 

Map A18.1:  GDP per head compared with the EU 
average. 

2021-2023 average GDP per head in purchasing power 
standard compared with the EU average. 
Source: Commission calculations based on Eurostat 16 July 
2025 data 

Graph A18.1: Labour productivity growth (2013-
2023) and labour productivity (2023), Romania 
(NUTS 2 regions) 

Source: European Commission calculations based on JRC 
data 

129 

0.73.84.84.64.53.73.53.33.22.01007559668344143766364EURomaniaSud-Vest OlteniaNord-VestVestNord-EstBucureşti-IlfovCentruSud-MunteniaSud-EstAverage annual growth2013-2023 (%)Productivity in 2023GDP/hour, EU27 = 100 
 
 
 
 
 
 
 
   
 
 
 
Table A18.1:Main development trends, challenges and concentration of resources 

Source: European Commission based on Eurostat data;  categories of regions based on Map A18.1 

Key challenges for regional 
competitiveness 

faces 

significant 

Romania 
regional 
disparities  in  competitiveness,  with  most 
regions  performing  well  below  the  EU 
average.  Competitiveness  in  Romania’s  regions 
remains  below  the  EU  average,  with  productivity 

the 

regions. 

Romania’s 

differences  and  uneven  progress  in  digitalisation 
among 
overall 
competitiveness index is the lowest in the EU. Only 
the  Bucureşti-Ilfov  capital  region  approaches  the 
EU  average  (at  93.7%  in  2022),  while  eastern 
regions  score  well  below  50%  of  the  EU  average 
and are among the least competitive regions in the 
EU  (386).  The  Nord-Vest  region  scores  slightly 

(386) Regional Competitiveness Index 2.0, 2022 edition. 

130 

Main development trendsLess developed regions (population 15 million)Less developed regions in Romania have made progress in economic convergence with the EU, but continue to face structural challenges that constrain their competitiveness. Although convergence accelerated after 2015, six out of eight Romanian regions continue to have GDP per head (in PPS) below 75% of the EU average. These disparities reflect persistent gaps in demographics, labour productivity, investment and job opportunities. Meanwhile, the competitiveness potential of these regions is supported by: (i) emerging hubs of urban growth; (ii) improving connectivity; and (iii) the presence of industrial and service activities in regions such as Nord-Vest and Centru. The economic structure of many less developed regions in Romania remains heavily reliant on lower-value sectors, which limits economic diversification and competitiveness potential. Regions such as Nord-Est, Sud-Est and Sud-Vest Oltenia continue to face significant challenges in strengthening their competitiveness and building competitive and higher-value economies.  Transition regions (population 1.66 million)Vest region experienced solid growth in GDP per head (in PPS), exceeding the EU average. It is industrialised and manufacturing accounts over 35% of the economy. Vest has the highest R&D expenditure at 1.21%. The private sector accounts for most of this research effort, contributing up to 90% in the region. More developed regions (population 2.3 million)The București-Ilfov region reached a gross domestic product (GDP) at purchasing power per capita of 188% of the EU average in 2024, having grown at a much faster rate than the other Romanian regions over the previous decade. This strong performance was driven by a concentration of high-value service activities, innovation and skilled labour. The region also benefits from better infrastructure, greater labour market opportunities, and higher levels of education than the rest of the country. Although București-Ilfov has become a major centre of labour productivity within Romania, the strong growth of the region has also contributed to widening economic disparities between the capital and the less developed regions.  Specific territories Three out of eight Romanian regions (North West, North East and South East), which form part of the EU’s eastern border with Ukraine, are directly affected by ongoing cross-border dynamics. These three regions are facing serious challenges, including: (i) an influx of displaced persons; (ii) disruptions in trade; (iii) security concerns;  and (iv) a deterioration in the housing stock, healthcare system, and social services. The Integrated Territorial Instrument (ITI) of the Danube Delta, ITI Jiu Valley and the Black Sea coastal region also face specific challenges due to remoteness and environmental constraints in these three regions, although some of these three regions play a strategic role as an energy and transport corridor on the EU’s eastern border. Across all of Romania’s eight regions, poverty is highly concentrated in rural areas, where the share of the population at risk of poverty or social exclusion (AROPE) is six times greater than it is in the cities.  Rural areas generally suffer from dramatically lower access to employment, education, healthcare, and water utility services. Romania’s ‘just transition territories’ face economic dependence on carbon-intensive industries, limited labour market diversification, and greater exposure to the social impacts of the green transition.  National cohesion aspects Romania continues to face significant territorial development challenges related to infrastructure gaps, environmental services and the transition to a climate-neutral economy. Persistent deficiencies in water supply, wastewater treatment and air-quality management contribute to uneven living conditions across Romania’s regions, with the most pronounced shortcomings observed in less developed and rural areas. Gaps in environmental infrastructure remain particularly acute in regions such as Sud-Muntania, Sud-Vest Oltenia and Nord-Vest. Underdeveloped transport infrastructure continues to constrain regional connectivity and access to essential services. There are also substantial territorial disparities in Romania’s rail infrastructure, with low connectivity limiting the development of integrated and sustainable mobility across regions.   
 
 
  
 
weaknesses 

higher  but  is  still  considerably  below  the  EU 
average  (see  Map  A18.2).  Differences  in  regional 
competitiveness  are  closely  associated  with 
variations  in  labour  productivity  and  are  also 
affected  by  the  highly  uneven  quality  of  the 
business  environment  across  the  country  (387). 
Moreover, 
digital 
infrastructure constrain investment, and constitute 
an 
important  underlying  driver  of  persistent 
regional differences in economic performance (388). 
Despite  overall  progress  in  digital  connectivity 
between  2020  and  2025,  while  the  western  and 
southern  regions  have  benefited  from  sustained 
investments  in  connectivity,  some  rural  areas 
(especially  in  Nord-Est  and  Centru)  still  face 
exclusion from the digital economy.  

local 

in 

Map A18.2:  Competitiveness in Romanian regions, 
2022 

Source: Romania, Regional competitiveness Index 2.0, 2022 
edition 

overall 

Romania’s 

Chronically  low  levels  of  R&D  spending  and 
gaps in technology transfer hamper regional 
competitiveness. 
R&D 
expenditure is the lowest in the EU, with significant 
gaps  between  Bucureşti-Ilfov  and  the  relatively 
industrialised region of Vest (with the highest R&D 
expenditure  as  a  percentage  of  GDP)  on  the  one 
hand,  and  the  other  regions  on  the  other  (see 
Annex  4).  Regional  R&D  ecosystems  outside 
Bucharest face pronounced imbalances marked by 
silos  and  disconnections  between  public  and 
private actors, coupled with the migration of talent 
toward the capital and major university hubs such 

(387) World Bank (2023) Systematic Country Diagnostic Update: 

Romania, p. 50. 

(388) World Bank (2023) Systematic Country Diagnostic Update: 

Romania, p. 46. 

start-up 

to  universities, 

as  Cluj  or  Timişoara.  These  centres  concentrate 
incubation 
access 
programmes,  business  acceleration  programmes, 
and  funding.  This leaves  other  regions  with  fewer 
resources  and  results  in  a  poor  balance  of  R&D 
(389).  Less  developed 
in 
nationwide 
Romania  have  significant  intra-regional  gaps  in 
technology  transfer,  particularly 
in  terms  of 
businesses  with  a  higher  level  of  technological 
large  urban  centres  provide 
readiness.  While 
favourable  conditions  for  technology  transfer, 
spillover  effects  across  the  wider  regions  remain 
(390). 

regions 

Demographic  decline  is  a  key  challenge 
outside  the  capital  region,  most  notably  in 
the  southern  regions.  Romania’s  regions  face 
including  significant 
demographic  challenges, 
population  decline  and  shifts 
in  workforce 
potential  across the country, including an ongoing 
brain  drain.  These  challenges  hamper  regional 
competitiveness.  Between  2015  and  2024,  the 
population in Romania decreased by 4.2 per 1 000 
residents  annually.  The  reduction  in  population  is 
uneven  across  the  regions,  and  is  particularly 
pronounced  in  the  southern  regions,  most  notably 
in Sud-Vest Oltenia (-8.7), Sud-Muntenia (-8), Sud-
Est  (-6.7),  and  Vest  (-8.1).  The  capital  region  of 
Bucureşti-Ilfov was the only region to experience a 
positive  change  during  this  time,  due  to  high  net 
migration (see Map A18.3) Overall, the cumulative 
population  decline  in  Romania  during  this  period 
was  almost  6%  in  rural  areas,  and  above  8%  in 
cities.  Rural  areas  such  as  those 
in  Brăila, 
Teleorman,  Mehedinți,  Olt,  Caraș-Severin,  and 
Hunedoara  experienced  a  steady  population 
decline  from  2015  to  2024,  averaging  between  -
1.11%  and  -1.57%  yearly.  These  areas  face 
profound  demographic  changes  that  reduce  the 
availability  of  workers,  constrain  local  economies 
and diminish community vibrancy (391). 

Unemployment  remains  high  in  the  southern 
the  country.  Unemployment, 
regions  of 
particularly  among  younger  people,  constitutes  a 
long-term  challenge,  impeding  economic  growth 

(389) OECD  (2023).  Enhancing  Strategic  Planning  and  Innovation 
Services.  Supporting  Romanian  Regional  Development 
Agencies. OECD Publishing, Paris. 

(390) European 

Commission, 
Scoreboard – Regional profile Romania. 

2025. 

Regional 

Innovation 

(391) Statistics | Eurostat. 

131 

 
 
 
 
 
 
and competitiveness (392). The unemployment rate 
in  Romania  shows  clear  regional  differences. 
Unemployment  is  low  in  the  capital  region,  in 
Nord-Vest,  Nord-Est,  Centru  and  Vest,  while  it  is 
close  to  10%  in  Sud-Est,  and  above  7%  in  Sud-
Muntenia and Sud-Vest Oltenia (See Table A18.2). 
Youth  unemployment  is  a  major  concern  in  Sud-
Est  (where  it  is  35%)  and  is  above  30%  in  other 
southern  regions  and  Vest.  It  is  the  lowest  in 
Bucureşti-Ilfov,  which  is  aligned  with  the  EU 
average (see Annex 11). 

populations 

disproportionately 
Shrinking 
affect  the  quality  and  availability  of  public 
less  developed  regions  (393). 
services 
in 
Adverse  demographic 
reducing 
trends  are 
workforce numbers in most Romanian regions, and 
as  a  result  are  hindering  the  potential  of  these 
regions for growth and development. In addition, a 
shrinking  population  puts  increasing  strain  on  the 
recruitment  of  professionals  in  affected  areas. 
This is a challenge for providing key public services 
such  as  healthcare  or  education  by 
local 
authorities.  In  2023,  Romania  had  the  highest 
number  of  NUTS  3  territories  in  the  EU  where  a 
minority  of  the  population  lived  within  a  10-
minute drive of a hospital (33 out of 41 counties). 
By  contrast,  access  to  healthcare  is  significantly 
better  in  the  capital  region,  where  98.2%  of  the 
population  in  Bucureşti-Ilfov  lives  within  a  15-
minute  drive  of  a  hospital.  Unmet  medical  needs 
also show a high urban-rural divide and significant 
territorial  disparities  (see  Annex  15).  Limited 
access  to  essential  and  enabling  services  makes 
less developed regions even less appealing to live 
in  and  reduces  their  ability  to  both  retain  and 
attract young people (394). 

Deficiencies  in  environmental  infrastructure 
remain  a  major  challenge  in  Romania  and 
contribute  to  territorial  disparities.  The 
quality and accessibility of environmental services 
continue  to  affect  quality  of  life  and  exacerbate 
territorial  disparities.  Substantial  gaps  between 
regions persist in water collection and wastewater 
infrastructure  (see  Annex  10),  particularly  in  the 

regions. 

‘Non-collected’, 

less  developed 
i.e. 
untreated,  urban  wastewater  poses  a  particular 
challenge  for  the  southern  regions  of  Sud-
Muntenia  (where  56%  of  the  generated  load  of 
urban  wastewater  is  non-collected  in  2023),  Sud-
Vest  Oltenia  (55%),  and  Nord-Vest  (39%)  (395). 
Structural  gaps  and  insufficient  coverage  of  the 
infrastructure for public water supply, in particular 
in rural areas, continues to hinder compliance with 
in  regional 
legislation.  The  delays 
EU  water 
infrastructure  development  reduce  economies  of 
scale  and  may  create  long-term  sustainability 
risks. Furthermore, the quality of the environment 
is  affected  by  persistent  air  pollution  across 
Romanian  regions,  particularly  in  urban  areas, 
where  PM2.5  concentrations  exceeded  the  EU 
average  by  more  than  30%  in  2023,  limiting 
residents’  access  to  a  healthy  living  environment 
(396). 

Map A18.3:  Average annual population change at 
NUTS 3 level (2015-2024) 

Source: Eurostat and JRC 

Access  to  education  is  very  limited  in  many 
less  developed  regions,  especially  in  rural 
areas.  As  is  the  case  with  other  local  public 

(392) OECD (2025), OECD Reviews of Labour Market and Social 

Policies: Romania 2025, OECD Reviews of Labour Market and 
Social Policies, OECD Publishing, Paris. 

(393) SNG-WOFI country profile; OECD (2025) Preparing for 

Demographic Change in Nord‑Vest, Romania. 

(395) European Environment Agency (EEA). (2023). Urban Waste 
Water Treatment Directive (UWWTD) dataset (Waterbase). 
Retrieved from: https://www.eea.europa.eu/data-and-
maps/data/waterbase-uwwtd-urban-waste-water-
treatment-directive-6. 

(394) World Bank Group. (2023) Romania - Systematic Country 

(396) European Environmental Agency (2025). Health impacts of 

Diagnostic Update (English). Washington, D.C. 

air pollution – Country profiles, Romania 

132 

 
 
 
 
 
 
services, the coverage and quality of education in 
territorial 
Romania  are  affected  by  distinct 
disparities.  In  rural  areas,  access  to  primary 
schools  is  well  below  the  EU  average  (see  Graph 
A18.2).  Access  to  education  is  particularly  limited 
in the Nord-Est, Nord-Vest, Sud-Vest Oltenia, Sud-
Muntenia,  and  Vest  regions,  with  children  from 
marginalised communities affected by segregation 
(such  as  Roma  and  children  with  disabilities) 
suffering particularly low levels of enrolment (397). 
Teacher  shortages  are  more  pronounced  in  rural 
and small schools, alongside a marked urban-rural 
divide in basic skills (with children in urban schools 
performing  better).  Additionally,  the  rate  of  early 
school leaving in 2024 was substantially higher in 
rural  areas  (26%)  compared  with  urban  areas 
(5%). (see Annex 13) 

competitiveness and growth. In 2024 the share 
of  the  population  at  risk  of  poverty  or  social 
exclusion (AROPE rate) reached 27.9%, well above 
the  EU  average 
(see  Annex  12).  Housing 
affordability  pressures  and  very  low  access  to 
social  housing  further  exacerbate  social  and 
territorial inequalities and can undermine people’s 
ability  to  remain  in  their  communities.  Regional 
disparities in housing cost overburden are notable 
(see Annex 16), with the highest rates experienced 
in  Sud-Vest  Oltenia  (10.8%)  and  Vest  (10.2%), 
compared  with  4.1% in  the  Bucureşti-Ilfov  capital 
region in 2024 (400)(401). 

Graph A18.2: The share of children with a primary 
school within a 15-minute walk and the share of 
population with a hospital within 10-minute drive 
by car in rural areas, (NUTS 2), 2023 

is 

skills 

(398).  The 

limited, 
High  educational  attainment 
in  the  regions  of  southern 
particularly 
shortages  and 
Romania.  Persistent 
mismatches linked to both education inefficiencies 
the  emigration  of  skilled  professionals 
and 
constrain 
the  competitiveness  of  Romania’s 
tertiary  educational 
low 
regions 
attainment rate (for the population aged 25-34) is 
a  widespread  problem  across  all  regions,  except 
for  București-Ilfov  where  this  rate  was  above  the 
EU  average  of  49.7%  (see  Annexes  11  and  13). 
Sud-Muntenia  and  Sud-Est  have  the 
lowest 
percentages  of  the  population  aged  25-34  with 
tertiary  attainment,  at  15.3%  and  15.8%, 
respectively.  The  digital  and  green  transitions  are 
likely  to  widen  regional  inequalities  and  intensify 
demand for specialised skills, especially in regions 
levels  of  human  capital, 
with  already 
underscoring  the  need  for  stronger  links  between 
education 
learning  and 
vocational education and training), and the labour 
market. (399) 

(including 

lifelong 

low 

Poverty  and  social  exclusion  remain  a 
significant  challenge  in  several  Romanian 
constraining  development  and 
regions, 
productivity  and  thereby  weakening  regional 

(397) OECD (2025), Education and Skills in Romania, Reviews of 
National Policies for Education, OECD Publishing, Paris;  
Fundamental Rights Agency (2025), Survey - Country Data – 
Romania.  

Source: Eurostat 

across 

infrastructure 

Romania’s 
Road 
regions – including local and secondary roads 
– remains underdeveloped and of low quality, 
limiting  access  to  public  services  and 
contributing  to  a  persistently  high  level  of 

(398) OECD  (2025),  Education  and  Skills  in  Romania,  Reviews  of 

(400) Statistics | Eurostat. 

National Policies for Education, OECD Publishing, Paris. 

(399) World Bank (2023),  Romania - Systemic Country Diagnostic 

Update. 

(401)The overburden rate should be read together with the tenure 
structure (homeowner, tenants), that may differ across 
country and regions.  

133 

34201824152621312121309118710901110EURomaniaNord-VestCentruNord-EstSud-EstSud-MunteniaBucureşti-IlfovSud-Vest OlteniaVestAccess to primary school% of children under 15 years oldAccess to healthcare% of population 
 
   
 
Table A18.2:Key regional indicators (at NUTS 2 level) for Romania 

Dark green - the indicator is 120% or more of the EU average. 
Light green - the indicator is 100% or more, but less than 120% of the EU average. 
Yellow - the indicator is 90% or more, but less than 100% of the EU average. 
Light red – the indicator is 75% or more, but less than 90% of the EU average. 
Dark red – the indicator is below 75% of the EU average. 
This colour scale applies to ‘positive’ indicators, where higher values are favourable. 
For ‘negative’ indicators (where higher values are unfavourable), the colours are reversed. 
Source: Eurostat and JRC 

traffic fatalities. Road infrastructure in Romania 
remains  less  dense  and  of  lower  quality  than  in 
many other EU Member States, with the Nord-Est 
region  recording  the  lowest  motorway  density  in 
the  country  in  2023  (402).  In  addition,  poor  road 
conditions  and  insufficient  safety  infrastructure 
significantly  increase  road  safety  risks.  Romania 
has consistently had the highest road fatality rates 
in the EU, with the highest rate of traffic fatalities 
in Sud-Vest Oltenia (107 per million inhabitants in 
2023) and Sud-Est (102) (see Annex 19). 

Rail connectivity and infrastructure quality is 
poor,  especially in  the eastern  regions.  There 
are  significant  territorial  imbalances  in  Romania’s 
railway  network,  particularly  affecting 
the 
development of integrated, smart, and sustainable 
mobility  across  regions.  Rail  connectivity,  as 
measured by the average share of people within a 
120 km radius that can be reached within 1h30 by 
rail, is lower than the EU average. Rail connectivity 
is  particularly  poor  in  Nord-Est  and  Sud-Est.  The 
share  of  electrified  railways  differs  between  the 
country’s different regions: Bucureşti-Ilfov leads at 
61%, followed by Sud-Vest Oltenia at 53%, while 
Nord-Vest lags at only 19%. In 2022, Romania had 

on 

lowest 

second 

expenditure 

the 
rail 
infrastructure of any country in the EU at EUR 44 
per  inhabitant  compared  with  the  EU  average  of 
EUR  114  EU  (403).  As  a  result,  Romania’s  regions 
rail 
suffer 
from 
infrastructure 
The 
implementation  of  railway  projects  is  frequently 
delayed.  

of 
poverty. 

severe 
and 

degradation 

transport 

taking 

requires 

in  particular  by 

In 
line  with  the  2025  country-specific 
recommendation,  reducing  reliance  on  fossil 
regionally  differentiated 
fuels 
actions, 
into 
consideration  the  impact  on  areas  that  are 
economically  centred  around  coal  and 
energy-intensive 
industries.  The  Romanian 
authorities  have  laid  down  a  legal  framework  for 
the  operation  of  renewable  energy  communities 
(404)  and  are  implementing  dedicated  support 
through  the  Just  Transition  Fund  in  the  Sud-Est, 
Sud-Muntenia,  Vest,  Sud-Vest  Oltenia  and  Centru 
regions.  The  deployment  of  new  capacity  from 
renewable energy sources remains essential in the 
coal-dependent  regions  along  the  Jiu  River  basin 

(403) European Commission, 2024, SWD accompanying the ninth 
monitoring report on the development of the rail market. 

(402) Statistics | Eurostat. 

(404) Government Emergency Ordinance No. 59/2025. 

134 

GDP per head (PPS, index)Real GDP growthPopulation aged 20-64Employment rate 20-64Unemployment rateAt-risk-of-poverty or social exclusion rate (AROPE)GVA in industryEmployment in industryR&D expenditureGreen employment - in sustainable but competitive sectorsEU27=100Average annual % change% of total population% of population aged 20-64% of labour force% of population% of total GVA% of total employment% of GDP% of total employment20242014-202420252025202520252024202320232020EU1001.658.376.16.021.019.315.32.2415.1Romania773.258.569.06.127.419.120.30.4612.6Nord-Vest713.959.570.35.927.520.524.40.292.7Centru713.357.670.04.124.124.630.00.415.0Nord-Est483.756.769.15.730.314.811.20.25Sud-Est591.457.462.111.338.021.820.70.126.2Sud-Muntenia551.058.368.38.627.527.124.00.400.2Bucureşti-Ilfov1884.561.281.11.813.610.210.10.8268.1Sud-Vest Oltenia603.659.061.76.936.029.119.90.170.5Vest782.958.966.55.120.224.334.01.1818.4  
 
 
 
  
 
The  low  uptake  of  advanced  ICT  tools  and  digital 
technologies  further compounds these challenges, 
particularly  in  the  smaller  local  administrative 
units.  This  translates  into  poor  data  collection, 
analysis  and  monitoring.  Moreover,  the  specific 
Integrated  Terrirotial  Investment  territories  (Delta 
Dunării, Valea Jiului, Moţii Ţara de Piatră, and Ţara 
Făgăraşului)  face  limited  local  capacity  to  design 
and  implement  projects  of  common  interest.  In 
particular,  the  governance  arrangements  for  the 
territory  of 
reflect  poor 
the  Danube  Delta 
coordination  between  the  local  jurisdictions  in 
Tulcea  County  and  the  Danube  Delta  Biosphere 
Reserve Administration. Last but not least, the lack 
of  technical  expertise  is  a  real  issue,  in  particular 
for green skills (water, waste, etc.). 

framework 

local  administrative  units 

Smaller 
in 
Romania  face  persistent  challenges  in  the 
face  of 
fragmented  and  overlapping 
governance  structures,  which  hinders  fiscal 
sustainability  and  limits  the  efficacy  of 
public  investments.  Local  public  governance 
structures  are  heavily  dependent  on  central 
funding  and  often  struggle  to  attract  private 
In  addition,  Romania’s  spatial 
investments. 
planning 
from  weak 
coordination  across  the  regional,  national,  and 
local  levels,  including  between  local  territories 
within  functional  urban  areas.  Although  existing 
national  legislation  (408)  provides  a legal  basis  for 
such  partnership  structures,  uptake  remains  low, 
with  only  24  out  of  91  possible  functional  urban 
areas  established  so  far.  Further  uptake  could 
make  territorial  planning  more  coherent  and 
improve  the  efficiency  and  impact  of  projects  of 
common  interest  (409),  including  the  provision  of 
public services. 

suffers 

of 

The 

new 

establishment 

(405). 
energy 
communities  should  be  combined  with  economic 
diversification  and 
creation  measures, 
job 
including to promote the development of strategic 
technologies. 
the 
Modernisation 
implementation of decarbonisation technologies in 
the  strategic  steel  and  fertiliser  industries  will  be 
critical  in  ensuring  the  long-term  competitiveness 
of Galați and Mureș counties and will play a major 
role  in  Romania’s  ability  to  meet  EU  emissions 
targets. 

through 

The economic significance of Romania’s ‘blue 
economy’  is  declining  and  remains  narrowly 
concentrated  in  traditional  sectors  in  the 
Sud-Est  region,  constrained  by  several 
challenges  limiting  diversification  and  the 
sector’s  growth.  Blue  economy  activities  are 
largely  located  along  the  Black  Sea  coast  and 
centred  on  established  industries  rather  than 
emerging high-value areas such as marine energy. 
Although  the  Sud-Est  region  remains  the  core  of 
Romania’s  fisheries 
is 
undermined  by  structural  bottlenecks  –  including 
declining  employment  in  shipbuilding,  ageing  port 
and  tourism  infrastructure,  and  the  increasing 
exposure  of  coastal  communities  to  climate-
related risks. 

region,  fleet  viability 

regional 

institutions  and 

The provision of public services is impeded by 
deficiencies 
in  public  governance  and 
administrative  capacity  (406)    The  quality  of 
local  and 
their 
administrative capacity are hampered by frequent 
personnel  changes  and  lack  of  clear  leadership 
creating  an  unstable  environment  that  disrupts 
institutional 
financial 
autonomy and predictability. In addition, Romania’s 
legal  framework  is  often  subject  to  amendments, 
reducing  the  capacity  for  local  planning  and 
weakens the confidence of local government staff 
at  regional  and  municipal  level  to  carry  out 
reforms.  This 
in  serious 
discrepancies  in  access  to  quality  public  services 
and  diminishes  trust  in  public  administration  (407). 

continuity  and 

instability 

results 

limits 

(405) Territorial  Just  Transition  Plans  of  Hunedoara,  Gorj,  Dolj, 

counties, annexes to the Just Transition Program.  

(406) World Bank. 2023. Romania - Systemic Country 

Diagnostic Update:. Washington, D.C.: World Bank Group; 
OECD. 2023. Open Government Review of Romania, OECD 
Public Governance Review, OECD Publishing, Paris. 

(407) World Bank Group. (2023) Romania - Systematic Country 

Diagnostic Update (English). Washington, D.C. 

(408) Law no. 246/2022 regarding metropolitan areas. 

(409) OECD (2025), Preparing for Demographic Change in Nord-

Vest, Romania, OECD Regional Development Studies, OECD 
Publishing, Paris, 

135 

 
 
 
ANNEX 19: TRANSPORT 

This  Transport  Annex  presents  the  state  of  play 
and  the  challenges  Romania  is  facing  with  the 
implementation  of  the  trans-European  transport 
network  (TEN-T),  the  European  Railway  Traffic 
Management System (ERTMS), road safety and the 
roll-out of sustainable aviation fuels (SAF). 

Romania's transport system faces significant 
challenges  that  need  to  be  addressed  to 
improve  the  competitiveness  of  the  sector, 
increase  the  safety  and  environmental 
performances,  and  favour  the  shift  to  rail. 
Challenges include (i) modernisation, electrification 
and  digitalisation  of  the  railway  network,  as  well 
as  the  increasing  the  efficiency  of  infrastructure 
related 
(ii) 
professionalisation  of  the  rail  sector  and  increase 
of  institutional  capacity,  (iii)  modernisation  of  the 
railway  rolling  stock  and  road  vehicles  fleet,  and 
(iv) improving the safety of the road infrastructure 
and  deployment  of  automatic  speed  enforcement 
system. 

procurement 

procedures, 

Two  European  transport  corridors  cross 
Romania  (Rhine  –  Danube  and  Baltic  Sea  – 
Black Sea – Aegean Sea). The Romanian TEN-T 
rail  network  comprises  5 742 km.  The  TEN-T  road 
network in Romania extends for 4 836 km (2 573 
of  which  form  part  of  the  core  network).  In 
inland 
addition,  Romania  has  1 285 km  of 
waterways, 18 ports (including four core ports), 12 
airports (including two core airports), and 23 urban 
nodes (410). 

Romania has a large railway network, though 
less  than  half  is  electrified,  there  are  gaps, 
routes  suffer 
and  major 
from  speed 
recent  years,  Romania  has 
In 
restrictions. 
intensified  its  modernisation  efforts  along  the 
TEN-T  corridors,  driven  also  by 
its  strategic 
importance as a hub to Ukraine and Moldova. The 
focus is on the north-south line from Bucharest to 
Vicșani  (Ukrainian  border)  and  Iași  (Moldovan 
border)  essential  for  enhancing  military  mobility. 
Equally 
for  military  mobility  are 
enhanced  connections  to  Bulgaria  and  further  to 
Greece,  focusing  on  the  critical  cross-border 
projects,  including  those  with  dual  civil-military 

important 

in  accordance  with  EU 

use, 
technical  and 
operational  standards.  A  major  domestic  section 
outside  the  cross-border  lines  is  the  Craiova-
Bucharest  route.  Furthermore,  modernising  the 
Constanta-Bucharest-Central  Europe  link  requires 
the rail ring around Bucharest, to be completed by 
2034. Under its recovery and resilience plan (RRP), 
Romania  is  expected  to  modernise  and  upgrade 
more  than  1 800  km  of  railway  infrastructure,  as 
well as upgrade part of its rolling stock, by August 
2026. Additionally, Romania will also be ready for 
the  construction  of  the  Brașov-Predeal  rail  tunnel 
in  the  immediate  future  This  tunnel  addresses  a 
current  significant  bottleneck  but 
is  also  a 
component  of  the  future  highspeed  railway  line 
extending towards the Hungarian border.  

The 

At the end of 2024 (411), the European railway 
traffic  management  system  (ERTMS)  was 
less  than  1%  of  the 
operational  on 
Romania’s 
ERTMS 
TEN-T  network. 
digitalises  the  railways  and  modernises  and 
harmonises  railway  operations  across  Europe.  It 
ensures the safety of rail networks by providing a 
unified signalling system that significantly reduces 
the 
It  also  provides 
interoperability  between  national  rail  systems, 
improving  cross-border  train  movements.  Finally, 
the  ERTMS  enhances  network  capacity  and 
the 
operational 
competitiveness  of  the  rail  sector.  To  meet  its 
national  plan’s  ERTMS  roll-out  target  by  2035, 
Romania  aims  to  deploy  ERTMS  on  an  additional 
length of 2 730 km.  

risk  of  accidents. 

efficiency, 

increasing 

causing 

Transport infrastructure projects are subject 
to  significant  delays.  Project  preparation  is 
often  hampered  by  lengthy  land  acquisition  and 
tendering  procedures.  The  low  quality  of  tender 
documentation  often  triggers  complaints  and 
important  delays.  Despite 
appeals 
creation  of  a 
improvements, 
specialised national authority for ex ante checks of 
the  tender  documentation,  the  tender  procedures 
remain  lengthy.  Unrealistic  financial  planning,  the 
need  for  additional  technical  studies  and  low 
operational  capacity  of  contractors  implementing 
the  construction  work  often  result  in  slow  project 
implementation and cost overruns. 

through 

the 

(410) TENtec Information System, according to Reg. 2024/1679. 

Coordinator Matthias Ruete.  

(411) Based on ERTMS – Third work plan of the European 

136 

 
 
 
 
 
 
The  administrative  capacity  of  the  main 
beneficiaries  of  infrastructure  projects  (e.g. 
CFR  for  railways) 
limited,  they  are 
is 
understaffed and lack expertise. Moreover, the 
National  Safety  Authority  still  faces  operational 
lack  of 
challenges  related  to 
expertise 
the 
effectiveness of supervision, limited investment in 
maintaining  rail  infrastructure,  and  the  proper 
functioning  of  key  processes  such  as  vehicle 
authorisation. 

its  autonomy, 

to  ERTMS), 

(especially 

related 

to 

capacity 

increase 

the 
Romania’s 
operations  of  trains  to  Bulgaria  and  Greece 
in  line with  the  rules of  the  single  European 
railway  area  is  underdeveloped.  Its  list  of 
national  rules  impeding  efficient  operations  is 
long.  Harmonising  technical  and  operational  rules 
with the minimisation of national rules in line with 
the EU directives on rail interoperability and safety 
remains  critical  to  ensure  seamless  cross-border 
rail transport. The proper notification and clean-up 
its  national  rules  by  committing  to  the 
of 
is  not  yet 
envisaged  processes  at  EU 
completed. 

level 

12% between 2024 and 2025, and 30% between 
2019  and  2025  (414),  making  Romania  almost  on 
track  to  meet  the  2030  target  of  halving  road 
deaths and serious injuries, more action is needed 
by  2030  to  reduce  the  high  number  of  fatalities 
and  bridge  the  gap  with  the  better  performing 
countries  in  the  EU.  Compared  with  the  EU 
average,  the  distribution  of  fatalities  in  Romania 
shows  a  relatively  high  proportion  of  pedestrian 
fatalities and fatalities on urban roads. Among the 
contributing  factors  to  the  high  road  death  rates 
are  the  poor  state  of  infrastructure,  excessive 
speed and mixed traffic (vehicles sharing the road 
with  pedestrians  and  cyclists).  There  is  a  delay  in 
implementing  the  automatic  speed  enforcement 
system  (e-SIGUR).  Furthermore,  traffic-calming 
measures  and  sidewalks  for  pedestrians  are 
reportedly  not  sufficiently  developed  or  even 
missing completely. 

Graph A19.1: Romania's road fatalities per million, 
2025 

Road  crashes  impose  an  enormous  social, 
economic and health burden on the economy. 
The Communication on the Implementation of the 
EU Road Safety Policy Framework at the Mid-Point 
(COM(2026)77)  sets  out  the  case  for  investing  in 
road safety.   The external socio-economic costs of 
fatal,  serious  and  minor  injuries  have  remained 
persistently  high  despite  the  progress  made  in 
reducing  crash  frequency and  severity  (412).  These 
innovation, 
resources  could  otherwise  support 
education,  healthcare  and  other  crucial  public 
investments.  Road  safety  thus  constitutes  a  pillar 
of the EU’s economic competitiveness as it directly 
influences  the  efficient  movement  of  goods  and 
labour  and  the  operational  costs  of  businesses 
across all sectors (413). 

In  2025,  Romania  had  the  second  highest 
fatality  rate 
in  the  EU,  with  68  road 
fatalities  per  million  inhabitants  (the  EU 
average  is  43).  While  a  significant  decrease  in 
road  fatalities  was  achieved  in  recent  years,  i.e. 

(412) SWD(2026) 55 final, EUR-Lex - 52026SC0055 - EN - EUR-

Lex. 

(413) Report on the implementation of the EU Road Safety Policy 

Source: CARE (EU database on road crashes) 

The  first  steps  toward  addressing  the  road 
safety  problem  were  already  implemented 
under the RRP. In 2022 the national road safety 
strategy was approved. Following the strategy, the 
legal  changes  to  promote  road  safety  were 
implemented.  They  include  enforcement  of  the 
compliance  rules,  higher  penalties  for  breaches, 
monitoring  of 
road  offences  by  automatic 
equipment  and  risk-based  reduction  of  speed 
limits  in  specific  areas  or  roads  depending  on 
accidents  data,  risk  analysis  and  best  practice  at 
EU  level.  Investments  to  reduce  the  number  the 
existing black/hotspots are ongoing under the RRP 
and  expected  to  be  completed  by  August  2026. 
These investments target safer road infrastructure 
and  upgrades,  improved  traffic  monitoring  and 

framework at the Mid-Point, COM(2026) 77 final. 

(414) Annual statistical report on road safety in the EU 2026. 

137 

20232731333434353637394243434445464848494950556367687101020304050607080SEDKLUEEFIIEDENLESMTBESKATCZSIPLCYHULTFRITELPTLVHRROBGSource: CARE (EU database on road crashes), 2024 data for LuxembourgRoad fatalities per million population, 2025 
 
  
 
Map A19.1:  TEN-T cross-border & national priority sections in Romania. 

enforcement capacity and measures to reduce the 
existing black/hot spots. 

More  details  in  SWD(2026)  55  final.  EUR-Lex  - 
52026SC0055 - EN - EUR-Lex. 

Map A19.2:  Romania's road safety map 

The  previous  map  presents  the  roads  where  the 
safety of the infrastructure is poor and thus where 
urgent action is required. 

Sustainable aviation fuels are planned to be 
produced  in  Romania  as  from  2028.  In  2024 
no sustainable aviation fuel (SAF) was supplied to 
airports,  while  0.03  kt  SAF  was  purchased  by 
aircraft  operators.  In  2025  a  project  to  produce 
SAF  started  in  Romania;  operations  are  expected 
to begin in 2028 (415). 

Source: TENtec Information System and TEN-T map library – 
European Commission 

(415) ReFuelEU Aviation Annual Technical Report 2025. 

138 

 
 
 
 
 
 
 
 
 
 
 
 
 
Table A19.1:ERTMS deployment in Romania. 

Source: Based on ERTMS – Third work plan of the European Coordinator Matthias Ruete. 

139