"Romania remains on the radar of French investors with functional projects and investments that are consolidating"

Reporter: The predictability of the legislative framework is an old myth of foreign investors, but which political decision-makers do not seem to take into account. What impact will you feel as a result of the new fiscal changes undertaken by the Government?

Dana Gruia Dufaut: The increases in VAT, excise duties, dividend tax, contributions, for which the Executive has committed itself to responsibility in Parliament, are part of a package of anticipated fiscal adjustment of the business environment - more in the context of budgetary pressures and short of the electoral slippages in 2024. However, as we have seen, the measures come within a framework of macroeconomic surveillance now closely monitored by the European Commission, and assessments by many economic specialists show that Romania can maintain its status as an attractive market and avoid what is worst for business - a possible downgrade of the country's rating.

For investors, Romania - if it stays on the path of serious reforms and respects what it establishes, without new slippages and changes to the rules of the game from one day to the next - will continue to present solid arguments: access to the EU market, continued competitive costs compared to countries in the region and real opportunities in key areas such as energy, technology, infrastructure or agriculture. It is essential that legal regulations are applied uniformly, in order to maintain the confidence of the companies we advise. From what we see in practice, the appetite for investment remains active, but with increased attention to risk and the need for predictability.

Reporter: Apart from fiscal unpredictability, what are the major risks that affect companies directly in their relationship with state authorities and institutions?

Dana Gruia Dufaut: Entrenched bureaucracy and corruption remain by far the most significant risks, but equally we cannot overlook the digitalization and arbitrary application of administrative acts. The lack of coordination between authorities, the interconnection of systems and divergent interpretations of legislation in many areas are constant operational and legal obstacles for companies.

Reporter: Given the experience of Gruia Dufaut&Asociatii law firms in assisting foreign investors, but also your involvement in the French business community in Romania - including as Advisor to the French Abroad for Romania and the Republic of Moldova -, how do you currently assess the economic relationship between Romania and France in the European context? Was this relationship influenced by the recent electoral campaign in Romania?

Dana Gruia Dufaut: The economic relationship between the two countries is solid, mature and with development prospects. The presence of French companies in Romania is well anchored, especially in strategic sectors such as industry, energy, construction, services and retail. France consistently remains in the top 3 largest foreign investors, which reflects the trust accumulated over time and the stability of the bilateral economic partnership.

However, the recent electoral campaign in Romania, marked by tense rhetoric and political uncertainties, did not really affect this relationship. On the contrary, it highlighted the need for continuity and coherence in bilateral cooperation. Beyond small hops to be made, Romania remains on the radar of French investors with functional projects and investments that are being consolidated. In addition, France remains a reliable partner also in terms of the transfer of know-how, technology and good corporate governance practices. These elements contribute decisively to Romania's alignment with European standards and support the development of a competitive and sustainable business environment.

Reporter: Is there an increased appetite among French companies for local partnerships or public-private projects?

Dana Gruia Dufaut: I see a constant interest from French companies in developing partnerships in Romania, including in the public-private sector. It is an interest supported by positive experiences from the past, but especially by the common membership of the European space and the complementarity between French expertise and Romania's development needs. However, French companies are looking for a clear, stable and transparent framework. Where procedures are predictable and institutional guarantees work, the investment appetite exists - especially in areas such as infrastructure, green energy, digitalization or health. In the area of PPPs, there is still a dose of caution, determined by some legislative aspects and the risks perceived in the execution phase. However, Romania has all the tools to correct these dysfunctions - especially in the field of public procurement - and to send a clear signal of confidence to European investors. I also recently perceived this during the Central Europe and Ukraine Business Forum, organized by Business France, at the French Senate, where Romania was viewed with interest, as a market with concrete potential for sustainable partnerships, provided that a predictable legal and institutional climate is consolidated.

Reporter: What should Romania do to remain attractive to French investments in the coming years?

Dana Gruia Dufaut: To send a clear signal of legislative stability, fiscal predictability and commitment to the private sector. French investors are sensitive to the coherence of public policies, the efficiency of the administration and the quality of institutional dialogue. At the same time, it is essential to accelerate major projects financed from European funds - these create concrete opportunities for foreign and Romanian companies and give a signal of confidence to the market.

Reporter: What message do you send on the occasion of July 14 to the French in Romania and the Romanians close to France?

Dana Gruia Dufaut: On France's National Day, I think about the values that were the foundation of the Republic - Liberte, Égalite, Fraternite. I hope that they will continue to inspire in Romania respect for everyone's freedom, equal access to education and health, and civic spirit - essential landmarks for a European future.

Reporter: Thank you.