Country Note Romania 2024

CELIS Country Note on Romania, 2024
by Georgiana Badescu and Cristiana Manea, CELIS Country Reporter for Romania

Romania implemented the Regulation (EU) 2019/452 of the European Parliament and the Council via a foreign direct investment (FDI) regime which became effective in April 2022. While this initial FDI regime expressly covered non-EU investors only, defined by reference to the ultimate controlling entity or person, it was formally extended in June 2023 and December 2023, to specifically include EU-based investors.

The national screening mechanism is primarily ai

med at identifying any potential risks or threats triggered by a transaction or a new (greenfield) investment on national security, public order or any relevant impact on EU projects or programmes. The national screening mechanism involves the Romanian Competition Council, which conducts a prima facie formal review, and the Commission for Screening of Foreign Direct Investments (in Romanian Comisia pentru Examinarea Investițiilor Străine Directe), which conducts the substantive review. CEISD is comprised of representatives of the Government, ministries, intelligence bureaus and the Romanian Agency for Investments and Foreign Trade.

The list of alleged sensitive sectors is very broad and there are no updates from 2012 onwards. Generally, all investors are bound to notify, subject to a standstill obligation, any investment exceeding a monetary threshold of EUR 2 million. Secondary legislation or guidelines particularly on process, calculation of the investment value etc., are expected to be issued by the relevant authorities.