ROMANIA Trends and Developments Contributed by: Carina Vermeșan and Vincențiu Constantin, Andronic and Partners
procedures. It is expected to introduce mandatory screening mechanisms, broaden sectoral coverage, particularly in energy, transport, critical infrastruc- ture, defence-related technologies, semiconductors and artificial intelligence and enhance the powers of authorities to review both notified and non-notified transactions, including potential post-closing inter- ventions. For Romania, which already operates a relatively extensive screening framework, these developments are likely to result in further clarification of sectoral scope and a more structured approach to transactions such as internal reorganisations or indirect invest- ments. At the same time, the expansion of screening obligations and the introduction of additional review layers may extend transaction timelines and increase the level of scrutiny applied to investments. In parallel, the implementation of EU-funded projects continues to generate both opportunities and practical challenges. While these projects provide substantial financing and support economic growth, procedural complexities, procurement timelines and evolving regulatory requirements may impact execution, gen- erating a steady flow of disputes related to public procurement, contract performance and regulatory compliance. Overall, Romania’s investment environment remains dynamic and compelling, characterised by signifi- cant opportunities across key sectors alongside an increasingly structured regulatory landscape. In this context, careful legal and strategic planning remains essential to ensure the effective implementation of investments and the management of associated risks. Current Economic Context During 2025 and 2026, Romania’s economic growth has slowed, shaped by both domestic structural chal- lenges and external influences. Although the economy remains on an upward trajectory, growth is less robust than in prior years, largely because of ongoing infla- tion, tighter fiscal policies and subdued consumer spending. Inflation remains a key factor shaping the econom- ic environment, driven by energy price volatility, tax
adjustments and broader cost pressures across mul- tiple sectors. At the same time, fiscal consolidation efforts aimed at reducing the budget deficit have led to a more restrictive macroeconomic framework, with implications for both public spending and private sec- tor activity. External developments continue to play a significant role. The ongoing war in Ukraine, coupled with insta- bility in the Middle East and disruptions affecting key energy transit routes such as the Strait of Hormuz, has contributed to market volatility and increased uncertainty. These factors have had a direct impact on energy prices, financing conditions and overall business sentiment. Despite these challenges, public investment and EU- funded projects remain key drivers of economic activ- ity, particularly in infrastructure and energy. The effec- tive absorption and implementation of funds under programmes such as the National Recovery and Resilience Plan (NRRP) and Security Action for Europe (SAFE) continue to be central to sustaining growth and supporting long-term economic convergence. Looking ahead, Romania’s economic outlook remains moderately positive, although subject to downside risks. The trajectory of growth will depend on the bal- ance between fiscal consolidation, investment exe- cution and the evolution of external geopolitical and economic conditions. In this context, macroeconomic developments continue to influence both the invest- ment climate and the volume and nature of disputes. Looking Ahead: Future Developments Romania’s legal and dispute resolution landscape is expected to continue evolving under the combined influence of economic pressures, EU-driven reforms and technological advancements. These factors are likely to further shape both the volume and nature of disputes, as well as the mechanisms for resolving them. In particular, the increasing complexity of large-scale infrastructure and energy projects, coupled with enhanced regulatory scrutiny, particularly in areas such as foreign investment screening and public pro-
477 CHAMBERS.COM
Powered by FlippingBook