An analysis conducted by EY Romania shows that, in the period 2019-2025, the total value of state aid granted in Romania exceeded 2.5 billion euros, supporting investment projects throughout the country. The most attractive sectors for these funds were the food and beverage industry, manufacturing (light industry), construction and the automotive industry, reflecting Romania’s production-oriented industrial economic profile. Over 57% of the approved state aid projects were granted to companies with foreign capital, confirming Romania’s constant attractiveness for international investors.
“Romania’s state aid framework is evolving into a central instrument of industrial policy, with the potential to accelerate investment and support the transition to a more resilient and innovation-oriented economy. We consider the new announced state aid package to be particularly important, as it can contribute to a paradigm shift in Romania’s growth model – from one based mainly on consumption and low costs, to one based on productivity, technology and exports,” says Sebastian Popescu, Partner, Coordinator of the Grants and Incentives Consulting service line, EY-Parthenon Romania.
Impact and benefits of state aid programs
The state aid programs implemented during the analyzed period had a significant impact on the growth of investments, regional development and the expansion of industrial capacities, providing non-repayable financing in the form of grants. These funds supported the development of new production units, the expansion of existing operations and the creation of jobs, contributing to Romania’s long-term economic competitiveness.
Between 2019 and 2025, 191 investment projects were approved in 37 counties, highlighting the national coverage of state aid instruments. The evolution of these programs reflects a gradual transition from a large number of financing to fewer projects, but with greater value and strategic importance, with a focus on capital-intensive investments with high economic impact.
A significant funding package was allocated through several state aid schemes administered mainly by the Ministry of Finance and the Ministry of Economy, supporting companies from a wide range of sectors and sizes. Beyond direct financial support, state aid played a catalytic role in mobilizing private capital, with beneficiaries complementing public funds through significant co-financing.
A central pillar of this framework is Government Decision no. 300/2024, intended to support large capital-intensive investments. Under this scheme, 15 projects were approved in the period 2024-2025, with a total investment value of approximately EUR 662 million, supported by state aid worth EUR 283 million and estimated to generate over 1,600 new jobs, strengthening Romania’s attractiveness for high-impact industrial investments.
Overall, state aid implemented in Romania has become an essential tool for attracting investment and supporting industrial development, with an increasing focus on strategic sectors, value chain integration and long-term competitiveness.
Investment appetite and market dynamics
State aid programs continue to benefit from strong demand from investors, with some schemes being fully subscribed and demand significantly exceeding available budgets. High absorption rates confirm the attractiveness of non-reimbursable financing, especially for large-scale projects.
Foreign investors remain very active, accounting for the majority of approved financing, with the main investors coming from countries such as Germany, the Netherlands and Italy. At the same time, domestic companies are increasingly turning to state aid to expand their operations and strengthen their market position.
In recent years, an increase in the average size of projects has also been observed, especially for foreign investors, reflecting a structural reorientation towards higher-value investments and more complex industrial projects.
From a regional perspective, investments have been concentrated in established industrial centers, such as Prahova, Timiș and the western regions, while less developed regions continue to attract a relatively smaller number of large-scale investments.
Outlook and new schemes announced
Looking ahead, Romania is entering a new investment cycle, supported by a multi-annual economic recovery programme, with an estimated budget of up to EUR 5 billion until 2032. The programme signals a transition towards a more strategic and policy-oriented state aid framework, aligned with European priorities on competitiveness, resilience and industrial transformation.
A key element of this framework is the introduction of mechanisms dedicated to large-scale “anchor” investments, targeting projects exceeding EUR 200 million. These instruments aim to position Romania as a competitive destination for major manufacturing capacities and regional supply chain hubs, in the context of intensifying competition in Central and Eastern Europe.
The future state aid architecture will focus on several priority directions:
- advanced manufacturing and industrial modernisation, supporting automation, digitalisation and high-value-added production;
- research, development and high-tech sectors, facilitating the transition from innovation to large-scale industrial deployment;
- strategic and critical industries, including raw material processing and net-zero emission technologies;
- regional convergence, aiming at expanding investment beyond established industrial centres;
- entrepreneurship and diaspora investment, leveraging foreign capital and expertise for domestic development.
In parallel, new schemes are being developed to support the competitiveness of manufacturing and reduce the trade deficit, as well as for R&D-intensive sectors and strategic industries, each with indicative budgets of around EUR 1 billion. These initiatives reflect Romania’s alignment with the wider EU objectives of strategic autonomy, industrial resilience and supply chain security.
A key trend shaping the next investment cycle is the increasing selectivity of funding, with authorities prioritising projects that demonstrate high economic impact, technological progress and integration into European value chains. This reinforces the shift towards fewer, larger and more complex projects already visible in recent years.
At the same time, future schemes are expected to have a stronger focus on sustainability and decarbonisation, supporting investments in energy efficiency, low-carbon technologies and industrial transformation aligned with climate objectives.
From an investor perspective, the combination of the availability of substantial funds and a more structured policy framework creates significant opportunities. However, competition for funding is expected to intensify, given the high demand and increasingly complex eligibility criteria.
As a result, companies will need to adopt a more strategic approach, including aligning investment plans with funding priorities from an early stage, robust project structuring, and integrating state aid into overall funding strategies.
Overall, the state aid framework in Romania is evolving into a central instrument of industrial policy, with the potential to accelerate investment, strengthen competitiveness, and support the transition to a more resilient, innovation-driven, and sustainable economy.
