2025 brought a tense climate for the European economy, and Romania was no exception. German investments continued, but structural gaps, high energy costs, and political turmoil put pressure on the business environment. In this context, Sebastian Metz, CEO of AHK Romania, looks to 2026 with a dual message: caution in assessing risks and confidence in Romania’s potential to transform itself into concrete results if it accelerates reforms and moves from intentions to implementation.
How would you describe the year 2025? What were the main investment and trade figures between Germany and Romania, and how do you see the evolution of the energy market and the economy going forward?
The year 2025 was a mixed one. On the positive side, German-Romanian economic relations achieved notable successes, marked by several major investments and new project announcements. Among these were significant investments by Daimler in Sebeș, Diehl Aviation in Craiova, Stihl in Oradea, Knauf in Târnăveni, and many others. Particularly remarkable are the planned investments in the defense sector, such as those by Rheinmetall. In addition, we saw continued activity from German companies in retail and the manufacturing industry, as well as an encouraging trend of Romanian companies gradually exploring business opportunities on the German market.
However, 2025 was also shaped by persistent geopolitical and structural challenges. Energy costs remain too high in Romania, and Romania continues to navigate several profound transformation processes: the digital transformation, accelerated by the rise of artificial intelligence; the green transition toward a carbon-neutral economy, with all its social implications; and increasingly, the “security transformation,” involving the development of modern defense capacities and an emerging industrial defense ecosystem with efficient supply chains.
Europe as a whole is under economic pressure particularly regarding unfair competition, erratic trade policies measures of traditional partners, supply chain challenges, and access to critical raw materials just to mention a few. In addition, internal challenges such as overregulation at the EU level passed to national level, political turbulences during Romania’s “super election year” 2024–2025, and an often-divided governing coalition have affected investor confidence and predictability.
Looking ahead, I hope Romania will fully leverage its vast potential as a hub for innovation and technology. The country benefits from strong universities, a vibrant IT community, and ambitious initiatives such as the RO AI Factory by ICI and Politehnica University of Bucharest. These developments should be nurtured to strengthen Romania’s innovation ecosystem.
The same applies to the energy sector. Romania has the potential to become a regional energy hub, but we need to move from discussion to action—particularly in energy storage, grid expansion, digitalization and production capacities. Projects like Neptun Deep have laid the groundwork, but continued implementation is key.
I also see significant potential in the defense industry. The idea of establishing a Southeastern European defense hub, as discussed at the recent AHK defense conference, could bring major long-term benefits—economic, technological, and strategic.
Finally, Romania’s agri-food sectors hold great untapped potential. Expanding food-processing industries could help reduce trade deficits. My wish is that Romania adopts a more strategic, coordinated approach to harnessing this potential—transforming strong fundamentals into tangible results.
What are Germany’s main investments and projects in Romania, particularly in the energy sector?
I expect to see growing German engagement in Romania’s defense industry in the near future. It is important, however, that local companies be actively involved in this process. Building the necessary certifications, know-how, and trust will take time, but it will ultimately create a robust and resilient European defense ecosystem.
In the energy sector, much remains to be done. Grid infrastructure must continue to expand, energy efficiency should improve, and storage capacities must be increased and we need to create a more liquid energy market—one of the key prerequisites for lowering prices. We also need a more investment-friendly regulatory framework, especially to support companies that combine EU funding with their own capital. The area of prosumers, in particular, requires further attention and reform.
What are Germany’s priorities for the energy sector in 2026 and beyond? What are the main trends?
German companies see strong opportunities in Romania’s energy market, in all domains like equipment, grid infrastructure, storage, production, services and also in the field of energy efficiency. I am a bit concerned about the reduced EPC (Engineering, Procurement, and Construction) capacity in Romania, which could create implementation bottlenecks. And the limited global supply of key equipment and long delivery times also pose challenges.
I am optimistic that large gas-fired power plant projects will move forward, supporting a smooth and secure coal phase-out. Modernization of existing and expansion of new nuclear power capacities will go on. Onshore and maybe offshore wind development also holds great promise and could advance to new stages in 2026, opening exciting business opportunities for both countries.
How have the recent fiscal and administrative measures affected German investors in Romania?
One issue I must emphasize is the need to abolish the minimum turnover tax. This measure contradicts both international standards and sound economic logic—turnover should not be taxed. It discourages investment and undermines the government’s stated goal of fostering growth. Eliminating this tax would be a very effective way to support the economy.
There is little room left for further corporate tax increases. Instead, the focus should be on reducing public spending and improving efficiency in state expenditures. These reforms would build investor confidence, strengthen Romania’s competitiveness, and act as powerful multipliers for future growth.
What are AHK Romania’s main goals and KPIs for the period ahead?
AHK Romania’s objectives are clear: to promote prosperity and sustainable growth in Romania by unlocking existing business potential—whether in manufacturing or R&D, especially in sectors like energy, defense, health or the food industry.
We will continue to serve as a strong voice for our members and for the German-Romanian business community as a whole, maintaining constructive dialogue with policymakers and public institutions. Our shared goal remains the same: deeper German-Romanian business ties and long-term prosperity for both economies.
What are the main challenges facing German investors in Romania, and how can they be addressed?
Structural reforms are essential to build confidence and attract investment. Reducing the budget deficit is a key step.
This is crucial for two reasons: first, EU funding depends on meeting reform and deficit targets; losing access to these funds would severely restrict Romania’s growth prospects. Second, failure to maintain fiscal discipline could lead to country investment downgrades, triggering capital outflows and economic instability. Avoiding such a scenario must be a top priority.
Beyond fiscal stability, the government should focus on initiating growth—using EU funds strategically, investing in infrastructure, implementing reforms consistently, and refraining from measures that burden companies.
At the same time, targeted steps such as reducing bureaucracy, lowering energy costs, and fostering closer collaboration between universities and businesses would greatly improve the investment climate. Partial or full privatization of state-owned enterprises—through professional management or stock market listings—could also enhance efficiency and competitiveness.
In short, Romania has all the right ingredients for success—it just needs to continue turning potential into performance.
_____________________________________________
The interview first appeared in the printed edition of Energynomics Magazine launched on December 4th, 2025.
In order to receive the printed or electronic issue of Energynomics Magazine, we encourage you to write us at office [at] energynomics.ro to include you in our distribution list. All previous editions are available HERE.
