Support Measures for Investment Projects in the Manufacturing Industry10 January 2025

The Ministry of Finance proposes a draft Emergency Ordinance (EO) to support strategic investments in the manufacturing industry. The project introduces the “Program for Strategic Projects in the Manufacturing Industry” (2025–2030), financed from the state budget with a maximum cap of 5 billion lei. Investors can benefit from state aid through support schemes or individual ad-hoc assistance.
To benefit from these support schemes, economic operators must meet the following conditions for strategic investments:
· Types of eligible investments (investments in tangible and intangible assets):
· Creation of a new facility, involving the inauguration of an entirely new unit;
· Expansion of an existing facility to increase production or service volume;
· Diversification of production by introducing products or services not previously offered at the facility;
· Fundamental transformation of the production process or service delivery method, resulting in significant improvements.
· Minimum value: EUR 150 million (or EUR 50 million for projects with green/digital transition or research and innovation components);
· Jobs: Creation of at least 100 jobs (or 50 for special projects), maintained for 5 years from the completion of the investment;
· Implementation region: The investment must take place in a development region of Romania, excluding the Bucharest-Ilfov region;
· Activity sector: The investment must be made in one of the specific economic sectors listed in the legislation’s annex. These sectors are considered priorities for the country’s economic development.
What does the new project propose?
The draft EO introduces a series of measures to support the implementation and faster integration of investments into the economy:
1. State aid and fiscal facilities:
· Exemptions from taxes and fees associated with urban planning certificates, based on local/county council decisions;
· Direct concession of public land for strategic projects, with the possibility of selling the land to investors after maintaining the investment for 5 years;
· Reductions of up to 50% on building and land taxes for strategic projects, for up to 5 years;
· Granting a one-time tax credit of 10% of the eligible investment value, capped at EUR 25 million.
2. Simplification of procedures for permits and authorizations:
· Replacing working days with calendar days in deadlines;
· Setting a maximum timeframe for issuing permits;
· Introducing a silent approval mechanism, similar to that in transport infrastructure legislation.
3. Support for investment integration:
· Local authorities can make complementary public investments, such as infrastructure necessary to support private projects;
· Ensuring the connection of project sites to national and trans-European transport networks;
· Public utility operators are obligated to allocate funds and carry out necessary investments in utility networks.
4. Promotion of investments:
· The Romanian Agency for Investments and Foreign Trade (RAIFT) will promote investment facilities and opportunities through a dedicated program with a budget of 375 million lei, implemented between 2025 and 2030.
5. Partnerships with educational institutions:
· Investors can establish partnerships with schools and universities for the education and training of a specialized workforce.
6. Declaration of strategic interest projects:
· Strategic investment projects will be declared by Government Decision, based on a proposal from the Ministry of Finance, following an analysis conducted by the Strategic Investment Projects Analysis Commission (CAPIS).
The draft EO represents a significant step for the development of Romania’s economy by stimulating major investments in the manufacturing industry. Through the proposed measures—ranging from fiscal facilities and simplification of administrative procedures to the integration of projects into communities and partnerships with the education system—the initiative aims to create a competitive and attractive investment environment. The program is designed to accelerate the implementation of strategic projects, generate jobs, and contribute to the sustainable development of less-developed regions. Additionally, the emphasis on green and digital transition strengthens the alignment of Romania’s economy with European and global trends.
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