An analysis conducted by EY Romania shows that, between 2019 and 2025, the total value of state aid granted in Romania exceeded 2.5 billion euros, supporting investment projects across the country. The most attractive sectors for these funds were the food and beverage industry, the manufacturing industry (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 foreign-owned companies, confirming Romania’s continued appeal to international investors.
„Romania's state aid framework is evolving towards a central instrument of industrial policy, with the potential to accelerate investments and support the transition to a more resilient and innovation-oriented economy. We believe the new state aid package announced is particularly important, as it can contribute to a paradigm shift in Romania's growth model – from one primarily based on consumption and low costs, to one based on productivity, technology, and exports,” says Sebastian Popescu, Partner, coordinator of the Grants and Incentives Advisory 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 investment growth, regional development, and the expansion of industrial capacities, by providing non-reimbursable funding in the form of grants. These funds supported the development of new production facilities, the expansion of existing operations, and job creation, 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 financings to fewer projects, but with greater value and strategic importance, focusing on capital-intensive investments with increased economic impact.
A significant funding package has been allocated through several state aid schemes, primarily managed by the Ministry of Finance and the Ministry of Economy, supporting companies across a wide range of sectors and sizes. Beyond direct financial support, state aid has played a catalytic role in mobilizing private capital, with beneficiaries complementing public funds through substantial co-financing.
A central pillar of this framework is Government Decision no. 300/2024, aimed at supporting large capital-intensive investments. Within this scheme, 15 projects have been approved for the 2024-2025 period, with a total investment value of approximately 662 million euros, supported by state aid amounting to 283 million euros and estimated to generate over 1,600 new jobs, thus strengthening Romania's attractiveness for high-impact industrial investments.
Overall, state aid schemes implemented in Romania have become an essential tool for attracting investments and sustaining 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 investor demand, with some schemes being fully subscribed and demand significantly exceeding available budgets. High absorption rates confirm the attractiveness of non-reimbursable funding, especially for large-scale projects.
Foreign investors remain very active, representing the majority of approved funding, with main investors coming from countries such as Germany, the Netherlands, and Italy. At the same time, domestic companies are increasingly resorting to state aid to expand their operations and strengthen their market position.
In recent years, there has also been an observed increase in the average project size, particularly 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.
New perspectives and schemes announced
Regarding the future, Romania is entering a new investment cycle, supported by a multi-year economic recovery program, with an estimated budget of up to 5 billion euros until 2032. The program signals a transition towards a more strategic state aid framework focused on public policies, aligned with European priorities for competitiveness, resilience, and industrial transformation.
A key element of this framework is the introduction of dedicated mechanisms for large „anchor” investments, targeting projects exceeding 200 million euros. These instruments aim to position Romania as a competitive destination for major production capacities and regional supply chain hubs, amidst increasing competition in Central and Eastern Europe.
The future state aid architecture will focus on several priority directions:
- advanced manufacturing and industrial modernization, supporting automation, digitalization, and high-value-added production;
- research, development, and high-tech sectors, facilitating the transition from innovation to large-scale industrial implementation;
- strategic and critical industries, including raw material processing and net-zero emission technologies;
- regional convergence, aiming to expand investments outside established industrial centers;
- diaspora entrepreneurship and investment, leveraging external capital and expertise for domestic development.
In parallel, new schemes are being developed to support the competitiveness of the manufacturing industry and to reduce the trade deficit, as well as for research and development-intensive sectors and strategic industries, each with indicative budgets of approximately 1 billion euros. These initiatives reflect Romania's alignment with the broader EU objectives regarding strategic autonomy, industrial resilience, and supply chain security.
An important trend shaping the next investment cycle is the increasing selectivity of funding, with authorities prioritizing projects demonstrating high economic impact, technological advancement, and integration into European value chains. This reinforces the shift towards fewer, but larger and more complex projects, already visible in recent years.
At the same time, future schemes are foreseen to place a stronger emphasis on sustainability and decarbonization, supporting investments in energy efficiency, low-carbon technologies, and industrial transformation aligned with climate objectives.
From investors' perspective, the combination of substantial fund availability and a more structured policy framework creates significant opportunities. However, competition for funding is expected to intensify due to high demand and increasingly complex eligibility criteria.
Consequently, companies will need to adopt a more pronounced strategic approach, including aligning investment plans with financing priorities from the outset, robust project structuring, and integrating state aid into overall financing strategies.
Overall, the state aid framework in Romania is evolving towards a central instrument of industrial policy, with the potential to accelerate investments, strengthen competitiveness, and support the transition to a more resilient, innovation-driven, and sustainable economy.