FIC: Romania can increase its regional competitiveness with the help of large-scale economic players

Romania can increase its regional competitiveness with the help of large-scale economic players, provided that strategic measures are taken to stimulate major investments with the ultimate goal of reducing the pressure on the state budget in the medium and long term, argue representatives of the Foreign Investors Council (FIC)."In a tense geopolitical context, it is important that the country's economy is as productive as possible and oriented towards high-value-added investments, so that it is prepared to respond to external shocks. From the 1990s to the present, the share of FDI in Romania's GDP increased from 0 to 35% in 2024. Also, with the help of FDI, the country's economy has grown tenfold from 36 to 355 billion euros in 2024. Both FIC and a significant part of its member companies have a history of approximately 30 years of activity in Romania, which has seen investments, jobs created, taxes paid, but also a long-term commitment to Romania's development," FIC said in a release on Wednesday at the end of the FIC CEOs event "Romania on the Investment Map", which was also attended by acting President of Romania Ilie Bolojan.FIC representatives also pointed out that companies with foreign capital account for 51% of the turnover of companies in Romania, i.e. over 275 billion euros of the country's economy in 2023. FDI exports represent 69% of total exports. Companies with foreign capital employ over 1.3 million people, in which they invest 1.5 times more than the national average and the ratio stays the same when it comes to labor productivity (profit per employee) and profitability.A more detailed analysis based on data from the 110 FIC companies shows that they contributed a combined of almost RON 82 billion to the state budget in 2023 (representing over 18% of the current revenues collected by the state). Also, they account for over 31% of the total VAT and excise duties collected by the state. Investments by FIC companies represent 43% of public capital expenditures, according to the consolidated budget execution. Employees in FIC companies, at approximately 191,000, earned an average net salary almost double the nationwide average.The leaders of FIC companies discussed with Romania's acting president strategic topics for the development of the economy, such as the country rating and tax reform; security and the defense sector; the strategy for attracting investments; the absorption of European funds; the capital market; health care and education; reducing bureaucracy and digitizing public administration; energy transition and climate targets; new EU priorities for the industrial sector.The FIC event - hosted by the Presidential Administration - brought together 50 of the general managers and CEOs of the member companies and is an important step for a clear and transparent dialogue between the Presidential Administration and the FIC, but also a recognition of the importance of foreign investments in the economy.The Foreign Investors Council is the association that brings together the most important investors with foreign capital in Romania, approximately 110 of the largest companies in the country with a cumulative turnover representing approximately one fifth of the GDP and which have a significant contribution to the state budget. In the over 25 years of the organization's existence, FIC member companies have always advocated the dialogue between the business community and authorities.