Romania’s Minister of Finance Alexandru Nazare announced on February 5 the main elements of a government-backed economic recovery package, following consultations with the business community, aimed at shifting the growth model from consumption to investment.

The plan will have a budgetary impact of around RON 2.1bn-2.2bn (€420mn-€440mn), equivalent to about 0.1% of GDP in 2026, Nazare said according to the transcript of the press conference.

The Ministry of Finance has published the draft law implementing the plan for public consultations. Presenting the package after the government meeting, Nazare said the programme combines fiscal measures with a repositioning of state aid schemes for companies, while prioritising strategic investment projects over volume-driven initiatives.

“We are shifting the focus from consumption to investments and from volume projects to strategic projects in areas where Romania has important interests,” the minister said.

According to Nazare, the package includes fiscal allowances, a more favourable regime for small and medium-sized enterprises and stronger support for large investment projects.

It also introduces active measures through new, more targeted state aid schemes, with implementation horizons of five to seven years.

Nazare said the budgetary cost of the package will be offset by savings generated through the public administration reform law, which the government plans to approve in parallel.

He added that the measures included in the plan will need to be notified to the European Commission.

Over its full implementation period, the recovery package is expected to mobilise close to €4bn in total investments, directed towards six main areas.

These include investments in manufacturing sectors where Romania records persistent trade deficits, with an allocated budget of €1.05bn, or roughly €150mn per year. A further €1.05bn is earmarked for investments in the exploitation of mineral resources, while another €1.05bn will be directed to research, development and high technologies.

Additional components of the plan include €200mn for defence-related investments, €500mn aimed at boosting competitiveness and regional convergence, and €100mn to support investments made by Romanians returning from the diaspora.

Nazare described the package as part of a broader effort to increase Romania’s competitiveness, attract foreign direct investment and encourage the development of large domestic investment projects.

“New instruments will be developed so that Romania increases its level of competitiveness and its chances of attracting foreign investments and developing large Romanian investments,” the minister said.