PM Ciolacu: Romania may become one of Europe's major economic forces in the next 4-5 years

In the next four-five years, Romania can become one of Europe's major economic forces if it preserves its political and economic stability, Prime Minister Marcel Ciolacu said on Tuesday.

He attended the AmCham CEO Business Forum event.

The prime minister added that the government comes up with effective regulations to facilitate business, stimulate investment and create new well-paid jobs.

"We add record public investment from European funds, budget and drawn sources, state aid schemes, guarantees, grants and other economic stimuli. You, American investors, come and contribute - besides know-how and technology - private specialists and investment, innovation and export potential. We have already set a public investment target of at least 7% of GDP that should be an average for the next four-five years. That means that in 2024-2028 we can invest about RON 700 billion in the economy worth of European funds and national budget appropriations," Ciolacu said.

He added that Romania no longer has time for small projects, and for major projects large corporations with solid experience are needed, given the economic dynamics and security challenges.

"Not only do we have the necessary money available, but we also have a new framework of public-private partnership under which we can launch such projects. The government cloud, which is the pillar of the digital transformation of state administration, is one of the most relevant examples. But that's not the only one. We are building dozens of new hospitals; we need state-of-the-art medical equipment and training for medical staff. We have the chance to become a regional energy hub, with the best mix of production in the area. Black Sea gas, nuclear and wind energy, green hydrogen can make Romania the continent's new energy El Dorado. There are concrete realities that I expect us to transform together into business projects!", said Ciolacu.

He went on to say that, together with the governing partners, the social-democrats have taken a major political decision by simplifying the electoral schedule for social stability, in order not to jeopardize the achievement of a double national strategic objective - the completion of the National Recovery and Resilience Plan (PNRR) and accession to the Organisation for Economic Co-operation and Development (OECD).

The prime minister said he was confident that Romania can become one of the continent's major economic forces in the next four-five years if it preserves its political and economic stability.

"It is not a dream, but a projection based on our economic and social trajectory since European accession! The conclusion is that it is up to us to be able to look like this: in four years' time, Romania will have a GDP of about EUR 500 billion as against EUR 320 billion in 2023. Romania can have an average gross salary of EUR 2,000 per month and a gross minimum wage of EUR 1,200 per month. That is where the application of the EU principle of the European minimum wage will naturally lead us. Thirdly, we need to plough back into the economy, under support schemes, state aid, grants, stimuli and guarantees, between 8 and 10% of GDP. Indeed, we will have to work with the finance minister and the economy minister. Four, to attract cumulative foreign direct investment of EUR 40 billion. And last but not least, to become the strongest economy in Central and Eastern Europe, surpassing Poland in economic convergence indicators."

Additionally, Ciolacu suggested a mechanism for tracking progress based on result indicators.

"I propose that whatever we establish today should come with a mechanism for tracking progress based on result indicators, just like you work in corporations. We have the advantage that both ambassador Kavalec and I are applied people. And we are determined to stick to the objective agreed with the US administration during my visit to Washington last year: boosting the business dimension of our strategic partnership!"