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US State Department warns corruption still hampers Romania's investment appeal

A US State Department report says Romania remains attractive for foreign investors but persistent corruption and weakened anti-corruption mechanisms undermine the business climate.

According to a US State Department investment climate assessment, Romania’s open regime, EU and NATO ties, skilled labor and low costs continue to attract foreign direct investment aimed at European, Caucasus and Near-East markets. Yet the report stresses that corruption remains a “continuous challenge,” citing a drop in DNA’s conviction rate after investigative powers shifted to the General Prosecutor’s Office in 2018 and after a 2022 constitutional ruling shortened criminal prescription periods, cancelling thousands of cases.

Additional court decisions in 2025 limited the role of police officers in anti-corruption probes and curtailed the authority of the National Integrity Agency. Surveys by Eurobarometer and OECD reveal that 90% of Romanian firms view corruption as widespread, far above the EU average, and that business confidence is eroded by unpredictable legislative changes, especially in the energy sector. The assessment advises investors to conduct thorough due diligence and notes that macro-economic vulnerabilities, such as twin deficits, persist.

Why it matters

Corruption risks could deter foreign investors, affecting Romania's economic growth and EU integration.

In this story

corruptionforeign investmentjudicial reformDNA efficiencyEU rule of law mechanismbusiness climateenergy taxdue diligence
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