Investing in 2013 - Rediscovering Romania

by Radu Magdin*

There's much more to Romania than meets the eye: opportunities can be found in several fields, ranging from technology and energy to agriculture and tourism. These fields are on the private sector's agenda, but also the governmental one.

There are some news, good ones. After a hot political summer, things are getting back to economic normal. The governing coalition has unprecedented support in Parliament for the past two decades (a constitutional majority), and seems determined to keep one of the secrets of growth: a flat tax of 16%, among the lowest in Europe. Beside the competitive advantage of low taxation, the macroeconomic situation is solid in this EU and NATO country, with low public debt (33,3% GDP), much under the EU average of 82,5%. The economy is expected to grow; the EBRD estimates growth at 1,4%, the World Bank at 1,6%.

Consequently, 2013 is not a year to be wasted, if you have money in your pockets. Attracting foreign investment is a stated priority for major stakeholders, but also for middle and small ones. The country has been affected by the financial crisis, so finance for projects is sometimes as useful as some cold drinking water in the dessert. Investments will be stimulated by an efficiency drive in EU funds absorption, but private investments are also most welcomed, particularly to maximize the opportunities in terms of tourism, agriculture and, last but not least, energy, especially renewable one. State aid for investment is available, under certain conditions (+5 million euros investment), for insuring sustainable economic development. A few more details on these particular opportunities. Agriculture and tourism are smiling and waving because of excellent soil, climate and geography conditions. As concerns energy opportunities, one can buy cash-stripped investments or go after the Green certificates available, still a generous support scheme. Solar energy is in poll position, after the wind "revolution" that pioneered the field.

Interesting fact, Romanians are among the best IT engineers, and among the best represented in Silicon Valley or other world hubs. Romania is a hub for IT&C projects, increasingly developing local clusters, with a mixture of local and foreign capital. Creativity and good IT skills are helped by investments in broadband - one of the fastest in the world. Contrary to the Dracula legend, if you come to Romania, you will not see your financial blood sucked, but refreshed and enhanced. We do not promise eternal youth, but we do offer a case for good business.

Doing business in a European country in present times can be increasingly interesting for those with a drive to transform a general crisis into a local opportunity. The largest market in South East Europe, with access to the Black Sea region, awaits for you.

*Radu Magdin is CEO of SmartLink Communications, a Romanian communications and public affairs consultancy. "Invest in Romania - Do Mix Business with Pleasure", available on Youtube, is among SmartLink's projects.