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May 12, 2021

Mr. Gerd Bommer, Head of the Commercial Section of the Austrian Embassy in Bucharest: The economic relationship between Romania and Austria is a continued success story

The economic relationship between Romania and Austria is a continued success story with our bilateral trade volume increasing rapidly over the past years. The Romanian-Austria bilateral trade has gained momentum and amounted to EUR 3.2 bn in 2015 – a new “all-time-high” and a plus of 4.4 % year-on-year. The first half of 2016, the latest figures available as of now, also sees a continuing positive trend, further intensifying our bilateral trade relations with Austrian exports to Romania amounting to EUR 1.02 bn (+6.9 % yoy) and Romanian exports to Austria registering EUR 0.6 bn. (+7,1 % yoy).

Even in times of a tougher economic environment, economic ties between Romania and Austria are strengthening: Romania is among Austria’s top 15 economic counterparts worldwide and our most important trading partner in Southeast Europe.

Austria is also a major investor in Romania. According to the latest available official figures, the overall investment by Austrian companies reached EUR 9.7 bn, amounting to 16.1 % of total foreign direct investments in Romania. Through more than 7.100 registered companies with Austrian capital, our investors create approximately 100.000 direct jobs, and constitute one of the major driving forces of economic development and progress in the country.

They therefore are an important pillar of Romania’s society and an active and sustainable partner of its business environment.

These companies provide modern technology, thus boosting productivity and transferring know-how, keep high standards for sustainable and environmentally friendly projects and promote social values. The biggest Austrian investments in Romania were made by OMV acquiring a majority stake in Romania’s Petrom and Erste Bank taking over BCR. In fact, these two are the biggest investments ever made by Austrian companies outside of their home country. There are also a number of other large Austrian investments in a multitude of sectors with Austrian companies being particularly strong in banking and insurance, oil and gas, environmental technology and services, real estate, agriculture, construction material and services, wood processing, packaging, transport, logistics and retail.

The economic potential of Romania is without doubt one of the biggest in the EU, it is based on its widely available natural resources and diversified energy mix combined with a great number of highly skilled and educated work force. With growth rates high above the European average, Romania is increasingly capitalizing on this potential. In contrast to the boom years in 2007 and 2008, Romania has seen more sustainable growth the last couple of years. Romania therefore also remains an interesting investment location for Austrian companies, not only due to the expected positive economic development and the growing importance of its internal market. According to a recent study carried out among managers of Austrian subsidiaries in Romania, the country offers an attractive potential for growth. Besides investments in company expansions and modernizations, Austrian investors also plan on creating more jobs through their investments in the medium-term. For the years to come, we therefore expect our economic relationship to tighten even further. A lot of the new investment projects come from companies that are already established investors in the market which is a clear evidence of the excellent relationship that our countries enjoy.

However, Romania still has room for improvement in certain sectors, increasing the attractiveness of its investment location. Investments require long term planning and strategy, which is particularly difficult in a frequently changing economic framework. Trust in political stability as well as reliability and predictability of political decisions are of utmost importance for international investors.

Another concern of Austrian investors is an increasing lack of skilled and unskilled labor in Romania. The Austrian system of dual education could prove a helpful model in this regard as it has two major benefits: It gives businesses the chance to interact with educational institutions on training plans to teach the skills thought after by companies and also offers students a highly practical and attractive training, providing them with an education to succeed on the job market. A highly skilled labor force is also a substantial competitive advantage for a market to attract investment and to increase the value added of local businesses. The Commercial Section of the Austrian Embassy is already working with two schools, one in Bucharest and one in Cluj-Napoca, on pilot projects for dual education.

It is a strong statement of a trusted partnership that all major Austrian investors stayed in the Romanian market over the past years. Austrian investors have been a permanent and reliable partner adding to economic stability and strength. Romania has produced extraordinary growth figures over the last years and hopefully continues this path of continuous and lasting growth. Austria is proud to be a reliable partner in this process and wishes Romania and it’s economic development a continued success story.

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