Luca Niculescu: Only a third of companies intend to invest in development

The head of government asserted that the administration must restore entrepreneurs’ confidence and appetite for economic growth, given that an increasing number of firms anticipate layoffs.

„It is my duty, and that of the government I lead, to restore entrepreneurs’ confidence and appetite for growth,” the Prime Minister stated, after presenting some of the findings from research conducted by INSCOP.

Niculescu noted that, while most companies intend to retain their current staff, the number of firms anticipating layoffs exceeds the number of those planning to hire. In this context, the Prime Minister argued that supporting investments and economic activity is essential both for protecting existing jobs and for creating new, better-paying ones.

The head of government identified youth employment as a key priority for his administration, noting that Romania has the highest proportion of young people under the age of 28 who are unemployed within the European Union. He added that he has initiated discussions with the Ministers of Labor and Finance, as well as other government members, to identify potential solutions. „The issue is not whether or not we hold discussions; we must take action,” the Prime Minister stated.

Regarding the conditions necessary for the development of the business environment, Niculescu emphasized the importance of fiscal predictability and political stability. He maintained that the new government—which took office following nearly six months of political instability—will work to regain investor confidence.

In this context, the Prime Minister announced that, on Monday, Romania raised 4.5 billion euros from international capital markets through its first issuance of Eurobonds since the new government was installed. According to him, investor demand was double the amount borrowed.

„This is a significant signal of confidence in Romania and in our ability to honor our commitments,” declared Luca Niculescu.

The Prime Minister further noted that four out of five entrepreneurs identify as pro-European, even amidst a challenging economic climate. He argued that Romania must capitalize on opportunities for investment and capital attraction, pointing out that the country’s GDP has tripled, it now boasts over 1,200 kilometers of motorways, and the process of acceding to the OECD is nearing completion.

Finally, Niculescu advocated for strengthening economic ties with the Republic of Moldova and for a new form of „economic patriotism”—one built upon pragmatic, European foundations. „We all need a new economic patriotism built on pragmatic, European foundations—a genuine, intelligent partnership for Romania’s prosperity, in which Romanian entrepreneurs and foreign investors join hands and work together, with the support of the authorities, to foster Romania’s development,” the Prime Minister concluded.