The slow development of the country’s transport infrastructure could act as a break on Romania’s economic growth, the Foreign Investors Council (FIC) said.

A combination of “lack of prioritization, discontinuity of decision making and poor planning and execution” have slowed the development over the past decades and the country is approaching the point “where the current infrastructure will act as a break on growth,” according to FIC.

FIC estimates Romania needs at least two decades of strong economic growth to reach a parity in terms of living standards with western economies. Still, “the current growth rate will be impossible to maintain in the medium and long term without immediate and massive investments in infrastructure,” FIC said.

The organization outlined several key points the authorities need to address. These include clear priority projects for the next 3 to 5 years and their financing sources; an appropriate corporate governance structure for the National Road Investment Company (CNIR); clearly defined investment criteria and priorities for the Sovereign Fund for the Development of Romania (FSDI); a new PPP law providing a coherent framework; and measures to accelerate the absorption rate of EU Funds.

“Infrastructure is key for Romania’s future development and it is also one of the three pillars Romania must focus on if it is to become one of the top 10 EU economies,” FIC said. The organization is conveying the same message through the Va Urma (www.vaurma.ro) campaign and platform.

Foreign Investors Council president: Romania can reach top 10 economies in the EU

editor@romania-insider.com