Romania Between Resilience and Reform
Energy Minister Bogdan Ivan’s statement that Romania has the highest energy prices in Europe in relation to purchasing power has provoked strong reactions. However, beyond the controversy, the statement highlights an economic reality that the business community experiences on a daily basis: energy is no longer just a resource, but a strategic factor that directly influences competitiveness, stability, and even national security.
Romania, despite having considerable natural resources and a balanced energy mix, finds itself in a paradoxical situation today. On the one hand, it is a significant producer in the region, with potential for export and development, but on the other hand, it pays one of the highest energy prices in Europe. Especially when we compare prices to the actual income of the population and the ability of companies to pay. The official data is clear: Bucharest ranks 11th among the 33 capitals analysed, with an average price of 27.5-euro cents/kWh, above the European average of 25.4-euro cents, and if we adjust these figures to purchasing power, Romania takes first place.
This situation speaks volumes about the structural gaps in the economy: low productivity, poor infrastructure, unpredictable taxation, and a lack of coherent policies to support industry. The price of energy is not just a figure on a bill—it reflects an economy that consumes a lot and produces little, that taxes heavily but invests little in competitiveness.
For the business community, this reality is becoming increasingly difficult to manage. A recent survey conducted by the Concordia Employers’ Confederation shows that 80% of entrepreneurs believe that the economic environment has deteriorated, and 81% say that recent tax packages discourage investment. No wonder: an economy where prices are rising, taxes are multiplying and predictability is lacking cannot generate confidence. Romanian companies no longer ask for subsidies or preferential treatment; they ask for stability and consistency. They call for a predictable fiscal framework, sustainable energy policies and real state-private partnerships. Without them, Romania’s competitiveness is eroded.
In industry, energy accounts for between 15% and 40% of production costs, and an increase by a few percent can turn a profitable business into a vulnerable one. Expensive energy affects the entire economy, from transportation and agriculture to IT and services. High energy prices translate into higher production costs and ultimately a loss of competitiveness against other European economies.
Beyond these issues, energy should be seen as an area of innovation, not just consumption. Countries that have managed to turn the energy transition into an opportunity – through digitization, efficiency and green investments – have not only strengthened their economies but also their independence. Romania has the chance to do the same, if it understands that energy resilience and economic competitiveness are two sides of the same coin.
What can be done? First and foremost, trust between the state and the business community must be restored. Firms cannot be treated as endless sources of budget revenue. A genuine partnership based on transparency, dialog and fiscal stability is needed. Second, investment in domestic energy production – from nuclear and hydro projects to renewables and energy efficiency – must be supported. Romania has the potential to become a strong regional player, but without smart investments, it remains trapped between high costs and missed opportunities.
Energy is the barometer of a healthy economy, and countries that have understood this truth have turned this resource into a competitive advantage. Romania is now at a crossroads: it can continue to manage the crisis through reactive and temporary measures, or it can build a real strategy to restore private confidence and put the Romanian economy back on the path of healthy growth.
Energy is expensive, but lack of vision costs infinitely more. Romania has resources, people and potential. All it needs to do is believe in them—and leverage them with intelligence and courage.
