German investments in Romania
German finance minister, Wolfgang Schäuble, has hailed the way in which the Romanian economy is developing and Bucharests relation with Berlin. Germany is Romanias largest trade partner, making significant investments in Romania.
Daniela Budu, 27.10.2016, 14:12
German finance minister, Wolfgang Schäuble, recommends to Romania to step up the process of making investments, also by using European funds and to try to access the Investment Plan for Europe launched by Jean-Claude Juncker, in order to catch up with other European states, relative to this issue. Schäuble travelled to Bucharest for a conference on the business opportunities provided by Romania and met with high-ranking officials here. The German minister said two-way trade exchanges are on the rise and hailed the way in which the Romanian economy is developing.
Wolfgang Schäuble: “Romania has one of the most dynamic economic growth rates in the European Union, which is extremely significant at such difficult moments. It is also worth noting that the indebting rate stands below 40% of the Gross Domestic Product, which is a very important element for a finance minister. I advise you to maintain this level and not put it into jeopardy by taking careless measures”
The German minister said the Romanian authorities should prevent the emergence of conflicts between local and foreign investors, as well as between big companies and SMEs. He also mentioned the relatively low unemployment rate in Romania, pointing however to the fact that, just like in many other European countries, young people are the most affected category from this point of view. He called on the relevant authorities to make use of the so-called dual professional education system, in the effort to solve this issue.
During the talks with Romania’s President, Klaus Iohannis, the German official tackled the EU’s current challenges, among which migration and Great Britain’s leaving the community bloc. Another issue on the agenda of the talks between the two officials was the possibility to reduce the gaps between the EU member states.
The German finance minister also held talks in Bucharest with Romanian Prime Minister Dacian Ciolos, on the prospect of fresh German investments being made in Romania.
According to the Romanian Foreign Ministry, Romania and Germany have jointly built complex and lasting bilateral relations, based on common membership to the EU and NATO. In political and economic terms, bilateral relations have followed an upward trend in recent times, particularly after Romania joined the EU.
An essential role in consolidating bilateral ties is played by the German ethnic minority in Romania, as well as by the ethnic Germans and Romanians who emigrated to Germany and who create a solid bridge between the two countries, at social, cultural, economic and political level.
German President Joachim Gauck paid a visit to Romania in June 2016 and Romanian President Klaus Iohannis travelled to Berlin in February 2015 and September 2016.
Germany is Romania’s largest trade partner, bilateral trade accounting for one fifth of Romania’s foreign trade. Also, Germany is the third largest investor in the Romanian economy (after the Netherlands and Austria), with 4.5 billion Euro, the equivalent of 11.5% of the total volume of investments. (Translated by D. Vijeu)
