In an interview with European Times’ Jelena Biric, prime-minister Victor Ponta goes into great detail about what advantages Romania presents to people interested in investing in the country.

European Times: What are some current trends in foreign investment in Romania?

Victor Ponta: Investors are coming here for the following reasons: first of all, Romania offers a very positive fiscal environment. We still have a flat tax of 16%, and we are promoting all the state-aid schemes which are approved by the European Commission. Secondly, we have very skilled people. Our students are well trained and it is much more profitable for companies to keep them here instead of taking them to the UK or the US. Third, labour costs in Romania are an incentive because the average wage of Romanians is below the European average. All companies want to know how much they will need to pay in taxes, how well trained local labour is, and what the average wage is. Romania offers advantages in all these areas. We have also worked very hard over the past two years to keep energy prices very competitive, which has not been easy!

Romania’s energy prices are still below the European average, and this has stimulated the growth of our industry. In addition to all these attractions, our government has created some new investment incentives; for example, the reduction of labour taxation by 5%. Romania is now among the top European countries in investment attractiveness. Romania welcomes foreign investors because investors create jobs, pay taxes, and, over the long term, train our labour force to be competitive, professional and oriented towards EU standards.

This means that, thanks to foreign investors, Romania will develop a new generation of skilled workers who are competitive and know how to use new technologies. We want our younger generation to live and work in Romania, pay taxes, and support the older generation and our pension system. So, FDI is a win-win for both investors and for Romania.

European Times: Can you single out some of Romania’s high-potential sectors?

Victor Ponta: One of our successful sectors is energy. In less than six months, we have managed to launch very successful IPOs of state-owned energy companies which are now listed on the Romanian and London stock exchanges. These include gas-producer Romgaz and electricity-distributor Electrica. These IPOs brought in around one billion Euros in new funding which will remain in the companies for investment in infrastructure. Another thriving sector is the auto industry. Romania has attracted investment from major global players like Renault (Dacia), Ford and Daimler, which just opened a new plant, as well as many other companies, including ones producing automobile parts. These companies have created thousands of jobs and have helped make our automotive sector very competitive. Then there is Romania’s traditional wealth: agriculture. Last year, for the first time in 20 years, Romania was a net exporter of food products, particularly organic food products. Tourism is another rapidly developing sector. We have succeeded in promoting Romania’s natural and cultural heritage, including the absolutely gorgeous Danube Delta.

European Times: What are some other advantages Romania offers investors?

Victor Ponta: In addition to advantageous energy prices, fiscal conditions and skilled people, Romania offers stability and predictability. We have worked very hard on this for the past two years and now investors can see that Romania is on a safe, stable, predictable path. This makes us very competitive, not only compared to other European countries but also compared to any countries anywhere, because companies can do business all over the world from Bucharest. This is the 21st century and competition is not local or regional, but global.

Read or watch the full video on European Times’ website. Also worth mentioning is that European Times will publish  an economic investment report on the country of Romania on October 16.