Romanian politics is currently unstable, raising concerns among investors regarding future investments. The criminal investigation into CÄlin Georgescu may either signal a return to stability or herald further unrest. The anticipation of election reruns in May adds to the tension. Recent data indicates a drop in foreign investments, reflecting the political turmoil. Fitch Ratings has downgraded Romania's outlook to 'Negative', highlighting concerns over budget deficits and public debt. The government must act swiftly to assure investors and secure economic stability to prevent potential downturns.
With the election rerun anticipated for May, there is still plenty of opportunity for further developments, in what has been a tumultuous few months.
Fitch Ratings recently revised its outlook on Romania from 'Stable' to 'Negative', citing political uncertainty, large budget deficits and increasing public debt.
According to SeeNews, the number of new businesses with foreign owners established in Romania dropped by 13.2% in 2024. Given the current political situation, it is possible that this figure has fallen further in 2025.
Investors will be monitoring the situation closely to see whether Romania is worth the gamble.
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