AGP Executive Report

Banking Appointments & SME Finance: Intesa Sanpaolo Bank Romania named Mara Cristea CFO and Deputy CEO, while ING Bank Romania rolled out ING Business Web to let SMEs see eligible financing and apply online. Payments & Regulation: Netopia Payments appointed a new CEO as it moves through the National Bank of Romania authorization path to become a payment institution. Public Finance & Health Costs: CNAS warned medicine pricing rules need reform, saying the current system delays access to innovative treatments even as the medicines budget keeps rising. Household Pressure & Tax Mood: A survey found 8 in 10 Romanians view taxation as excessive, with many reporting savings are being used up. Distressed Assets & Credit Stress: Romania’s distressed-asset listings nearly doubled to EUR 1.766bn by end-May, signaling tougher times for borrowers and investors. Rates & Trust: The banking sector rejected claims of ROBOR manipulation, warning sanctions could damage trust and financial stability. Energy & Connectivity: Romania’s PM-designate Adrian Vestea presented a programme focused on deeper energy links with Moldova and major gas-transport and district-heating investments. Power Storage: Aukera Energy switched on the first phase of its Gura BESS in Romania, with a second phase planned for end-2026. Security & Defence: Romania’s Navy took delivery of the “Rear-Admiral August Roman” corvette from Turkey, and Latvia signed a SAFE defence loan to boost drones and anti-drone capacity. Crime Crackdown: Bulgarian and Romanian authorities arrested two suspects in a fuel card skimming ring operating across Romania and other EU states.

Government Formation: Romania’s PSD voted unanimously to join the parliamentary majority backing PM-designate Adrian Vestea, seeking nine ministries and the government secretary-general role, while saying it will closely monitor decisions affecting the economy. Political Stability Watch: Vestea’s path still looks fragile in a fragmented parliament, with the president’s nomination process drawing constitutional criticism. Defense & Security: Romania’s Navy received the “Rear-Admiral August Roman” corvette from Turkey, boosting Black Sea capabilities as Bucharest and Ankara expand strategic cooperation. EU Defense Financing: Latvia signed a nearly €3.5bn SAFE defense loan to speed up drones, missiles and anti-drone systems—part of a wider EU push that also includes Romania. Transport & Connectivity: A Moldova-Romania delegation met ThPA S.A. to strengthen logistics and cross-border links, with rail and TEN-T upgrades highlighted. Travel Rights for Business Travelers: FlightHelp launched a free EU261 quick-start checklist to help passengers act fast on delays and compensation claims. Cybersecurity: Gentlemen ransomware is using modular EDR-killer tools built from rival gang components, with Romanian energy provider Oltenia cited in the attack chain. Energy & Industry: Romania’s manufacturing support scheme and EU farm-policy talks in Luxembourg point to continued focus on investment, incomes and post-2027 CAP design.

Black Sea Security & Defence Industry: Romanian President Nicușor Dan met Türkiye’s Erdoğan in Istanbul after the delivery of the corvette “CAm. Roman” to the Romanian Naval Forces, in parallel with Türkiye’s first warship export to a NATO/EU member—an Erdogan-backed milestone for Ankara’s defence industry and a boost for Black Sea security cooperation. Energy Storage & Corporate Growth: REPT BATTERO is pushing its energy-storage push at Intersolar Europe 2026 in Munich, touting 2025 revenues of about €3.1bn and first full-year profitability, while highlighting its new Inter Milan global battery partnership. Banking & Green Transition: Patria Bank signed a renewable energy supply deal with Alive Capital so all branches run on green electricity, linking financing for renewables (including hybrid wind+solar+battery projects) to its own operations. EU Policy & Travel Rights: The EU’s passenger-rights checklist for EU261 disruptions is out from Romanian entrepreneur Irina Ciochiu, as air traffic pressure rises and fewer than 40% of eligible travellers file claims. Politics & Governance: Prime Minister-designate Adrian Vestea says OECD accession is a priority and frames it as Romania’s “third external anchor” after the EU and NATO. Business & Markets: Azerbaijan’s urea export revenues held up despite sharply lower volumes, as higher global prices offset the shipment drop—an example of how geopolitics is still moving commodity markets.

OECD Push for Romania’s Next Government: Prime Minister-designate Adrian Vestea says OECD accession is a top priority, positioning the OECD as Romania’s “third external anchor” after the EU and NATO, while also discussing budget execution and the outlook with future ministers. Energy Storage & Industry Partnerships: REPT BATTERO is doubling down on growth and innovation, reinforcing its Inter Milan partnership and showcasing energy storage tech at Intersolar Europe 2026; it reported 2025 revenues of about €3.1bn and first full-year profitability. Black Sea Security & Infrastructure: President Nicuşor Dan met Erdogan in Istanbul to expand strategic cooperation, including Black Sea security and protection of submarine infrastructure, as Romania also moves on PNRR implementation and naval capability. Green Finance for the Energy Transition: Patria Bank signed a renewable energy supply deal with Alive Capital so all branches run on green electricity, linking financing to renewable projects like wind hybridisation with solar and battery storage. EU Migration Hard Line: The European Parliament backed a major migration overhaul allowing “return hubs” outside the EU and longer detention, raising fresh human-rights concerns. Tourism & Culture: Romania’s presence at Francophonie Film Festival 2026 in Karachi highlighted the film “Warboy,” while regional tourism stories keep pointing to climate-health and four-season resort strategies.

EU Budget & Security: EU leaders met in Brussels to push unity on Ukraine, a new Russia sanctions package and faster defence readiness, while also starting the fight over the next long-term budget and competitiveness. Moldova-EU Track: Chisinau opened the first cluster of EU accession talks with Romania-backed support, while civil society groups mobilised to boost public buy-in for enlargement. Romania-Moldova Cooperation: Deputy PM Mihai Popsoi met Romanian Sen. Titus Corlatean on opening all negotiation clusters and accelerating joint infrastructure, investment and security projects. Black Sea Connectivity: The EU earmarked €3.8bn for the Black Sea–Aegean transport corridor, linking Greece, Bulgaria and Romania, with more funding calls ahead. Energy Storage & Investment: Moldova discussed battery support tools with Romania’s state-aid experience, including guarantees via ODA to unlock private financing. Transport Links: CFR Călători restarted seasonal direct trains from Bucharest to Varna, Sofia and Istanbul; motorists also get a toll-free Danube Bridge crossing on Saturday. Business/Finance: Raiffeisen launched a Diaspora Package for Romanians abroad, while Romania’s media market hit €838m in 2025. Tech/Compliance: The EU Pay Transparency Directive transposition deadline passed with most member states still behind, raising pressure on employers. Aviation/Defence Industry: Airbus Helicopters targets ramp-up deliveries of the H145, with Romania among recent deal countries.

EU Budget Fight: Romania’s president Nicușor Dan pushed for a bigger EU multiannual budget in Brussels, arguing for more flexibility in agriculture and cohesion plans. Moldova–Romania EU Path: Deputy PM Mihai Popsoi met Romanian Sen. Titus Corlatean in Chisinau to press for opening all EU negotiation clusters and accelerating reforms, infrastructure and investment ties. EU Enlargement Push: Civil society groups backed Moldova’s EU accession, stressing the need to improve public support across EU member states. Romania Economy & Finance: Romania approved a three-year extension of the revamped 30% film cash rebate, keeping the annual cap at €55m and extending financing through 2029. Energy & Industry: Enery inaugurated Romania’s 54 MW Titu Solar Park; NextPower promoted solar tracker tech for higher yields; and EBRD backed Delgaz Grid with RON 300m. Transport & Cross-Border: CFR Călători restarted seasonal direct rail routes from Bucharest to Varna and Sofia, while toll-free crossings were announced for the Giurgiu–Ruse Danube Bridge this Saturday. Security & Risk: Romania’s legal scrutiny of Tate Brothers continues as new allegations expand the case.

Government & Markets: President Nicușor Dan signalled a more flexible line on coalition talks, saying Romania’s next cabinet must stay pro-Western and fiscally disciplined, while negotiations around PM-designate Adrian Veștea’s majority continue amid reports of possible far-right support. Industrial Policy: The government approved a 5.313 billion lei state-aid scheme to relaunch manufacturing and boost strategic-sector investment. EU Budget Fight: Romania joined the chorus ahead of the Brussels summit as “Friends of Cohesion” push back against “frugal” net-payer demands that would cut agriculture and cohesion shares, with the budget battle moving into a new phase. Competitiveness Watch: Romania fell 12 places to 61st in the IMD World Competitiveness Yearbook, its sharpest drop in recent years. Media & Advertising: Romania’s media market hit €838m in 2025 (+5.4%), with TV still the biggest slice. Tech & AI Services: Romanian and Bulgarian firms launched Trimaranix, an agentic AI-focused consultancy alliance. Energy & Cross-Border Power: Moldova advanced the Liberty Line 400 kV project with a feasibility study for the Strășeni–Gutinaș overhead link, backed by US funding, aimed at stronger interconnection with Romania and EU markets. Cybersecurity: A new report highlights how online banking fraud and phishing remain a fast-growing risk, with Romania included in the broader regional concern. Local Infrastructure: Parva Municipality plans a Europe-topping pedestrian suspension bridge, targeting tourism growth after completion in 2027.

Moldova–Romania Energy Link: Moldova presented the pre-feasibility study for the 400 kV Strășeni–Gutinaș “Liberty Line” overhead power line, backed by the U.S., aiming to boost interconnection with Romania and the EU grid and speed up American investment. Trade Ties: Romania is consolidating as Moldova’s top trading partner, taking over 30% of Moldovan exports; trade rose 15% in 2025 and Moldova’s exports to Romania grew 10% in the first four months. EU Security Funding: The European Parliament condemned Russian drone incursions into the EU and urged higher support for Moldova via the European Peace Facility amid repeated airspace violations. Romania Business & Energy Finance: EBRD approved a RON 300 mln loan for Delgaz Grid to modernise and digitalise the north-eastern electricity network, including smart meters. Renewables & Grid Upgrades: Electrica won a tender for a Craiova cogeneration project; PPC Renewables Romania added a 4.47 MW BESS system; OMV Petrom secured placement for future SAF/HVO biofuel output from 2028. Inflation & Costs: Raben Romania warned that fuel, energy, labour and logistics warehousing costs are feeding inflation along the supply chain. Public Mood: An Avangarde survey found 81% of Romanians think the country is heading the wrong way. Data Centres: Tema Energy reported 23 mln euros turnover in 2025, up 15%, citing momentum in Romania’s data centre market.

RRF Pressure on Romania’s Economy: Romania may lose EUR 3-7bn from the EU Recovery and Resilience Facility this year if it can’t absorb remaining funds fast enough, with business groups warning weak execution could hurt the sovereign rating. Public Finance Move: The government is negotiating with the European Commission to channel part of remaining RRF money into the state-owned Investment and Development Bank, potentially extending use beyond the August end. Electro-IT Demand Softens: Romania’s electro-IT market fell 9% y/y in Q1 2026 as consumers delayed non-essential purchases, hitting large and small appliances. Political Deadlock, Cabinet Timeline: PM-designate Adrian Veștea plans to submit his government programme and minister list to Parliament on June 18, while centre-right parties weigh options to secure a majority. Infrastructure for Trade and Security: CNAIR says EGIS Romania won the feasibility study for the Giurgiu–Ruse 2 bridge (road+rail), funded via EU CEF2 Military Mobility. Business Growth Story: Romanian marketing automation startup theMarketer says it reached 2,000 clients in 17 countries within three years. Cyber Risk: A massive phishing campaign using fake “Boots” emails hit 8.9m addresses, with Romanian-speaking attackers behind the operation. Regional Cooperation: Romania’s foreign minister says Romanian–Ukrainian dialogue is steady and highlights new transport and business links.

Public Sector Pay Tensions: Teachers across Romania protested in Bucharest against the draft unified salary law, warning that over 44% of education staff could see freezes or cuts and that exams could be disrupted. Government Finance: The Ministry of Finance kicked off its sixth Fidelis retail bond offering (15-22 June) and borrowed 975.1m lei from banks at a 6.59% average yield; meanwhile, the current account deficit narrowed to EUR 7.98bn in Jan-April. Business Climate & Risk: Aon Romania says firms need to shift from reactive to integrated risk management as liquidity pressure rises; a separate survey finds 76% of companies see economic uncertainty as a critical risk. Inflation Watch: Eurostat data show eurozone inflation at 3.2% in May, while Romania’s annual inflation hit 9.7% (highest in the EU). Corporate Expansion: Foundever doubled Bucharest office space to 3,500 sqm for about 300 employees. Energy & Transport: TAROM reported 930m lei debt and estimated 186m lei losses in 2025; Henri Coandă airport will bring in coordinated arrivals/departures via ACL from the 2026-27 winter season. Digital & Consumer Trends: Romania lags on social media use by companies (48.07% vs EU 63.57%); second-hand shopping remains widespread, with 62% of urban Romanians buying used goods in the past year. EU/Regional Trade Links: CCIB discussed deepening Romania–US economic ties with its Chicago office.

Business Registrations: Romania saw 51,273 new registrations of individuals and legal entities in the first four months of 2026, up 14.28% year-on-year, with Bucharest leading (+15.83%). Corporate Growth & M&A: TotalSoft topped €46m turnover in 2025 (+25.7% y/y) and said it is pushing further into global markets; Electro-Alfa completed the €9m+ acquisition of SPIACT Craiova and Electro Alfa CM; STRABAG agreed to buy BAWI Construction to deepen its European rail infrastructure footprint. Real Estate & Retail: SCF Investment Partners entered Romania by buying two NEST retail parks for nearly €40m; Christian Tour will list on the Bucharest Stock Exchange on June 22 after a ~€30m IPO. Public Transport Funding: Bucharest City Hall plans to seek up to €350m from the EBRD for tram upgrades and trolleybuses, with a vote set for June 19. Energy Storage Push: Aukera Energy commissioned the first phase of a 150 MW / 300 MWh battery storage project in Gura Ialomiței, targeting 250 MW / 500 MWh by end-2026. Political Risk for Markets: Romania’s PM-designate Adrian Veștea says his cabinet will follow the caretaker government’s programme and target a 6.2% deficit, but securing a parliamentary majority remains uncertain. Hiring & Uncertainty: A CCNE survey found 76% of European firms now see economic uncertainty as a top risk, while Hays reshaped its portfolio by selling operations in six countries.

Romanian Economy Watch: Romania’s current account deficit shrank by over 12% in Jan–Apr, to about €8bn, as the trade gap narrowed and services posted a surplus, while non-resident direct investment rose to €1.5bn and external debt climbed to €229.55bn. EU Budget Talks: EU member states agreed a negotiating position for the 2028–2034 budget, with CAP funding at the center of the debate as farm payments could end up competing with other policy priorities. Inflation & Wages Pressure: New data and commentary point to inflation still biting into Romanian wages, keeping growth close to zero and worsening the “stagflation” feel. Banking & Capital Markets: BCR issued seven-year bonds with a 7.77% coupon, adding to Romania’s financing options. FDI Signal: A regional report says FDI into Central, East and Southeast Europe rose in 2025, with Romania up sharply (45%)—though the gains are concentrated. Energy & Industry: Saipem completed the sail-away of the Neptun Deep jacket for Romania’s Black Sea gas project, a key construction milestone. Business Expansion: SCF bought two Romanian NEST retail parks for nearly €40m, boosting its CEE retail portfolio. Tech & Infrastructure: Electro-Alfa set up Alfa New Protocol Engineering to design and manage complex energy infrastructure projects, targeting domestic and regional markets.

Energy & Industry Deals: Electro-Alfa International (BVB: EAI) set up Alfa New Protocol Engineering with New Protocol Group to expand engineering and technical project management for complex energy infrastructure, targeting Romania plus Moldova and Ukraine. Renewables & Storage: OMV Petrom took a final investment decision for Bulgaria’s Gabare hybrid solar-plus-battery project worth ~€300mn (415 MWp solar, ~600 MWh storage), with first power expected in 2028. Grid & Solar Pipeline: Finnish Korkia secured Transelectrica technical connection approval for a 273 MW solar project plus 250 MW battery storage near Porțile de Fier, with construction pencilled for 2027. Semiconductors & Jobs: Infineon opened a new Cluj-Napoca R&D centre focused on analogue chips for automotive, bringing its Romanian headcount to 850+ (700+ in R&D). Macroeconomy: Romania’s current account deficit narrowed 12% y/y to €7.98bn in Jan–Apr, helped by a smaller goods trade gap and higher services surplus, while FDI inflows weakened. Wages & Inflation Pressure: April net wages rose 3.5% y/y to RON 5,843 but real wages fell 6.5% as prices grew faster (+10.7% y/y). Infrastructure Tender: CNIR received 15 bids for an express road linking Bucharest’s Henri Coandă Airport to the A0 motorway (RON 450mn, 30 months). Banking & Consumers: Raiffeisen launched a “Diaspora Package” for Romanians abroad; insurers paid over €1.15mn per day in life claims in 2025 (+12%). Competition & Rates: ARB rejected Competition Council accusations tied to the ROBOR index and asked for concrete explanations. Real Estate Investment: Czech SCF completed the ~€40mn acquisition of two Romanian NEST retail parks (24,000 sqm total), financed by J&T Banka.

Romanian Finance & Banking: Raiffeisen Bank rolls out the “Diaspora Package” for Romanians living abroad, built on a dedicated study and pre-launch demand. Insurance Demand: UNSAR says insurers paid over €1.15m per day for life insurance claims in 2025, up 12%, as households seek financial protection amid income pressure. Competition & Rates: The Romanian Banks Association (ARB) rejects Competition Council accusations over the ROBOR index setup and asks for concrete explanations. Energy & Power Mix: Romania’s internal energy output fell 1.5% in Jan–Apr 2026, while renewables rose—hydro up 31.5%, wind up, and solar output up 126.4%. Politics & Governance: President Nicușor Dan nominates Adrian Veștea as prime minister-designate after Eugen Tomac resigns, reigniting coalition talks and party tensions. Renewables Project: WWF-Romania launches the EU-backed LIFE REALS project to speed up solar and wind development on artificial/degraded land while protecting biodiversity. Business & Investment: RTPR advises Provectus Capital Partners on its first Romania deal: a majority stake acquisition in Seatbelt Consulting. EU Macro: Eurostat reports the eurozone’s goods trade deficit widened in April, with energy driving the gap. Remote Work Snapshot: Eurostat data cited by Euronews puts Romania at 1.3% of employees working from home in 2025. Tech Growth: FintechOS says it reached profitability with 130% US growth and 40% recurring revenue growth year-on-year.

Romania’s Inflation Pressure: Persistently high government deficit is cited as the main driver of inflation, with fuel prices and leu depreciation adding extra pressure, keeping Romania in a stagflation-like zone with growth near zero. SAFE Defence Funding: President Nicușor Dan signed Romania’s law enabling the EU SAFE defence instrument, aiming to create a framework to absorb EU financial support for the defence industry. Regional Cooperation Budget: The government approved Romania’s 2026 contribution (lei equivalent of €140,000) to the Secretariat of the Regional Cooperation Council, backing regional integration efforts. Liberty Galati Steel Sale: Romania’s integrated steel producer Liberty Galati is back on the auction track after a court-approved amended plan, with a June 19 sale covering steel and pipe assets at a €463m floor price, drawing interest from GCC investors. Liberty Global Returns via CloudXEdge: Liberty Global re-entered Romania with CloudXEdge, launching integrated cloud services for local enterprises and public institutions. DAN AIR Syria Expansion: DAN AIR marked one year of Bucharest–Damascus operations (30,000+ passengers, 88% load factor) and will add permanent summer flights to Aleppo from July 1. EU Sheep Export Ban: The European Commission blocked sheep exports from Romania until end-2026 over small ruminant plague concerns, threatening farmers’ recovery and key contracts. Romania–Pakistan Trade Push: The first FPCCI Pakistan–Romania Business Council meeting in Lahore highlighted Romania as a gateway to EU markets and listed sectors for potential exports and investment.

Romania’s PM Shuffle: President Nicușor Dan nominated Adrian Vestea as prime minister after Eugen Tomac withdrew, aiming to end the political deadlock that has stalled policymaking, threatened EU funds access, and pushed the leu to record lows; Vestea has 10 days to form a cabinet and win a confidence vote. Black Sea Security: A suspected Ukrainian maritime drone exploded near Constanța on June 5, with Romanian authorities issuing a Code Red alert and Defense Ministry saying it wasn’t Romanian military equipment; President Dan blamed Moscow for the incident’s fallout. Steel Deal Watch: Liberty Galati’s €463m auction is back on after court approval, with GCC investors expected to bid for the integrated steel and pipe mill assets, including a court-set floor price. EU Trade Pressure on Farmers: The European Commission blocked Romanian sheep exports over small ruminant plague claims, threatening contracts and markets that had been recovering. Energy & Industry Moves: Romania’s battery-storage and renewables push continues, including new storage additions and major financing/plant announcements tied to EU-backed rollouts. Business Climate Signals: A World Bank outlook points to stagnation in 2026, while Romania’s inflation remains elevated, adding pressure to budgets and investment decisions.