Foreign direct investments have been one of the key drivers of Romania’s economy in recent years. Factories, logistics centers, energy projects, acquisitions of local companies - all have contributed to job creation and economic growth. However, the reality of recent years has changed. In the current regional and European security context, investments are no longer merely an economic matter. They may have direct implications for critical infrastructure, sensitive technologies, or strategic sectors such as energy, defense, or the agri-food industry. This is why Romania needs an investment control mechanism. But that mechanism must be not only firm, but also efficient, coherent, and adapted to current realities. This is where the new draft emergency ordinance, comes into play. At the end of last week, the Prime Minister’s Chancellery launched for public consultation a draft ordinance significantly amending the framework governing investment screening and related administrative procedures. The public message is clear: less bureaucracy, faster procedures, and lower costs for investors. Why were the amendments necessary? _______________________________________ In 2022, Romania adopted an investment control mechanism through Government Emergency Ordinance No. 46/2022, implementing the EU Regulation on foreign investment screening. Like all EU Member States, Romania must be able to review investments that may affect critical infrastructure, sensitive technologies, or public order. The system has functioned, but experience over the past years has revealed bottlenecks and ambiguities. The €2 million notification threshold brought a large number of small-scale investments into review, while the overall duration of the procedure was considered too long. At the same time, the increased volume of files made it more difficult to focus on genuinely sensitive cases. In short, the mechanism was necessary but it could be more efficient. CEISD cecomes CEID ________________________________________ One of the first visible changes is the renaming of the Commission for the Examination of Foreign Direct Investments (CEISD) to the Commission for the Examination of Direct Investments (CEID). This is more than a semantic adjustment. It reflects the fact that the mechanism no longer targets exclusively classical investments from outside the European Union. Investments originating within the EU, as well as certain acquisitions of assets in sensitive sectors, may also fall under review. Through this change, the scope of control becomes clearer and broader. The review threshold increases to €5 Million ________________________________________ The notification threshold for investments increases from €2 million to €5 million. In practice, the €2 million threshold generated a high volume of cases, including investments with limited impact. According to official explanations, this led to administrative overload and diluted the ability to thoroughly analyze truly sensitive cases. The new threshold shifts attention toward investments that are genuinely relevant from a strategic perspective. However, the law still allows the examination of investments below this threshold if national security risks exist. Expanded definition of investment ________________________________________ One of the most significant amendments concerns the definition of foreign direct investment and EU investments. In addition to acquiring control or participating in the management of a company, the law now also covers the acquisition of tangible and intangible assets in sensitive sectors. This means that not only company takeovers are relevant, but also acquisitions of technologies, infrastructure, or other strategic assets. The investment review fee is cut in half ________________________________________ One of the most visible changes is the reduction of the examination fee from €10,000 to €5,000. The measure aims to reduce financial pressure on investors, particularly for medium-sized projects, and to maintain a balance between covering administrative costs and preserving an attractive investment environment. Moreover, the new text introduces two situations in which the fee may be refunded: • if the application does not meet the conditions for examination; • if the opinion is issued beyond the statutory deadline. Faster procedures: from over 4 months to around 2 months ________________________________________ Under the previous framework, the total duration of the procedure could reach approximately 125 days (review plus final decision). Under the proposed amendments: • the deadline for issuing the opinion is reduced to 45 calendar days; • the authorization order must be issued within 10 days from receipt of the opinion. As a result, the standard duration of the procedure may decrease to approximately 60 days - almost half of the previous timeframe. For the economy, this means projects can start sooner. For companies, it means less uncertainty. One notification for multiple transactions ________________________________________ A technical but important amendment allows multiple transactions carried out within one year, between the same parties and with a similar or interdependent object, to be included in a single authorization request. In practice, if an investor makes phased acquisitions or related operations, separate notifications will no longer be required for each transaction. This reduces bureaucracy and avoids artificial fragmentation. Clearly defined sensitive sectors ________________________________________ For the first time, the law introduces a distinct article explicitly listing sensitive sectors: critical technologies (artificial intelligence, semiconductors, quantum technologies), cybersecurity, energy infrastructure, the pharmaceutical sector, the defense industry, and the agri-food sector. The objective is increased predictability. Investors will know from the outset whether their field of activity is considered strategic. What happens in sensitive cases? ________________________________________ For investments that raise complex issues or may affect national security or EU projects of interest, CEID may initiate a detailed investigation and consult the Supreme Council of National Defense (CSAT). Such investigation must be completed within 90 days, with a possible one-time extension of up to 45 days. Annual public report - greater transparency ________________________________________ Another novelty is the obligation for CEID to prepare an annual activity report. The report: • must be drafted by June 30; • is submitted to the Government; • is published on the Commission’s website within five days of approval. This measure enhances transparency, allowing the public to see how the mechanism functions and what types of decisions are adopted. Shorter deadlines for environmental permits ________________________________________ The reform does not concern investment screening alone. An important component of the project is the reduction of deadlines within environmental impact assessment procedures. Specifically: • the initial review stage is reduced from 15 to 10 days; • the technical committee analysis is reduced from 20 to 15 days; • the screening stage is reduced from 90 to 60 days. Overall, the procedure may be shortened by approximately 40 days. For investors, this means fewer administrative bottlenecks and more predictable project timelines. For authorities, it means increased efficiency without compromising environmental protection standards. Full digitalization of the procedure ________________________________________ The project introduces a dedicated digital platform for submitting documentation and managing the procedure. This entails: • online submission of applications; • elimination of paper files; • improved traceability of procedural stages; • enhanced cybersecurity. The Special Telecommunications Service becomes a permanent participant in CEID and plays a key role in developing and managing the platform. Conclusion ________________________________________ For most citizens, these changes may not be directly visible. But their effects may be. Faster approvals mean: • quicker job creation; • industrial and energy projects starting without major delays; • accelerated economic development. The new ordinance does not relax investment control. On the contrary, it clarifies and strengthens it in strategic sectors. For investors, the amendments bring greater predictability and reduced uncertainty. Faster procedures, lower fees, and a clearer decision-making flow may position Romania as a more attractive destination for capital. In a competitive regional climate, where states compete to attract strategic investments, speed and clarity can make the difference.