Abstract:
One major challenge for European developing countries is to remain attractive for FDIs in the crisis. They included tax relief in their economic stimulus packages. However, national efforts to maintain and attract foreign investment must not result in lower social and environmental standards or offer unsustainable financial or fiscal advantages. So, measures could also include new priorities in investment promotion with a stronger focus on investor aftercare and policy advocacy, accelerating a trend that could already be observed before the crisis. The aim of this paper is to focus on the benefits offered by the Romanian investment climate, but to present also the risks of Romania for investors. In the actual economic context, government incentive are not a strategy in the long-run nor for Romania or for other Central and Eastern European (CEE) countries. That is why, Romania should focus mainly of the non-financial factors that impact on FDIs to improve its investment climate and to manage its risks properly.
