Romania: Increased state aid intensities starting 2022

The state aid framework in Romania was officially aligned with the provisions of the European framework adopted during last year in terms of maximum state aid to be granted for investment projects. Therefore, the updated maximum intensities specific for each development region are as follows:

• 50% for North-East, South-East, South-Muntenia and South West-Oltenia 
• 45% for some towns in Ilfov county
• 40% for North-West and Center
• 30% for West 

Even if some of the regions have lower intensities compared to the past period, the good news is that the new intensities may be increased with up to 20% depending on several factors such as: (i) type of applicant company (small/medium entity), (ii) locations where population level has decreased between 2009-2018 and (iii) locations being identified as part of the Just Transition Fund. Overall, in the period 2022-2027, state aid beneficiaries will have the opportunity to benefit from up to 70% state aid intensity, this non-reimbursable co-financing mechanism allowing Romania to remain a highly competitive option to invest.