Heritage Foundation warns legislative instability limits U.S. investment in Romania

A report by the Heritage Foundation, titled ‘U.S. – Romanian Relations: A Pivotal Partnership in an Unstable Region’, highlights Romania's strategic importance as a NATO ally on the Black Sea while warning that legislative instability and economic governance deficiencies are hindering American investment.

The report notes that while Romanian exports to the U.S. have reached $6.4 billion and American direct investment in Romania exceeds $9 billion—supporting over 120,000 jobs—the pace of new greenfield investments has slowed. Authors Jordan Embree and Anthony B. Kim state that ‘the primary deterrent often cited by American enterprises is the lack of domestic institutional predictability’, citing frequent changes to the regulatory framework and tax regimes via emergency ordinances.

The think tank recommends that Washington support Romania in developing energy exports and strengthening its security role, but emphasizes that regional security requires economic stability alongside military presence. The authors argue that Romania's military readiness cannot exist in an economic vacuum.