MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONS

1. MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONS ECONOMIC DEVELOPMENTS AND OPPORTUNITIES IN ROMANIA ROMANIA Luxembourg, 27 February 2008

2. Basic information Romania - Area: 238.391 sq. km. - Population: 21,700,000 - Counties: 41 Capital: Bucharest

3. Benefits of EU Accession • Removal of any obstacles in the trade with EU Member States • Common trade policy with third countries • Harmonization of entire legislation, capital market regulations, taxation, accounting rules => higher transparency and simplification • Structural funds (31 billion euro till 2013) • Open gate for EU towards CIS, Asia, Middle East, Northern Africa • Participation in major projects in the Black Sea Extended Area and in the Central & Eastern European Region • Romania-important role in assuring the energy security for Europe (major transit pipelines, energy production & supply)

4. Competitive Taxation

5. Macroeconomic Performance GDP real growth Source: National Institute of Statistics

6. Macroeconomic Performance Inflation rate Source: National Bank of Romania

7. Macroeconomic Performance Unemployment rate

8. COUNTRY RATINGS ROMANIA • Fitch - A- (August 2006) • Coface - A4 (January 2006) • JCR - BBB+ (November 2006) • Moody’ s - Baa3 (September 2006) • Standard & Poors - BBB- (September 2006) World Bank Report 2006: Romania – the most reforming country in the business field

9. Foreign direct investments- million Euro - Source: National Bank of Romania

10. FOREIGN DIRECT INVESTMENT Share capital in FDI’s at 30.11.2007: 17.4billion euro 1. The Netherlands - 18,41% 2. Austria - 12,60% 3. Germany - 10,23% 4. France - 10,03% 5. Cyprus – 4,99% 6. Italy - 4,64% 7. U.S.A. - 3,80% 8. United Kingdom - 3,49% 9. Greece – 3,28% 16. Luxembourg – 1,44% Source: National Trade Register Office

11. Value of Subscribed Capital by Field of Activity Source: Romanian Agency for Foreign Investment

12. Foreign Investors Advantages • foreign investments allowed in all sectors of economy • possibility to freely manage the company with full ownership rights • full repatriation of capital and profits • protection against expropriation and nationalization • national treatment for foreign investors

13. New Investment Law- Draft under public debate- Objectives: • Determines the principles, terms and modalities of stimulating investments in Romania, aiming at contributing to the sustainable country development • Full compliance with the EU legislation • Legal/administrative documents will be issued by the Government in order to regulate the state aids schemes for each objective • The goals, objectives, timing, budgets, beneficiaries, eligibility and selection criteria, competent authorities responsible to grant incentives will be established • A responsible authority for implementing and monitoring the legal provisions will be set up

14. FOREIGN TRADE OF ROMANIA 2001 – November 2007 Source: National Institute of Statistics (www.insse.ro)

15. MAIN TRADE PARTNERS- November 2007 -

16. FOREIGN TRADE OF ROMANIA- 11 month 2007 - • Total volume: 73.687 million euro (21,6% growth compared to 11 month 2006) • Total volume intrastate: 52.764 million euro • Total Export (FOB): 27.127 million euro • Intrastate export (FOB): 19.571 million euro, representing 72,1% in total export (+13,5% growth compared to 11 month 2006) • Total Import (CIF): 46.557 million euro • Intrastate import (CIF): 33.193 million euro, representing 71,3% in total import (+31,5% growth compared to 11 month 2006)

17. TRADE BETWEEN ROMANIA AND LUXEMBOURG 2001 – November 2007

18. Romanian Exports vehicles, transport equipment (35,05%) textiles and garments (27,7%); furniture, wood products (22,5%); machinery, electrical equipment (2,9%); metals and articles thereof (4%) minerals (1,4%). Romanian Imports metals and articles thereof (52,1%) machinery, electrical equipment (29,4%); plastics and rubber products (6,2%) stone products (3,4%); vehicles, transport equipment (1,9%); STRUCTURE OF ROMANIA- LUXEMBOURG BILATERAL TRADE

19. LUXEMBURG FDI’s in Romania • 200,73 million euro share-capital in Romanian companies; • 636companies with Luxembourg capital registered in Romania • Sectors for Luxembourginvestments: industry, services, retailing, wholesale, constructions, agriculture

20. TOP REASONS TO INVEST IN ROMANIA (1) • Market & Location Advantage: • Second largest market in Central and Eastern Europe (over 21 million inhabitants)                     • Easy access to the countries of the former CIS countries, Balkans, the Middle East and Northern Africa • Junction of three prospective European transportation corridors nos. 4, 7 & 9 • Resource Advantage: • Skilled labor force, with solid knowledge in technology, IT and engineering • Rich natural resources, including fertile agricultural land, oil and gas • Important potential for tourism

21. TOP REASONS TO INVEST IN ROMANIA (2) • Economic Advantage • Sustainable economic growth • Functional Market Economy status • Competitive tax policy • Decreasing inflation • Permanent financial assistance for SME's Development • Structural funds • Improving Infrastructure Advantage • Well-developed networks of mobile telecommunications in GSM systems • Highly developed industrial infrastructure, including oil and petrochemicals • Branch offices and representatives of well-known international banks • Newly developed highway infrastructure • Commitment to improve the highway infrastructure to EU standards • Extensive maritime and river navigation facilities

22. Manufacturing Automotive parts IT & Communication Electric & Electronics Wood processing Construction materials Textile Food processing Infrastructure Outsourcing and logistics Potential Sectors for Investment

23. THANK YOU ! • MINISTRY FOR SMALL AND MEDIUM SIZED ENTERPRISES, COMMERCE, TOURISM AND LIBERAL PROFESSIONS • Phone: +40 21 4010510 • Fax: +40 21 3150086 • E-mail: dgrbea@dce.gov.ro • Website: www.dce.gov.ro