Economic developments during August 24–31 presented a somewhat more balanced picture than in previous weeks.
Romania’s budget deficit fell significantly during the first seven months of the year, while the country received its first €2.5 billion in pre-financing through the European SAFE programme. At the same time, however, insolvency proceedings began at the Petrotel Lukoil refinery, tax authorities uncovered hundreds of millions of lei in unpaid liabilities in the ridesharing sector, and the number of residential building permits declined sharply. Several major investments and corporate developments nevertheless progressed in Transylvania: a €16 million solar park is planned in Arcuș, design work on the Brașov–Bacău motorway reached an important stage, and significant business developments took place around two major Cluj-based technology companies.
1. Romania’s budget deficit fell to 2.34% of GDP: Romania’s consolidated general budget recorded a deficit of RON 48.08 billion during the first seven months of the year, RON 28.36 billion less than the RON 76.44 billion recorded in the same period a year earlier. As a share of GDP, the deficit fell from 3.99% to 2.34%, an improvement of 1.65 percentage points.
The adjustment was driven primarily by an 11.2% increase in government revenue, while expenditure rose by only 2.9%. Importantly, investment did not stop: spending on projects financed through EU and NRRP funds increased by more than 60%. The seven-month figure does not yet guarantee that the full-year deficit target will be achieved, but after months of persistent fiscal risks it represents one of the clearest positive signals regarding Romania’s public finances.
2. Petrotel Lukoil entered insolvency proceedings: Petrotel Lukoil itself requested the opening of insolvency proceedings, and the Prahova County Court approved the application on August 26. The Ploiești refinery had already stopped operating, while US sanctions affecting the Russian Lukoil group and creditor claims had made it increasingly difficult to maintain operations.
According to the company, the purpose of the procedure is not to close the refinery but to protect assets, jobs and supplier relationships and to prepare for a potential restart. The company has already paid more than half of its supplier obligations and continued paying taxes even while production was halted. It is also preparing for a possible change of ownership, which, given the strategic importance of the refinery, makes the case more significant than an ordinary corporate restructuring.
3. Romania received a €2.5 billion SAFE advance: On August 26, the European Commission transferred approximately €2.5 billion to Romania through the European SAFE security and defence financing instrument. The amount represents 15% pre-financing from the approximately €16.68 billion preferential loan facility available to the country.
Romania’s plan contains 35 projects. Around 75% of the money may be used for military equipment, public-order capabilities and civil protection, while roughly one quarter can finance strategic transport infrastructure. The latter component amounts to approximately €4.2 billion and may include road projects linking Moldova more effectively with European transport corridors.
4. ANAF uncovered more than RON 400 million in unpaid taxes at ridesharing companies: Between the beginning of the year and mid-July, the Romanian tax authority inspected 816 companies providing alternative passenger transport services. At 366 firms, inspectors identified unpaid taxes and social contributions totalling RON 423.8 million, while in 89 cases the estimated loss to the state budget exceeded RON 370 million.
The largest component, RON 217.8 million, consisted of social-security and health contributions related to employees, while the VAT shortfall was almost RON 133 million. ANAF also imposed precautionary measures worth nearly RON 400 million. The inspections show that businesses operating through digital platforms are becoming increasingly visible to conventional tax enforcement, as authorities can now directly use data supplied by the platforms themselves.
5. MVM is building a €16 million solar park in Arcuș: MVM Energie România, headquartered in Miercurea Ciuc, obtained the final permit required to begin construction of a photovoltaic park with a capacity of nearly 25 MW in Arcuș, Covasna County. The project will cover approximately 20 hectares and is valued at around €16 million.
The plant is expected to be completed by mid-2027, and its annual output could be equivalent to the electricity consumption of around 12,000 households. MVM already operates 11 small hydropower plants in Romania, but this investment marks a substantially larger-scale entry into domestic solar-power generation. For Szeklerland, it is one of the more significant private energy investments announced in recent years.
6. The A13 motorway will run for around 81 kilometres through Covasna County, via Sfântu Gheorghe and Târgu Secuiesc: The planned A13 Brașov–Bacău motorway has reached an important stage in the design process. The 174-kilometre route has been divided into five sections that will also be usable independently. The first, linking the Brașov area with Sfântu Gheorghe, will be approximately 47 kilometres long, while the Sfântu Gheorghe–Târgu Secuiesc section will add another 34 kilometres.
The third section, from Târgu Secuiesc to Poiana Sărată, will be around 40 kilometres long, meaning the motorway will cross Covasna County directly. Fifteen interchanges are planned along the full route. At its western end, the A13 will connect with the future Sibiu–Făgăraș–Brașov motorway, while in the east it will connect with the A7. The project is still at feasibility-study stage, so construction is not imminent, but dividing the route into sections is an important step in preparing the investment.
7. An Indian technology giant is taking over Porsche’s IT consultancy, which employs nearly 1,000 people in Romania: Porsche reached an agreement with Tata Consultancy Services to sell 100% of MHP Management- und IT-Beratung. The transaction gives the company an enterprise value of around €320 million and forms part of a five-year Porsche–TCS technology partnership worth approximately €1.25 billion. Regulatory approvals are still required.
The development is important for Romania because MHP’s local subsidiary employs almost 1,000 people, has its main Romanian centre in Cluj-Napoca and is also present in Timișoara and Bucharest. The Romanian business generated RON 338.2 million in revenue in 2025. Under its new ownership, the Cluj technology centre could become integrated into a global IT-services network operating in more than one hundred countries.
8. Cluj-based AROBS reported a strong first half, with profit up 121%: AROBS Transilvania Software reported consolidated revenue of RON 292 million for the first six months of the year, 36% higher than in the same period a year earlier. EBITDA increased by 29% to RON 40 million, while net profit rose by 121% to approximately RON 23 million.
The second quarter was particularly strong, with net profit of more than RON 15 million, almost four times the level recorded a year earlier. The Cluj company’s performance is notable because Romania’s IT sector has recently faced slower growth, cost reductions and workforce adjustments. AROBS’s expansion is supported in part by acquisitions completed in recent years and the group’s continued international growth.
9. Romania will cut diesel excise duty by 25% during the first half of September: The Ministry of Finance will apply a temporary 25% reduction in the excise duty on standard diesel between September 1 and 15. During the second half of August, the reduction had been 20%, but renewed increases in international fuel prices pushed the mechanism toward a higher intervention level.
The cut amounts to RON 701.07 per 1,000 litres, reducing the applicable excise duty to RON 2,103.22 per 1,000 litres. The aim is not only to reduce the burden on motorists but also to prevent rising fuel costs from feeding through into transport, logistics and ultimately consumer prices. The support level is recalculated every two weeks according to market prices.
10. Residential building permits fell by almost 12%: Romania issued 18,848 residential building permits during the first seven months of the year, 11.6% fewer than in the same period of 2025. In July alone, the annual decline reached 20.8%, while the authorised usable floor area of residential buildings also fell significantly.
The decline affected seven development regions, including the Central Region, which includes Szeklerland, where 209 fewer residential permits were issued. This is an important forward-looking indicator: although construction work already under way continued to grow strongly during the first half of the year, fewer new permits may point to weaker investment activity in the coming period.
Summary
One of the most important positive developments during August 24–31 was the substantial reduction in the budget deficit. The seven-month shortfall fell by more than RON 28 billion year on year while investment spending continued to rise. The €2.5 billion SAFE advance also provides Romania with a significant new source of financing, although the funds are provided as loans and their use is strictly tied to defence and strategic infrastructure projects.
The corporate picture was more mixed. Petrotel Lukoil’s insolvency proceedings and the hundreds of millions of lei in unpaid taxes uncovered in the ridesharing sector point to serious risks, while AROBS’s rapid growth and MHP’s change of ownership show that substantial capital movements continue in the technology sector. For Szeklerland, the approval of the Arcuș solar park and progress on planning the A13 Brașov–Bacău motorway are particularly important, as both could have a direct long-term impact on the region’s economic infrastructure.
As a number of major economic developments are continuing in parallel, readers interested in any particular subject are encouraged to search for the relevant terms online to access further analysis and additional details.
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