US report criticizes Romania's legal system and corruption
The US State Department released its 2026 Investment Climate Report for Romania on Tuesday. The report highlights ongoing corruption and inefficiencies in Romania's legal system. It notes the decreased effectiveness of the DNA and challenges in enforcing sentences. Corruption and legislative instability significantly impact the investment environment. Despite some progress, serious issues persist in the justice system.
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The US State Department released its 2026 Investment Climate Report for Romania on Tuesday, highlighting significant challenges in the country's legal and investment field. This report, which evaluates investment conditions in over 170 countries, identifies corruption as a persistent issue impacting Romania's business environment.
Despite Romania taking 'significant steps' to combat corruption, the report notes a decline in the effectiveness of the National Anticorruption Directorate (DNA) in convicting high-profile officials. Changes in justice laws and increased pressure on prosecutors have weakened anti-corruption efforts, according to the report.
Court processes in Romania are often long, costly, and unpredictable, the report highlights. Enforcement of sentences is not guaranteed, complicating the legal field for investors. Corruption remains a major factor affecting the investment environment. Although the Cooperation and Verification Mechanism (MCV) was lifted in September 2023, significant problems persist.
Decisions by the Constitutional Court of Romania (CCR) and the High Court have further weakened anti-corruption initiatives. CCR decision 368/2022 annulled 9,635 cases and convictions between 2022 and 2025. A 2025 decision by the ICCJJ restricted the participation of the General Anticorruption Directorate (DGA) police in corruption investigations outside the Interior Ministry, complicating evidence gathering and prosecution.
The report also mentions the limitations imposed on the National Integrity Agency (ANI) by a CCR decision in May 2025. Despite Romania's formal anti-corruption framework adhering to OECD standards and a National Anti-Corruption Strategy, practical implementation remains challenging.
Foreign companies have expressed concerns about the lack of commercial expertise in Romanian courts, with judges often lacking experience in market economy and international business. This lack of unitary jurisprudence and inconsistent execution of final judgments worry both foreign and domestic investors. Unjustified legal challenges further prolong litigation.
American investors report widespread corruption in both public and private sectors, particularly within customs, local administration, and tax authorities. Eurobarometer data from January to February 2025 indicates that 90% of Romanian businesspeople perceive corruption as widespread, compared to an EU average of 63%. Additionally, 62% believe that public officials favor relatives or friends.
Despite these challenges, Romania remains attractive for investment due to its strategic geographic location, EU and NATO membership, and its workforce and natural resources. However, legislative instability, unpredictability, and bureaucracy continue to pose significant obstacles for businesses.
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