Romania has comparative advantages in areas such as electronics, precision measuring devices and machinery, while its experience in the nuclear energy sector and the development of the IT industry could support the expansion of service exports, according to specialists from the Energy Policy Group (EPG) in an analysis published on Thursday.

In the experts' view, the Romania's geographical position could become increasingly relevant in the context of Ukraine's reconstruction, as well as amid a possible trend towards relocating production within Europe.

'Romania has comparative advantages in areas such as electronics, precision measuring devices and machinery, while its experience in the nuclear energy sector and the development of the IT industry could support the expansion of service exports. At the same time, the country's geographical position could become increasingly relevant in the context of Ukraine's reconstruction, as well as amid a possible trend towards relocating production within Europe,' the document reads.

According to the quoted source, dependence on critical imports from outside the European Union creates vulnerabilities in the context of changes in global trade policy.

'Energy infrastructure requires modernisation, while exposure to the effects of climate change raises additional concerns regarding the reliability of networks. Labour market developments, including migration and skills mismatches, as well as administrative capacity and the stability of the legislative framework, influence development prospects and the attraction of investment. The proposed recommendations aim to support a coherent adaptation of public policies to changes in the economic and geopolitical environment so that Romania can capitalise on the opportunities associated with the energy transition and reduce existing vulnerabilities. In this regard, the strategic promotion of industrial specialisation through the use of exports with comparative advantages in the production of low-carbon technologies is intended to strengthen economic competitiveness,' the analysis reveals.

In this context, adapting human capital to the needs of a net zero economy through dedicated educational programmes and mechanisms for retraining and retaining workforce is essential for the efficient functioning of the labour market, EPG representatives argue.

With regard to the costs of the energy transition, they believe these can be reduced through integrated infrastructure planning, while policies explicitly addressing distribution issues and energy poverty are needed to ensure the social sustainability of the transition and maintain public support.

The Energy Policy Group (EPG) was established in February 2014 as an independent, non-profit think tank specialising in the strategic analysis of energy policies and markets in Eastern Europe and the Black Sea region. AGERPRES (RO - writing by: Daniel Badea; EN - writing by: Adina Panaitescu)