Simion Says: What Romania’s Populist Wave Means for Business
For a moment this year, Romania finally caught its breath. The EU helped block Romanian ultranationalist Călin Georgescu’s presidential candidacy, forcing the pro-Russian sympathiser and radical out of the race. This celebratory achievement, however, was short lived. As one flame flickers out, another grows stronger. The meteoric rise of George Simion and the Alliance for the Union of Romanians (AUR) signals a deeper current of unrest—one that no procedural veto can contain. Beneath the surface of anti-elite slogans and tricolor bravado lies a new political reality, one that businesses, both local and foreign, are scrambling to understand.
It only takes a glance at articles, such as this AP news segment to grasp the problems we Romanians are facing:
“Simion, the 38-year-old leader of the far-right Alliance for the Unity of Romanians, is under criminal investigation for inciting violence after last year’s first-round winner Calin Georgescu was barred this week from entering the rerun.”
Simion is no fringe agitator (or is just barely one). With a blend of youthful charisma, nationalist rhetoric, and performative populism, he has tapped into the frustrations of a public weary of corruption, economic stagnation, and EU red tape. His policies—calling for sweeping tax cuts, housing mega-projects, and a reassertion of national sovereignty—may resonate with the disillusioned, but they rattle markets. For businesses, Simion presents a paradox: a figure who promises economic revival, yet stokes the kind of institutional volatility that sends investors running for the hills.
What does this all mean for businesses? Up until this year (or rather, the electoral run), Romania was growing to be among the most popular Eastern European bloc countries to do business. A friendly environment, with a Westernising (and very West-friendly) population, strong labour force, and natural resources, made Romania an attractive destination for EU investment, tech expansion, and even nearshoring for Western manufacturers. Bucharest buzzed with startups, Cluj rivaled Kraków in IT, and the country was steadily integrating into the European economic core.
But populism throws a wrench into long-term planning. Simion’s nationalist tilt—combined with a rhetorical distance from EU bureaucracy—risks cooling that investor optimism. His calls for tax reform may excite local entrepreneurs, but also raise red flags over fiscal stability. His support for housing megaprojects, while appealing on paper, reminds many of the state-heavy, politically-controlled development models seen in illiberal neighbors like Hungary or Serbia. And as the Georgescu episode shows, political theatre is never far from institutional processes—leaving businesses wondering if tomorrow’s economic environment will still resemble today’s.
In the end, Romania stands at a crossroads—not just politically, but economically. The rise of Simion and AUR marks more than a cultural or ideological shift; it’s a recalibration of how the country might relate to capital, institutions, and the international order. For businesses, this isn’t just about reading the polls—it’s about reading the room. As populist sentiment grows louder, so too do the risks of policy whiplash, regulatory uncertainty, and geopolitical friction. Romania’s market potential remains undeniable, but its future will depend on whether stability can outlast spectacle, and whether economic ambition can survive the roar of nationalist revival.
Sources:
reuters.com
