Romania’s Digital Environment: Navigating the Path to a Tech-Driven Future

digital environment in Romania

Romania is gradually working towards the European Union’s Digital Decade goals but faces challenges in fully digitalizing its social and economic sectors. While the private sector has advanced in digitalization, the government still struggles to ensure comprehensive digital transformation. Only 59% of Romanians believe digitalization could improve their lives, and two-thirds lack basic digital skills. However, progress has been made with digital public services like e-Invoice and e-Transport, and Romania has the second-highest EU fiber coverage. Despite this, 5G coverage remains low at 32.8%. Although there is legislative progress on digital markets and AI, full digital adoption will take time, with targets set for 2030.

Digital Literacy

The European Commission’s 2024 Digital Decade Report reveals that over two-thirds of Romanians lack basic digital skills, with only 27.7% possessing such skills, far below the EU average of 55.6%. Despite rapid internet usage growth (88% for ages 16-74), only 9% of Romanians have above-average digital skills. While Romania has a large pool of ICT specialists (196,000), there is an urgent need to improve digital literacy across the population.

Further initiatives include digital hubs in libraries, targeting marginalized groups and those with limited access to digital training, as well as the distribution of funds for students to purchase laptops. The National Action Plan for the Digital Decade outlines measures such as training courses for civil servants, employees, medical personnel, and NGOs, as well as digitalizing education and providing equipment for schools.

The government is also planning to adopt a Digital Skills Framework for Romanians, offering certificates in core competencies like digital literacy, communication, and emerging technologies such as AI and blockchain. Additionally, the recently proposed Digital Competence Framework for Students will embed essential digital skills in the pre-university curriculum by the 2024-2025 school year.

Despite these efforts, stakeholders and the European Commission emphasize the need for higher-quality digital skills training, especially in pre-university education.

Connectivity

Romania boasts impressive gigabit infrastructure, with 95% of households having access to Fibre-to-the-Premises (FTTP), significantly above the EU average of 64%. Additionally, 94% of fixed internet connections offer speeds of 100Mbps or higher, the highest in the EU. Despite these strengths, Romania lags in 5G coverage, with only 7.9% of the population using 5G SIM cards, compared to the EU average of 24.6%.

To address 5G expansion, Romania has enacted the 5G Networks Security Law, which mandates the use of authorized equipment manufacturers and requires telecom operators to eliminate non-authorized equipment by 2026 for core networks and by 2028 for radio access networks. Violators face fines of 1% to 5% of their turnover. In February 2023, Romania rejected Huawei’s request to use its equipment, citing national security risks. A draft bill further strengthens these measures by banning unauthorized equipment and requiring CSAT approval for distributors and integrators.

While Romania’s 2030 ambition for 5G coverage remains at 62%, below the EU’s 100% target, both the European Commission and Romanian authorities foresee higher ambitions, potentially achieving full coverage by 2030.

Cybersecurity

Romania’s National Cybersecurity Strategy (2022-2027) aims to enhance the security and resilience of ICT networks and systems and strengthen the regulatory and institutional cybersecurity framework. The Law on Cyber Security and Defense (No. 58/2023) was adopted, creating the National Cyber Security System (SNSC) to coordinate national cybersecurity efforts and the National Cyber Alert System (SNAC) to combat cyber threats. The law addresses supply chain risks such as counterfeit IT solutions, cyber espionage, and unauthorized software or hardware production.

Following this, ANCOM updated regulations on electronic communications network security, aligned with EU frameworks. Romania’s cybersecurity industry has grown, with domestic and international firms contributing, and the country hosts the European Cybersecurity Competence Centre.

The government also passed a draft bill on the resilience of critical entities, designating digital infrastructure as critical. This bill includes rules for risk assessments, resilience measures, background checks for sensitive roles, and incident reporting. It also identifies critical entities of European importance, further bolstering Romania’s cybersecurity efforts.

Digital Services & Markets

Romania has adopted Law No. 50/2024 to align with the EU’s Digital Services Act (DSA), designating ANCOM as the coordinator of digital services and a single contact point for reporting to the European Commission and other EU regulators. The law defines “illegal content” as information violating EU or national laws and prohibits masked advertising. Romanian service providers must now report their services to ANCOM and implement notification systems for illegal content. Hosting and online platforms must establish internal complaint mechanisms for users linked to allegedly illegal content.

After this law’s adoption, ANCOM issued three key decisions: establishing procedures for digital service complaints, granting “reliable notifier” status, and certifying bodies for resolving disputes with online platforms. Additionally, Romania amended its Audiovisual Law to require video-sharing platforms (VSPs) to protect minors from harmful content, aligning with the Audiovisual Media Services Directive.

Romania has also tasked its Competition Council with investigating potential violations of the Digital Markets Act (DMA) and reporting findings to the European Commission. The DMA aims to ensure fair competition among digital businesses and prevent large platforms from abusing their dominance.

With increasing digitization of business activities and rising internet use, Romania’s digital market is expected to grow significantly, particularly in online commerce. This growth will require substantial investments in digital infrastructure and technologies such as artificial intelligence, cloud solutions, blockchain, and the Internet of Things, which will impact digital marketing and consumer behavior.

Artificial intelligence

The European Union has introduced the AI Act, a global first in regulating AI development and use. In response, Romania swiftly adopted its 2024-2027 National AI Strategy (SN-IA), which provides guidelines rather than enforceable rules. The strategy was shaped by input from the National AI Committee and the private sector and aims to support public administration in AI standardization, research, education, and skill development. It also promotes partnerships to facilitate technology adoption across society. A key feature is the establishment of an interministerial commission, comprising 34 institutions, including intelligence services and consumer protection bodies, to coordinate AI governance and regulation.

However, the strategy lacks concrete implementation plans, leaving the Ministry of Digitalization (MCID) and the Authority for Digitalization of Romania (ADR) to develop specific rules. Additionally, a draft bill addressing the misuse of AI, particularly deepfakes, is under consideration. It mandates that deepfake content be labeled with warnings during broadcasts. Though the Senate approved the bill, the Chamber of Deputies has yet to finalize it. Meanwhile, the Ministry of Digitalization has created a contact point to handle deepfake notifications related to upcoming elections.

Electronic Signature

Romania introduced Law No. 214/2024 in the summer, regulating the use of electronic signatures, time stamps, and related trust services. The law was a collaborative effort by PNL, PSD, and USR parliamentarians and aims to advance Romania’s digital future by allowing citizens and companies to use various types of e-signatures in both public and private sectors, with full legal effect, including in court. Public authorities must now accept electronically signed documents, reducing the need for in-person document submissions.

The law also stipulates that advanced electronic signature certificates are valid for up to two years, though the signed documents retain validity even after the certificate expires. Certificates for advanced e-signatures issued by the Ministry of Internal Affairs and registered on electronic identity cards are valid for up to five years.

The law distinguishes between three types of e-signatures, as defined by EU Regulation 910/2014: (1) electronic signatures—data attached to other electronic data for signing; (2) advanced electronic signatures—those that identify the signatory, are created under the signatory’s sole control, and detect changes in signed data; and (3) qualified electronic signatures—advanced signatures created by a qualified device and based on a qualified certificate.

The law will be fully applicable starting October 8, 2024.

Digital public administration

Romania’s digitalization of public administration remains below the EU average, though notable progress has been made. The government has prioritized several measures under the National Action Plan for Digital Decade, including the implementation of government cloud infrastructure, electronic identity cards, and interoperability hubs. By 2026, the Government Cloud and the Interoperability Platform (PNI) will be fully operational, with the cloud system managed by the Special Telecommunications Service and secured by the Romanian Intelligence Service. However, the Interoperability Platform is key to reducing bureaucracy by enabling data exchange among public institutions.

In April 2024, a €80 million tender for cloud migration services was launched, drawing significant market interest. By 2026, citizens will no longer need to present physical documents to public authorities, thanks to Law No. 9/2023, which mandates that public institutions provide photocopies if needed.

The government also initiated a National Program for the Digital Transformation of Local Public Authorities, allowing them to purchase necessary IT software and integration services. The Register of Informatics Applications (RAI) will centralize IT applications used by authorities to simplify interactions with the state.

The e-Invoice and e-Transport systems are key advancements. e-Invoice, mandatory in government transactions since 2022, will expand to business-to-consumer (B2C) relations by 2025. The e-Transport system monitors high-risk goods transport and will be fully mandatory after its trial period ends in August 2024.

Romanian citizens now benefit from ROeID, a centralized digital identity platform, with 19 authorities enrolled so far. By 2026, electronic identity cards will be implemented for 5 million citizens. Romania is also participating in European projects to test the European Digital Identity Wallet, facilitating digital credentials and documents.

In health, a €400 million project aims to digitize healthcare institutions and improve telemedicine in remote areas. A Single Digital Portal (PDUro) is being developed to enable online access to 21 administrative procedures, enhancing digital interactions with the state.

Despite significant strides, more efforts are needed to complete Romania’s digital transformation, with 21.8% of the country’s Recovery and Resilience Plan funds and €3 billion from the Cohesion Policy dedicated to digitalization. While progress is ongoing, further action is required to ensure that digitalization benefits both citizens and businesses.

Conclusion

In conclusion, Romania has made important strides toward the digitalization of its public administration, driven by significant investments and strategic initiatives. Key projects, such as the Government Cloud, Interoperability Platform, and digital identity systems, reflect the government’s commitment to streamlining public services and reducing bureaucracy. Progress in digital invoicing, transport monitoring, and healthcare digitization demonstrates the country’s determination to modernize its infrastructure. However, while Romania has set ambitious goals and dedicated substantial resources through the Recovery and Resilience Plan and EU funding, further efforts are necessary to fully realize a comprehensive digital transformation. Success will depend on continued investment, stronger digital governance, and the widespread adoption of digital solutions by both public institutions and citizens, ultimately ensuring that these advancements translate into meaningful improvements for society and businesses alike.