Development policy cooperation between the Federal Republic of Germany and Romania began in 1994. Since early 2000, GTZ has maintained a coordination office in Bucharest.

As of 1 January 2007, Romania has been a member of the European Union. The new   EU member country faces rapidly increasing imports and a considerable labour migration rate. Incomes continue to lie well below the European average and administrative structures are inefficient. There are shortcomings in the legal system and in combating corruption which could prevent EU policies, laws and programmes from being effectively implemented.

Stable growth is of the utmost importance for Romania to catch up with the rest of the European Union and take an active part in the common market,. As recently as mid-2008, the economy was expected to grow by 8.6 percent, but the latest figures indicate that only 7.1 percent was reached. In fact, forecasts for 2009 are for negative growth. In the large cities, progress in catching up with other member countries in socioeconomic terms is apparent. However, in rural areas, where over 40 percent of Romanians live, development is still far behind.

The EU provides its members with an extensive set of tools for achieving lofty policy goals, in part through substantial Structural and Cohesion Funds. Romania receives considerable funding for rural and regional development. However, professional and organisational skills and the performance capacity of actors at all levels are, however, still too underdeveloped to shape the process of structural adaptation to best meet EU domestic market requirements.

Using the available instruments for promoting industrial and structural policies efficiently and effectively is a significant challenge. Consequently, GTZ is continuing to support Romania even after its accession to the EU, but bilateral technical cooperation (TC) will cease in early 2010.

The networked cross-sectoral and cross-border programme structures are making a significant contribution towards regional economic promotion.

GTZ has had a coordination office in Bucharest since the start of 2000.