The Romanian stock market miracle

Vladimir Mitev, Economic.bg, 7 June 2026

Summary

Here is a summary of the article detailing the recent growth and development of the Romanian capital market:

• Market Scale and Regional Dominance: Despite a technical recession and strict fiscal austerity, the Bucharest Stock Exchange (BVB) has achieved a market capitalization exceeding €114.5 billion (over 570 billion lei). In the first quarter of 2026, the BVB generated a trading turnover of €1.145 billion—nearly six times that of the Bulgarian Stock Exchange (€195.8 million), with a total market capitalization more than 10 times larger than its Bulgarian counterpart.
• Strategic Growth Pillars: The BVB’s ascension to “emerging market” status by FTSE Russell in 2020 opened doors to global funds. Management sustained this momentum through five core priorities:
  1. Retail Investor Expansion: Growing individual accounts from 54,000 in 2019 to over 285,500 in March 2026 via financial literacy campaigns.
  2. Digitization: Implementing modern platforms to attract younger generations.
  3. Sustainability: Introducing a new Corporate Governance Code and independent ESG assessments.
  4. SME Incubators: Utilizing the “BVB Arena” to mentor smaller businesses, supported by government incentives like a 50% tax credit on listing costs.
  5. Market Integration: Establishing a Central Counterparty to link the stock and energy markets, paving the way for a relaunch of the derivatives market.
• Privatization and State Giants: A massive driver of liquidity has been the listing of major state-controlled enterprises, including Hidroelectrica, Romgaz, Nuclearelectrica, and OMV Petrom. These high-dividend, stable listings helped fuel a 55% growth in the BET-TR index in 2025.
• Government Policy and Fiscal Reforms: Under Prime Minister Ilie Bolojan (prior to the spring 2026 political crisis), the Romanian government actively used the stock exchange to professionalize corporate management, align with OECD criteria, and narrow the budget deficit. Capital pipeline plans for 2026 include IPOs for strategic infrastructure like Bucharest Airport and the Constanta Port Authority, alongside raising the dividend tax from 10% to 16% to maintain macroeconomic stability.
• Long-Term Impact: Over a five-year period, the BVB successfully completed more than 280 listings worth nearly €19.5 billion. While neighboring markets like Bulgaria experience slower progression, Romania has established a mature, highly liquid financial ecosystem that serves as the primary financial hub of Eastern Europe.

Article

This article was published in issue 132 of the Bulgarian magazine Economy in May 2026 and was written in April 2026 before the fall of the government of Ilie Bolojan and the political crisis that started in the spring and continues in the summer of 2026. 

The Bucharest Stock Exchange is establishing itself as the regional champion that has rewritten the rules of success, while other European capital markets often suffer from low liquidity and conservative investment attitudes. The Romanian economy faces fiscal challenges, and strict austerity measures were introduced in 2025 and continue to this day; yet against this backdrop, a unique stock market miracle is unfolding in the country.

With a market capitalization exceeding 114.5 billion euros—equivalent to over 570 billion lei—the Bucharest Stock Exchange demonstrates how a clear government vision and market boldness can inject momentum even into an economy in technical recession.

The difference in scale between the Bulgarian and Romanian markets in the first quarter of 2026 speaks volumes, even though the trend in the development of the capital market in Bulgaria is also on the rise. While the Bulgarian Stock Exchange is experiencing a positive boost from joining the eurozone, with a total turnover of 195.8 million euros for the first quarter, the Romanian capital market generated a turnover of 1.145 billion euros during the same period—nearly six times as much.

Even the statistics for March 2026—a particularly successful month for the Bulgarian Stock Exchange—show the Romanian market outperforming its Bulgarian counterpart. At that time, trading volume in Bucharest reached 192.1 million euros, compared to 110.3 million euros in Sofia. At the same time, the market capitalization of the Romanian market is more than 10 times greater than that of the Bulgarian market.

The key factor behind the Romanian market’s success is the ambition and consistent development policy of the Bucharest Stock Exchange. After years of effort by its managers, in 2020 FTSE Russell granted it a higher status than the Bulgarian Stock Exchange—“emerging market”—which opened the doors to global investment funds. Under the leadership of Radu Hanga, the exchange has focused on strategic pillars for development, the first of which is the widespread participation of retail investors, whose numbers grew from 54,000 in 2019 to over 285,582 in March 2026.

This was achieved through financial literacy campaigns and the promotion of a strategy encouraging citizens to make regular small investments. The second pillar is digitization and modern platforms, which have facilitated market access for the younger generation. The third priority is sustainability; by 2026, companies are already reporting under the new Corporate Governance Code and utilizing independent ESG assessments through the BVB Research Hub.

The fourth growth mechanism is the BVB Arena, formerly known as the “Made in Romania” program, which acts as an incubator for small and medium-sized enterprises through mentoring, access to consultants, and significant government incentives such as a 50% tax credit on listing expenses. The fifth crucial element is the development of the so-called Central Counterparty—a structure that will integrate the stock market with the energy market, enabling the relaunch of the derivatives market in the near future and adding a new layer of market depth.

Also important for the exchange’s development is the large-scale listing of state-owned giants

which has attracted enormous international investment. Currently, the Romanian stock exchange’s portfolio includes behemoths such as Hidroelectrica, the largest hydroelectric power producer; Romgaz, the main natural gas supplier; Nuclearelectrica, the nuclear power plant operator; OMV Petrom, the largest energy company; as well as Electrica and the pharmaceutical company Antibiotice Iași. These companies provide significant liquidity and attract international funds seeking stability and dividends, with the BET-TR index posting growth of over 55% in 2025.

The policy of listing state-owned companies continued in 2026 under the administration of Prime Minister Ilie Bolojan, who was appointed to his post in June 2025. Bolojan’s policy prioritizes reducing the budget deficit and improving management efficiency by leveraging the opportunities offered by the capital market. As part of its plans for 2026 and its listing strategy, the government intends to accelerate the offering of equity stakes in strategic sectors; the main targets for IPOs include large companies in the energy and transportation sectors, such as Bucharest Airport and the Constanta Port Authority. In addition, there are plans to offer additional shares in companies that are already listed, or in major producers such as Hidroelectrica, Romgaz, and Transelectrica, with the primary goal being to use the stock exchange as a mechanism to attract investment capital and increase market liquidity.

In his policy vision, Bolojan emphasizes that listing is a key decision for professionalizing management, stating categorically that there is “system-wide resistance” to the reforms, which the government is determined to overcome at any cost. The Romanian government asserts that the measures adopted in 2025 are fully aligned with OECD criteria and the key milestones of the Recovery and Resilience Plan to ensure the modernization of corporate governance. In parallel with the listing processes, the cabinet has also implemented strict fiscal measures to maintain macroeconomic stability, including an increase in the dividend tax from 10% to 16%, effective January 1, 2026.

The Romanian government’s ambitions for the future center on transforming the Bucharest Stock Exchange into a key instrument for financing the real economy; over the past five years, more than 280 listings have been completed, totaling nearly 19.5 billion euros.

While Bulgaria is trying to overcome chronic stagnation by leveraging the momentum of the euro, Romania has already built a functioning ecosystem that is resilient to political and economic shocks. With record-high index levels and a steady stream of new companies, the Bucharest Stock Exchange is confidently staking its claim as the financial heart of Eastern Europe—proof that the stock market is a mirror of a nation’s economic ambition.

This text is part of issue No. 132 of Economy magazine. It is published on Economic.bg under a partnership agreement between the two media outlets. The topics and opinions have been selected by the magazine’s editorial team and do not necessarily reflect the editorial policy of Economic.bg.

Read about the Bucharest Stock Exchange’s performance amid the austerity measures introduced by Ilie Bolojan’s government

The Bucharest Stock Exchange and investments are the government’s trump cards during a crisis

Read about the Bucharest Stock Exchange management’s ambitions for 2016

The Bucharest Stock Exchange dreams of joining the big leagues

Photo: On 11 May 2026, the BET index on the Bucharest Stock Exchange crossed the 30,000 threshold. In early July 2026, the index stood at around 34,000 (source: Bucharest Stock Exchange)

Subscribe to the channel of the blog “The Bridge of Friendship” in YouTube, where a number of video and audio interviews are published! The blog can also be followed in Facebook and Twitter. Its Telegram channel is here. And here is its Substack account.

About Author