Renault, which owns Romanian car producer Dacia, plans to invest EUR500m in a design and development centre in southern Romania, the government said on Wednesday.

According to Reuters, the Black Sea state slated for European Union entry next year is becoming increasingly attractive for car makers, lured by cheap labour, cut-rate taxes, institutional stability provided by EU membership and prospects for fast productivity growth.

The notoriously bureaucratic country plans to set up a network of government officials to help Renault finds its way through a web of red tape, the news agency said.

"The government decided to create a work group to collaborate with Renault to ensure it receives support from local and central authorities for a large-scale project," government spokeswoman Oana Marinescu reportedly told a news briefing.

According to the news agency, the government said Renault would invest over EUR450m ($US574m) between 2007 and 2015 in the facility.

"It will give an important boost to the Romanian economy," Marinescu reportedly said, adding the centre would employ 3,000 people.