Adriean Videanu, Minister of Economy, Commerce and Business Environment, says that the industrial production is growing slightly, with the electric energy and natural gas sectors helping the economic recovery this year.

“In October 2009 the electric energy and natural gas sectors put a stop to the economic downturn and this year they will help the economic recovery. The industrial production is on a slight upward trend. The overall premises for exiting the recession are being created,” Videanu told a press conference, Mediafax reports. When asked whether energy companies will resort to layoffs as happened in CFR’s case, the Economy minister said the restructuring is a continuous process.

The National Bank of Romania recently announced that when it comes to the inflation rate forecast it is considering the main scenario presented in early February, namely a price hike of 5 per cent for natural gas, 4 per cent for electricity and 5.2 per cent for thermal energy this year. With the exception of that last category, all the other price hikes surpass by far the Central Bank’s previous estimates. In this regard, Premier Emil Boc pointed out that the policy of the National Energy Regulation Authority (ANRE) is to keep the price of natural gas unchanged throughout 2010, with the government not receiving until now any other information concerning this aspect.

The Economy minister also said that he does not oppose Petrom’s capital increase but that he is trying to find adequate solutions for this process. On Wednesday the Economy Minister also updated Russia’s Gazprom with the latest details concerning the potential route that the South Stream natural gas pipeline could take through Romania, with the Russian and Romanian officials set to have a new meeting in Bucharest or Moscow this month.

Videanu: EBRD analyst not familiar with romanian realities

“The EBRD analyst is not familiar with Romanian realities,” the minister said in reply to a recent EBRD report in which Peter Sanfey, the bank’s chief economist for South-East Europe, claimed that the ‘stimuli’ included in the EUR 13 bln economic stimulus program announced by the Romanian government in February 2009 have been ‘rather imaginary than real’ because few projects have been launched until now.

New investment fund, operational in few weeks’ time

Videanu also said that the new investment fund that the government plans to set up could become operational in a few weeks’ or months’ time and will include minority participations that the Economy Ministry and the Authority for State Assets Recovery (AVAS) hold in various companies. Videanu added that the fund will have nothing to do with the state budget. According to the Minister, the fund will be dubbed the ‘National Investment Fund’ (FIN), to avoid any confusion with the former FNI.

“We are thinking about fueling this fund with minority participations held by the Economy Ministry and AVAS,” Videanu pointed out. He claims that participations will not be sold but will instead be put to good use in a profitable manner. Boc recently announced that the fovernment is working on setting up a national investment fund that could put financial resources at the disposal of major Romanian projects. According to the premier, “it is an investment fund that has several sources, including the minority participations that the state holds within various companies.”