Launch of the 2018 edition of the state aid scheme introduced by Government Resolution nr. 807. PM Dancila: We want a real strategic partnership with the large companies wanting to invest in Romania

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Prime Minister Viorica Dancila on Wednesday stated that the Government wants a real strategic partnership with the large companies wanting to invest in Romania, and that in a short while it will launch the state aid scheme for private investments larger than 10 million euros, for opening of expanding production capacity.

“I want to give a signal that we want to stimulate new major investments in Romania, which is why we will adopt new measures to support this. We want to ensure a positive dynamics of the economy and today we are announcing that in a short while we will launch the state aid scheme for private investments larger than 10 million euros, for opening or expanding production capacity. I won’t hide from you the fact that our final target is to attract investments worth more than one billion euros. These investments will create jobs and will contribute to the increase in the budgetary income,” Dancila specified at the launch of the 2018 edition of the state aid scheme introduced by Government Resolution nr. 807, an event organized by the Ministry for Business Environment, Trade and Entrepreneurship at the Parliament Palace.

She also added that the state state aid scheme represents only a part of the package meant for stimulating investments in Romania, while announcing that in the next month there will be set up the Romanian Agency for Foreign Investments and Exports.

“Besides a stable and predictable macro-economic environment, a stimulating fiscal environment and a well-prepared workforce, we are also proposing a new approach in terms of our relation with the strategic investors in the economy. We are going to set up the Romanian Agency for Foreign Investments and Exports, a “one stop shop” type of centre, a high flexibility agency, with dedicated project managers. There will be a body of managers specialized in the strategic sectors, from an economic perspective, for Romania, so as to attract investments,” the head of the Executive underscored.

The Prime Minister also specified that the Government’s priority for the second quarter of the year is represented by investments.

“We cannot go further with the implementation of the governing programme, if we do not stimulate investments. We promised in our governing programme that 2018 will be a year for investments and so it will be. We want to attract investments with a high added value, to result in the creation of new jobs, better paid. This week there were published the new data showing the value of direct foreign investments for the first three month of 2018. These increased by 21.2 per cent compared with the same period of 2017, which proves that confidence exists in the potential of the Romanian economy and the government, although I still think this is not enough, and we want more than that,” Dancila pointed out.

According to the head of the government, investments with a major impact on the economy also mean a high degree of technologization, which means more well-qualified and better paid jobs, with dual education being a sustainable solution for this.

“I know and we understand the needs of the business environment generated by the crisis on the labour market and I believe that dual education represents a sustainable solution. In the 2017-2018 school year, there were 106 dual education classes, through contracts concluded with the employers, with 227 companies involved and 68 school units. We are well aware that by encouraging large investment projects the added value of the exports will grow, the same as the local integration of production processes, and there will be more contracts and jobs for SMEs and, of course, imports will drop,” explained Dancila.

 

Speaker Dragnea: Government’s objective cannot be to put businesspeople in prison

 

The objective of a government cannot be to put businesspeople in prison, the Chamber of Deputies’ Speaker Liviu Dragnea said on Wednesday at the launch of the 2018 edition of the State Aid Scheme, instituted by Government’s Decision (HG) no. 807, an event organized at the Parliament Palace by the Ministry of Business, Commerce and Entrepreneurship.

“We have to be aware that we are not living in a silk cocoon, that we have started a process of change of attitude and approach from public servants, from state control institutions towards the business environment, a process that has been built over many years. It is about a mentality built over many years in terms of the approach to private companies in particular, and I am speaking here about all the control institutions – ANAF [the National Agency for Fiscal Administration, edn.] and other institutions that exercise control, the prosecutor’s offices and so on. Our approach is entirely different and the objectives of a government cannot be to put businesspeople in prison, to shut down companies but on the contrary, to prevent, support and together build an administrative and bureaucratic system that is stimulating,” the PSD chair said.

Dragnea announced that in the talks with Prime Minister Viorica Dancila and the relevant ministers the amount of one billion euro was set to be allocated to the state aid scheme.

“This is not a small amount, but this decision was made for two reasons: firstly, to have a strategic approach over a multiannual period, and to know that one billion euro is the amount set out for the next five years to be accessible to state aid schemes, with investments of up to 10 million euro and investments of over 10 million euro with different rules; and secondly to obtain and we will obtain a multiplying effect and total investments in Romania of at least 5 billion euro,” Liviu Dragnea detailed.

He also announced that they also discussed the amendment of HG no. 807, which “represents one of the heights of bureaucracy.”

“Far too many documents, too many papers that must be drawn up by commercial companies to gain access to these state aid schemes. We have promises from the Ministry of Finance and the other ministries involved that in a very short time this HG will be altered. We have also established together which is the best procedure for the allocation of these state aids. (…) There is no point in inventing all sorts of obstacles, bureaucratic procedures, to have the fewest possible projects approved and as many problems as possible. I encourage you to submit applications for this state aid scheme, which is viewed differently. (…) For us, the development of the Romanian business environment is a strategic mission and not a whim,” the Chamber of Deputies’ Speaker showed.