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October 3, 2022

CCR’s unconstitutionality decision for Rompetrol memorandum – negative signal to investors, PM says

Last week, the Constitutional Court of Romania ruled unconstitutional a law approving the Memorandum of understanding between the Romanian Government and The Rompetrol Group NV signed on February 145, 2013 in Bucharest, thus sustaining a constitutionality objection to this end filed by President Traian Basescu. The judges establish that the law approving the memorandum of understating violates the constitutional principles of clarity and predictability of legislation. CCR argues that that law violates Article 1(5) of the Constitution of Romania that says the observance of the Constitution and the supremacy of it and laws is mandatory. Judiciary sources told Agerpres that the memorandum of understanding concluded between the Romanian Government and the Rompetrol Group NV remains valid because the CCR was asked to rule only on the constitutionality of the law approving it. The CCR ruling is final and generally mandatory.
Prime Minister Victor Ponta is calling into question the seriousness and stability conveyed by Romania to foreign investors as CCR ruled one way this summer and quite another way this autumn on a law approving a memorandum of understanding between the Romanian Government and The Rompetrol Group NV.
‘I believe any comment would be unnecessary. Where is the seriousness and stability to display to foreign investors when the same judges rules differently in November than they did in June?’ told Ponta journalists on Friday at Palace Victoria. He argued that ‘in this case there is political fighting that oversteps the lines of normalcy.’
‘I would very much like for the danger of closing down one big companies, the loss of jobs and the damages the Government would have to pay to be removed. There is already a final and binding court ruling obliging the Romanian Government to pay Rompetrol a sizeable chunk of the national budget,’ said Ponta. He added that currently there is not knowing what steps to follow after the CCR ruled unconstitutional the law approving the memorandum.
‘Rompetrol is one of the biggest companies currently operating in Romania. Rompetrol paid into the national budget of Romania in 2012 RON 4.6 billion, over 1 billion euro in rates and taxes and it has over 1,000 employees. It is also one of the biggest tax payers in Romania and one of the country’s biggest employers. This is a company that had lawsuit with the Romanian Government that was settled in court in favour of The Rompetrol Group. The Government settled the litigation,’ Ponta said.

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