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February 27, 2021
ECONOMY FINANCE&BANKING

Economy Ministry to promote new state aid scheme. Authorities mull offering state aid to small-size projects

The Economy Ministry and the Finance Ministry are jointly working on a state aid scheme for small-size projects so that even investors that lack the strength necessary to associate in large projects could benefit from aid, Economy Minister Costin Borc announced on Monday.

The authorities have established six industrial sectors on which state aid would focus: car manufacturing, aerospace, bio-industry, IT, agriculture and creative industries.

“We are reproached with having supported the development of multinational companies more, offering state aid to large projects Romanian capital found difficult to join. Together with the MFP, we are preparing a new state aid scheme, in a somewhat smaller size. We don’t want to discriminate between Romanian and foreign capital, we have no way of doing so either, but we think that there are investors that can develop smaller projects and they too should benefit from state aid. The Government’s wish is to support production anywhere in Romania,” Borc explained at the conference in which the Competition Council’s activity review report was presented.

Finance Minister Anca Dragu offered more clarifications on the subject. According to the official, the new state aid scheme on which the Economy Ministry is working alongside the Finance Ministry concerns projects that start from EUR 2 M, a sum that is significantly lower than the EUR 10 M threshold included in the old scheme.

“The Finance Ministry has this large state aid scheme, of EUR 10 M. Now, along with the Economy Ministry, we are considering a new scheme that would also concern the somewhat smaller businesses, a scheme that would start at EUR 2 M. (…) At EUR 10 M we now have the projects through the Junker investment plan and that is why we felt the need to fill-in this void on a market of projects of lower value. The budget and all the other terms are being analysed,” Anca Dragu explained on Monday at the conference in which the Competition Council’s activity review report was presented.

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