Romania's Supreme Defense Council, which was called for by Romanian President Traian Basescu end last week while many of its members were on holiday, did not make any decision on the privatization of the CFR Marfa railway freight company. The CSAT meeting was attended by vice-Prime Minister Gabriel Oprea, who replaced PM Victor Ponta, currently on holiday. Despite a lack of decision, the discussions about the privatization of CFR Marfa were 'constructive', according to the presidency.

The President – Prime Minister discussions on the privatization of CFR Marfa however do not seem to have ended, as the Government says a green light from CSAT is required to move on with the process, while the Presidency says it is up to the Government and the Transport Ministry to deal with it. The CSAT gave its OK on the general privatization plan earlier in February.

The privatization of Romania's railway freight company CFR Marfa became a hot topic on the political scene this summer, after Romanian company Grup Feroviar Roman was named winner in a second privatization attempt. Romanian president Basescu recently said the winner in the privatization of state – owned company CFR Marfa does not have the money to pay for the company and is currently trying to borrow them from banks. He added this was not a political game, but that prime Minister Victor Ponta needs to keep political responsibility for the privatization.

Grup Feroviar Roman, GFR, pledged to pay EUR 202 million for a 51 percent stake in CFR Marfa. The winner also promised to invest a further EUR 204 million in the company, and the country's president expressed doubts the winner will have the money to modernize the state company if he has trouble finding the money to pay for it in the first place.

In response, the Prime Minister Victor Ponta said nothing is wrong with the privatization of CFR Marfa based on the data so far, and asked the president to 'mind his own business'.

The Government approved the privatization contract with GFR on July 24, and the process has 60 days to end, but then said the deal needs to be signed off by CSAT as well. The Presidency however said CSAT never gave its green light on a privatization contract after the bid was over. But the lack of response from CSAT might block the privatization, the Government concluded.

editor@romania-insider.com