The state aid scheme for major investments in the economy, a scheme of EUR 200 mln with a focus on the manufacturing industry, transport, health and social care, was approved, Romanian finance minister Adrian Caciu announced on April 21.

What actually happened is that the Government amended its previous decision HG 807/2014 on state aid to investments with a major impact on the economy.

Among others, the Government promises to no longer announce short sessions on extremely short notice - a practice seen by some as aimed at providing inside information to politically-connected investors.

Initiated in 2014 under HG 807/2014, the grant scheme for investments with significant impact has a budget of RON 6.38 bln for the entire period 2014-2023, out of which RON 1.8 bln (EUR 360 mln) is left to be engaged until the end of 2023 and disbursed until the end of 2028.

In his speech after the Government meeting on April 21, finance minister Caciu spoke of a new scheme under the HG 807 umbrella, worth EUR 200 mln (RON 1 bln), and about two other schemes to be launched soon.

The Government's spokesperson mentioned the scheme as "an important measure to encourage foreign investment in our country" - although the scheme is, on the contrary, aimed at smaller (mainly local) investors. The new scheme focuses on the "manufacturing industry, transport, health and social assistance," minister Caciu said.

"We are starting a new stage, very well targeted. We want to have factories, to have our units, to reduce the dependence on exports. These measures lead to a more rapid transition from the consumer to the production economy. We want to come up with two more state aid schemes by the middle of the year. Let's see how we integrate them on European funds and from the state budget," the minister said.

(Photo: Gov.ro)

andrei@romania-insider.com