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FinMin: Investments with major impact on the economy to be bolstered by state aid

FinMin: Investments with major impact on the economy to be bolstered by state aid

The Government will adopt in its Thursday’s sitting a draft that will enable the state aid programmes directed to the investments with a major impact on the economy. The novelty is that the eligibility threshold for investors has declined from EUR 10 million to EUR 3 million, Finance Minister Eugen Teodorovici has announced.

It is a follow-on of he state aid scheme approved through the government resolution no. 807/2014, which has the aim of boosting investments that have a major impact on the economy and of making investments in cutting-edge fixed asset to obtain products with high added value,” minister Teodorovici announced on Tuesday.

He explained that resuming this state aid scheme will ‘enhance the economic growth, will cut the economic gaps between regions and will create innovative products.’

To be eligible for the state aid, the investor has to make an initial investment in Romania, which could mean establishing a new unit, expanding the capacity of an older unit, diversifying the production or fundamentally changing the general production process (for the majority of the development regions) or setting up a new unit or diversifying the activity (for the Bucharest-Ilfov region).

The minimum value of the investment should mount to RON 13.5 million, meaning about EUR 3 million, a threshold that has decreased from EUR 10 M, as entailed in a previous scheme.

The Finance Ministry is the one that checks the fulfillment of compliance conditions, eligibility criteria and calculates a score to be placed in the budget allocated to the scheme.

The EU Commission has revised the state aid rules for 2014-2020 two years ago. The applicant companies must have no outstanding debts to the state budget; not to be in difficulty, forced execution, insolvency, bankruptcy, dissolution etc.; have no non-executed decisions for state aid recovery and have not benefited from other regional state aid within the same single investment project; have not ceased similar activity in the European Economic Area in the previous two years nor have specific plans to do so within two years of the completion of the investment; the operating businesses have a positive return on turnover and positive equity in the last completed financial year;

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