Fin Min Teodorovici: The Sovereign Investment Fund will be set up by Gov’t decision

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The Sovereign Development and Investment Fund (FDSI) will be set up by Government decision, following the Constitutional Court ruling that such a fund should be established by Government decision, not by a law adopted by Parliament, Finance Minister Eugen Teodorovici said on Thursday.

“This is a useful instrument and I believe it will be useful for the economy as a whole. After the Constitutional Court decision I believe the next steps should be made by the Government, by issuing an ordinance to set the legal framework the court said it is necessary. This will be done during the parliamentary vacation and the next step is to issue a Government decision to establish the fund’s mechanism,” minister Teodorovici said.

“Thus, the ordinance is to set up the general framework, without mentioning a specific fund, just to set up the legal framework saying when such financial instruments could be established and further information. In turn, the Government decision will set up the fund which was decided by Parliament and rejected by the Court,” the Finance Minister said.

CCR admitted the notifications filed by the Opposition and President Klaus Iohannis regarding the law on setting up the Sovereign Development and Investment Fund, arguing that such a fund should be established by Government decision, CCR Chairman, Valer Dorneanu, said on Wednesday.

The court discussed on the referrals filed by PNL, USR, PMP and by President Klaus Iohannis to the FSDI. The main reasoning for the objections of unconstitutionality was that the decision should be made by a document of central administration, not by a law adopted by Parliament.

Consequently, the plenary of the Constitutional Court has upheld the objection of unconstitutionality to the bill, reasoning that FSDI may be set up by Government decision, not by a normative act of the Parliament.

In early June, the Chamber of Deputies voted the draft bill on the establishment of the Fund with 174 votes for, 98 against and three abstentions, as decision making body in this case. According to the draft, 33 state-owned companies were to be included in the FSDI and the share capital was to be RON 9 billion.

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