Constitutional Court rules the bill on setting up the Sovereign Development Fund is unconstitutional

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The Constitutional Court (CCR) has 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 referals filed by PNL, USR, PMP and by President Klaus Iohannis to the Law on the Establishment of the Sovereign Development and Investment Fund – SA (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.

President Klaus Iohannis sent to the Constitutional Court, in early July, an unconstitutionality challenge on the Law on the Establishment of the Sovereign Development and Investment Fund – SA, as well as on amending some normative acts.

The Government decided in its sitting on February 9 to adopt a memorandum on establishing the FDSI.

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 will be included in the FSDI and the share capital will be of RON 9 billion.

Among the companies included are: Electrica S.A., E.ON Energie Romania S.A., OMV Petrom S.A, Telekom Romania Communication S.A., Engie Romania S.A., Antibiotice S.A., National Company Bucharest Airports S.A., Romgaz S.A. Chimcomplex S.A., Unifarm S.A., Loteria Romana S.A. and IAR S.A.

Ten more companies, against the Senate’s decision, have been included, companies without profit: CFR S.A., Radiocommunications Company S.A., Oltenia Energy Complex S.A., Romanian Post, Traian Vuia Airport in Timisoara, Midia S.A., Administration of Danube River Ports S.A. and National Company for Navigation Channel Administration S.A.

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