Government to drop incentives

The incentives and the assistance granted by the State to companies will be completely eliminated, as they are “distortions for the competition,” PM Adrian Nastase said yesterday. On the other hand, the Government will find other means to help the private sector, such as repaying the VAT to exporters in due time.

The Premier explained these measures were a result of Romania’s commitments in view of EU accession.

“Some people seem to think improving the business environment means creating new incentives, but the European Union is eliminating such things because they are distortions in the way of a fair competition. EU is no Santa Claus universe Romania joins to get presents every single day of the year. The State will no longer be able to serve as a legal guardian for those companies that are unable to stand on their own and expect credits, tax and duty elimination and permanent debt rescheduling,” Nastase said on the occasion of the tenth edition of the National Company Ranking.

He added the Government would gradually reduce the subsidies for certain industries, such as mining, where subsidisation is high. The Premier also said the Romanian companies were not capable of becoming visible enough on the foreign markets by efficient marketing and that “they lack the wisdom to merge and establish an economic force.”
georgiana.stavarache@zf.ro