Romanian mining industry to receive 115 million euro in state aid

Friday, April 29, 2005

Romania's state-owned mining companies will receive total state aid worth 115 million euro

The Romanian Ministry of Economy and Commerce, in partnership with the Ministry of Public Finance, have approved a package giving 115 million euro state assistance to the mining industry. This will involve the exemption of 11 state-owned mining companies from financial obligations, of contributing to the state budget, worth 115 million euro. The largest tax exemptions were awarded to the Oltenia National Lignite Company, with 47.4 million euro and to the National Coal Company in Petroşani (38.3 million euro). The exemption took effect on April 26.

State aid to several industries, especially mining and steelworking, is expected to decline in the coming years, as the European Union has told Romania that it needs to stop subsidising loss-making industries in order to be able to fully integrate into the European Union common market. Additionally, Romania's new Justice and Truth (Liberal-Democrat) governing coalition is keen on further liberalising Romania's free-market economy, by greater privatisation, fiscal liberalisation and a reduction in state aid.