Romanian companies benefited from state aid paid out during 2023 totaling about 29.5 billion lei, about 2% of annual gross domestic product, a percentage that is part of a European trend, the government announced on Tuesday. More than 90% of the companies that benefited from this aid are SMEs, which received almost 60% of the total amount of aid paid, i.e. approximately 16.50 billion lei.

Approximately 80% of state aid goes to companies with local capital.

The largest share (36%) in 2023 was state aid paid in the context of the economic crisis caused by the Covid-19 pandemic and Russia’s aggression against Ukraine (through the SME Invest state programs, a loan program under state guarantees, with the support of Eximbank).

Aid for horizontal objectives (eg environmental protection, energy, research and development, innovation) was 26%, and for the transport sector – 17%.

According to the information provided by the suppliers, of the total amount of 29.5 billion lei paid in the form of state aid, two thirds were provided in the form of grants/subsidies and one third in the form of guarantees.

The government presented several cases of influence that ended with a positive decision by the European Commission (EC) in 2023:

• Change of state aid for the project “Multimodal platform Galatsi”.

The increase in government aid was due to the increase in costs required to implement the project due to the COVID-19 pandemic and, subsequently, the crisis caused by the war in Ukraine. The cost of the state aid is 112.2 million euros, financed by the Major Infrastructure Operational Program (POIM) and the state budget.

• State aid for financing port infrastructure

The aid is intended for investments related to loading/unloading and cargo handling in sea and inland ports (Constanța, Galaţi, Giurgiu, in ports located along the Danube – Black Sea canal, including Porta Alba – Midia – Nevodari, along Sulina). canal or in the satellite ports of the port of Constanta (Midia, Mangalia) in order to reduce the negative consequences of the geopolitical crisis caused by Russia’s aggression against Ukraine. The total budget is 150 million euros.

In total, 220 support measures were approved in 2023 with a total budget of 44.53 billion lei from European operational programs, PNRR (including RepowerEU) and national funds.

What are the priorities for this year?

For 2024, the Government claims to have set a number of priorities, among which it mentions:

• contracts for difference in the field of renewable energy (the event is funded by the PNNR)
• restructuring of the company TAROM – the company received two types of assistance:
  – EUR 19.3 million to cover losses caused by the COVID pandemic
  – 36.7 million euros
• NOKIAN – investments of more than 600 million euros for the construction of a tire plant in Oradea → state aid of 99 million euros
• centralized heat supply Bucharest (continuation of subsidizing the supply of thermal energy in the centralized system),
• Valea Jiului Energy Complex, which includes Hunedoara Energy Complex, Paroşeni Thermal Power Plant and four coal mines (Vulcan, Livezeni, Lonea and Lupeni)
• Development of units 3 and 4 at CNE Cernavodă
• Assistance to the Republic of Moldova and Ukraine – harmonization of the legislation on the provision of certain types of assistance with the European acquis and on the provision of specialized technical assistance.
• RegAS: Improvement of the RegAS system (registry of state aid), technical and operational update/development required.

These data were provided to the Government by the Competition Council in the periodic information it provides on the activities carried out.