Privatization and State-Owned Enterprises (PSD) advocate for swift approval of a law reducing perks for State-Owned Enterprises (SOE) boards, with a second fiscal package to follow.
The Romanian government has unveiled a comprehensive reform package for state-owned enterprises (SOEs) aimed at reducing privileges for SOE board members and enhancing transparency. The reform, led by Deputy Prime Minister Dragoș Anastasiu, is intended to improve corporate governance, align with the National Recovery and Resilience Plan (PNRR), and increase fiscal sustainability.
Key details of the reform include a reduction in the size of SOE boards to streamline management structures, capping earnings for board members to address disproportionate remuneration without corresponding company performance, and the publication of comprehensive datasets on SOE management and performance to enhance transparency. New performance indicators will be set for board evaluations, and underperforming SOEs (those with losses in three consecutive years) may be closed or merged, with some public companies potentially listed on the stock exchange. The role and monitoring capacity of the Agency for Monitoring the Performance of Public Enterprises (AMEPIP) will be strengthened.
The reform is part of broader efforts, including local administration restructuring, and fits into a wider privatization and institutional reform agenda designed to attract private and foreign investments and boost Romania’s economic efficiency and transparency.
The Romanian ruling Social Democratic Party (PSD) is promoting this package of measures, with Prime Minister Ilie Bolojan now personally leading the reform task group. The measures were first presented on July 21. Grindeanu, the PSD leader, has suggested a phased approach, with immediate action to eliminate excessive SOE board benefits, followed by broader fiscal measures. These measures, according to Grindeanu, should align with the budget rectification process, and it would be logical for them to be implemented together with the budget rectification to ensure the fiscal measures are well-targeted.
As of now, no new information has been provided about the status of the package of measures in Parliament or the timing and content of the upcoming budget revision. Following Dragoș Anastasiu's resignation over the weekend, the reforms remain part of the government program initially overseen by him. Grindeanu has stated that the prime minister should assume responsibility in Parliament for the removal of SOE board privileges, potentially as early as the next day. A second fiscal package will follow in coordination with the upcoming budget revision, and the package of measures will be presented in Parliament immediately.
The policy-and-legislation changes, which include the reform of state-owned enterprises (SOEs), are rooted in the broader politics of Romania, as the Romanian ruling Social Democratic Party (PSD) is promoting this package of measures. This reform, aimed at reducing privileges for SOE board members and enhancing transparency, aligns with the general-news topics of privatization and institutional reform, designed to attract investments and boost Romania’s economic efficiency and transparency.
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