Romania's finance minister Alexandru Nazare on February 5 announced that the government has sketched, after consultations with the business community, the main elements of the economic recovery package that will include fiscal allowances, friendlier regime for SMEs, and stronger support for large investment projects but also active measures in the form of new, better targeted support schemes with implementation timelines of 5 to 7 years. 

"This plan has a fiscal component, fiscal measures, and a component of repositioning support schemes for companies. We are shifting the focus from consumption to investments. We are shifting the focus from volume projects to strategic projects in areas where Romania has important interests. New instruments will be developed, so that Romania increases its level of competitiveness and its chances of attracting foreign investments and developing large Romanian investments," said Alexandru Nazare during a press conference.

The Ministry of Finance published the draft law implementing the plan for public consultations.

The plan will have a budgetary impact of RON 2.1-2.2 billion (EUR 400 million, 0.1% of GDP) this year. This cost will be compensated by the savings generated by the public administration law – which is supposed to be approved concurrently, finance minister Nazare explained.

The measures included in the plan will have to be notified to the European Commission.

The plan is expected to mobilise a total of almost EUR 4 billion, directed towards six major directions, over the entire 5-7 years of implementation. 

The six directions of the plan envisage:

• Investments in sectors of activity where products with a trade deficit are obtained from the manufacturing industry - with a budget of EUR 1.05 billion (some EUR 150 million per year)
• Investments in the exploitation of mineral resources -EUR 1.05 billion 
• Investments in research, development of high technologies - EUR 1.05 billion 
• Defence investments - EUR 200 million 
• Investments in increasing competitiveness and regional convergence - EUR 500 million 
• Investments made by Romanians returning from the diaspora - EUR 100 million.

iulian@romania-insider.com

(Photo source: Gov.ro)