EC asks Romanian Government to change privatization law

The European Commission (EC) has asked the Romanian Government to change the privatization law this fall, arguing that the current law included facilities that could represent state aid. The EC has warned the Government that it will start a large investigation into all cases where such facilities have been provided, if the executive didn’t change the law, reports local Profit.ro. The current facilities provided for state-owned companies, such as special administration, the debt payment exemptions, reductions or rescheduling, and the asset transfers, may represent measures likely to favor state-owned enterprises against their competitors. The Government has admitted that the state-owned companies often represent a lever by which the state intervenes to adjust the market failures or achieve social objectives. editor@romania-insider.com