Government will ask EC’s approval to capitalize Romanian Post

The Government will notify the European Commission in August on its intention to increase the social capital of the Romanian Post. The procedure will be completed after the Commission gives its approval. Communications minister Augustin Jianu previously announced that the Romanian Post would be capitalized with RON 170 million (EUR 37.2 million) this year. “The company needs this money, which is provided in the state budget. The operation will support the company's investment efforts towards computerization,"Jianu said, reports local Profit.ro. A government document, drafted at the end of last month, showed that the Government has already set up a committee to work on the postal operator’s capitalization. Competition Council president Bogdan Chiritoiu said that the money from the Romanian Post’s capitalization would be used to cover the fines applied by the Competition Council and possible fines from the European Commission. The EC is currently analyzing whether the money paid from the state budget to Romanian Post employees who were collectively laid off represent state aid. Romanian Post records gross profit of EUR 2.7 mln in 2016 editor@romania-insider.com