A week after the Romanian Government OK-ed the privatization contract for CFR Marfa and then asked for the green light from the Superior Defense Council (CSAT), and soon after the Prime Minister went on holiday, Romania's president called for a CSAT meeting. The Friday morning meeting (August 2) will be then attended by Deputy Prime Minister Gabriel Oprea, who will represent PM Victor Ponta, but will not have voting rights.

In what seems to be yet another row between the PM and president Traian Basescu, the timing for this meeting appears to be of the essence, as the privatization of CFR Marfa recently became a back and forth statement topic between the two.

The CSAT, headed by the country's president, is made mostly of Government members, most of which are currently on holiday. Regularly, apart from the country's president, the CSAT meetings include the PM, the Minister of National Defense, the Minister of Domestic Affairs, the Minister of Foreign Affairs, the Minister of Justice, the Minister of Economy, the Minister of Public Finances, the head of the Romanian Intelligence Service (SRI), the head of the Foreign Intelligence Service (SIE), the Chief of General Staff, the presidential advisory on national security and a secretary (some in picture from February 2013 CSAT meeting). Each of the members who cannot attend the meeting can send it a substitute, who will however not have voting rights. The nomination has to be approved by the presidency.

The privatization of Romania's railway freight company CFR Marfa became a hot topic on the political scene this summer, after Romanian company Grup Feroviar Roman was named winner in a second privatization attempt. Romanian president Basescu recently said the winner in the privatization of state – owned company CFR Marfa does not have the money to pay for the company and is currently trying to borrow them from banks. He added this was not a political game, but that prime Minister Victor Ponta needs to keep political responsibility for the privatization.

Grup Feroviar Roman, GFR, pledged to pay EUR 202 million for a 51 percent stake in CFR Marfa. The winner also promised to invest a further EUR 204 million in the company, and the country's president expressed doubts the winner will have the money to modernize the state company if he has trouble finding the money to pay for it in the first place.

In response, the Prime Minister Victor Ponta said nothing is wrong with the privatization of CFR Marfa based on the data so far, and asked the president to 'mind his own business'.

editor@romania-insider.com

(photo source: presidency.ro)