The Romanian Senate plenary adopted the draft law initiated by the Social Democratic Party on Monday, May 4, banning the sale of assets of profitable state-owned companies until the end of 2027. The project will need a final vote from the Chamber of Deputies before it becomes law.
The Social Democratic Party submitted the project to ban the sale of minority share packages in state-owned companies as a reaction to a reform and privatization initiative put forward by the Liberal Ilie Bolojan government.
The plan, laid out by deputy prime minister Oana Gheorghiu in the latter part of last month, was the result of an analysis of 22 state-owned companies. The companies in question accumulated combined budgetary debts of approximately RON 4.2 billion in historical debts and recorded aggregated net losses of approximately RON 1.12 billion in the last reported year. To plug what she called the “black holes” of Romania’s state budget, Gheorghiu proposed greater transparency and the listing of minority shares.
The Social Democrats and the far-right opposition Alliance for the Union of Romanians Party both used the proposal to list state-owned assets on the local stock market against the Liberal-led government, arguing that it does not make economic sense. The two parties largely based their joint no-confidence motion against the Bolojan government on the issue.
PSD also sought to block the listing of minority shares in state companies through the law.
“Today, in the Senate plenary, the law regarding the prohibition of alienating State shares in profitable companies until December 31, 2027, was passed. We are not, in principle, against listing, but we are against the chosen method – accelerated sale through direct negotiation – and the inappropriate timing given the volatility of the financial and energy markets,” said PSD senator Daniel Zamfir, the initiator of the bill, said in a Facebook post.
(Photo source: Inquam Photos|George Calin)
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