The Ministry of Finance said it was looking to increase the budget allocation under a state aid scheme from an yearly EUR 100 million to EUR 145 million, citing growing interest from investors.
The proposed changes would be applied for the state aid mechanism regulated by the Government Decision 807/2014. Companies investing at least EUR 10 million in the country can be enrolled in this scheme.
“The decision comes amid growing interest from investors from making large scale investments in the country, with significant impact in the economy, with a focus on sectors with high tech activity. Moreover, at present, large companies that are looking to carry out such investments do not have any other financing mechanism at a national level”, said the Ministry of Finance in a statement.
The ministry added it was also working on the changing the way in which the beneficiaries of this scheme are selected. Authorities want to make the selection process clearer and more transparent.
The current scheme has a planned budget for the 2014-2020 period, while the state aid will be paid to companies in the 2015-2023 period.
This state aid program has proven very popular among foreign companies active in the manufacturing sector, mainly for automotive and aircraft components makers.
Romania also has another state aid scheme, with a smaller budget, which covers the wage costs of companies hiring new people.