The Government of Romania has approved, on Thursday, upon the proposal of the Ministry of Finance, a state aid scheme providing non-repayable funding for investments with a major impact on the Romanian economy, whose eligible costs exceed 50 million lei.
“The purpose of launching the scheme is to stimulate economic growth by supporting investments in new and sustainable technologies and, at the same time, to encourage entrepreneurship. Additionally, the social impact of the scheme is significant in the long term, considering that the projects financed through the state aid scheme will lead to the development of economic activities of enterprises located in less developed regions, promoting the use of products and services offered by local suppliers,” the Ministry of Finance stated in the press release.
The Ministry has announced that the total amount allocated for this aid scheme is 2.25 billion lei, equivalent to approximately 450 million euros. Financing agreements will be issued by December 31, 2026, and the state aid will be disbursed between 2025 and 2032.
“After the expiration on December 31 of the validity of the two state aid schemes established under the regional regulation, the business environment has repeatedly expressed the need for the continued application of state aid schemes that finance assets. That is precisely why we came up with this proposal, to support those large-scale investment projects with significant effects on the economy, aimed at leading sectors, which can be a source of significant technology transfer. We are counting on this allocation of 2.25 billion lei to turn local entrepreneurs into catalysts for regional development. At the same time, innovation becomes a currency, being an impetus for the revitalization of traditional industries through the integration of new and sustainable technologies. Furthermore, it is a method through which we attract foreign investments and contribute to Romania’s import/export balance, as a large part of the production resulting from these investments is destined for export,” explained Minister Marcel Boloș.
Who can apply for the state aid scheme
The beneficiaries of state aid can be companies that meet the following cumulative eligibility criteria:
I. General criteria
– To be registered according to the Companies Law no. 31/1990, republished, with subsequent amendments and completions;
– To carry out an initial investment in Romania, within a maximum of 3 years from its start date, in one of the eligible sectors provided for in the state aid scheme in Annex No. 1;
– Not to fall into the category of “companies in difficulty”;
– Not to be undergoing enforcement proceedings, insolvency, bankruptcy, judicial reorganization, dissolution, operational closure, liquidation, or temporary suspension of activity, and not to be the subject of decisions to recover state aid;
– Not to benefit from other regional state aids for eligible costs of wage costs within the same single investment project;
– Not to relocate to the unit where the initial investment is to be made.
“In addition, for companies with at least one completed financial year, in order to access state aid, they must have a turnover profitability greater than zero in one of the last three completed financial years and positive equity in the last completed financial year. Also, to be eligible, in addition to the general criteria, newly established enterprises must have a subscribed and paid-up share capital of at least 100,000 lei and must not have shareholders who have owned or have owned in Romania in the last 2 years prior to the registration date of the application, a company with the same object of activity for which funding is requested,” the statement further stated.
II. Cumulative eligibility criteria for investments:
a) to be considered initial investments (new unit/expansion/diversification/fundamental change) or initial investments that create a new economic activity (new unit/diversification in the case of Ilfov County);
b) to have a total value, excluding VAT, of eligible costs associated with the initial investment, of at least 50 million lei;
c) to demonstrate economic efficiency and viability during the implementation period of the investment and 5 years from its completion date;
d) to meet the stimulating effect condition;
e) to meet the quantitative and qualitative indicators provided for in the scheme;
f) to generate a quantifiable multiplier effect on the economy.
According to the ministry, the registration of funding agreement applications will take place during annual sessions, which are announced at least 60 working days before their start. Each session lasts for 30 working days.
Funding agreement applications submitted during a session are evaluated based on a scoring system and are ranked in descending order. The analysis of these applications is carried out within the budget allocated for the respective session. If all conditions and eligibility criteria are met, the applications can be approved, and the beneficiaries can receive the funding agreement. Otherwise, a rejection letter is issued.
The payment of state aid is made after the eligible expenses have been incurred in accordance with the funding agreement, either partially or in full, within the limits of the budget appropriations approved for this purpose.
State aid is granted based on eligible expenses, which may include the construction of new facilities, the acquisition of equipment and intangible assets. It is important to mention that investment-related assets must be new.
This state aid scheme complies with the European regulatory framework in force until December 31, 2026, and aims to stimulate investments with a significant impact on the Romanian economy.
