Last updated: 6 December 2018
Romanian legislation includes several important rules aimed at encouraging investment on Romanian territory, stipulated in the Government Decision no. 807/2014 establishing State aid schemes to stimulate investments having a major impact on the economy. .
Further amendments to the State aid scheme have recently been introduced by Government Decision no. 880 dated 9 November 2018, following the publication of the regulation in the Official Journal no. 954 as from 12.11.2018.
The new regulations have become effective on 12.11.2018.
NEW ELIGIBILITY CRITERIA
One of the new regulations introduced by Government Decision no. 880/2018 is the change in the total value of investments made by companies under the State aid scheme.
Until now, the total value, excluding VAT, of investments eligible under the law amounted to 13.5 million lei (or the equivalent of approximately 3 million euros), but Government Decision no. 880/2018 has considerably reduced this threshold to 4.5 million lei (or the equivalent of around 1 million euros).
CHANGE IN THE AWARD PROCEDURE
Government Decision no. 880/2018 brings important changes to the State aid award procedure, as follows:
Change in the annual budget allocated to the scheme
According to the new regulation, following the evaluation of the funding applications unresolved up to the date of exhaustion of the annual budget allocated to the scheme, the Ministry of Public Finance sends to the applicant companies, as the case may be:
a) A request for information and/or documents in addition to the funding application, if: (i) there are any inconsistencies between the pieces of information provided; / (ii) the documents do not comply with the compliance conditions set out in Appendix no. 2 to Government Decision no. 807/2014; / (iii) it is found that additional documents are required to resolve the request.
b) A letter rejecting the financing application, if: (i) the funding application is not accompanied by the supporting documents set out in Appendix no. 2 to Government Decision no. 807/2014; / (ii) the conditions and eligibility criteria set out in Government Decision no. 807/2014 are fully and cumulatively fulfilled; / iii) the company fails to supplement the funding application within 15 business days from receiving the request for information and/or documents.
Another novelty is the fact that, in the event that the annual budget allocated to the scheme is exhausted and funding applications are not covered by this budget, but cumulatively fulfil the eligibility conditions set out in Government Decision no. 880/2018, the Ministry of Public Finance issues the funding agreement draft.
Funding agreement drafts issued in accordance with the above are approved in the order of their issuance, after the top-up of the annual budget allocated to the scheme for the current year or from the budget allocated for the following year, in accordance with the provisions of the laws of the annual budgets.
Other changes
The recent amendments introduced by Government Decision no. 880/2018 also address the following aspects:
a) State aid payment applications submitted after 30 September of each year will be returned to the applicant companies.
b) Companies that fail to submit the payment applications until 30 September of each year are required to file a notice regarding the reallocation of amounts not used until the end of the current year, within 10 calendar days from such date (i.e. 30 September).
The new regulation also stipulates a new case of revocation of the funding agreement, namely: non-compliance with the conditions stipulated in the funding agreement, conditions whose non-compliance will lead to the revocation of the agreement.
FINAL CONSIDERATIONS
Through the changes brought to the State aid scheme by Government Decision no. 880/2018, in particular by reducing the minimum amount of eligible investments, the authorities continue their policy of active contribution to regional development, in support of investments having a significant effect on the economy.