Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure RO-2020-34/1403 – measures in Romania
Country | Romania , applies nationwide |
Time period | Temporary, 20 August 2020 – 31 December 2020 |
Context | COVID-19 |
Type | Legislations or other statutory regulations |
Category |
Supporting businesses to stay afloat
– Direct subsidies (full or partial) |
Author | Victoria Stoiciu (European Institute of Romania) |
Measure added | 05 November 2020 (updated 06 November 2020) |
The aviation sector is one of the most affected by the new pandemic crisis, with many flights being suspended to and from most European countries. The companies TARON and Blue Air, which have 2,900 employees (as of 30 March 2020) are unable to continue their activity, due to the lack of financial resources necessary to make current payments, so that the transport activity can be carried out safely and securely. A possible closure or restriction of the activity of the two companies could bring to the state budget bigger losses than the requested state aid, in the next three-five years. This aid - authorised by the European Commission - will help companies to continue their activity and avoid the dismissal of employees.
The companies TAROM - Romanian Air Transport („Compania națională de transporturi aeriene române - TAROM“) and Blue Air Aviation benefit from state-guaranteed loans, through the Ministry of Public Finances, amounting to up to RON 300,775,000 (€62 million. – for Blue Air) and, respectively RON 312,744,200 (€64.2 million. - for Tarom), in order to cover the losses generated by the pandemic (on a six year time period). The value of each loan should not exceed the (estimated) losses suffered by each company due to the pandemic. The loans should be granted before 31 October 2020. The provider of state aids is the Ministry of Finance and their administrator - the Ministry of Transport.
For the same purpose, five Romanian regional airports (from Cluj, Iasi, Sibiu, Bacau and Craiova) are to receive a financial aid from the state, in a total amount of RON 22.28 million (€4.58 million.), to cover direct losses caused by the pandemic.
This measure will benefit two airlines, one with state capital, another with private capital, which have 2,900 employees (on 30 March 2020).
Workers | Businesses | Citizens |
---|---|---|
Does not apply to workers |
Sector specific set of companies
|
Does not apply to citizens |
Actors | Funding |
---|---|
National government
Trade unions Employers' organisations Company / Companies Other social actors (e.g. NGOs) EU (Council, EC, EP) |
National funds
|
Social partners' role in designing the measure and form of involvement:
Trade unions | Employers' organisations | |
---|---|---|
Role | Consulted | Consulted |
Form | Consultation through tripartite or bipartite social dialogue bodies | Consultation through tripartite or bipartite social dialogue bodies |
Social partners' role in the implementation, monitoring and assessment phase:
The involvement took place within the Economic-Social Council, a tripartite body with a consultative role, which assists the activity of the Government and the Parliament. The members of the Plenum and the members of the specialized commissions, representatives of the nationally representative employers' confederations, the nationally representative trade union confederations, the associations and foundations, non-governmental organisations of civil society participate in the consultative process.
The representatives of the trade unions and employers' associations voted in favor of approving the legislative act. So did NGO representatives, but they had some comments.
This case is sector-specific
Economic area | Sector (NACE level 2) |
---|---|
H - Transportation And Storage | H51 Air transport |
H52 Warehousing and support activities for transportation |
This case is not occupation-specific.
Citation
Eurofound (2020), Granting state aid for civil aviation , measure RO-2020-34/1403 (measures in Romania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/RO-2020-34_1403.html
Share
30 January 2023
Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. This article summarises the policy responses as reported in Eurofound's EU PolicyWatch database from January to September 2022.
Article12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.
Article12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Article5 July 2022
This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.
ArticleDisclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.