Romania to halt any privatisation for two years

Romania’s parliament on Wednesday (10 June) approved a law that stops any sale of shares owned by the state for the next two years. The draft law was introduced by the socialist PSD party, which has the largest number of MPs and was opposed by the centre-right government.

If president Klaus Iohannis doesn’t veto it, the law will forbid any sale of state-owned stakes in any company or bank in which the government has some shares, regardless of the size of participation. Also, the law suspends any ongoing privatisation.

PSD cited the negative effects on the Romanian economy of the coronavirus crisis, and the potential declines in company values due to the economic context, to justify its proposal.

However, the PSD generally opposes the privatisation of state-owned companies, regardless of the economic situation.

”PSD will never allow the sale to foreigners of the last pearls of Romania’s economy – CEC Bank, Hidroelectrica or Nuclearelectrica,” party chief Marcel Ciolacu said last week.

PNL, the governing party, said it would contest the law before the Constitutional Court, adding that the president could veto the law so that it wouldn’t return to parliament. 

(Bogdan Neagu | EURACTIV.ro)

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