Large invoices, bad services: the price of the politicized management in the state companies

Larger invoices, poor quality services and delays in investments that should modernize infrastructure, all of which are direct consequences of how state companies are run. Instead of being strategy and control spaces, many administration councils remain mere formal structures, where decisions are politically dictated, draw the attention of the specialists.

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Behind these problems are the way in which the board of directors are made and operate, where the selection criteria, the performance evaluation and the stability of the rules remain neuralgic points.

State companies between politics and formalism

Beyond the political appointments, the main governance blockages in the state companies in Romania are due to the lack of clear and predictable selection criteria, the absence of a compulsory competences for the members of the councils, but also the lack of periodic evaluations. “The councils are often treated as formal organisms, without real impact on the strategy. In the private environment, the pressure of investors and the market accelerated the adoption of modern governance practices, but even there the lack of formal training and a consolidated board culture remains an obstacle.”explains for “Adevărul” Carmen Micu, CEO & founder Envisia – Boards of Elite.

Romania and OECD standards: between validation and reality

Romania recently received a favorable opinion from the OECD in the accession process, but this opinion does not place the country at the level of the advanced states. If in Finland the external evaluations and the matrix of competences are mandatory, and Poland has succeeded, through the reforms of the last decade, to increase the yield of state companies by 25% in just three years, Romania remains blocked in the fragmentary application of the legislation.

Examples such as Norway, where independence and diversity are strict criteria, or New Zealand, which maintains public bases for board positions, shows the difference of mentality between the countries that treat governance as a strategic tool and those who see it only as a formal exercise.

“In Romania, the legislative framework exists (GEO 109/2011, later consolidated by Law no. 111/2016 and recently amended by GEO no. 22/2025), but its application is fragmented”, emphasizes Carmen Micu.

In his opinion, the lack of functional governance has visible effects in daily life: higher invoices, poor quality services and delays in investment projects. The consequences are amplified in the medium and long term, because Romania loses the pace of infrastructure modernization, becomes less attractive for investors and more difficult to access European funds. At the same time, the confidence of citizens is eroded in both institutions and market economy.

“When the boards work professionally, the resources are allocated effectively, the projects are delivered on time, and the citizens benefit from quality services. When it does not work, the real costs are translated not only in lost money, but also in missed opportunities for a whole generation.” warns Carmen Micu.

What the solutions look like

She adds that the solution is not bureaucracy, but consists of simple, clear and applicable rules. More precisely, Envisia has proposed to the current administration a set of measures: transparent selections based on competences, compulsory matrix of qualifications, annual evaluations and continuous training of the members.

“The OECD and IFC consider the formal education of the members of the councils as a central element of professionalization, and Romania already has the necessary infrastructure: accredited programs, a community of over 300 non -executive directors and resources for continuous training. Models from Poland and Finland shows that professionalization brings significant performance increases in just a few years”,, ” completes Carmen Micu.

The balance of power in the board

Another critical point remains the balance between the state, investors and civil society. “The state has a legitimate role as a shareholder, but the boards do not have to be mere extensions of the political apparatus. Investors bring the pressure of economic performance, and the civil society represents the voice of public interest and sustainability,” adds the specialist.

The real stake of the governance exceeds the simple discussion about who holds the management positions. Essential is the way in which the board of directors assume responsibility for the managed resources and for the public interest, with direct effects on the long -term performance and on the level of confidence of the society, according to it.

The problem of the performance of public companies is also confirmed by the latest official data. According to an analysis presented in July 2025 by the former Deputy Prime Minister Dragoș Anastasiu, in the spotlight for the monitoring of public enterprises (AMEPIP) there are 1,326 public enterprises: 1,182 at the local level and 144 at central level. Of these, 266 companies generate losses of 2.5 billion lei, and seven of them concentrate losses of two billion: despite the massive subsidies received from the state. The heavy names on the list include CFR SA, CFR Marfă, Termoenergetica, Metrorex, Craiova Electrocentrale, Valea Jiu and Unifarm Energy Complex.

“We have a problem related to performance”, He admitted, at that time, Anastasiu, giving the example of airports where the number of employees in Romania is almost double compared to similar institutions in Europe, for the same volume of passengers.

At the same time, the official announced a package of measures aimed at reducing the number of members of the board of directors, decreasing remuneration and capping benefits, as well as prohibition that civil servants are part of several boards simultaneously. He stressed that the reform of public companies also involves the publication of all remuneration and subsidies, as well as the listing of at least three state -owned companies, according to the milestones assumed by PNRR.

The reform of public companies, political and economic stake

At the beginning of September, Prime Minister Ilie Bolojan related to the reform of the public companies to the state's responsibility towards the citizens. He insisted that the law promoted by the government has as objective “Professionalization and depoliticization of state companies”but warned that success depends on “The good faith application of the new provisions”.

Bolojan stressed that Romania needs public enterprises “Strong, conducted professionally, with clear missions and concrete results ”especially in areas such as energy, transport and defense. In the local administration, he said, citizens must benefit from “Functional public services, for quality utilities, for safe and clean urban transport.”

In support of this objective, the prime minister announced measures such as reducing the number of positions, capping the allowances considered excessive and introducing performance criteria monitored by the Agency for Monitoring and Evaluation of Public Enterprises. “We want a modern state, which does not abandon their public companies, but makes them performing and responsible”, said Ilie Bolojan.

The head of the government criticized the opposition to the censure motion against the corporate governance law, stating that “The signatories of this motion do not want to reform the state companies.”

Referring directly to the income of directors in public enterprises, he asked: “I invite them to go among the Romanians and tell them that a salary of 8,000 euros per month of a state director should not be capped.”

In conclusion, Bolojan pleaded for the continuity of reforms: “The solution is to go forward with the reforms for a more correct and respect for Romanians.”