Politics

Oana Gheorghiu will coordinate the reform of state companies. “Those that cannot be saved must be closed,” announced the prime minister

Oana Gheorghiu will coordinate the reform of state companies.

Oana Gheorghiu, at the first Government meeting of his mandate. Photo: Government of Romania

Prime Minister Ilie Bolojan announced that the Government will develop plans for the recovery of state companies, some of which will even be defunct. The process will be coordinated, together with the ministries that protect the companies, by the Deputy Prime Minister Oana Gheorghiu.

Ilie Bolojan said that there are billions of lei per year that go to state companies in the form of subsidies, to which are added the losses suffered by these companies. Consequently, plans must be made to optimize their activity.

“Those that cannot be saved must be closed, those that must be maintained but have losses must cut their losses,” said the prime minister, noting that 27 companies had total losses of 1.2 billion lei in 2024 alone, to which are added losses of 5 billion in the past.

Another 83 companies have outstanding payments of 6.5 billion lei, of which 30% to the state budget, and the rest to partners and private companies.

“We have to intervene in this companies. In 2024 alone, they collected more than 8 billion lei in subsidies, and we could spend every lei in education, health or other sectors,” continued Bolojan.

Also, there are smaller companies that no longer carry out activities in accordance with the original object of activity that can be closed “without any problems”, according to the head of the Government.

“We have companies that were supposed to present recovery plans, they didn't present them this year either. It's hard to imagine how they were tolerated, We won't enter next year without these plans (…) We established these lists of companies, the responsibility will be with each ministry and with a working group coordinated by the Deputy Prime Minister Oana Gheorghiu”, concluded Ilie Bolojan.

Ashley Davis

I’m Ashley Davis as an editor, I’m committed to upholding the highest standards of integrity and accuracy in every piece we publish. My work is driven by curiosity, a passion for truth, and a belief that journalism plays a crucial role in shaping public discourse. I strive to tell stories that not only inform but also inspire action and conversation.

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