Romania's new government promises EUR 10 billion per year in "state aid and guarantees"
<p>The new government of Romania promises EUR 155 billion of public investments in the next five years and EUR 120 billion in the next four years, according to the ruling strategy outlined on December 23 when the lawmakers endorsed the new cabinet.</p>

<p>The figure accounts for some 6%-7.5% of GDP per year. However, it includes investments guaranteed by the state for which the state pays only a fee while the private investor comes up with the money.</p>

<p>Over EUR 27 billion will be invested to complete the network of 2,000 km of motorways and expressways and over 2,700 km of railway infrastructure.</p>

<p>The investment program envisages the completion of the 3 regional hospitals, the construction of 10 new hospitals, the modernization of 17 hospitals, the construction of 200 integrated community health centers in small urban and rural areas, and the equipping of 2,600 medical offices.</p>

<p>Over EUR 16 billion will be spent in the next 4 years for massive investments in irrigation and incentives for new [food] processing plants, supporting storage and packaging of products. At the same time, over EUR 6 billion will be invested in the education system.</p>

<p>A key element of the government's investment strategy includes an economic stimulus of 6-8% of GDP annually to increase industrial production in Romania, including EUR 10 billion per year (6%-7.5% of GDP) for "state aid schemes and guarantees," according to <a href="https://www.zf.ro/eveniment/noul-guvern-promite-10-mld-euro-anual-sub-forma-de-ajutor-de-stat-22621215?mc_cid=9caa065331&amp;mc_eid=cd1f92f96c" rel="noopener" target="_blank">Ziarul Financiar</a>.</p>

<p>The government also envisages a large-scale development program targeting 300 cities with a population of under 100,000 inhabitants. The goal of this program is to reduce territorial disparities, modernize local infrastructure, and stimulate the economy.</p>

<p><em>iulian@romania-insider.com</em></p>

<p><em>(Photo source: <a href="https://www.dreamstime.com" rel="noopener" target="_blank">Alexandru Marinescu/Dreamstime.com</a>)</em></p>