WORLD TRADE  
ORGANIZATION  G/SCM/N/155/EEC/Add.21
26 November 2007 
 (07-5194) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
EUROPEAN COMMUNITIES 
 
Addendum
 
   The following addendum to the notification of the European Communities relates to subsidy 
programmes of Romania .   
 
_______________ 
 G/SCM/N/155/EEC/Add.21 
Page 2  
 
  ROMANIA  
 
TABLE OF CONTENTS 
 
 
Page  
 
I. INVESTMENTS BY SMES ..............................................................................................4  
II. INCREASING SMES COMPETITIVITY......................................................................5  
III. TRAINING FOR TRADERS............................................................................................6  
IV. TRAINING FOR SMES....................................................................................................7  
V. EXPORT DEVELOPMENT OF SMES ..........................................................................8  
VI. SMES DEVELOPMENT ..................................................................................................8  
VII. START (PROGRAMME FOR YOUNG ENTREPRENEURS)....................................9  
VIII.  THE HANDICRAFT AND FOLK ART........................................................................10  
IX. COAL AND MINING ACTIVITIES .............................................................................12  
X. GENERAL INVESTMENT............................................................................................13  
XI. ENVIRONMENT PROTECTION.................................................................................14  
XII. RESEARCH AND DEVELOPMENT ...........................................................................15  
XIII.  RESEARCH AND DEVELOPMENT ...........................................................................17  
XIV.  EXPORT PROMOTION ................................................................................................18  
XV. ENVIRONMENT PROTECTION.................................................................................19  
XVI.  WINTER PROGRAMME ..............................................................................................20  
XVII.  PRIVATIZATION...........................................................................................................21  
XVIII.  AGRICULTURE..............................................................................................................22  
XIX.  FISCAL MEASURE........................................................................................................23  
XX. FREE TRADE AREAS ...................................................................................................24  
XXI.  AGRICULTURE R&D....................................................................................................25  
XXII.  R&D ............................................................................................................................ ......26  
XXIII.  MINING SECTOR ..........................................................................................................27  
XXIV.  PRIVATIZATION PROCESS........................................................................................28  
XXV.  FISCAL FACI LITIES.....................................................................................................30  
XXVI.  GAS AND ELECTRICIT Y DISTRIBUTION ..............................................................31  
XXVII.  INDUSTRIAL PARKS....................................................................................................32  
XXVIII.  DEFENCE INDUSTRY...................................................................................................34  
XXIX.  FISCAL FACI LITIES.....................................................................................................35  
XXX.  PRIVATIZATION OF ARO...........................................................................................37  
XXXI.  ACCELERATION OF PRIVATIZATION...................................................................38   G/SCM/N/155/EEC/Add.21 
 Page 3 
 
 
  XXXII.  PRIVATIZATION IN AG RICULTURE AREA ..........................................................39  
XXXIII.  PROMOTING DIRECT INVESTMENTS....................................................................40  
XXXIV.  SOCIAL AND ECONOMIC DEVELOPMENT...........................................................42  
XXXV.  BUDGETARY OBLIGATI ONS REDEMPTION ........................................................43  
XXXVI.  DISADVANTAGED REGIONS.....................................................................................44  
XXXVII.  RECOVERING BUDGETARY ARREARS .................................................................45  
 
  The average exchange rate be tween Euro and Ron was:   
 
- In 2005 – 1 Euro = 3.6234 Ron.   
- In 2006 – 1 Euro = 3.5245 Ron.   
 G/SCM/N/155/EEC/Add.21 
Page 4  
 
  I. INVESTMENTS BY SMES 
 
1. Title of subsidy programme
 
 
 The national multi-annual program  on 2002-2005 period for supporting the investments made 
by start-up enterprises and microenterprises, as  well as the investments for modernization / 
retechnologization of small and medium sized enterprises,  developed in the year 2005.   
 
 The national multi-annual program  on 2002-2006 period for supporting the investments made 
by start-up enterprises and microenterprises, as  well as the investments for modernization / 
retechnologization of small and medium sized enterprises , developed in the year 2006.   
 2. Period covered by the notification
 
  2005 - 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
  The objective of the programme is:    
- to support the investments made by start-up ente rprises, as well as small and medium sized 
enterprises in the main economic sectors, stipulated  as eligible in accordance with this Order;   
- to support the growth of activit y and competitiveness of SMEs.   
 4. Background and authority for the subsidy
 
 
 The programme unrolled during 2005 was approved by the Order no. 46/16.03.2005, signed 
by the president of the National Agency for Sma ll and Medium sized Enterprises and Cooperatives, 
published in the Official Gazette no.279/04.04.2005.     The programme unrolled during 2006 was approved by the Order no. 85/06.03.2006, signed by the president of the National Agency for Sma ll and Medium sized Enterprises and Cooperatives, 
published in the Official Gazette no. 244/17.03.2006.   
 5. Form of the subsidy
 
 
 Grant.   
 
6. To whom and how the subsidy is provided  
 
 The grant for start-up enterprises and microenterprises was of maximum 10.000 euro, 
representing up to 40 per cent of the investment proj ect value for the year 2005 and up to 60 per cent 
of the investment project value for the year 2006.   
 
 The grant for small and medium sized enterprises was maximum 50.000 euro, representing up to 40 per cent of the investment project value for the year 2005 and up to 60 per cent of the 
investment project value for the year 2006.    
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The amount granted in 2005 was 3.936.740 euro.    The amount granted in 2006 was 12.627.323 euro.   
  G/SCM/N/155/EEC/Add.21 
 Page 5 
 
 
   In 2005, 121 firms benefited.   
 In 2006, 310 firms benefited.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Until 31 December 2011.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  No precise data can be provided. However, si nce the total amount of aid granted annually and 
the maximum amount of aid that can be grante d to each enterprise are low, the scheme has no 
significant impact on trade.     
II. INCREASING SMES COMPETITIVITY 
 
1. Title of the subsidy
 
  Programme to increase SMEs competitiveness by implementing and certifying quality standards.    
2. Period covered by the notification
 
  2005 - 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Stimulating the development of SMEs compe titiveness and fast adjustment to the rigors 
imposed by the market globalization and by Euro pean Union integration through implementing and 
certifying the quality management systems / environmen t / health and labour security / food products 
safety.    
4. Background and Authority for subsidy (includi ng the identification of legislation through 
which they are granted)  
 
- The National Agency for Small and Medi um Sized Enterprises and Cooperatives;  
- Law no. 346/2004 (with further changes and completions) regarding the fosterage of SMEs 
founding and development.   
 5. Form of the subsidy
 
  Grant.    
6. Beneficiaries of the subsidy
 
  Legal persons (companies/co-operatives), as Law no. 346/2004 regarding the enhancing of 
SMEs founding, with further modification and comple tion defines them (they have an annual medium 
personnel number smaller than 2 50 employees and a net annual turnover less than 50 billion Euro, 
equivalent in Lei- Romanian currency, or they ow n total assets which do not exceed equivalent in Lei 
of 43 billion Euro).  They benefit from non-refund ing financial allocation th at represents 90 per cent 
of eligible expenditures value, effectuated in maximum financing amount limit for each predicted 
activity:  training courses, consultancy for documen tation elaborating and for implementing;  quality 
management system certifying / environment/ health  and labour security/ food products safety.   
 G/SCM/N/155/EEC/Add.21 
Page 6  
 
  7. Total granted amount for the subsidy
 
  2006 - 281.550 Euro/ 78 beneficiaries.    8. Duration of subsidy and/or any othe r time limits, including the beginning date
 
 
 2006 - 2007.    9. Statistical data / effects on international trade
 
 
 No effect on international trade.   
  
III. TRAINING FOR TRADERS 
 1. Title of the subsidy
 
  The Program for Educating and Informing Traders.    2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
 
 Supporting the economic operators dealing with  the marketing of goods and services.   
 
4. Background and Authority for subsidy (includi ng the identification of legislation through 
which they are granted)  
 
- The National Agency for Small and Medium  Sized Enterprises and Cooperatives;   
- Law no. 346/2004 regarding the fosterage of SMEs setting up a nd development (annual 
medium personnel number smaller than 250 em ployees and a net annual turnover less than 
50 billion Euro, equivalent  in Lei- Romanian currency, or they own total assets which do not 
exceed equivalent in Lei of 43 billion Euro).   
 
5. Form of the subsidy  
 
 Grant.    6. Beneficiaries of the subsidy
 
  Legal persons (companies/co- operatives) and physical persons / authorized domestic 
association, as Art. 2, Law no. 346/2004 regarding the fosterage of SMEs founding, modified and 
completed by Government Ordinance no.27/2006.    7. Total granted amount for the subsidy
 
 
 2005 - 342.857  Euro / 236 beneficiaries.   
 2006 - 571.429  Euro / 164 beneficiaries.    8. Duration of subsidy and/or any othe r time limits, including the beginning date
 
 
 The Program started in 2003.    G/SCM/N/155/EEC/Add.21 
 Page 7 
 
 
  9. Statistical data / effects on international trade  
 
 No effect on international trade.   
  IV. TRAINING FOR SMES 
 
1. Title of the subsidy
 
  The National Multi-annual Programme to support the access of micro and small enterprises to 
training and consultancy services for 2002 - 2006.   
 2. Period covered by the notification
 
  2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
  The SMEs that have their main activity in the field of production or/and services.    4. Background and Authority for subsidy (includi ng the identification of legislation through 
which they are granted)  
 
- The National Agency for Small and Medium  Sized Enterprises and Cooperatives;   
- Law no. 346/2004 regarding the fosterage of SMEs setting up a nd development (annual 
medium personnel number smaller than 250 em ployees and a net annual turnover less than 
50 billion Euro, equivalent in Lei- Romanian currency, or they own total assets which don ′t 
exceed equivalent in Lei of 43 billion Euro).   
 
5. Form of the subsidy  
 
 Grant.    6. Beneficiaries of the subsidy
 
  Legal persons (companies/co-operatives) a nd authorized domestic association.   
 
7. Total granted amount for the subsidy
 
  2005 - 268.572 Euro / 181 beneficiaries.    2006 - 489.909 Euro / 193 beneficiaries.   
 
8. Duration of subsidy and/or any othe r time limits, including the beginning date
 
  The Program started in 2002.   
 
9. Statistical data / effects on international trade
 
 
 No effect on international trade.    G/SCM/N/155/EEC/Add.21 
Page 8  
 
  V. EXPORT DEVELOPMENT OF SMES 
 
1. Title of the subsidy
 
  The National Multiannual Programme  to support the SMEs to develop the export for 2002-
2006.   
 2. Period covered by the notification
 
 
 2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
 
 The SMEs that have their main activity in the field of production or/and services.   
 
4. Background and Authority for subsidy (includi ng the identification of legislation through 
which they are granted)  
 
- The National Agency for Small and Medium  Sized Enterprises and Cooperatives;   
- Law no. 346/2004 regarding the fosterage of SMEs setting up a nd development (annual 
medium personnel number smaller than 250 em ployees and a net annual turnover less than 
50 billion Euro, equivalent  in Lei- Romanian currency, or they own total assets which do not 
exceed equivalent in Lei of 43 billion Euro).   
 
5. Form of the subsidy  
 
 Grant.   
 6. Beneficiaries of the subsidy
 
  Legal persons (companies/co-operatives) and au thorized domestic association, as stipulated 
by Art. 2, Law no. 346/2004 regarding the fosterage of SMEs founding, modified and completed by 
Government Ordinance no.27/2006.   
 7. Total granted amount for the subsidy
 
  2005 - 568.572 Euro / 242 beneficiaries.   
 2006 - 1.311.559 Euro / 293 beneficiaries.   
 8. Duration of subsidy and/or any othe r time limits, including the beginning date
 
  The Program started in 2002.    
9. Statistical data / effects on international trade
 
  No effect on international trade.     VI. SMES DEVELOPMENT 
 
1. Title of the subsidy
 
  The Program for supporting the SMEs devel opment through funds from re-invested gross 
profit.  G/SCM/N/155/EEC/Add.21 
 Page 9 
 
 
  2. Period covered by the notification  
  2005 - 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 SMEs development by supporting the compe titiveness growth and SMEs capitalization.   
 4. Background and Authority for subsidy (includi ng the identification of legislation through 
which they are grated)  
 
- The National Agency for Small and Medium  Sized Enterprises and Cooperatives;   
- Law no. 346/2004 regarding the fosterage of SM Es founding and development with further 
modification and completion.   
 
5. Form of the subsidy  
  Grant.    6. Beneficiaries of the subsidy
 
 
 Legal persons (companies/co-operatives), as  defined by Law no. 346/2004 regarding the 
fosterage of SMEs founding, with further modi fication and completion (annual medium personnel 
number smaller than 250 employees and a net annual tu rnover less than 50 billion Euro, equivalent in 
Lei- Romanian currency, or they own total assets which do not exceed equivalent in Lei the 43 billion Euro);  they benefit from refunding 16 per cent of profit for technological equipment 
acquisition, computers and peripheral equipments, pa tents, author rights, licences, trade marks or 
factory marks, informatics programs production.    7. Total granted amount for the subsidy
 
  2005 - 24.000 Euro/61 beneficiaries;  2006 - 200.000 Euro/254 beneficiaries.   
 
8. Duration of subsidy and/or any othe r time limits, including the beginning date
 
  The Program started in 2006.    
9. Statistical data / effects on international trade
 
  No effect on international trade.     
VII. START (PROGRAMME FOR YOUNG ENTREPRENEURS) 
 1. Title of the subsidy
 
  Programme to develop entrepreneurial skills  among youth and to facilitate their access for 
financing – START.   
 
2. Period covered by the notification
 
 
 2005 – 2006.   G/SCM/N/155/EEC/Add.21 
Page 10  
 
  3. Policy objective and/or purpose of the subsidy
 
  Entrepreneurial education given through:  seminars, campaign, entrepreneurial courses, 
brochures and guides.    
 The beneficiaries were Romanian youngs,18-35 yo.   
 4. Background and Authority for subsidy (includi ng the identification of legislation through 
which they are granted)  
 
- The National Agency for Small and Medium  Sized Enterprises and Cooperatives;   
- Law no. 346/2004 regarding the fosterage of SMEs setting up a nd development (annual 
medium personnel number smaller than 250 em ployees and a net annual turnover less than 
50 billion Euro, equivalent in Lei- Romanian currency, or they own total assets which don ′t 
exceed equivalent in Lei of 43 billion Euro). 
 5. Form of the subsidy
 
  Training and grants.    
6. Beneficiaries of the subsidy
 
  Legal persons (companies/co-operatives) and aut horized domestic association, as defined by 
Art. 2, Law no. 346/2004 regarding the foster age of SMEs founding, modified and completed by 
Government Ordinance no.27/2006.   
 
7. Total granted amount for the subsidy
 
  2005 - 385.715 Euro / 470 trainees youth and 45 beneficiaries.    2006 - 385.715 Euro / 689 trainees youth and 62 beneficiaries.   
 
8. Duration of subsidy and/or any othe r time limits, including the beginning date
 
  The Program started in 2004.    9. Statistical data / effects on international trade
 
 
 No effect on international trade.     
VIII.  THE HANDICRAFT AND FOLK ART 
 
1. Title of the subsidy
 
  The national multi-annual Program for supporting the handicrafts and folk art in 2006 - 2009.   
 2. Period covered by the notification
 
 
 2005 - 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 SMEs development by:    G/SCM/N/155/EEC/Add.21 
 Page 11 
 
 
  - supporting the handicrafts and folk art, 
- strengthening the craftsmanship, physical  persons, associations, commercial and co-
operatives societies - from rural or urban areas,  
- protecting the handicrafts and hand-made products and services, including folk-art products,  
- promoting these products on the nationa l and international markets,  
- increasing the number of jobs in this field, especially for young people and women, all over 
the country.   
  Through this programme, the following elig ible activities are to be supported:   
 
a) participation to international fairs and exhi bitions, with own stand or in association with 
others, 
b) participation to national fairs and exhibitions, with own stand or  in association with others, 
c) elaboration of brochures or other printed materials to promote the applicant activities, written 
in Romanian language and at least one other fo reign language of international circulation, 
d) website construction to promote the appli cant activity, products and services, also in 
Romanian language and at least one other fore ign language of intern ational circulation, 
e) purchasing computers (hardware and software) and printers, f) purchasing tools, equipments, devices, machin eries (except technological lines, which do not 
preserve the hand made specific for the final products).   
 
4. Background and Authority for subsidy (includi ng the identification of legislation through 
which they are grated)  
  Order of the President of the National Agency for Small and Medium Sized Enterprises and Cooperatives based on the minimis aid Regulation a nd the Romanian Law no. 346/2004 regarding the 
fosterage of SMEs founding and development (annual medium personnel number smaller than 
250 employees and a net turnover less than 50 billion Euro, equivalent in Lei- Romanian currency, or they own total assets which do not exceed equi valent in Lei the 43 billion Euro).   
 5. Form of the subsidy
 
 
 Non-repayable financial allocation.   
 6. Beneficiaries of the subsidy
 
  The beneficiaries are commercial companies, co-operatives societies and other legal persons 
such as associations, foundations.   
  The applicants who have paid their taxes on the local and national budget will benefit from 
90 per cent refunding from VAT.    7. Total granted amount for the subsidy
 
 
 2005 - 137.990 Euro / 42 beneficiaries.    2006 - 283.728 Euro / 58 beneficiaries.    8. Duration of subsidy and/or any othe r time limits, including the beginning date
 
 
 The Program has been started in 2003.   G/SCM/N/155/EEC/Add.21 
Page 12  
 
  9. Statistical data / effects on international trade
 
  No effect on international trade due to the very small number of the beneficiaries compared with the total number of SMEs.    
 
IX. COAL AND MINING ACTIVITIES 
 
1. Title of the subsidy programme
 
 
 Subsidy on products and activities – co al and other mining activities.   
 2. Period covered by the notification
 
  2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
  Aid for current production (operating aid).  4. Background and authority for the subsidy
 
 
a) The grantor of the subsidy is the Ministry of Economy and Commerce (MEC).    b) The legislation on the basis of which the subsidy is provided is as follows (in Romanian)
: 
 
• HOTĂRÂRE nr. 311 din 15 aprilie 1999 pentru aprobarea Listei cuprinzând subven ţiile 
unitare pentru produsele din industria c ărbunelui, minereurilor feroase, neferoase, radioactive, 
rare şi nemetalifere, care se subven ţionează de la bugetul de stat în anul 1999 şi a Normelor 
metodologice privind acordarea, utilizarea şi controlul subven ţiilor pentru produsele din 
industria c ărbunelui, minereurilor feroase, neferoase, radioactive, rare şi nemetalifere, precum 
şi ale transferurilor destinate ac ţiunilor, de protec ţie socială a personalului din acest domeniu  
• HOTĂRÂRE nr. 331 din 29 aprilie 1999 priv ind aprobarea bugetelor de venituri şi cheltuieli 
pe anul 1999 ale regiilor autonome, companiilor na ţionale, societ ăţilor naţionale şi institutelor 
naţionale de cercetare-dezvoltare, aflate în coordonarea sau în subordinea Ministerului 
Industriei şi Comerţului, precum şi a transferurilor pentru Societatea Comercial ă "Uzina de 
Valorificare a Cenu şilor de Pirit ă" - S.A. Turnu Magurele  
• Hotărârea Guvernului nr. 49/2006  pentru aprobarea, pentru anul 2006, a Listei operatorilor 
economici afla ţi sub autoritatea sau în coordonarea Ministerului Economiei şi Comerţului, 
care beneficiaz ă de prevederile art. 10 alin. (7) din Le gea bugetului de stat pe anul 2006 nr. 
379/2005  
• Legea bugetului de stat pe anul 2006 nr. 379/2005  
• HOTĂRÂRE nr. 273 din 2 martie 2006 privind modificarea anexelor nr. 2/5 şi 2/7 la 
Hotărârea Guvernului nr. 49/2006  pentru aprobarea, pentru anul 2006, a Listei operatorilor 
economici afla ţi sub autoritatea sau în coordonarea Ministerului Economiei şi Comerţului, 
care beneficiaz ă de prevederile art. 10 alin. (7) din Le gea bugetului de stat pe anul 2006 nr. 
379/2005 , a subven ţiilor pe produse şi a subven ţiilor privind protec ţia socială acordate 
companiilor, societ ăţilor naţionale şi societăţilor comerciale din sectorul minier, a subven ţiilor 
pentru ac ţiuni de ecologizare pentru Societatea Comercial ă "Romplumb" - S.A. Baia Mare, 
precum şi a cheltuielilor de procesare pentru ob ţinerea a 1 kg de octoxid de uraniu prin 
reprocesarea concentratelor tehnice neconforme  
• HOTĂRÂRE nr. 56 din 20 ianuarie 2005 privind acordarea subven ţiilor şi transferurilor pe 
anul 2005 la Ministerul Economiei şi Comerţului  G/SCM/N/155/EEC/Add.21 
 Page 13 
 
 
  5. Form of the subsidy  
  The subsidy is provided as a grant, on the basis of the monthly expense account presented by the recipient to the state authority.    
6. To whom and how the subsidy is provided
 
  The beneficiaries are companies active in  the mining sector, namely CNH Petrosani, 
SC Banat Anina, SNC Ploiesti, CN Uraniu, Mi nvest Deva, Remin SA Baia Mare, Moldomin 
SA Caras Severin, SC Baita Stei SA Bihor, SC  Minbucovina SA, SC Cuprumin SA Alba Iulia, 
SNLO Targu Jiu.  The subsidy is provided to the producer.   
  The amount of the subsidy is established as the difference between the production costs and 
the price established by Government Decision.    
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total budget for the measure is:     a) for the year 2005:  619,081,659 lei.   
 b) for 2006:  846,343,715 lei.   
 8. Duration of the subsidy and/or any other time limits attached to it
 
  From 2007, only two companies are receiving this kind of subsidy.    
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
Not available.   
  X. GENERAL INVESTMENT 
 
1. Title of the subsidy programme
 
  Capital expenditure – general investment.   
 
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Aid for investment.    4. Background and authority for the subsidy
 
 
 a) The grantor of the subsidy is the Ministry of Economy and Commerce.   
 
b) The legislation on the basis of which the subsidy is provided is as follows:   
 G/SCM/N/155/EEC/Add.21 
Page 14  
 
  • The Government Ordinance no. 66/2005 regarding the modification of the 2005 state 
budget;   
• The law no. 379/2005 on 2006 state budget;   
• The Decision no. 56/2005 regarding the subsid ies and transfers allocated by the Ministry 
of economy and Commerce.   
 5. Form of the subsidy
  
 
 The subsidy is provided as a grant, capital expenditure, transfers from the State budget.    6. To whom and how the subsidy is provided
  
  The beneficiaries are companies active in the mining and energy sector, namely 
CNH Petrosani, SC Banat Anina, SNC Ploiesti, CN  Uraniu, CN Uraniu Stoc Bucuresti, Minvest 
Deva, Remin SA Baia Mare, Moldomin SA Caras Se verin, SC Baita Stei SA Bihor, SC Minbucovina 
SA, SC Cuprumin SA Alba Iulia, SNLO Targu Jiu, SN Nuclearelectrica Bucuresti, RAAN Drobeta Tr Severin.    
 Also, there are other companies from other sector s which benefit of the incentives in form of 
capital expenditure as follows:  SC Antibiotice SA  Iasi, SC Romplumb Maramures SA, SC Zirom 
SA Giurgiu, SC Romaero SA Bucuresti, CN Romarm SA Bucuresti.     All the beneficiaries are public companies which are in State property.   
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy   
  The total budget for  the measure is:    
 a) for the year 2005:  176,289,098 lei.   
 b) for 2006:  227,073,412 lei.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 From 2007 the following companies are not any mo re included in the list of beneficiaries:  
CNH Petrosani, SC Minbucovina SA, SC Baita Stei  SA Bihor, Minvest Deva, Remin SA Baia Mare, 
SNLO Targu Jiu, SC Banat Anina, Moldomin SA Caras Severin.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
Not available.   
 
 XI. ENVIRONMENT PROTECTION 
 
1. Title of the subsidy programme
 
  Allocation for environment protection.    2. Period covered by the notification
 
 
 2005 – 2006.   
  G/SCM/N/155/EEC/Add.21 
 Page 15 
 
 
  3. Policy objective and/or purpose of the subsidy  
 
Aid for environment protection.   
 4. Background and authority for the subsidy
 
 
a) The grantor of the subsidy is the Ministry of Economy and Commerce.  b) The legislation on the basis of which the subsidy is provided is as follows:    
• The Government Ordinance no. 66/ 2005 rega rding the modification of the 2005 state 
budget;   
• The law of 2006 state budget no. 379/2005.   
 5. Form of the subsidy
 
 
The subsidy is provided as a grant, transfers from the State budget.   
 
6. To whom and how the subsidy is provided  
  The beneficiaries are companies active in the mining and lead production, namely CN Uraniu and SC Romplumb SA Baia Mare.  The beneficiaries are public companies which are in State property.   
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total budget for  the measure is:   
 
 a) for the year 2005:  19,181,001 lei.    b) for 2006:  21,608,531 lei.    8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Not available from 2007.    9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.   
  XII. RESEARCH AND DEVELOPMENT 
 
1. Title of the subsidy programme
 
 
 Allocation for research and development in the economy.    2. Period covered by the notification
 
  2005 – 2006.   G/SCM/N/155/EEC/Add.21 
Page 16  
 
  3. Policy objective and/or purpose of the subsidy
 
  Aid for research.    4. Background and authority for the subsidy
 
 
a) The grantor of the subsidy is the Ministry of Economy and Commerce.  b) The legislation on the basis of which the subsidy is provided is as follows (in Romanian)
:   
 
• ORDONAN ŢĂ DE URGEN ŢĂ nr. 144 din 30 septembrie 1999 pentru aprobarea 
continuării şi finanţării activit ăţilor de cercetare-dezvoltare, aplica ţii şi inginerie 
tehnologic ă aferente suportului tehnic na ţional pentru domeniul de energetic ă nucleară 
din cadrul Regiei Autonome pentru Activit ăţi Nucleare, precum şi pentru aprobarea 
finanţării activit ăţilor specifice cooper ării interna ţionale în domeniul de energetic ă 
nucleară; 
• ORDONAN ŢĂ nr. 57 din 16 august 2002 privind cercetarea ştiinţifică şi dezvoltarea 
tehnologic ă 
• ORDONAN ŢĂ DE URGEN ŢĂ nr. 66 din 29 iunie 2005 cu privire la rectificarea 
bugetului de stat pe anul 2005; 
• Legea bugetului de stat pe anul 2006 nr. 379/2005 
 5. Form of the subsidy
  
 
 The subsidy is provided as a grant, transfers from the State budget.   
 6. To whom and how the subsidy is provided
  
  The beneficiaries are institutes for research and development in economy.  The beneficiaries 
are:  RAAN Dr. Tr. Severin, IMNR Bucuresti, Ecoind Bucuresti, ICECHIM Bucuresti, Cefin 
Bucuresti, ISIM Timisoara, ICPMRR Bucuresti,  IPCUP Ploiesti, ICMET Craiova, ICEM Bucuresti 
and ICEMENERG Bucuresti.    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
 The total budget for  the measure is:    
a) for the year 2005:  23,376,420 lei.   
 b) for the year 2006:  29,159,059 lei.    
8. Duration of the subsidy and/or any other time limits attached to it
 
  Also available in 2007.    9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.   
  G/SCM/N/155/EEC/Add.21 
 Page 17 
 
 
  XIII.  RESEARCH AND DEVELOPMENT 
 
1. Title of the subsidy programme  
  Allocation for research and development – Programme of Excelency Research CEEX, 
Programme Quality Standardization – CALIST, Na tional Plan for Innovation and Research, CERES, 
etc.    2. Period covered by the notification
 
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
  Aid for research and development.   
 
4. Background and authority for the subsidy
 
 a) The grantor of the subsidy is the Minist ry of Education, Research and Youth.   
 b) The legislation on the basis of which the subsidy is provided is as follows:   
 
• The Government Decision no. 368/2005 rega rding the approval of Excellency Research 
Programme – CEEX.   
• The law no. 230/2004 on approval of the Gove rnment Ordinance no. 57/2002 regarding the 
scientific and technological research.   
 5. Form of the subsidy
  
 
 The subsidy is provided as a grant.    6. To whom and how the subsidy is provided
 
 
 Beneficiaries of specific allocations within th e scheme are provided in art. 7 and 8 from the 
Law on research no. 324/2003.  These can be:    a) Research and development institutions or cen ters organized within national companies and 
under central or local public administration; 
b) Research and development units organized as commercial companies; 
c) Commercial companies as well their structures having research and development as their core 
and/or ancillary activity; 
d) Certified higher education instituti ons public/private or their structures; 
e) Non-governmental organizations private/public  with research and development as their core 
and/or ancillary activity; 
f) Research institutes, centers or stations of the Romanian Academy and of sectoral academies; 
g) National research and development institutes; h) Research and development institutes, centers  or stations organized as public institutions; 
i) International research and development centers  established based on international agreements; 
j) Other public institutions or structures of these having research and development as their 
activity. G/SCM/N/155/EEC/Add.21 
Page 18  
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total budget for the measure is:    
 a) for the year 2005:  22,961,000 lei.   
 b) for the year 2006:  not available.   
 
8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Multi-annual budget.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.    
 
XIV.  EXPORT PROMOTION 
 
1. Title of the subsidy programme
 
 
Support and promotion of export with financing from the State budget.   
 2. Period covered by the notification
 
  2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
  The aid for export promotion is provided through internal and international fairs, exhibitions 
and other events.    
4. Background and authority for the subsidy
 
  a) The grantor of the subsidy is the Ministry of Economy and Commerce.     b) The legislation on the basis of which the subsidy is provided is as follows:   
 
• Emergency Ordinance no. 120/2002 regarding the approval of the National System of 
export promotion, 
• Decision no. 1247/ 2005 regarding the appr oval of the grants mechanism according 
with the Programme of growing the industrial products competitiveness. 
 
5. Form of the subsidy
 
 
 The subsidy is provided as a grant on the basis of account expense approved by the 
specialized directorates from the Ministry of Economy and Commerce.    6. To whom and how the subsidy is provided
 
 
 The scheme is opened for all the private and public undertakings, in all sectors of economy.  
It is hard to demonstrate the specificity of the measure.     G/SCM/N/155/EEC/Add.21 
 Page 19 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total budget for the measure is:    
 a) for the year 2005:  21,756,000 lei. 
 b) for the year 2006:  35, 770, 366 lei.  8. Duration of the subsidy and/or any other time limits attached to it
 
 
 Due to the multi-annual contracts already concluded also available in 2007.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.    
 
XV. ENVIRONMENT PROTECTION 
 
1. Title of the subsidy programme
 
 
 Allocation for environment protection:   
 
- Project on waste storage;   
- Project "Incinerating the dangerous waste a nd sterilizing the waste resulted from medical 
activities".   
 
2. Period covered by the notification  
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Aid for environment protection.    4. Background and authority for the subsidy
 
 
 a) The grantor of the subsidy is the Administration for Environment Fund.   
  b) The legislation on the basis of which the subsidy is provided is as follows:    
• Decision of the Selection Committee of the Environmental Fund no. 3/26.04.2006, 
• Government Decision for the approval of the Pr oject "Incinerating the dangerous waste and 
sterilizing the waste resulted from medical activities".   
 
5. Form of the subsidy
 
  The subsidy is provided as a grant or preferential interest loan.    6. To whom and how the subsidy is provided
 
 
 The beneficiaries are undertakings whose pr ojects are selected by a Committee based on 
criteria provisioned in the Environmental Handbook.   G/SCM/N/155/EEC/Add.21 
Page 20  
 
  7 Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total budget for the measure is:    
 a) for the year 2005:  no subsidy 
 b) for 2006: - 804,360 lei for Waste Storage - 1,713,645 lei for "Incinerating the 
dangerous waste and sterilizing the waste resulted from medical activities".   
 8. Duration of the subsidy and/or any other time limits attached to it
 
 
 The Decisions are available until 2006.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.   
 
 
XVI.  WINTER PROGRAMME 
 
1. Title of the subsidy program  
 
 GOVERNMENT DECISION NO.1320/2005 modifying and completing the Government Decision no. 763/2005 on the approval of the winter program in the energy field for October 2005 - March 2006.    
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 The internal loan contracts got by thermal energy producers belonging to the public local 
administrations, aiming at covering the acquisition costs and the energetic resources, hydrocarbon, 
natural gas and carbon transporting, essential to thei r operational process in 2005 - 2006 wintertime.   
 4. Background and authority for the subsidy
 
 
 Government Decision no.1320/2005 modifying and completing the Government Decision 
no. 763/2005 on the approval of the winter program in the energy field for October 2005 – March 2006 – granting authority- the Ministry of Economy and Commerce.    5. Form of the subsidy
 
 
The internal loans and the interests, commissi ons and other related costs are secured 80 per 
cent by Ministry of Economy and Commerce.    6. To whom and how the subsidy is provided
  
 
 Beneficiaries:  thermal energy producers be longing to the public local authorities.    G/SCM/N/155/EEC/Add.21 
 Page 21 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2006:  7,200,000 RON.   
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  2005 – 2006.    
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.     XVII.  PRIVATIZATION 
 
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
 
 The GOVERNMENT DECISION no. 484/2004 on approving the list of the undertakings 
benefiting of the State Aid scheme provided by Art. 22  of the 2004 State Budget Law no. 507/2003, 
and the State Aid thresholds.   
 
2. Period covered by the notification  
 
 2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
  Restructuring aiming at economic and financia l recovery and completing the privatization 
process for some economic entities.   
 
4. Background and authority for the subsidy
 
 
LAW no. 190/2004 on stimulating the developm ent and privatization of the commercial 
entities  – grantor the Ministry of Economy and Commerce.   
 
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)  
 
• Exemption from the payment of the obligations due to the State budget, to the State social 
security budget, to the budget for National Health Insurance Fund and the budget for 
unemployment insurance for the financial exercise of 2004, including their auxiliary, with the 
exception of the due obligation representing w ithholding taxes, budgetary contributions and 
other incomes at source, within the limits of the ceiling of 4.715 billion lei.   
 6. To whom and how the subsidy is provided
 
  The incentives are granted to the Commercial Companies operating in the mining sector.   G/SCM/N/155/EEC/Add.21 
Page 22  
 
  7. Subsidy per unit or in cases where this is not  possible, the total amount or the annual amount 
budgeted for that subsidy  
  2005:  1.020.373,3 RON.    
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
The LAW no. 190/2004  came into force in May 2004 and the Commercial Companies 
benefited of incentives based on it until December 2006.   
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Not available.    
 
XVIII.  AGRICULTURE 
 
1. Title of the subsidy programme
 
 
 LAW NO. 190/2004 on stimulating the developm ent and privatization of the commercial 
entities operating in agriculture.    
2. Period covered by the notification
 
  2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
  Stimulating the privatization and the deve lopment on the commercial entities operating in 
agriculture.    
4. Background and authority for the subsidy
 
 
Law no. 190/2004 on stimulating the developm ent and privatization of the commercial 
entities operating in agriculture - grantor the Ministry of Economy and Commerce.    
5. Form of the subsidy
 
 
• Exemption from the arrear budgetary obligations on the 30th day of the month in which the 
privatization contract was signed, representi ng taxes, contributions  and other budgetary 
incomes as well as debts to the special funds;   
• Exemption from the payment of supplementary ch arge for payment delay and all the penalties 
related to the unpaid budgetary obligations at the date when the privatization contract was 
signed.   
 6. To whom and how the subsidy is provided
 
 
The incentives are granted to the commercial entities administrating lands from the public and 
private state property as well as lands belonging to ot her owners natural and le gal persons, privatised 
or which are to privatised at the date of the coming into force of the legal act.   
  G/SCM/N/155/EEC/Add.21 
 Page 23 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2005:  2.272.437,79 RON.   2006:  1.428.512,42 RON.   
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
Law no. 190/2004 entered into force in May 200 4 and the commercial entities benefited of its 
incentives till December 2006.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.   
 
 
XIX.  FISCAL MEASURE 
 
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
 
 LAW NO. 266/2006 approving the Governme nt Ordinance No. 28/2006 regarding the 
regulation of certain financial-fiscal measures.    
2. Period covered by the notification
 
 
 2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
  Regulation of some fiscal – financial measures.   
 
4. Background and authority for the subsidy
 
  Law no. 266/2006 approving the Government  Ordinance, No. 28/2006 regarding the 
regulation of certain financial-fiscal measures – grantor Ministry of Economy and Commerce.   
 
5. Form of the subsidy
 
  The exemption from the payment of the arrear  budgetary obligation, of the supplementary 
charge for payment delay of the penalties and the related interests.    
6. To whom and how the subsidy is provided
 
  Debtors that benefited of incentives related to th e payment of the obligations owed to the state 
budget, to the social insurance budget, to the une mployment insurance budget, to the budget of 
insurance for work accidents and professional disea se or to the budget of soled national funds for 
health insurance granted according to  the existent legal framework in the field, can benefit of the 
maintaining the incentives for the debts to be pa id, with all the effects provided by the law if 
within 60 days from the date of publishing in the O.J.  of Romania, Part I, of the Law for the approval 
of the G.O. no. 28/2006,they prove the redemption by any legal ways of the instalments of the current 
fiscal obligation with the same repayment term, as well as the fulfilment of the other conditions in 
which the incentives were approved.   G/SCM/N/155/EEC/Add.21 
Page 24  
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  2006:  843.627,54 RON.    
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  2005 – 2006.    
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.     XX. FREE TRADE AREAS 
 
1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
  Law no. 84/1992 on free trade areas regime.   
 
2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  Promoting the trade between the free areas.    4. Background and authority for the subsidy
 
 
 Law no. 84/1992 on free trade areas regime - grantor Ministry of Economy and Commerce.   
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
  Exemption from the payment of the profit tax until 31
st December 2006, granted to the 
undertakings operating in the free trade area.   
 6. To whom and how the subsidy is provided
 
  The exemption from the payment of the profit ta x is granted to the undertakings operating in a 
free trade area on the basis of license and if until 1
st July 2002, made investments in that free trade 
area, in corporeal assets, that can be paid off, used in the manufacture industry, in value of at 
least 1.000.000 US $.    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2005:  262.778,0 RON.   
  2006:  1.282.903,0 RON.    G/SCM/N/155/EEC/Add.21 
 Page 25 
 
 
  8. Duration of the subsidy and/or any other time limits attached to it, including date of  
inception/commencement  
  Starting with 1992, until 31
st December 2006, the exemption from the payment of profit tax 
was granted to the undertakings that made invest ments of at least 1.000.000 US $ in the free trade 
area.   
  Also, the undertakings that made investments under the amount of 1.000.000 US $ must pay a 
profit tax of 5 per cent instead of 25 per cent until the date of 31
st December 2006.   
 
 Starting with 1st January 2005, until 31st December 2011, the exemption from the payment of 
profit tax was transformed in exemption from th e payment of the royalties until the state aid 
maximum admissible intensity is attained.    9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.     
XXI.  AGRICULTURE R&D 
 1. Title of the subsidy programme
 
 
 LAW no. 147/2004 approving the Government Emergency Ordinance no. 78/2003 modifying 
and completing the Law no. 290/2002 on the or ganisation and functioning of the research and 
development units operating in the agriculture, forestry, food industry and of the Academy for 
Agricultural and Forestry Sciences ˝Gheorghe Ionescu - Sisesti ˝.   
 2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  Development of the scientific research in th e area of agriculture, forestry, food industry and 
the Academy of agricultural and Forestry Sciences "Gheorghe Ionescu – Sisesti".    
4. Background and authority for the subsidy
 
 
LAW no. 147/2004 approving the Government  Emergency Ordinance no.78/2003 modifying 
and completing the Law no. 290/2002 on the or ganisation and functioning of the research and 
development units operating in the agriculture, forestry, food industry and of the Academy for 
Agricultural and Forestry Sciences "Gheorghe Ionescu – Sisesti"  - grantor Ministry of Economy and 
Finance.   
 5. Form of the subsidy
 
  Incentives granted to the research units in the area of agricultu re, forestry, food industry and 
the Academy of agricultural and Forestry Sciences "Gheorghe Ionescu – Sisesti" under the shape of:  
exemption from the payment of the due budgetary obligations, of the supplementary charges for 
payment delay, of the penalties and interests afferents at the date of coming into force of the legal act, 
as well as of the rescheduled budgetary obligations.    G/SCM/N/155/EEC/Add.21 
Page 26  
 
   The respective amounts are those provided in the certificate of budgetary obligations after the 
control made by fiscal bodies.   6. To whom and how the subsidy is provided
 
 
 The incentives are granted to the research units  in the area of agricu lture, forestry, food 
industry and the Academy of agricultural and For estry Sciences "Gheorghe Ionescu – Sisesti".   
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2005:  1.134.201,7 RON.   2006:  693.081,3 RON.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  Law no. 147/2004 came into force in May 2004 and the research units benefited of the 
incentives granted according to it until 1
st December 2006.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.     
XXII.  R&D 
 
1. Title of the subsidy programme
 
 
 LAW no. 230/2004 approving the Government Or dinance no. 38/2004 for the modification of 
the Government Ordinance no. 57/2002 on scientific research and technological development .   
 
2. Period covered by the notification  
 
2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
 
Development of the research & development units organized as national research & 
development institutions, public institution for research & developm ent financed through their own 
revenues as well as commercial companies with majo rity state-owned capital having as main activity 
research & development & design, according to CAEN code 73.    
4. Background and authority for the subsidy
 
 
 LAW no. 230/2004 approving the Government Or dinance no. 38/2004 for the modification of 
the Government Ordinance no.57/2002 on scientif ic research and technological development  – 
grantor the Ministry of Economy and Commerce.   
 
5. Form of the subsidy  
 
• Exemption from the payment of fi scal obligations not paid at 31st December 2003, and not 
redempted at the date of coming into force of  the legal act, representing taxes, contributions  G/SCM/N/155/EEC/Add.21 
 Page 27 
 
 
  and other amounts due to the State budget, to th e State social security budget, to the budget 
for National Health Insurance Fund and budget for unemployment insurance;   
• Exemption from the payment of the supplementary charges for payment delay and of any 
kind of penalties, due and not paid at the date of  coming into force of the legal act, related to 
the fiscal obligations not paid that are specified  in the fiscal obligation certificates issued by 
the budgetary creditors.   
 6. To whom and how the subsidy is provided
 
  The incentives are granted to research & deve lopment units organised as national research & 
development institutions, public institution for research & developm ent financed through their own 
revenues as well as commercial companies with majo rity state-owned capital having as main activity 
research & development & design, according to CAEN code 73.    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2005:  35.884,2 RON.   2006:  2.994.340,4 RON.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 Law no. 230/2004 came into force in June 2004 and the research units benefited of the 
incentives granted according to it until December 2006.    9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.     
XXIII.  MINING SECTOR 
 1. Title of the subsidy programme
 
 
 GOVERNMENT EMERGENCY ORDINANCE no.  8/2006 approving certain financial 
measures for the undertakings under the author ity of the Ministry of Economy and Commerce 
for 2005 and the  LAW No. 511/2004 of the state budget for 2005.   
 
2. Period covered by the notification  
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  Restructuring the undertakings in the mining sector, according to the Mining Sector Strategy for 2004 – 2010, elaborated in accordance with th e Governing Program and with the commitments 
assumed by Romania towards EU institutions, as well as continuing the program of closing the mines and personnel dismission.   G/SCM/N/155/EEC/Add.21 
Page 28  
 
  4. Background and authority for the subsidy
 
 
 GOVERNMENT EMERGENCY ORDINANCE no.  8/2006 approving certain financial 
measures for the undertakings under the author ity of the Ministry of Economy and Commerce 
for 2005  and the Law No. 511/2004 of the state budget for 2005 - grantor the Ministry of Economy 
and Commerce.   
 5. Form of the subsidy
 
  Postponement of the payment for a period of at  least 6 months from the date of issuing the 
Competition Council decisions for the authorisation of the rescue state aids, in order to obtain an 
exemption, for the obligations of the National Company "Minvest" - S.A. Deva, National Company "Remin" - S.A. Baia Mare, National Coal Society - S.A. Ploie şti, Commercial Company "Cupru Min" 
- S.A. Abrud, Commercial Company "B ăiţa" - S.A. Ştei, Commercial Company "Moldomin" - S.A. 
Moldova Nou ă, Commercial Company "Minbucovina" - S.A. Vatra Dornei, National Lignite 
Company of Oltenia - S.A. Târgu Jiu, National Salt Company - S.A. Bucure şti, due and not paid to 
the State budget, to the State social security budget,  to the budget for National Health Insurance Fund 
and budget for unemployment insurance, related to the period from 1
st January till 
31st December 2005, inclusive their acc essories, excepting the withholding tax at source, within the 
limits of the ceiling of 158.769.444 lei.    
6. To whom and how the subsidy is provided
 
  Beneficiaries: undertakings operating in mining sector.    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  2005:  35.008.568,5 RON.    8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 2006.    9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 Not available.   
  
XXIV.  PRIVATIZATION PROCESS 
 
1. Title of the subsidy programme
 
 
 Government Emergency Ordinance no. 26/2004 regarding some measures to be taken for the 
completion of privatisation of companies in the portfolio of the Authority for Privatisation and 
Management of State Ownership, as well as for the strengthening of privatisation.    
2. Period covered by the notification
 
 
2005 – 2006.    G/SCM/N/155/EEC/Add.21 
 Page 29 
 
 
  3. Policy objective and/or purpose of the subsidy  
  The completion of the accelerated privatiza tion process of the commercial entities in the 
portfolio of AVAS, especially of those with great social and economic impact, as well as the 
consolidation of some privatizations aiming at keeping these commercial entities, which serve the 
general public interest, operative without any great social disturbances.   
 4. Background and authority for the subsidy
 
 
Government Emergency Ordinan ce no. 26/2004 regarding some measures to be taken for the 
completion of privatisation of companies in the portfolio of the Authority for Privatisation and 
Management of State Ownership, as well as for the st rengthening of privatisation - grantor Ministry of 
Economy and Commerce.    5. Form of the subsidy
 
 
• Total or partial exemption from the payment of the liabilities accrued at 31st December 2003, 
representing taxes, contributions and other budgetary incomes, as well as credits and guarantees granted by budgetary creditors;   
• Exemption from the payment of the interests and penalties of any kind, related to the 
budgetary obligations owed and not paid at  31st December 2003 and stipulated in the 
budgetary obligations certificates, calculated till the property right transfer;   
• The amounts are settled in the budgetary obligati ons certificates, issued by AVAS, according 
to the provisions of the GEO, after the control made by the local authorities;   
• The payment incentives in the joint order lose valid ity if the commercial entity do not pay the 
current obligations of each fiscal year with dat es of payment starting with the moment of the 
joint order delivery.   
 6. To whom and how the subsidy is provided
 
 
 The incentives are granted to commercial entities still in the portfolio of AVAS where the 
accelerated privatization process is still on going, es pecially to those with great social and economic 
impact.    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2005  4.167.566,5 RON.   2006:  4.854.662,0 RON.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  Government Emergency Ordinance no. 26/2004 entered into force in Aprilie 2004 and the 
commercial entities benefited, with few excep tions, of its provisions till March 2005.   
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.    G/SCM/N/155/EEC/Add.21 
Page 30  
 
  XXV.  FISCAL FACILITIES 
 
1. Title of the subsidy programme
 
  Government Emergency Ordinance no. 26/2005 on repealing the legal provisions regarding 
fiscal facilities for certain outstanding budgetary debts.   
 2. Period covered by the notification
 
  2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy
 
  Regulating some measures to discipline the cont ributors, in order to create an equality of 
treatment among them and to build a competitive business environment aiming at the application of 
the Governing Program.   
 4. Background and authority for the subsidy
 
  Government Emergency Ordinance no. 26/2005 on repealing the legal provisions regarding 
fiscal facilities for certain outstanding budgetary debt s –granting authority - Ministry of Economy and 
Commerce.   
 5. Form of the subsidy
 
 
Incentives like exemption from the payment of a ccrued liabilities, of supplementary charges 
for delay, of related penalties and interests.   
 6. To whom and how the subsidy is provided
 
  Incentives granted to debtors that benefited of  fiscal facilities to the liabilities owed to the 
state budget, to the social insurance budget, to the unemployment insurance budget, to the budget of 
insurance for work accidents and professional disea se or to the budget of soled national funds for 
health insurance granted according to  the existent legal framework in the field, can benefit of the 
maintaining the incentives for the debts to be paid, with all the effects provided by the law if within 
15 days from the date of publishing in the O.J. of Romania, Part I, of the Law for the approval of the G.E.O. they prove the redemption by any legal ways of the instalments of the current liabilities with 
the same repayment terms, as well as the fulfilment of the other conditions in which the incentives 
were approved.    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2005:  621.398,6 RON.   
2006:  4.718,3 RON.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 Government Emergency Ordinance no. 26/20 04 entered into force in April 2005 and the 
commercial entities benefited of its provisions till July 2006.    G/SCM/N/155/EEC/Add.21 
 Page 31 
 
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Not available.     XXVI.  GAS AND ELECTRICITY DISTRIBUTION 
 
1. Title of the subsidy programme
 
  Government Emergency Ordinance no. 37/2004 regarding measures for diminishing the 
arrears in economy.   
 2. Period covered by the notification
 
 
2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy  
  Restructuring aiming at economic and financia l recovery and completing the privatization 
process for some economic entities operating in the fi eld of gas and electricity distribution.   
 
4. Background and authority for the subsidy
 
  Government Emergency Ordinance no. 37/2004 regarding measures for diminishing the arrears in economy – granting authority- Ministry of  Economy and Commerce.    
5. Form of the subsidy
 
 
• The restructuring economic entities benefit of postponement view exemption from the fiscal 
obligations payment.  These fiscal obligations consist of:  taxes, contributions and other 
amounts due to the State budget, to the State social security budget, to the budget for National Health Insurance Fund and budget for unemploy ment insurance owed till 31 December 2003, 
including interests and penalties of all kind rela ted to the fiscal obligations, calculated till the 
entrance into force of the GEO, excepti ng the withholding tax at source and the VAT 
suspended at customs, unpaid by means provided by law at the moment of fiscal obligations 
certificate delivery.   
• The amounts to be postponed are settled down in the fiscal obligations certificates delivered 
by the territorial competent fiscal authorities.   
 
6. To whom and how the subsidy is provided
 
  The incentives are granted to the economic entities operating in the field of gas and electricity 
distribution within the privatization process sat the da te of the entrance into force of the legal act.   
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
2005:  169.350,0 RON.   2006:  1.264.794,3 RON.   G/SCM/N/155/EEC/Add.21 
Page 32  
 
  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  Government Emergency Ordinance no. 37/200 4 entered into force in May 2004 and the 
commercial entities benefited of its provisions till December 2006.   
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.    
 
XXVII.  INDUSTRIAL PARKS 
 
1. Title of the subsidy programme
 
 
GOVERNMENT ORDINANCE no.65/2001 on establishi ng and functioning of the industrial 
parks Industrial park represents a limited area where ec onomic activities, scientific research activities, 
activities of industrial production and services, activ ities of using the scientific research and/or 
technological development are performed in a spec ific incentives regime, aiming to use the human 
and material potential of the area.    
2. Period covered by the notification
 
  2005 - 2006.    3. Policy objective and/or purpose of the subsidy
 
 
Establishing an industrial Park represents a fa vourable alternative aiming at attracting new 
investments and economic activity resurrection in various geographic areas of the country (regional 
development).    
The establishment of an industrial Park aims at:  
 
- Increasing the number of employees 
- Increasing the new direct foreign investments  
- Creating and developing high technology industries 
- Developing activities involving highly qualified personnel recruitment 
- Increasing the capacity of covering the intern al market, of increasing the export and the 
decreasing the imports of industrial products 
- Production of goods and services competitive on internal and international markets 
- Performing activities according to the objectives of regional development 
 4. Background and authority for the subsidy
 
 
 Ministry of Economy and Commerce.    5. Form of the subsidy
 
 
 Granting a title of industrial Park through a Ministerial Order or a Government Decision 
declaring an industrial park constitutes the legal framework for granting fiscal  incentives or the access 
at financing programs exclusively addressed to industrial parks.     For the industrial parks, the Ministry of Economy and Commerce grants the following 
incentives: for the investments made until 31
st December 2006 is granted a supplementary deduction  G/SCM/N/155/EEC/Add.21 
 Page 33 
 
 
  from the taxable profit, in weight of 20 per cent fro m the value of the investments made in buildings 
or buildings rehabilitation, internal infrastructure and connexion to the public utilities network, taking 
into account the present legal provisions on classifi cation and standardized using periods of the 
amortizable fixed assets.    
6. To whom and how the subsidy is provided
 
  The industrial park is set up as a business project, unitary conceived, in which the managing unit is focused on two main targets:    
- attracting undertakings to operate in the industrial park;   
- creating optimal conditions for the undertakings operating in the industrial park to perform 
economic activities.   
  These objectives directly lead to profitable businesses both for the managing unit and for the 
undertakings operating in the industr ial park.  Under these conditions, the manager lends and/or sells 
land parcels (with or without facilities) and places at the disposal of undertakings operating in the 
industrial park the infrastructure and necessary utilities and, if necessary, other facilities, for example:  space for offices, exposition centre, canteen, other se rvices.  Thus, the industrial park is developing 
stage by stage and scheduled, based on the market requirements and on the strategy of the managing 
society.   
 
 The industrial park is based on the partnership between the central and local public authorities, undertakings, research and developmen t institutes and/or interested partners.   
  Since June 2004, the Ministry of Administration and Interior is the special body of the central 
public administration that grants the title of an indus trial park at the applicant request for a period of 
at least 15 years.     The title of industrial park can be received by an association, Romanian legal person and 
managed by a commercial society named managing society.    
 The management of an industrial park is pe rformed by a commercial society (named managing 
society), established according to the Law no. 31/1990 , whose shareholders can also be co-partners.  
No undertaking may exercise control, directly or indirectly, on the managing society.   
  INDUSTRIAL PARKS IN ROMANIA:  Satu Mare, Ploie şti, Dîmbovi ţa, Târgu Mure ş, Sibiu, 
Brăila, Miercurea Ciuc, Arad, Dolj, Timi şoara, Braşov, Slatina.   
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  Subvention quantum in 2005 was of 204.562,0 RON.   
 Subvention quantum in 2006 was of 123.896,0 RON.   
 In the period 2005-2006, two (2) undertakings benefited.    8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 Commencement since the date of publishing in the Romanian Official Journal of the Government Ordinance No. 65/2001.  The subsidies were granted till 31
st December 2006.   G/SCM/N/155/EEC/Add.21 
Page 34  
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.     XXVIII.  DEFENCE INDUSTRY 
 
1. Title of the subsidy programme
 
  The GOVERNMENT EMERGENCY ORDINANCE no.126/2001 on budgetary obligations 
redemption for the undertakings operating in the defence production sector, from which patrimony 
industrial parks are established , published in Official Journal no. 659/19
th October 2001, approved by 
the Law no. 50/2002 published in the Official Journal no. 75/1st January 2002.   
 2. Period covered by the notification
 
 
 2005 - 2006.    3. Policy objective and/or purpose of the subsidy
 
 
Redemption of the budgetary obligations of the undertakings from the defence production 
sector, from which patrimony industrial parks are established.   
 4. Background and authority for the subsidy
 
  The authority that grants subsidies is the Mi nistry of Economy and Co mmerce and it is aimed, 
on the one hand, at the reorientati on of the armament indus trial activity towards another type of activity, 
and on the other hand, at the establishment of a fa vourable environment for possible investors.   
 5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
 
Cancellation of the budgetary ob ligations due by the undertakin gs operating in the sector of 
defence production and not paid until the date of th e transfer of the patrimony elements, aiming at 
establishment of industrial parks, as well as of th e supplementary charges for payment delay and 
penalties related to these budgetary obligations.    6. To whom and how the subsidy is provided
 
 
 The amounts aimed to be exempted are set up in the budgetary obligations certificates issued 
by the responsible bodies according to the basic control.     The transfer of patrimony elements, in order to establish industrial parks, is approved by a 
Government decision.   
 
Thus, industrial parks were establis hed by the following legal acts:   
 
- GOVERNMENT DECISON no. 1066/25
th October 2001 on some measures aiming at 
establishing an industrial park within the Commercial Company "Uzina Mecanic ă Vălenii de 
Munte" - S.A., published in Official Journal no. 689/30 October 2001;   
- GOVERNMENT DECISON no. 1067/25th October 2001 on some measures aiming at 
establishing an industrial park by divi ding the Commercial Company "Uzina Mecanic ă Mija" 
- S.A. within the National Company "Romarm"  - S.A., published in Official Journal 
no. 689/30 October 2001;    G/SCM/N/155/EEC/Add.21 
 Page 35 
 
 
  - GOVERNMENT DECISION no. 1068/25 October 2001 on some measures aiming at 
establishing an industrial park  by dividing the Commercial Company "Uzina Automecanic ă 
Moreni" - S.A. within the National Company "R omarm" - S.A., published in Official Journal 
no. 689/30 October 2001;   
- GOVERNMENT DECISION no. 1069/25th October 2001 on some measures aiming at 
establishing an industrial park by dividi ng the Commercial Company "Electromecanica 
Ploieşti" - S.A. within the National Company "Rom arm" - S.A., published in Official Journal 
no. 689/30 October 2001.   
  Also, by the Order of the Ministry of Public Finance/Ministry of Labour and Social Solidarity 
no. 2249/690 of 26
th November 2001, the Methodological Norms on redemption of some budgetary 
obligations of the undertakings operating in the defence production sector, and from which patrimony 
industrial parks are established, according to the pr ovisions of the GEO no. 126/2001, published in the 
Official Journal nr.793/13th December 2001.   
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The quantum of the subsidy in 2005 was of 1.534.030 RON, and only one undertaking benefited of this amount.    
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  Commencement since date of its publishing in the Official Journal of 19
th October 2001.  
In 2005, a single undertaking benefited. Th e granting of subsidies was stopped at 31st December 2006.   
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
 
Not available.  
  XXIX.  FISCAL FACILITIES 
 
1. Title of the subsidy programme
 
  LAW NO. 571/2003 on Fiscal Code, with further modifications and completions (art. 38 – 
par. 7, 11 and 12, letter a).   
 2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  The Art. 38, (7) of the Law no. 571/2003 on Fiscal Code provides the granting of subsidies to the taxpayers directly involved in pr oduction of cinematographic films.   
 
 The Art. 38, (12) letter a) of the Law no. 571/2003 on Fiscal Code provides the granting of 
subsidies for the incomes realised through the activities performed for the objective "Centrala 
Nuclearoelectrica Cernavoda" - Unit 2, until the beginning of its functioning. G/SCM/N/155/EEC/Add.21 
Page 36  
 
  4. Background and authority for the subsidy (inc luding identification of the legislation under 
which it is granted)  
  The Ministry of Economy and Commerce grants , according to the Law No. 571/2003 on Fiscal 
Code, with further modifications and completions (art . 38 – par. 7, 11 and 12, letter a)), the following 
subventions:   
 
- Par. 7 – exemption from the payment of the profit tax of the share from the gross profit 
reinvested in the cinematography;  reduction of the profit tax with 20 per cent when new jobs are created and the written number of employees is increased with at least 10 per cent 
compared to the previous year.   
- Par. 11 – the National Company "Aerportul Inte rnational Henri Coanda" benefits of an 
exemption form the payment of the profit tax until 31
st December 2006.   
- Par. 12 – when the taxable profit is calcul ated, the following incomes are non-taxable until 
31st December 2006:  a) incomes realised thr ough the activities performed for the objective 
"Centrala Nuclearoelectrica Cernavoda" - Unit 2,  until the beginning of its functioning;  b) 
incomes obtained from the implementation of a pa tented invention in Romania, inclusively 
through the product fabrication or process application, for a period of 5 years from the first application, calculated from the date of beginni ng of the application and within the validity 
period of the patent.   
 
5. Form of the subsidy
 
  Allowances and exemptions from the payment of the profit tax.    6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
 
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined)  
  The provisions of the law are applied to the undertakings that fulfil the conditions provided at the point 4.    
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
- art. 38 – par. 7 of the Law no. 571/2003:   
 
 year 2005 – 29.417 RON (1 undertaking) 
 year 2006 – 166.439 RON (2 undertakings)  
- art. 38 – par. 11 of the Law no. 571/2003:   
  year 2005 – 12.763.825 RON (1 undertaking) 
 year 2006 – 13.751.599 RON (1 undertaking) 
 
- art. 38 – par. 12 of the Law no. 571/2003:    
 
year 2005 – 2.650.422 RON (15 undertakings) 
year 2006 – 2.367.781 RON (15 undertakings) 
  The total quantum of the subsidy granted in 2005 was of 18.245.545 RON.  The number of the 
beneficiary undertakings  in 2005 was 15.    G/SCM/N/155/EEC/Add.21 
 Page 37 
 
 
  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  2003 – 31
st December 2006.   
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Not available.     XXX.  PRIVATIZATION OF ARO 
 
1. Title of the subsidy programme
 
  GOVERNMENT EMERGENCY ORDINANCE NO.114/2003 on privatization of S.C. 
"ARO" - S.A. Câmpulung Muscel.   
 2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  S.C. "ARO" S.A. Campulung Muscel, as well as the commercial entities acting as branches 
where S.C. ARO S.A. is the main shares holder benefit of the payment incentives stipulated in the shares 
buy sell contract.   
 
4. Background and authority for the subsidy
 
  Ministry of Economy and Commerce grants, according to the provisions of GEO no.114/2003, 
exemption from the accrued liabilities payment.    
5. Form of the subsidy (i.e., grant, loan, tax concession, etc.)
 
  Exemption from the accrued liabilities payment.    6. To whom and how the subsidy is provided
 
 
 S.C. "ARO" S.A. Campulung Muscel, as well as the commercial entities acting as branches 
where S.C. ARO S.A. is the main shares holder benefit of the payment incentives stipulated in the shares 
buy sell contract.    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total weight of the subsidy granted in  2005 reached 51.969.913, 3 RON.  There were 
4 beneficiary undertakings in 2005.   
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  S.C. "ARO" S.A. Campulung Muscel, as well as the commercial entities acting as branches 
where S.C. ARO S.A. is the main shares holder bene fit of the payment incentives stipulated in the 
privatization contract.   G/SCM/N/155/EEC/Add.21 
Page 38  
 
  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.     XXXI.  ACCELERATION OF PRIVATIZATION 
 
1. Title of the subsidy programme
 
 
 LAW NO. 137/2002 on measures acce lerating the privatization.   
 
 Law no. 137/2002 creates the legal framework for acceleration of privatiza tion on the following 
principles:    
- privatization process transparency;   
- sell at the market price calculated as a ratio between offer and demand taking into account all 
the buying offer elements;   
- equality of treatment for all the buyers; 
- implementing restructuring programmes previous to  privatization focused on externalization of 
some activities and/or assets, especially those assets having a social character;   
- reconsidering the debts of the commercial entitie s aiming at increasing the privatization offer 
attractiveness;   
- instituting special administration du ring the privatisat ion process.   
  The law previsions apply to the commercial entities were the state or a local public administration authority is the holder or an associate,  branches where the main holders/associates are the 
state own commercial entities, as well as regies autonomous. 
 2. Period covered by the notification
 
  2005 – 2006.    
3. Policy objective and/or purpose of the subsidy
 
  Law no. 137/2002 creates the legal framework for acceleration of privatization.   
 4. Background and authority for the subsidy
 
 
 Ministry of Economy and Commerce grants, accordi ng to the provisions of this law, exemption 
from the payment of budgetary obligations.    5. Form of the subsidy
 
 
 Exemption from the payment of budgetary obligations.   
 6. To whom and how the subsidy is provided
 
  The law previsions apply to the commercial entities were the state or a local public 
administration authority is the holder or an associate, to branches where the main holders/associates are 
the state own commercial entities, as well as regies autonomous.    G/SCM/N/155/EEC/Add.21 
 Page 39 
 
 
  7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total weight of the subsidy granted in 2005 reached 18.047 RON.  The total weight of the 
subsidy granted in 2006 reached 992.489 RON.  Th ere were 3 beneficiarie s undertakings between 
2005 – 2006.  Not the case.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 The law entered into force in 2002.  The be neficiaries of the provisions of Law 137/2002, 
according to the provisions of GEO no. 26/2005, were  the commercial entities where the property right 
transfer took place at the date of entrance into force of this ordinance and/or those which have clauses in 
the shares buy sell contracts agreed  with budgetary creditors, related to  payment facilities granted by the 
privatization authority.   
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  Not available.   XXXII.  PRIVATIZATION IN AGRICULTURE AREA 
 
1. Title of the subsidy programme
 
  Law no. 254/2002 on certain measures for incr easing privatization at tractiveness for the 
commercial entities with majority or partial state-  owned capital which administrate the agricultural 
fields belonging to the public or private state property.     The commercial entities with majority or part ial state- owned capital which administrate the 
agricultural fields belonging to th e public or private stat e property benefit of accrued state and local 
budget liabilities payment incentives.   
 
 The objective of the present law is the increasing privatization at tractiveness for the commercial 
entities with majority or partial st ate- owned capital which administrate the agricultural fields belonging 
to the public or private state property.    
2. Period covered by the notification
 
 
2005 – 2006.   
 3. Policy objective and/or purpose of the subsidy
 
 
 The objective of the present law is the increasing privatization at tractiveness for the commercial 
entities with majority or partial st ate- owned capital which administrate the agricultural fields belonging 
to the public or private state property.    4. Background and authority for the subsidy
 
 
 The Ministry of Economy and Commerce granted the following incentives:    
- accrued liabilities payment incentives (exempti on from the accrued liabilities payment).   G/SCM/N/155/EEC/Add.21 
Page 40  
 
  5. Form of the subsidy
 
  Accrued liabilities payment incentives.    6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others; 
 
through what mechanism;  whether a fixed or fluctuating amount per unit;  if the latter, how 
determined)  
  The commercial entities with majority or part ial state- owned capital which administrate the 
agricultural fields belonging to th e public or private stat e property benefit of accrued state and local 
budget liabilities payment incentives.   
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
 The total weight of the subsidy granted in  2005 reached 26.762.081 RON.  The number of 
beneficiary undertakings between 2005 – 2006 was 2.  The average/be neficiary is 13.381.041 RON.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 The legal act entered into force in 2002.  Law no.254/2002 was repealed by Law no.94/2004 on 
regulating some financial meas ures.  In 2005, there were gr anted subsidies in amount of 
26.762.081 RON.     The exemption can be effectively grant after the repealing of Law 254/2002 for the economic 
entities privatized between 2002 - 2004.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.    
 
XXXIII.  PROMOTING DIRECT INVESTMENTS 
 
1. Title of the subsidy programme
 
 
 LAW NO.332/2001  on promoting direct investments with great impact in economy .   
  Direct investments with great impact in economy represents the investments with a value that 
exceeds the equivalent of 1.000. 000 USD and contribute to the development and modernisation of 
economic infrastructure, create new jobs and a positive effect in economy.   
 
 Direct investments with great impact in econo my can be done in all fields, except financial, 
banking, insurance and reinsurance sectors which are regulated by special laws, under the following 
conditions:    
- Do not infringe environmental protection norms;   
- Do not alter security interests and national;   
- Do not alter order, health  or public morality.    G/SCM/N/155/EEC/Add.21 
 Page 41 
 
 
   Supporting measures provided by this law are:   
 
- Exemption from the payment of custom duties;   
- Profit tax reduction.   
 
2. Period covered by the notification  
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Law no.332/2001 on promoting direct  investments with great impa ct in economy has as an 
objective the development and the modernisation of th e economic infrastructure, creating new jobs and a 
friendly economic environment.    
4. Background and authority for the subsidy
 
  Law no.332/2001 on promoting direct  investments with great impa ct in economy has as an 
objective the development and the modernisation of th e economic infrastructure, creating new jobs and a 
friendly economic environment.    
 The total granted subsidy (both as profit tax reduction and exemption from the payment of the 
custom duties) can't overcome 50 per cent from the eligible costs of the investment.   
 5. Form of the subsidy
 
 
- Exemption from the payment of custom duties;   
- Profit tax reduction.   
 6. To whom and how the subsidy is provided
 
  The taxpayers may deduct a suppl ementary 20 per cent quota of the value of direct investments 
with significant impact in economy, made until 31
st December 2006, according to the present law.   
  The imported technologic equipment, installatio ns, measure and control instruments, IT and 
software products, necessa ry for the completing of the investment, are exempted from the payment of 
custom duties.   
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The total weight of the subsidy granted in 2005 reached 3.984.044,3 RON.  The total weight of the subsidy granted in 2006 reached 5.676.632,6 RON.   The average/beneficiary is 704.666 RON.  
There were 18 benefi ciary undertakings between 2005 – 2006 was.   
 8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
 
 2001 – 2006.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.   
 G/SCM/N/155/EEC/Add.21 
Page 42  
 
  XXXIV.  SOCIAL AND ECONOMIC DEVELOPMENT 
 
1. Title of the subsidy programme
 
 
 GOVERNMENT ORDINANCE no.27/1996 on granting incentives to the persons living or  
working in remote areas as  of "Apuseni" M ountains and in the Reservation "Delta Dunarii", 
republished.    
2. Period covered by the notification
 
 
 2005 - 2006.   
 3. Policy objective and/or purpose of the subsidy
 
 
Measures and actions aiming at supporting the social-economic development of certain 
localities of Apuseni Mountains, of Tulcea County and of the Da nube Delta Biosphere Reservation, 
and stimulating the settlement of peoples in the localities of these areas.    4. Background and authority for the subsidy
 
  The body that grants subsidies is the Ministry  of Economy and Commerce and the purpose is to 
improve the welfare in the areas provided in the Government Decisions No. 395/1996 and No. 323/1996 
with further modificati ons and completions.  
  The Fiscal Code provides in art. 38 par (2) th at:  "the taxpayers that made expenses with 
investments before 1
st July 2002, according to the Government Ordinance No. 27/1996  on granting 
incentives to the persons living or  working in so me localities of "Apuseni" Mountains and in the 
Reservation "Delta Dunarii" , republished, with further modi fications, and who maintain the 
investments according to the above mentioned ordi nance, further benefit of the deduction from the 
taxable profit of the expenses distinctly highlighted, related to the respective investments, but not after 
31st December 2006".   
 
5. Form of the subsidy  
  Exemption from the payment of profit tax.    6. To whom and how the subsidy is provided
 
 
 The undertakings that did not invest in the area of Apuseni Mountains and in the Danube 
Delta Biosphere Reservation (Annexes at Gove rnment Decisions No. 395/1996 and No. 323/1996, 
with further modifications and completions) sha ll benefit from these fiscal incentives only after the 
county of local Councils give their confirmation.    
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The subsidy quantum in 2005 was of 43.497 RON.  Only four (4) undertakings benefited, and 
the average amount per undertaking was of 10.874,25 RON.   
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  Commencement since the date of publishing in the Romanian Official Journal of the 
Government Ordinance No. 27/1996.    G/SCM/N/155/EEC/Add.21 
 Page 43 
 
 
   In 2005 and 2006, only the undertakings that ma de investments in the above mentioned areas 
until 1st July 2002, benefited of subsidies.   The subsidies were granted till 31st December 2006.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
Not available.   
  
XXXV.  BUDGETARY OBLIGATI ONS REDEMPTION 
 1. Title of the subsidy programme
 
 
 GOVERNMENT EMERGENCY ORDINANCE no. 189/2000 on some budgetary obligations 
redemption.    
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 Subsidies for the effects produced by exceptional events.  Loss diminishin g for transport fluvial 
entities, registered during the conflict in ex Yugoslavia (dur ing this conflict the navigation on Danube 
was interrupted).    4. Background and authority for the subsidy
 
 
 Granting authority – MEC.    5. Form of the subsidy
 
  Exemption from the payment of the budget obligation.   
 
6. To whom and how the subsidy is provided
 
  View the clearance to the state budget oblig ations the commercial entities will send to the 
representatives of the territorial offices of the Minist ry of Public Finance the situation of the fuel 
quantities used for the well functioning of the navy  and the related excise duties according to a pattern 
elaborated by the Ministry of Public Finance.     The excise duties weight (used for the compen sation of the budgetary obligations) is the ratio 
between the value of the purchased fuel and the mone y effectively paid for it applied to the excise 
duties weight for the fuel effectively used for the well functioning of the navy.   
 
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
  The amount granted by MEF (finance field)  according to the provision of G.E.O. 189/2000 
was 29.357 RON and had one beneficiary.   G/SCM/N/155/EEC/Add.21 
Page 44  
 
  8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  The state legal commitment to exonerate from  the payment of the budgetary obligations was 
instituted on the date of publishing in the Romanian Official  Journal of G.E.O. 189 from 
9 November 2000.   
  G.E.O. 189/2000 was repealed by G.O. 29/2004, but the effective exoneration operated in 2005 
and had one beneficiary.    
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.     XXXVI.  DISADVANTAGED REGIONS 
 
1. Title of the subsidy programme
 
 
 The GOVERNMENT EMERGENCY ORDINANCE no.24/1998 on disadvantaged areas regime, 
with further modificati ons and completions.   
 
 The objective of the subsidy is  the regional development by s upporting the undertakings that 
obtained the permanent investor certificate in a deprived area before 1st July 2003.   
  The disadvantaged area is a geographic area stric tly delimited by the terri torial point of view, 
having a high unemployment rate and a weak in frastructure, and a prec arious socio-economic 
development.  The statute of disadvantaged ar ea was given by a Government Decision.   
  The undertakings that fulfil th e criteria provided by the GEO no. 24/1998 benefits of exemption 
from the payment of profit tax.    
2. Period covered by the notification
 
  2005 – 2006.    3. Policy objective and/or purpose of the subsidy
 
 
 The GOVERNMENT EMERGENCY ORDINANCE no .24/1998 on disadvantaged areas regime , 
with further modifications and co mpletions, has the objective of regional development by supporting 
the undertakings that obtained the permanent invest or certificate in a disad vantaged area before 
1st July 2003.   
 
4. Background and authority for the subsidy  
  The GEO no. 24/1998 on deprived areas  with further modifications and completions.  The 
Ministry of Economy and Commerce grants, based on this legal act, exemptions from the payment of 
profit tax.   
 
5. Form of the subsidy
 
  Exemption from the payment of profit tax.    G/SCM/N/155/EEC/Add.21 
 Page 45 
 
 
  6. To whom and how the subsidy is provided  
  For 3 disadvantaged areas, these in centives shall be granted until 31
st December 2008, 
inclusively.    
 For 22 disadvantaged areas, these incentives shall be granted until 31
st December 2009, 
inclusively.     For 3 disadvantaged areas, these in centives shall be granted until 31
st December 2010, 
inclusively.   
 
 Granting subsidies is conditioned by:    
- Investments with ob jective of regional development;   
- The eligible costs of the investments to be  taken into account are those made between 
2
nd October 1998 (the date of entering into force of the GEO no. 24/1998 on disadvantaged 
areas , with further modifications and completions) and 15th September 2004;   
- The total subsidy granted can not exceed 50 per cent of the investment eligible costs;   
- The amounts of the subsidies granted to  the undertakings are variable.   
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
The total amount of the subsidy granted in 2005 was of 59. 385.417,9 RON.  The total amount 
of the subsidy granted in 2006 was of 70.301.932 RO N.  The number of the subsidy beneficiaries 
in 2005 was of 773 undertakings, and in 2006 was of 568 undertakings.   
 
8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  For a number of 3 disadvantaged areas, the incentives shall be granted until 31
st December 2008 
inclusively.   
 
 For 22 disadvantaged areas, the incentives shall be granted until 31st December 2009 
inclusively.     For 3 disadvantaged areas, the in centives shall be granted until 31
st December 2010 inclusively.   
 
 The eligible costs that can be taken into account are those made between 2nd October 1998 (the 
date of entering into force of the GEO no. 24/1998 on disadvantaged  areas , with further modifications 
and completions) and 15th September 2004.   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
Not available.   
  
XXXVII.  RECOVERING BUDGETARY ARREARS 
 
1. Title of the subsidy programme
 
 
 G.E.O. NO. 40/2002 for the recovering of the budgetary arrears.   G/SCM/N/155/EEC/Add.21 
Page 46  
 
   By G.E.O. no. 40/2002 there were granting incentives for the payment the budgetary 
obligations.  The objectives of these subsidies were  regional development and rescue and restructuring 
of the companies in difficulty.    2. Period covered by the notification
 
 
 2005 – 2006.   
 
3. Policy objective and/or purpose of the subsidy  
 
 By G.E.O. no. 40/2002 there were granted incen tives for the payment the budgetary obligations. 
The objectives of these subsidies were the regional de velopment and the rescue and restructuring of the 
companies in difficulty.    4. Background and authority for the subsidy
 
 
 Ministry of Economy and Commerce granted exemptions from the payment of the budgetary 
obligations according to the provi sions of this legal act.   
 5. Form of the subsidy
 
 
 Exemption from the payment of  the budgetary obligations.   
 6. To whom and how the subsidy is provided
 
  The incentives were granted at the debtors' ju stified request for the budgetary obligations unpaid 
till 31 December 2001 (if they fulfilled the criteria  of financial economic performance and fiscal 
discipline).    7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy  
 
 The total weight of the subsidy granted in  2005 was 260.392 RON.  The total weight of the 
subsidy granted in 2006 was 1.097.926 RON.  There were 11 beneficiary unde rtakings between 2005 –
 2006.    8. Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
  The legal act entered into force in 2002. G.E.O. no. 40/2002 was repealed by G.E.O. 
no. 26/2005 on repealing the legal provisions on granting incentives for the accrued budgetary 
obligations.  The effective granting may be operated even after the repealing of the G.E.O. no. 40/2002, 
if there are fulfilled all the conditions stipulated in the signed conventions.   
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  Not available.   
 
 
 
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