Minimis aid to be given to pay budget dues

The minimis aid could be extended to pay the budget dues, given that the European Commission could approve a request by the Romanian authorities in this respect, Economy Minister Adriean Videanu has told a TV channel.

‘We want the minimis aid to be extended and today (Monday – editor’s note) we took the decision, in the ruling coalition, to make the notification to the European Commission.

We must start from the realities of the Romanian economy. A lot of SMEs, small firms have many debts, since they took credit based on the state budget, they have huge debts to the state budget.

There are just 100 small firms that have tried to contract the minimis aid. (…) We want to extend this programme, so that it may pay the budget dues’, Videanu said.

The minister explained that this measure meant to combat the economic crisis would help the firms to become bankable, and the state aid could be given to those who did not pay their state debts.

‘We set the prerequisites for them to become bankable, to be able to develop their own business, by paying their debts.

There are SMEs that have been encountering difficulties since July 1, 2008, the time that the Commission considers as a crisis-hit period’, he added.
‘We do not have the levels of competitiveness that are in Germany and France, so as to be able to give the state aid for development alone.

We don’t know whether the Commission will agree this, but we have made an expertise in the Romanian economy and found that we have the biggest problems with the budget arrears, the debts to the state budget, the commercial arrears, the lack of offset payments among these firms’, Videanu said.

The minimis aid is a state aid for upgrading and development that should not exceed the ceiling set by the European Union regulations for a certain period.
This type of assistance is not subject to the notification of the European Commission.

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