Legislative proceedings will resume following an EC ruling on the issue, according to Minister for Parliament Relations, Mihai Voicu. The draft was already approved by the Senate’s Juridicial and Budget-Finance Commissions. Government officials said they will submit a report to the European Commission on the privatization of Automobile Craiova, drafted by the Economy and Finance Ministry.
Last week, the European Commission launched an investigation on possible state subventions granted to the Craiova car manufacturer in the privatization process and asked Romania to suspend any illegal subsidies until the investigation is finalized. Moreover, Romania allegedly changed the privatization terms during the process, which could mean more subventions from the state, the EC said.
The U.S. giant agreed to buy 72.4 percent of the Craiova factory for €57 mln, following a buyback by the Romanian state of 51 percent of the company from South Korean Daewoo carmaker for €43 mln. The European Commission did not announce a deadline for its decision on the issue. Romania asked Ford to produce at least 200,000 cars in the fourth year following the privatization, to continue current operations for at least five years, and not to lay off present employees, which could be interpreted as state aids, as they could have lowered the sale price for Automobile Craiova.
Meanwhile, Ford representatives told Business Standard they are to offer European Commission officials all the support they need for the investigation.
Prime Minister Cãlin Popescu Tãriceanu and Ford of Europe’s Director for Business Strategy, Lyle Waters, signed the privatization contract this September during the Frankfurt Auto Fair.
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U.S. car manufacturer Ford agreed to buy 72.4 percent of the Automobile Craiova factory for €57 mln
