Romanian Prime Minister proposes Blueprint for State-Owned Enterprise Management Governance
The Romanian government, under the leadership of Prime Minister Ilie Bolojan and Deputy Prime Minister Dragoș Anastasiu, has announced a series of corporate governance reforms for state-owned enterprises (SOEs), aimed at increasing transparency, improving management efficiency, and aligning with EU standards under the National Recovery and Resilience Plan (PNRR).
Legislative Amendments and Transparency
The first step in these reforms involves legislative amendments to enhance corporate governance, with the focus on completion by the end of July 2025[1][3]. To institute transparency improvements, the Agency for Monitoring the Performance of Public Enterprises (AMEPIP) will publish detailed data on SOE managers, including their identities, remuneration, performance metrics, and financials of the companies starting July 23, 2025[1].
Streamlining Management Structures
The reforms also aim to streamline the management of companies by reducing the number of board members and capping their earnings[1][3]. This move is aimed at curbing excessive earnings that have been rising without corresponding company performance improvements.
Performance-Based Evaluation Systems
New performance-based evaluation systems will be implemented to assess board members and executives, setting new indicators for evaluating their effectiveness[1][2].
Strengthening Oversight and Monitoring
The government plans to reorganise AMEPIP to strengthen its oversight and monitoring capabilities, critical for unlocking EUR 330 million in EU funds under the PNRR. The appointment of new leadership for AMEPIP has been initiated to ensure proper governance and compliance with EU conditions[4].
Identifying Underperforming Entities
Additional reforms include evaluating SOEs to identify underperforming entities (those with losses for three consecutive years) for closure or merger, and advancing privatization or public-private partnerships in key sectors such as energy and infrastructure to attract private investment and improve efficiency[2].
These measures are part of a broader governmental effort to restructure local administration and ensure fiscal sustainability by combating inefficiencies in public enterprises and meeting EU fiscal and governance standards[1][2][5].
Enforcing New Performance Indicators
Enforcing new performance indicators is a delicate topic, as admitted by Minister of Economy Radu Miruta. He stated that the process depends on each minister, and requires commitment and the use of all legal provisions available[2][3]. The revised performance indicators will either be accepted by the management or the government will take steps to enforce them.
The review of performance indicators is part of the ongoing corporate governance reforms led by the Romanian Prime Minister Ilie Bolojan[1]. The performance indicators in the contracts of state-owned enterprises will be reviewed by each ministry[1]. The PM stressed that the performance indicators in the coming period will be assessed for relevance or superficiality[2].
The goal of these reforms is to improve the management of companies, providing sustainability to the fiscal consolidation through long-term results[1]. Some managing boards in SOEs have signed four-year contracts that cannot be scrapped overnight[1]. Full transparency regarding the management of SOEs will be implemented, with all data to be released by the agency AMEPIP on July 23[1].
[1] Government of Romania [2] Minister of Economy, Romania [3] Prime Minister of Romania [4] AMEPIP, Romania [5] European Commission
Business and politics in Romania are intertwined with a series of reforms aimed at improving the management of state-owned enterprises (SOEs). The government's ambitious plan includes legislative amendments to increase transparency by publishing detailed data on SOE managers and Enforcing new performance indicators in contracts of state-owned enterprises by each ministry. These reforms are part of a wider effort to meet EU fiscal and governance standards and ensure fiscal sustainability by combating inefficiencies in public enterprises. The success of these reforms will be critical in unlocking EUR 330 million in EU funds under the National Recovery and Resilience Plan (PNRR), and attracting private investment in key sectors like energy and infrastructure.
