SOEs generate a revenue of 26 billion euros in Romania, yet subsidies overshadow the collective earnings
Romania's state-owned enterprises (SOEs) have been under scrutiny for their financial performance in recent years. The Agency for Monitoring the Performance of Public Enterprises (AMEPIP) is set to increase transparency by making detailed financial data publicly available. This move aims to shed light on the financial health of SOEs, including their profits, losses, and subsidies received.
The data tables, which will be released in the coming days, will provide a comprehensive overview of Romania's SOEs. They will include information on 1,326 public enterprises across the country, covering sectors such as energy, transport, and manufacturing.
It's worth noting that the seven loss-making companies combined do not significantly contribute to the overall turnover of SOEs. These companies account for less than 1% of the total, employing only 17,300 out of the total 256,000 staff.
Despite receiving substantial state subsidies, many SOEs have struggled with inefficiencies, debts, or low profitability. This imbalance has led to concerns about the financial sustainability of these enterprises. In fact, the cost to the state is believed to exceed the financial returns generated by these enterprises, making them a net fiscal cost.
However, not all SOEs are performing poorly. Top-performing SOEs have generated revenues of approximately EUR 26 billion, with Hidroelectrica alone contributing 46% of the total profits. Hidroelectrica, despite receiving subsidies, has managed to perform well financially.
In an effort to improve accountability, AMEPIP has begun issuing fines on July 21 for 550 companies that failed to submit financial data or reported zero revenue. This move is part of AMEPIP's efforts to ensure accurate and timely reporting from SOEs.
Deputy Prime Minister Dragoș Anastasiu revealed during a press conference on July 22 that seven specific companies - CFR, Electrocentrale Craiova, Unifarm, CFR Marfă, Termoenergetica, Metrorex, and Complex Energetic Valea Jiului - account for RON 2 billion in losses despite receiving government subsidies. A total of 266 companies within the SOEs recorded combined losses of RON 2.5 billion.
The release of these data tables is expected to increase transparency and accountability in the management of Romania's state-owned enterprises, providing the public with a better understanding of the financial health of these enterprises and the impact they have on the country's economy.
The data tables, regarding Romania's SOEs, will provide a detailed breakdown of their financial health, encompassing sectors like energy, transport, and manufacturing. Despite receiving substantial state subsidies, many SOEs have faced issues such as inefficiencies, debts, or low profitability, leading to concerns about their financial sustainability.
