Businesses in Romania can now avail themselves of a new state financing scheme alongside two other ongoing state aid schemes. Applications for the new scheme are open as of 1 st of October 2012 and financing agreements are to be entered into in 2012 and 2013. The scheme budget amounts to approximately 100 million Euros, and a company may apply for financing up to a maximum value of approximately 28,125 or 22,500 million Euros.
The State offers such assistance in order to stimulate regional development, by investing in businesses that use new technologies and generate a large number of jobs. Several conditions are to be met regarding the company, investment and eligible costs. Financing covers the salaries of highly trained personnel from IT, research and development, innovation, energy and the high-tech manufacturing industry.
The company must:
- intend to make an initial investment in certain areas of activity. The company’s sphere of activity must be one of the following: the manufacturing industry, with the exception of production of beverages and tobacco; production and supply of electricity, energy, gas, hot water and air conditioning; editing of software programs; telecommunications; IT services; or research and development.
- have complied with all fiscal duties to state and local budgets.
- not be a “firm in difficulty” as defined by EU law.
- not be under any enforcement, bankruptcy, judicial reorganization or liquidation proceedings.
- not be the subject of state aid recovery procedures.
- not have applied for other forms of state aid for the same eligible costs.
The investment must:
- be considered an initial investment.
- result in innovative products, services or technologies, or include an IT component which represents a minimum of 20% of the investment plan. According to the OSLO Manual, innovative products and processes are new or significantly improved products and processes.
- generate at least 200 jobs.
State aid is granted for salary costs incurred over a period of two consecutive years provided that:
- the jobs are the result of the investment; and
- the jobs are created within three years from the time the investment is completed.
Applications for financing agreements must be supported by a series of plans and documents to prove the reliability of the company, the economic efficiency and viability of the investment and the company’s contribution to regional development. More details can be found in the Guidelines for Applicants.