Post by radovic on Oct 22, 2007 11:39:03 GMT -5
Automobile Craiova privatisation postponed by at least 6-7 months
October 22, 2007
RO
“Those who imagine that a state aid situation can settle, from a political perspective, through phones and discussions, that certain exemptions or avoidances are created, are terribly wrong. The decisions related to the application of the EU rules are very strict. The preparation of the European Commission decisions is 100 per cent at technical level and this follows a well established hierarchy. Such a decision reaches a commissioner level only one or two weeks prior to adopting the political decision”, the European Commissioner for multi-lingualism, Leonard Orban told a press conference in Bucharest on Friday. He also specified that total transparency is required in EC relations, some decision to have the investigations launched being made on the bases of information taken over from mass media, considering that there is little information provided by the institutions involved in “recent cases”. In order to be granted, state aid has to be notified previously to the Competition Council and then subjected for authorization with the European Commission, the maximum time period during which the Executive from Brussels being entitles to pass a decision being two months. The European Commissioner explained that in spite of many cases related to very strong EU companies or member states, there has been no situation when exemptions were granted, or derogations or postponements, which have created precedents that would have undermined the Commission activity. He resumed the idea that tolerance related to the application of EU legislation rules was zero. Privatisation in limbo The Romanian authorities made the privatization of Automobile Craiova conditional upon, through AVAS, the fulfillment of several conditions, such as reaching a minimal production level of 200,000 cars per year, during the fourth year since the plant transfer, pursuit of the current activities over a time period of four years and preserving number of employees. The Union Executive will check whether these conditions made the selling price be lower than in case this transaction would have been unconditional. If this is confirmed, EC could consider that privatization included state aid. Leonard Orban informed that he has asked EC to apply fast the procedures incurred by the investigation initiated in relation to possible state aid granted to Automobile Craiova in relation to the plant privatization, regardless the outcome. Orban believes that the Executive from Brussels could make a decision in 6-7 months, in spite of the fact that investigations related to this case could take 18 months. He asked the Romanian authorities to prove total transparency and to provide the Commission all documents. If this does not happen, then the Commission will have to make decision only on the bases of the information published by mass media. PM Tariceanu: “The investigation is a normal procedure” “I talked over the phone with the European Commissioner for Competition and I asked that procedures would be in place within as short as possible deadlines, at the Commission level”. He showed that the investigation initiated by the European Commission was a normal procedure within the relationship with another EU Member State, and there is a clause, within the contract with Ford, that specifies that privatization becomes effective only after having been approved by EC. The Government had decided, during Wednesday session, to ask the Parliament to suspend the discussions on the law draft addressing Automobile Craiova privatization. AVAS declared that the Romanian authorities would sent the European Commission a report related to the privatization of Automobile Craiova, drafted by Ministry of Economy and Finances, Ministry of Environment and Competition Council. Source; Nine O'Clock
October 22, 2007
RO
“Those who imagine that a state aid situation can settle, from a political perspective, through phones and discussions, that certain exemptions or avoidances are created, are terribly wrong. The decisions related to the application of the EU rules are very strict. The preparation of the European Commission decisions is 100 per cent at technical level and this follows a well established hierarchy. Such a decision reaches a commissioner level only one or two weeks prior to adopting the political decision”, the European Commissioner for multi-lingualism, Leonard Orban told a press conference in Bucharest on Friday. He also specified that total transparency is required in EC relations, some decision to have the investigations launched being made on the bases of information taken over from mass media, considering that there is little information provided by the institutions involved in “recent cases”. In order to be granted, state aid has to be notified previously to the Competition Council and then subjected for authorization with the European Commission, the maximum time period during which the Executive from Brussels being entitles to pass a decision being two months. The European Commissioner explained that in spite of many cases related to very strong EU companies or member states, there has been no situation when exemptions were granted, or derogations or postponements, which have created precedents that would have undermined the Commission activity. He resumed the idea that tolerance related to the application of EU legislation rules was zero. Privatisation in limbo The Romanian authorities made the privatization of Automobile Craiova conditional upon, through AVAS, the fulfillment of several conditions, such as reaching a minimal production level of 200,000 cars per year, during the fourth year since the plant transfer, pursuit of the current activities over a time period of four years and preserving number of employees. The Union Executive will check whether these conditions made the selling price be lower than in case this transaction would have been unconditional. If this is confirmed, EC could consider that privatization included state aid. Leonard Orban informed that he has asked EC to apply fast the procedures incurred by the investigation initiated in relation to possible state aid granted to Automobile Craiova in relation to the plant privatization, regardless the outcome. Orban believes that the Executive from Brussels could make a decision in 6-7 months, in spite of the fact that investigations related to this case could take 18 months. He asked the Romanian authorities to prove total transparency and to provide the Commission all documents. If this does not happen, then the Commission will have to make decision only on the bases of the information published by mass media. PM Tariceanu: “The investigation is a normal procedure” “I talked over the phone with the European Commissioner for Competition and I asked that procedures would be in place within as short as possible deadlines, at the Commission level”. He showed that the investigation initiated by the European Commission was a normal procedure within the relationship with another EU Member State, and there is a clause, within the contract with Ford, that specifies that privatization becomes effective only after having been approved by EC. The Government had decided, during Wednesday session, to ask the Parliament to suspend the discussions on the law draft addressing Automobile Craiova privatization. AVAS declared that the Romanian authorities would sent the European Commission a report related to the privatization of Automobile Craiova, drafted by Ministry of Economy and Finances, Ministry of Environment and Competition Council. Source; Nine O'Clock