Major Reform of State-Owned Companies

The government is launching a large-scale reform of inefficient, inactive and heavily indebted state-owned companies

Corina Cristea, 17.04.2026, 14:00

The government of Romania is planning a major reform of dozens of state-owned companies in Romania reporting losses that go far back in time. The pilot project targets 22 companies in energy, transport and industry, said the Deputy PM Oana Gheorghiu, who explained that the measures, depending on the case, are designed to wind up, restructure, consolidate or list the companies on the stock exchange. A memorandum in this respect will be submitted for approval by the government next week.

Romania has over 1,500 state-owned companies and many of them have historic losses of around EUR 2.7 billion, says the deputy PM Oana Gheorghiu, who explained that the reform essentially means that the Romanian government begins to behave like a responsible owner, who clearly knows how many companies it owns, what the role of each is, how much inaction costs and what decision needs to be made next.

Oana Gheorghiu: “Some companies must be consolidated because they have a real strategic role, others must be transformed or restructured, others must be integrated, and yet others must be closed, in an orderly manner, because keeping them in their current form no longer serves the public interest, the economy or taxpayers.”

According to the deputy PM, these are black holes for the Romanian economy, and the problem is not an accounting one, but that fact that these companies cannot be treated as a unit: some are critical infrastructure elements whose continuity is vital, others are strategic industrial platforms whose value should not be assessed in financial terms exclusively, others are business entities or left over structures that cost the public budget every day that a decision is not made.

The 22 companies in the pilot group have reported over EUR 800 mln in debts to the public budget in the last year alone, and in addition to these, they had combined net losses of over EUR 200 mln, the deputy PM Oana Gheorghiu explained, adding that this is the annual bill that Romanians have to foot because the government has not reformed these companies yet.

In a social media post, the Liberal PM Ilie Bolojan explained that some critical infrastructure companies, such as ELCEN (operating Bucharest electricity plants), Oil Terminal and CFR SA (the national railway operator), will be supported through investments, while the industrial potential of Avioane Craiova or Romaero must be better capitalised on. Companies in the red, such as CFR Călători, Metrorex and TAROM, will undergo operational recovery.

Concurrently, a list is being put together of companies that will be listed on the stock exchange through the sale of minority stakes. The list includes Hidroelectrica, Romgaz and CEC Bank.

In a subsequent reaction, the Social Democratic Party, the Liberals’ ruling coalition partner, announced that it categorically opposes the sale of strategic companies belonging to the Romanian state, although it supports the need to restructure certain state-owned companies. The Social Democrats’ message comes at a time when the political balance in the ruling coalition in Bucharest is worsening significantly. (AMP)