Romanian Economic Council Rejects State Participation Suspension

The Economic and Social Council has issued a negative opinion on a legislative project proposed by the PSD and AURA parties. The Council warned that the measure would severely impact the economy and breach international commitments. Such actions could potentially jeopardize Romania's access to European Union funds. The PSD and AUR parties have collected signatures for a motion of censure scheduled for a vote this Tuesday. The motion follows accusations that the executive branch intends to privatize minority stakes in state packages. The Prime Minister defended himself in a podcast, claiming PSD partners behaved arrogantly during their time in government. Prime Minister Lirio Boloian stated that profitable state companies should not be liquidated to cover political errors. The government intends to consolidate assets following the model of other European Union member states rather than dismantling or selling them when they are producing revenue. The case of Czech Bank was cited as an emblematic example of a profitable and stable institution with an essential role. The institution reported a profit of approximately 668 million lei and maintains assets of nearly 100 billion lei. Its equity is valued at over 5 billion lei, though its market valuation is currently cited at only 5.4 billion lei. Analysts suggest this valuation is inconsistent when compared to private institutions such as Banca Transilvania or BRD.