“The European Commission has approved, under EU state aid rules, Romania’s plans to grant the state-owned national air carrier, TAROM, restructuring aid worth up to EUR 95.3 million (RON 473.69 million) “, the institution sent.
This measure, the Commission says, will allow TAROM to restore its long-term viability, “while minimizing distortions of competition”.
History of the decision of the European Commission
In May 2021, Romania sent the Commission a restructuring plan for TAROM. The plan contained a package of measures to reduce TAROM’s operations, renew its aging fleet of aircraft and cut costs.
In July 2021, the Commission opened an investigation to assess whether the restructuring measures adopted by Romania for TAROM comply with EU state aid rules.
“Currently, the notified restructuring measures include the following: (i) cancellation of a debt amounting to approximately EUR 49.53 million (RON 246.19 million) corresponding to the value of the rescue aid, approved by the Commission in February 2020, plus related interest; and (ii) a capital injection of approximately EUR 45.77 million (RON 227.50 million),” the European Commission said.
The Commission assessed the measures and decided, among other things, that they are proportionate, that they “address the problems that caused TAROM’s financial difficulties” and “concluded that the measures applied by Romania comply with EU rules on state aid”.
1,314 employees
estimated TAROM last year, down by only 4 employees compared to 2022, and the average salary is 10,592 lei, i.e. approximately 2,120 euros.
In December 2023, the state-owned company reported that “it is entering the procedure for approval by the European Commission of the company’s recovery plan, meeting the necessary conditions to benefit from the restructuring aid”, in order not to enter bankruptcy. TAROM was waiting for the green light from the European Commission, which has now come.
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