Serious doubts about unapproved state aid offered to municipal companies by Bucharest

10.10.2019

Question for written answer E-003198-19
to the Commission
Rule 138
Nicolae Ştefănuță (Renew)

In 2017, the Mayor of Bucharest created, through decisions taken by the city’s General Council, a ‘holding’ company for municipal companies whose mission is to provide services of economic and general interest. The mayoralty granted subsidies to the 22 municipal companies concerned. The subsidies are worth more than EUR 500 million in total and 7 of the 22 companies received more than EUR 15 million each, as provided for in Article 2 of the Commission decision of 20 December 2011 on the application of Article 106(2) of the Treaty on the Functioning of the European Union to state aid in the form of public service compensation granted to certain undertakings entrusted with the operation of services of general economic interest. In the light of Altmark Trans GmbH and Regierungspräsidium Magdeburg v Nahverkehrsgesellschaft Altmark GmbH case, as well as the relevant EU legislation and Commission communications, it could be said that these subsidies constitute state aid that is distorting the single market.

1. Has Romania notified the Commission of these subsidies and how does it ensure that Member States comply with legislation on state aid?2. Is it carrying out an investigation into the subsidies granted to some municipal companies by the mayor of the Romanian capital?3. Is it planning to reform the procedure for vetting State grants of which it has not been notified?