April 14, 2024
Radu Oprea, about state aid in construction: We want to gain market share in Romania and aim to rebuild Ukraine / What fears do builders have

​Today we import 70% of construction materials, and if we are competitive over time we could decrease to half of what we import today, Radu Oprea, the Minister of Economy, said on Friday about the 150 million euro state aid scheme prepared in construction.

Work in constructionPhoto: Dan Dunkley/ImageSource/Profimedia

We remind you that Prime Minister Marcel Ciolacu announced on Wednesday that the Government is preparing a state aid scheme for the construction materials industry, the budget allocated for this year being a maximum of 150 million euros.

On Friday, at the Victoria Palace, the Minister of Economy, Radu Oprea, together with Prime Minister Marcel Ciolacu and Deputy Prime Minister Marian Neacșu discussed for 2 hours with the representatives of construction employers about the project of the state aid scheme that the Government is preparing.

  • “Any capacity in Romania generates jobs. Bigger and better production means lower prices. A plasterboard factory costs at least 50 million euros for a modern technological process. A tile factory reaches 100 million euros.
  • At the same time, there are other building materials that have lower costs. We are talking to the industry in order to gain market share in Romania and we are targeting the reconstruction of Ukraine to be ready for that moment.”, said Economy Minister Radu Oprea on Friday.

Cristian Erbașu: The sums are not small for such factories. We must have predictability

Cristian Romeo Erbașu, vice-president of the Construction Societies Trust, emphasized that a good intention can turn into a failure if the technical details of such a state aid scheme are not carefully discussed.

  • “It is obvious that we want more speed in execution because imported materials are very hard to come by, there is a worldwide crisis in construction materials, they have to be of quality and cheaper.
  • I have already established some figures. The sums are not small for such factories. It is good that there will be jobs and qualified, with good salaries in such factories, because there is the possibility of very good returns, but we must have predictability in the medium term 5-7 years, but also in the long term – 10-15 years , because such a factory with large capacities requires a minimum of 10-15 years of depreciation, which we approached and agreed to.”, said Cristian Erbașu.

Erbașu: An elimination or a reduction of tax facilities at this time would be extremely harmful for the market

The representative of the construction employers was also asked about the discussions and recommendations of international institutions related to the reduction of fiscal facilities in Romania.

  • “The industry is very concerned about this aspect because we had a 10-year plan between 2019 and 2028. On the other hand, there are certain commitments of the Romanian state.
  • In the PNRR we assumed that from 2025 these facilities will gradually decrease until 2028.
  • We agreed and this is how we felt from the Government’s side that an elimination or a reduction of the facilities at this moment would be extremely harmful for the market and the investment environment and for the next period of one year – one and a half years we hope that no action will be taken on these facilities , following that through the PNRR, gradually there are still 4 more years, somewhere 25% each year to reduce these facilities.”, stated Romeo Erbașu.

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