Romania Initiates Major Reform for 17 State-Owned Companies

Government Approves Initial List for State-Owned Enterprise Overhaul

The Romanian government, in a meeting held on Friday, December 5, 2025, officially approved a first list of 17 state-owned companies slated for a significant reform process. This initiative aims to modernize corporate governance within these entities, aligning them with OECD standards and the requirements of the National Recovery and Resilience Plan (PNRR). The ultimate goal is to evaluate each company's viability, potentially leading to reorganization, listing on the stock exchange, or even liquidation.

Prime Minister Ilie Bolojan announced the decision, emphasizing the government's commitment to improving the efficiency and transparency of the state-owned sector. The reform process will be coordinated by an inter-ministerial committee for supporting the implementation of Reform 9 (CNR9), led by Deputy Prime Minister Oana Gheorghiu.

Key Objectives of the Reform

The comprehensive reform program is designed to address long-standing issues within Romania's state-owned enterprises (SOEs), which have historically faced challenges with profitability and governance. Key objectives include:

• Modernizing Corporate Governance: Implementing frameworks consistent with OECD guidelines to enhance transparency and accountability.
• Improving Financial Performance: Reducing losses, increasing efficiency, and minimizing the reliance on state subsidies.
• Streamlining Management: Reducing the size of management boards, capping executive earnings, and establishing clear, performance-based indicators.
• Strategic Evaluation: Determining the future operational status of each company, which could involve:
• Listing on the stock exchange to increase scrutiny and market discipline.
• Reorganization through mergers, divisions, or transformations.
• Liquidation for persistently loss-making or non-viable entities.

The government also aims to ensure that company budgets are approved in the first quarter of the year, accompanied by clear targets for managers, a departure from previous delays.

Companies Under Scrutiny

The initial list of 17 companies includes significant entities primarily from the energy and transport sectors, which are crucial for the Romanian economy. Examples of companies mentioned for reform include:

• Energy Sector: Electrocentrale București, Societatea Electrocentrale Craiova, Complexul Energetic Valea Jiului, Societatea Electrocentrale Grup SA, and Societatea OIL Terminal SA.
• Transport Sector: National air transport company Tarom, Bucharest metro operator Metrorex, and various railway companies such as CFR Călători, CFR SA, and CFR Marfă. Other transport-related entities include Compania Națională de Căi Ferate C.F.R SA, Societatea Telecomunicații CFR S.A., Societatea de Administrare Active Feroviare S.A.A.F – S.A., Societatea Feroviară de Turism S.F.T-C.F.R- S.A., Societatea Națională a Căilor Ferate Române S.N.C.F.R, Societatea de Reparații Locomotive C.F.R-S.C.R.L Brașov, ROFERSPED S.A, and C.F.R- I.R.L.U. S.A.

The evaluation process will involve detailed data collection and performance analysis to formulate specific recommendations for each company.

Broader Context and Implementation

This reform is part of a broader government agenda for 2025-2028, focused on modernizing the state, stabilizing public finances, and enhancing public services. Romania currently manages approximately 1,500 state-owned companies, with about 300 under central government control, making it one of the largest SOE sectors in the EU. Many of these have historically incurred substantial losses.

The government's plan includes eliminating interim management across all state companies by March 31, 2026, and initiating restructuring for at least three companies by August 31, 2026, as mandated by the EU recovery plan. The Agency for Monitoring the Performance of Public Enterprises (AMEPIP) will play a crucial role in monitoring and assessing SOE performance based on strengthened corporate governance legislation.