| EUROPEAN ANTI-CRISIS MEASURES 18/12/2008 |
| (2008-12-18) |
| Last updated: 2008-12-19 15:00 EET |
The bailout measures are to be implemented within a limited time span, by 2010, and reassessed, in line with the evolution of the crisis. Member countries are now allowed to grant companies 26 types of state subsidies, without having to notify the European Commission on every occasion.
The move is aimed at releasing bank loans, granting quick and efficient access to state subsidies and encouraging investment. European Competition Commissioner, Nelly Kroes, urged the member states not to postpone their intervention until after the winter holidays. The economic downturn has started to deepen in European developed states, which are already facing a significant slowdown in the growth pace and even recession. The crisis has also impacted Romania and has generated a low output, a slow growth of public revenues and of the GDP, fewer liquidities in the financial-banking system, alongside higher costs for domestic and foreign funding and tougher conditions for taking out loans. Nevertheless, Romania fares better than the Western countries, as indicated by the situation of Romanian banks, extensively covered by the daily Ziarul Financiar.
The daily quotes Patrick Gelin, BRD chairman, as saying quote: ''At this moment, Romanian banks do not need the kind of aid Western governments are proposing for the banking system, it rather needs measures meant to encourage the economy, of which the most important is the start of major infrastructure works'' unquote. In the BRD chairman’s opinion, foreign analysts' economic forecast for Romania is 'far too pessimistic''.
Gelin says the Bucharest authorities' main concern should be to set up a clear direction regarding economic policy. Nicholas Tesseyman, Business Group Director in charge of the Financial Institutions sector at the European Bank for Reconstruction and Development, says Romanian banks do not need the kind of aid Western governments are proposing for their banking system, as they are not facing solvency problems.
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2025-04-03
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