The notified restructuring measures now include: a debt write-off of around EUR49.53 million (RON246.19 million) corresponding to the rescue aid amount, approved by the Commission in February 2020, plus interest and a capital injection of around EUR45.77 million (RON227.50 million), the European Commission said.
At the end of May 2021, Romania notified the Commission about a plan for the restructuring of TAROM.
In July 2021, the Commission opened an in-depth investigation to assess whether the Romanian restructuring measures in favor of TAROM would be in line with EU State aid rules.
During the in-depth investigation, Romania updated the restructuring plan and the Commission assessed the measures and found that:
- The aid contributes to the objective of common interest of providing regional connectivity to Romanian citizens and businesses by enabling TAROM to return to viability through the implementation of its restructuring plan.
- The restructuring measures tackle the problems that caused TAROM’s financial difficulties, in particular through the renewal of its ageing fleet and the reduction of costs.
- The measures are proportionate, as TAROM makes a significant own contribution of around EUR77.66 million (RON381.12 million) in the form of proceeds from aircraft sale and a finance lease concluded at market terms.
- The aid comes with safeguards to limit distortions of competition in the Single Market. These include (i) the reduction of the number of routes that TAROM operates, as well as the number of aircraft, and (ii) maintaining such reduced capacity, thereby limiting its market presence for the entire duration of the restructuring period (i.e., until 31 December 2026.)
On this basis, the Commission concluded that the Romanian measures are in line with EU State aid rules.
(English version by Loredana Fratila-Cristescu)