The Commission said it would assess whether support measures for the flag carrier were in line with EU rules on state aid to companies in difficulty.
Tarom has been experiencing financial difficulties for years and has received a temporary rescue loan of approximately EUR36.7 million from Romania’s government after approval by the Commission under EU State aid rules in February 2020.
On 28 May 2021, Romania notified to the Commission a plan for the restructuring of Tarom. Romania plans to support the restructuring with around EUR190 million of public funding. This support would take the form of a capital injection, a direct subsidy and a debt write-off of the rescue aid amount and its corresponding interest.
The Commission said that at this stage it has doubts that the proposed restructuring plan and the aid to support it satisfy the conditions of state aid guidelines.
Its in-depth investigation will in particular examine whether the proposed restructuring plan is appropriate for addressing Tarom’s difficulties and for restoring its long-term viability in a reasonable time frame without continued state aid; whether Tarom or market operators would sufficiently contribute to the restructuring costs, ensuring that the restructuring plan does not overly rely on public funding and that the aid is proportionate; and whether appropriate measures to limit the distortions of competition created by the aid would accompany the restructuring plan.