The Department for Foreign Investments and PPP, to be taken over by Ministry of Economy

According to the latest government emergency ordinance draft, the Department for Foreign Investments and Public-Private Partnership will cease its activity within the General Secretariat of the Government (SGG). It will be incorporated by the Ministry of Economy, Commerce and Relations with the Business Sector. The Ministry will be reorganized by taking over the attributions, patrimony and personnel of the Department.

Following Alexandru Nastase’s dismissal on the 15th of January, several days ago, Prime Minister Dacian Ciolos appointed Manuel Costescu, executive director at JP Morgan London, as State Secretary for the Department.

For the moment, the ordinance can only decide the dissolution of the department. Later on, after 30 days from the coming into force, the Government will be able to enact the updated structure and attributions of the Ministry. The intention is for the Department to be transformed into an agency that will be promoting the economic interests of Romania.

The project presents itself as a solution to the lack of unity when it comes to the approach of different institutions in giving solutions for exterior commerce and foreign investments. Their feedback is supposed to flourish Romania’s economic potential. According to the explanatory memorandum, a unique approach by merging the two institutions will lead to increasing foreign investments and to a unique legal framework. On the opposite, not doing so as soon as possible may lead to not implementing a competitive economic system and not fulfilling the quality standards imposed by the internal and external markets. Also, the measures will help contour the sectorial strategies and a growing efficiency into allocating budgets and attracting foreign investors.

Until now, the Department was a leftover structure in the SGG from Ponta’s governing, after annulling the position of delegate minister for great infrastructure projects that Dan Sova used to occupy. Previously, the regulatory institution in the matter of foreign investments was ARIS (The Romanian Agency for Foreign Investments), subordinated to the government, founded in 2002 by replacing three other governmental institutions and dissolved in 2009 when its activity was overtaken by the Ministry for Small and Medium Enterprises, Commerce and Business Sector.

by Mihaela Constantin