Romanian government plans overhaul of state enterprises to increase transparency

Romanian government plans overhaul of state enterprises to increase transparency
The new measures were announced at a press conference on July 22. / gov.ro
By Iulian Ernst in Bucharest July 23, 2025

Romanian Prime Minister Ilie Bolojan and Deputy Prime Minister Dragoș Anastasiu unveiled a comprehensive plan to reform corporate governance in state-owned enterprises (SOEs) at a press conference on July 22, with the first legislative steps expected by the end of the month. 

The reforms are part of a broader government effort alongside local administration restructuring, and aim to strengthen the sustainability of fiscal consolidation measures introduced earlier this month.

At the press conference, Bolojan announced that the government will adopt a memorandum this week to begin amending existing legislation on corporate governance in SOEs. The amendments are aligned with objectives and milestones under Romania’s National Recovery and Resilience Plan (PNRR).

The reforms will begin with increased transparency, Bolojan said. On July 23, the Agency for Monitoring the Performance of Public Enterprises (AMEPIP) will publish a comprehensive dataset disclosing the identity of SOE managers, their remuneration, performance indicators, and company financials.

“I do not think that those who manage the SOEs are to feel ashamed by their earnings or the performances of the companies they manage,” Bolojan said.

A second key measure involves streamlining SOE management structures. According to Bolojan, this will include reducing the size of boards, capping earnings for board members through legislative amendments and setting new performance indicators to be later used in evaluating the board members.

One of the more sensitive reforms relates to the performance indicators used in SOE management contracts. Bolojan said that ministries will re-evaluate whether the existing indicators are relevant or superficial. If necessary (and this is the baseline case), these indicators will be revised to ensure they align with performance expectations.

“The management will either accept the new performance indicators, or the government will enforce them,” Bolojan explained, touching one of the key obstacles in reforming the SOEs' management: the existing contracts.

In an interview with Digi24 later that day, Minister of Economy Radu Miruță confirmed that enforcing new performance metrics depends on the commitment of each line ministry and the legal tools available. He noted that in some cases, existing four-year contracts limit immediate action, but holding board members accountable for company losses may be pursued as a last resort.

Romania’s deputy PM Anastasiu presented detailed provisions of the government’s forthcoming corporate governance reform for SOEs in his statement during the July 22 press conference, outlining measures aimed at restructuring management boards, capping remuneration, and improving accountability.

Anastasiu confirmed that the reforms will apply to both company executives and non-executive board members, and are intended to streamline operations and improve transparency.

The number of members on boards of directors will be reduced across the board. In autonomous regions, boards will be capped at three members. Companies with a unitary management structure will also have a maximum of three board members, while large enterprises will see a reduction from five to seven members down to three to five. “In very large companies, we will have to proceed with individual therapy,” Anastasiu said, referring to tailor-made governance adjustments.

Remuneration for non-executive board members will be lowered, with the ceiling reduced from three times the average sector salary to two times. For executive members, the fixed component will be capped at two times the average salary, and variable components reduced accordingly. General managers, who previously received between three and six times the sector average, will now be limited to twice that amount.

Anastasiu also announced a cap on non-essential benefits. While basic tools such as company phones and laptops will remain, accommodation allowances and vacation bonuses will be limited to a maximum of 10% of total fixed remuneration.

For civil servants, a new restriction will limit their participation to only one board of directors, down from the current allowance of two.

Changes will also be made to the Agency for Monitoring the Performance of Public Enterprises (AMEPIP). The statute of limitations for sanctions will be extended from six months to one year. “Mistakes are no longer erased so quickly,” Anastasiu noted.

AMEPIP will shift its oversight to focus more on central SOEs and those with the highest economic impact. Specifically, attention will be concentrated on 315 companies that represent 96% of total SOE turnover.

The composition of performance indicators will also be modified. Financial indicators, which previously had a discretionary weight between 25% and 50%, will now carry a mandatory 50% weight. An additional 20% will be allocated to service quality and customer satisfaction metrics.

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