The European Commission decided on Monday 5 July to open an in-depth investigation into EUR 190 million in aid granted by Romania to the airline TAROM.
TAROM, a Romanian state-owned airline, has been experiencing financial difficulties for years. It received a temporary rescue loan from Romania of approximately EUR 36.7 million, after approval by the Commission, in February 2020. On 28 May 2021, Romania notified the Commission of a plan for the restructuring of TAROM.
Romania plans to support the restructuring with around EUR 190 million of public funding.
At this stage, the Commission has doubts that the proposed restructuring plan and the aid to support it satisfy the conditions of the state aid guidelines on rescue and restructuring.
In particular, the Commission’s in-depth investigation will 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; - whether there are appropriate measures to limit the distortions of competition.
The opening of an investigation gives Romania and interested third parties the opportunity to submit comments. It does not prejudge the outcome of the investigation in any way. (Original version in French by Lionel Changeur)