State-owned enterprises in Romania produce approximately 26 billion euros in revenue, but subsidies surpass their collective profits
Romania's state-owned enterprises (SOEs) are currently undergoing an ambitious reform and privatization effort, aimed at enhancing financial performance, increasing transparency, and reducing inefficiencies.
As of mid-2025, there are 1,326 public enterprises registered with the Agency for Monitoring the Performance of Public Enterprises (AMEPIP). Of these, 1,182 are managed at the local level, and 144 at the central level. AMEPIP monitors 376 joint-stock companies, 88 autonomous regies, and 842 limited liability companies.
The government, led by Prime Minister Ilie Bolojan and Deputy PM Dragoș Anastasiu, is pushing comprehensive reforms under the National Recovery and Resilience Plan (PNRR). These reforms include stricter corporate governance, publishing detailed SOE data, streamlining management boards, reducing board sizes, capping board members' earnings, and closing or merging underperforming entities that have posted losses for three consecutive years.
Financially, the reform package and increased efficiency aim to improve SOE contributions to the public budget. However, Romania's overall public deficit remains elevated, likely exceeding 8% of GDP in 2025, partially due to spending and challenges in the public sector, including SOEs.
Although specific consolidated data on SOEs' total revenues, subsidies, or profits were not explicitly given in the available sources, the reform agenda’s focus on reducing inefficiencies, cutting losses, and involving private investment implies that many SOEs have been under financial strain and have received subsidies.
Hidroelectrica alone accounted for 46% of the total profits generated by Romania's state-owned enterprises. However, the seven companies generating losses despite subsidies account for a significant portion of the total losses, although the exact percentage is not specified. Seven specific companies - CFR, Electrocentrale Craiova, Unifarm, CFR Marfă, Termoenergetica, Metrorex, and Complex Energetic Valea Jiului - generated RON 2 billion in losses despite receiving government subsidies.
The total profits generated by the SOEs, excluding Hidroelectrica, are not specified. Total subsidies granted to SOEs amounted to RON 14 billion, while gross profits reached just RON 15 billion, according to Ziarul Financiar.
The publication of financials and performance indicators by AMEPIP (expected starting July 2025) marks a transparency benchmark that would detail revenues, subsidies, and profit or loss status per enterprise.
Privatization is a key pillar of the strategy going forward, with the government identifying priority sectors such as energy, transport, and digital infrastructure for potential sales or public-private partnerships to attract investment and modernize services.
It's important to note that roughly 300 enterprises failed to submit financial data, while another 250 reported zero revenue. Civil servants are required to report financial information to both ANAF and AMEPIP.
In summary, Romanian SOEs are undergoing extensive reforms to improve their financial health and transparency. The publication of financials and performance indicators by AMEPIP will provide a clearer picture of the current state of SOEs, including their revenues, subsidies, and profits or losses. The government recognizes substantial inefficiencies and losses in the sector, aiming to transform SOEs through structural changes, tighter governance, and privatization efforts consistent with EU-backed recovery plans.
The government is focusing on structural changes in Romanian state-owned enterprises (SOEs), including stricter corporate governance, publishing detailed data, streamlining management boards, and privatization, with the aim of improving SOE financial performance and reducing losses.
Privatization of key sectors such as energy, transport, and digital infrastructure is a priority to attract investment, modernize services, and address the significant portion of total losses accumulated by the seven specific SOEs that have posted losses for three consecutive years.
