Management of state companies "should be privatized"
Prime Minister Emil Boc considered the private management as a solution to the state companies with losses, but also an alternative to the unsuccessful privatization.
06 Aprilie 2011, 13:27
The government should privatize the management of the state companies that have losses to enforce the proper management of their business, Prime Minister Emil Boc said on Monday at the TVR.
"What few Romanians know is that a lot of state-owned companies work with planned losses. That means that each day money goes from our pockets to an inefficient unproductive company or autonomous administration".
"Therefore, management should be privatized because when you have a privatized management, determined on a competitive basis, there are no other interests besides those related to performance and proper management of the public wealth and public money", Emil Boc said.
Private management instead of privatization
The Prime Minister added that he disagreed with the privatization of important strategic fields, since in his opinion, this would lead to losses of the state, while private management still remained a solution.
"In this case, my solution, which I will promote in the coming period in government, is the management’s privatization. I disagree that tomorrow we need to rush and privatize Romgaz, Transgaz and Hidroelectrica, as we saw for what has happened to Petrom’s privatization. I do not think Romania should any longer make such a mistake , by giving away such an important strategic field, especially in times of doubt in which crisis may be over or not, and there will come troubled times or quiet times", the Prime Minister said.
He reiterated that the restructuring of the state companies is the core of the agreement with the IMF and the European Commission.
"In the future concerns of the Government and the agreement we have with the EC and the IMF, the central core of the program is the restructuring of state companies and of the administrations subordinated by the state".
"For each administration in hand, we have a scenario: positive, neutral or negative, meaning that we will know what we do with every company, it will withstand the market, it is efficient, it won’t make it", the Prime Minister concluded.
Idea of private management also proposed by Minister of Transport
Recently, the Minister of Transport, Anca Boagiu also stated that she preferred private management to state companies.
In this context, she announced her intention to introduce the private management in the railways sector.
Translated by: Iulia Florescu
MA Student, MTTLC, Bucharest University
