State aid in the GD no. 1680/2008 subventions in romania

Source : Applicant Guidelines for State aid in the GD no. 1680/2008 to establish a state aid scheme for ensuring sustainable economic development, as amended and supplemented, May 2011 

The submitted documentation must show that the state aid has a ˝ incentive effect˝ and meets one or more of the following criteria: 

• A material increase in the size of the project/activity due to the aid; 
• A material increase in the scope of the project/activity due to the aid; 
• A material increase in the total amount spent by the beneficiary on the project/activity due to the aid; 
• A material increase in the speed of completion of the project/activity concerned; 
• The project would not have been carried out as such in the assisted region concerned in the absence of the aid 

Conditions for granting state aid 

The provisions of this state aid scheme applies to enterprises that are registered according to Law no. 31/1990 republished, with subsequent amendments and completions, which make investments in Romania and are situated in the following categories: 

a) attain an initial investment with a value falling between 5 and 10 million euro, including the equivalent in lei, and create at least 50 new jobs following the completion of the initial investment; 
b) attain an initial investment with a value that falls between 10 and 20 million euro, including the equivalent in lei, and create at least 100 new jobs following the completion of the initial investment; 

Eligibility criteria 

The enterprises that meet cumulatively the eligibility criteria upon submission date, can benefit from specific allocations under the aid scheme: 
a) are registered according to Law 31/1990, republished, with subsequent amendments and completions, and make investments in Romania, 
b) intend to make an initial investment falling within any category referred to in points a) - d) of Article 2 of the GD no. 1680/2008. 
c) there is no history of payment delinquency to the consolidated budget 
d) are not in enforcement procedure,bankruptcy,judicial reorganization, dissolution, operational closure, liquidation or other situations covered by law; 
e) are not classified as "enterprises in difficulty" under Commission Regulation no. 800/2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General Block Exemption Regulation) 
f) no decisions have been issued against them for recovery of state aid or if such decisions were issued they were executed according to legal provisions, 
g) when applying for state aid they have to present a viable investment plan (costs will be detailed: quantity, price, value) and a technical-economic study issued by a specialized company which proves the economic efficiency of investment in compliance with the indicators referred in Chapter III of this guidelines; 
h) do not make investments and do not create new jobs, which require state aid under this scheme in the fields of activity exempted by GD no. 1680/2008. 

State Aid Intensity 

For investments whose eligible costs are less than 50 million, the gross intensity of regional aid cannot exceed 50% of initial investment costs, or wage costs over a period of two years with new staff. For investments or jobs done in Region 8 Bucharest - Ilfov, state aid intensity is 40%. 

Eligible costs 

Standard cost does not include expenses for the following chapters of the general estimate of the investment structure, approved by Government Decision no.28/2008: 

- Chapter 1. - Expenses for obtaining and arranging land; 
- Chapter 2. - Expenses for utilities necessary for the objective; 
- Chapter 3. - Expenses for engineering and technical assistance; 
- Chapter 4 - Expenses for basic investment, 
- Chapter 5. – Other expenses; 
- Chapter 6. - Expenses for technological tests and tests and teaching to the beneficiary. 


Are considered eligible the costs associated with an initial investment made in the same area including: 
a) tangible and/or intangible assets relating to the setting-up of a new establishment, the extension of an existing establishment, diversification of the output of an establishment into new additional products or a fundamental change in the overall production process of an existingestablishment. 
b) the acquisition of the capital assets directly linked to an establishment, where the establishment has closed or would have closed had it not been purchased, and the assets are bought by an independent investor. The sole acquisition of the shares of an undertaking shall not constitute investment. 

Tangible assets means assets relating to: industrial, tourist and medical buildings and equipment. 

Intangible assets means assets entailed by the transfer of technology through the acquisition of patent rights, licences, know-how or unpatented technical knowledge 

Intangible assets must meet the following conditions: 

a) they must be used exclusively in the undertaking receiving the aid; 
b) they must be regarded as amortizable assets, as required by law; 
c) they must be purchased from third parties under market conditions, without the acquirer being in a position to exercise control on the seller or vice versa 
d) they must be included in the assets of the undertaking and remain in the establishment receiving the regional aid for at least five years. 

Replacement is accepted if the criteria analysis to keep the investment takes into consideration the assets that have been obsolete in this period due to rapid technological change. 


See separate sheet on demand