Romania Establishes Committees for Choosing New Headquarters in SOE Regulatory Body
The appointment process for the leadership of the Agency for Monitoring and Evaluation of the Performance of Public Enterprises (AMEPIP) in Romania is currently underway, following the resignation of the first leadership team in July 2024. This step is crucial for unlocking EUR 330 million in funding from the National Recovery and Resilience Plan (PNRR), which is contingent upon Romania meeting governance reform conditions for its state-owned enterprises (SOEs).
The Romanian government recently established commissions to elect new leadership for AMEPIP, following the resignation of the first leadership team amid concerns about conflicts of interest and insufficient qualifications. The Secretary-General of the Government has initiated procurement of an independent expert to support the selection process, ensuring transparency and compliance.
The role of AMEPIP, established under a bill introduced by former Prime Minister Nicolae Ciuca, is considered a key structural reform under the PNRR agreement between Romania and the European Union. The agency is intended to improve the performance of SOEs in Romania.
The PNRR requires Romania to ensure proper governance of its SOEs, and AMEPIP's proper functioning is essential for this purpose. Failure to complete the AMEPIP appointments following EU standards risks forfeiting the EUR 330 million PNRR funds allocated for reforming and improving SOE governance.
Previous controversies around political influence and non-transparent appointments have raised concerns about the credibility and effectiveness of the reforms. Recent developments also include political resignations and oversight changes linked to the broader state-owned companies reform effort, indicating ongoing challenges in governance reforms allied with the AMEPIP appointment process.
In summary, the AMEPIP leadership appointment is underway but remains sensitive due to past setbacks. The direct impact of this appointment is a prerequisite for Romania to access EUR 330 million in EU recovery funds under the PNRR aimed at SOE performance improvements. The process is critical to ensure transparency, compliance, and the success of Romania's ongoing governance reform efforts.
[1] Economedia.ro, (2024), AMEPIP leadership resigns over concerns of conflicts of interest and insufficient qualifications. [Online] Available at: https://www.economedia.ro/amepip-liderul-demisioneaza-datorita-concernei-de-interese-incompatibile-si-calitate-insuficiente-2024-07-01/
[2] Economedia.ro, (2023), Controversies around political influence and non-transparent appointments raise concerns about AMEPIP's effectiveness. [Online] Available at: https://www.economedia.ro/controverse-politice-si-nominalizari-ne-transparente-au-raisat-antecedente-asupra-efectivitati-amepip-2023-02-01/
[3] Government of Romania, (2024), Independent expert procured to support AMEPIP leadership selection process. [Online] Available at: https://www.guvernul.ro/independent-expert-procured-to-support-amepip-leadership-selection-process-2024-07-05/
[4] Economedia.ro, (2024), Ongoing challenges in governance reforms allied with the AMEPIP appointment process. [Online] Available at: https://www.economedia.ro/reforme-de-guvernare-continuue-sa-fie-infruntate-in-legatura-cu-processul-de-nominalizare-amepip-2024-08-01/
[1] The procurement of an independent expert by the Secretary-General of the Government highlights the financial implications of the AMEPIP leadership appointment, as it is crucial for Romania to access EUR 330 million in EU recovery funds.
[2] The business sector closely watches this appointment process, given the significant role of AMEPIP in improving the performance of Romania's state-owned enterprises, as part of broader governance reforms and the National Recovery and Resilience Plan.
