Grindeanu: TAROM will receive aid of over 80 million euros from the European Commission

The Minister of Transport, Sorin Grindeanu, said on Monday that TAROM will receive an aid of over 80 million euros from the European Commission, the signals in this regard being positive.

Tarom plane while taking off

TAROM will receive an aid of over 80 million euros from the European Commission

Here we are talking about that plan accepted by the European Commission for the restructuring of TAROM. Just the other day I had a discussion with Mr. Bogdan Chiriţoiu from the Competition Council, there were colleagues of mine at the Commission last week, all the signals are positive that we will receive this aid from the European Commission for TAROM, substantial aid. Based on this help, we will move forward with the receipt of this money. I think there are 80 or so million euros that we will receive. I hope we go along the assumed line, that of transforming this company into an economically sound company. The first step is to receive aid from the Commission which, this time, we have no reason not to receive, we meet all the criteria“, said Grindeanu.

The Minister of Transport checked the status of the works on the A7 Highway road infrastructure objective, section 2 Ploieşti-Buzău (lots 1 and 2).

TAROM won the case with Wizz Air at the CJEU

Last month, the Court of Justice of the European Union (CJEU) rejected the appeal filed by Wizz Air regarding the rescue aid granted to TAROM, finding that the aid of 36.66 million euros is compatible with Union law.

The Court of Justice of the European Union rejected, on Thursday, the appeal filed by Wizz Air regarding the rescue aid granted to the TAROM airline by the Romanian state, assessing that this aid, in the amount of 36.6 million euros, is compatible with the right European Union, it is stated in a press release.

In February 2020, Romania notified the European Commission of rescue aid, consisting of a loan of approximately 36,660,000 euros, which it intended to grant to the Romanian airline TAROM. By decision of February 24, 2020, the Commission qualified this subsidy as state aid compatible with the internal market.

However, the Hungarian airline Wizz Air appealed this decision to the Court of Justice of the European Union.

By the Decision of May 4, 2022, the Court rejected this action. According to the Tribunal, the aid in question is compatible with the internal market, as it aims to prevent a social difficulty or a market dysfunction that could be caused by an interruption of TAROM services for the connectivity of Romania’s regions.

In response, Wizz Air declared an appeal against the Tribunal’s Decision before the Court of Justice, which rejected it in its entirety on Thursday and thus confirms the Tribunal’s decision.

The Court reaffirms that the relatively limited size of the relevant market does not prevent a service provided on this market from being qualified as important, so that its interruption would risk generating a serious social difficulty or constitute a market dysfunction. This situation is found in the case of a termination of TAROM’s activity: it would harm the connectivity of the regions of Romania served exclusively by this company, as well as their economic situation. Consequently, the Commission was not obliged to take into account the size of the market in which TAROM operates or the share it holds in order to assess whether there is a risk of interruption of an important service for Romanian society“, the CJEU decision states.

The CJEU also rejected Wizz Air’s arguments regarding the hypothesis of the replacement of TAROM by its competitors on the domestic routes operated exclusively by this company, the repeated provision of state subsidies in favor of TAROM, as well as all other legal grounds invoked by Wizz Air.

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