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HomeNewsUp to EUR 37.5 mill. in state aid for creating new jobs in Romania through the State Aid Scheme G.D. NO. 332/2014

Up to EUR 37.5 mill. in state aid for creating new jobs in Romania through the State Aid Scheme G.D. NO. 332/2014

Although it started under the sign of the coronavirus pandemic, of the restrictions imposed for its propagation, foreshadowing an unpredictable economic context, the year 2021 still brings up a series of considerable opportunities for financing companies’ investments. As it is well-known that investments are perhaps the most important stimulus for economic activity, leading to growth, development, local welfare in terms of the effects propagated in society. These financing opportunities refer to the state aid schemes regulated by G.D. No. 807/2014 for the establishment of state aid schemes aimed at stimulating investments with major impact in the economy and by G.D. No. 332/22014 on the establishment of a state aid scheme to support investments that promote regional development through job creation.

In regard to the investments that can be developed under the SAS No. 807/2014, OMEGAConsulting has recently published a series of articles that can be accessed here and that will be continued in the next period.

This article aims to briefly present the State aid scheme established by GD 332/2014 for state aid to support new investments, which promotes regional development through job creation.

The objective of this State aid scheme is regional development through the performance of initial investments which lead to the creation of at least 100 jobs. Under the scheme are eligible both newly established enterprises and operating enterprises, SMEs or large enterprises.

Investments that create jobs in a wide variety of fields of activity are eligible. From our perspective, this scheme is addressed especially to the service industries that have complex personnel schemes, such as:

  • outsourcing/ call center (NACE code 8220 – Activities of call centres, 6399 Other information service activities N.E.C., and others);
  • auto industry (NACE codes 2211 – Manufacture of rubber tires and tubes; 2812 Manufacture of hydraulic motors;  2813 Manufacture of pumps and compressors; 2814 Manufacture of taps and fittings; 2815 Manufacture of bearings, gears, gearing and driving elements; 2822 Manufacture of lifting and handling equipment; 2910 Manufacture of road transport vehicles; 2920 Manufacture of bodies (coachwork) for motor vehicles; manufacture of trailers and semi-trailers; 2931 Manufacture of electrical and electronic equipment for vehicles and motor vehicles; 2932 Manufacture of other parts and accessories for vehicles and motor vehicles; 3020 Manufacture of rolling stock for light vehicle);
  • IT (NACE codes 62 – Information technology service activities, 63 – IT services activities)
  • Textile industry (NACE Code 139 Manufacture of other textiles, 14 Manufacture of clothing items)
  • Telecommunications (NACE code 61)
  • Healthcare, wellness and activities related to human health / medical services (NACE code 86)
  • Hotel industry and HORECA in general (NACE code 55 – Hotels and other accommodation facilities)
  • Waste collection, treatment and disposal; recyclable materials recovery activities (NACE code 38)
  • Other services and manufacturing activities.

The state aid scheme finances the salary expenses registered for a period of 2 consecutive years, as a result of new jobs creation. State aid is granted provided that the jobs are created directly by an investment project.

State aid is granted to enterprises, through allocations from the state budget, in the form of non-reimbursable grants, in relation to eligible expenditure and within the maximum allowable intensity.

The maximum level of state aid that a company can benefit from is up to 37.5 million euros, and the intensity of financial support cannot exceed a maximum of 50%, depending on the region in which the project is developed.

We consider that this state aid scheme can represent an adequate financing solution for those companies that plan to carry out investment projects that lead to the creation of a considerable number of new jobs. Those companies can practically benefit from a non-reimbursable grant of up to 50% equivalent to salary costs for a period of two years, for the newly created jobs.

A detailed presentation of this scheme can be found here.

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