European Commission approved on Wednesday, under EU state aid rules, a Romanian scheme of 259 million euros, made available partly through the Recovery and Resilience Facility (“FRR”), to support investments in production, assembly and the recycling of batteries, cells and photovoltaic panels, according to a press release of the institution.
The scheme aims to support Romania’s regional development and promote the EU’s strategic objectives related to the ecological transition, according to Financialintelligence.
The scheme, with an estimated budget of 259 million euro, will be partially financed by the FRR following the positive evaluation by the Commission of the Recovery and Resilience Plan of Romania and its adoption by the Council. The measure aims to contribute to regional development by targeting sectors with growing demand, which will support the creation of new jobs that require a skilled workforce, as well as a more sustainable and competitive economy, and encourage Romania’s green transition and of the EU.
Under the scheme, which will run until 31 December 2024, aid will be granted in the form of direct grants to companies active in the production, assembly and recycling of batteries, cells and photovoltaic panels and panels, which are located in eligible areas in Romania for regional aid. These areas are determined in the regional aid map in Romania for the period January 1, 2022 – December 31, 2027, which also specifies the maximum state aid that can be granted per beneficiary in each of these areas.
The commission found that the measure contributes to the regional development of Romania and that it is necessary and appropriate for the development of the areas included in the regional aid map of the country. In addition, the aid is proportional because it is limited to the necessary minimum and will not exceed the maximum amounts established in Romania’s regional aid map. Finally, the negative effects of the measure in terms of distortion of competition and the impact on trade between member states are limited.
Given these considerations, the Commission approved the measure under EU state aid rules.