• Measure 4.1.1, initially launched as Measure 3, is delayed once again, marking two years since these investment funds are expected to be released.
In 2020, at the beginning of the COVID-19 pandemic, the government led by Victor Orban considered launching a financing scheme based on European funds to support companies affected by the difficult situation.
Emergency Ordinance 130/2020, provided for 3 financing measures for entrepreneurs: Measure 1, with micro-grants of 2.000 euros each, Measure 2, working capital grants of 2.000 euros to 150.000 euros and Measure 3, with investment grants of 50.000 – 200.000 Of euro.
But even before the launch, changes are made to Measure 3. Thus on October 16, 2020, by OUG 174 / 2020, the Government modifies the scoring grid in Measure 3. But that's not all. On October 29, 2020, the Parliament launches Law 220/2020, through which the scoring grid of Measure 3 is modified again, introducing certain CAEN codes that were not eligible in the original project. But the Government, still considering that the grid proposed on October 16, 2020 is the right one, issues an emergency ordinance OUG 199 / 2020, which returns to the scoring grid from GEO 174/2020.
Changes to the scoring grid
On December 3, 2020, when Measure 3 opened for applications, many interested parties were still confused about the applicable scoring grid. With a budget of 478 million euros, an amount allocated both from European funds and from the state budget, Measure 3 completes its registration session on January 28, 2021. Already the government composition is different, Florin Cîțu's Government having management of the Business Environment Claudiu Năsui, and European Funds Cristian Ghinea.
After registering 27.736 applicants, and exceeding the allocated budget 6 times, Minister Năsui decides to cancel Measure 3, due to suspicions of fraud. Until June 2021, the Measure 3 budget is transferred by the Government in two stages to Measure 2, for payments.
On August 27, 2021, Action 4.1.1 – POC appears, the relaunch of Measure 3 reinvented with funds from the facility ReactEU and passed from the Ministry of Entrepreneurship to the Ministry of Investments and European Projects, with a budget of 358 million euros, substantially lower than the original Measure 3.
A new draft applicant's guide
On September 10, 2021, MIPE, with Florin Cîțu, and Prime Minister and Interim Minister of European Projects, launches for public debate a new draft of the applicant's guide, after the one of August 27, 2021, for Action 4.1.1 - POC. The changes suffered by the reinvented Measure 3 will mean that many entrepreneurs will no longer find themselves on the scoring grid.
It does not need to be reminded that, once again, the deadlines circulated by MIPE for the launch of the action will not be respected. On October 27, 2021, the European Commission approves the state aid scheme from Action 4.1.1 – POC, so that, on November 22, 2021, MIPE will publish it in the Official Gazette. The scheme is signed by Csilla Hegedus, MIPE state secretary from the UDMR.
The scoring grid for Action 4.1.1 would finance firms that experienced a large decrease in turnover in 2020 compared to 2019. As in the September guideline proposal, the maximum aid is set at EUR 1 million per project, no lower threshold.
On 21 December 2021, a new draft applicant's guide to the action is launched for consultation, and the public debate on this topic ends on 4 January 2022. The European Commission extends the temporary COVID framework, allowing these state aids to be granted until 30 June 2022.
New Action Launch Promises
Meanwhile, the government changes again. Now, in the Ciucă Government, MIPE, led by Minister Dan Vîlceanu, promises the launch of Action 4.1.1 - POC in March 2022. Minister Vîlceanu's public statements have brought hope among entrepreneurs who are once again preparing projects for financing.
But just as things seem to be progressing, the changes to the aid scheme begin again, so that on 17 March 2022, MY PE had not yet completed the guide for the call for projects. Prime Minister Ciucă intervenes, convening a government meeting attended by Minister Vîlceanu, Secretary of State Csilla Hegedus, as well as representatives of the business environment, including Florin Jianu, president of CNIPMMR.
After discussions, the Government decides to postpone the call for projects until an unspecified date. Moreover, it makes substantial changes to the eligibility criteria and tie-breaking. Thus, it is announced that companies that changed their ownership in the last year will be removed from financing, a major blow for those who bought companies with a large decrease in turnover in order to obtain funds.
Other tie-breaking criteria
The new tie-breaking criteria in case of equal scores are:
– labor productivity per employee in 2019, expressed as a ratio between the turnover achieved in that year and the number of employees;
– the share of the value of the technological equipment within the project from the total grant requested;
– the number of newly created jobs;
– the date and time of enrollment in the program.
The changes deepened the dissatisfaction of those who had already prepared their documentation according to the official guide in the consolidated form, with an emphasis on official, rightly raising doubts that the action will ever be completed.
Starting on May 3, 2022, the position of Minister of Investments and European Projects is held by Marcel Boloș, and the beginning of 2023 also brings with it the news that Measure 4.1.1., amended again, will be extended until February 10, 2023.
It remains to be seen if this time the long-awaited funds will be granted, or if the saga of postponements continues. And it remains to be seen when we will enjoy a government based on professionalism, with people who think and act in an organized and competent manner, motivated by the good of the taxpayers, who respect the deadlines when it comes to paying taxes and duties, without delays and paradigm shifts.
Article written by Gabriela Dan, Editor of Arta Albă
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