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Constitutional Court Decision on Insolvency Law

Stefan-Lucian Deleanu

Constitutional Court Decision on Insolvency Law

The Romanian Constitutional Court examined the unconstitutionality objection raised against Government Emergency Ordinance no. 88/2018, which amended and supplemented Law no. 85/2014 regarding insolvency and de-insolvency prevention procedures. The Court found the emergency ordinance justified, considering the extraordinary situation of over 6,000 companies in insolvency proceedings and the urgent need to create legislative and administrative premises for their recovery and maintenance in the economic circuit.

The Court also concluded that the provisions in question did not violate the principle of equality before the law, as they provide an additional chance for the recovery of the company and do not affect the property rights of the original creditors. In essence, the Court ruled that the government can legislate through emergency ordinances in the matter of insolvency, even if there are already laws in place, as long as they have positive consequences in the fields in which they intervene.

State Aid Scheme for the Aquaculture Sector

The Romanian government has adopted a decision to establish a state aid scheme for small and medium-sized enterprises (SMEs) operating in the fishing and aquaculture sector. The scheme aims to reduce the excise duty on diesel fuel used in aquaculture, granted in the form of reimbursement. This decision is in accordance with the provisions of the European Commission's Regulation and will be applicable until December 31, 2025.

To access the state aid scheme, beneficiaries must meet certain eligibility criteria, including being registered in the Register of aquaculture units and providing statistical data to the National Agency for Fisheries and Aquaculture (ANPA) regarding the surfaces and the productions carried out. The state aid provided by this decision cannot be cumulated with any other type of de minimis aid, ensuring fair competition within the sector.

2023 Budget Approval for ROȘIAMIN — S.A. Company

The Romanian government has approved the revenue and expenditure budget for the year 2023 for ROȘIAMIN — S.A. company, a branch of C.N.C.A.F. MINVEST — S.A. Deva. This decision highlights the government's commitment to support local businesses and maintain financial stability in the country.

The approval of the budget ensures that the company can continue its operations, providing employment opportunities and contributing to the country's economic growth. It also demonstrates the government's willingness to invest in various sectors and support businesses in achieving their goals.

Conclusion

In conclusion, the Romanian Constitutional Court's decision on insolvency law highlights the importance of providing clear, precise, and accessible legal provisions that ensure the protection of property rights and the legal security of the person and legal relationships. The state aid scheme for the aquaculture sector and the 2023 budget approval for ROȘIAMIN — S.A. Company demonstrate the government's commitment to support local businesses and contribute to the country's economic growth.

Understanding these developments and their implications can help businesses and individuals navigate the ever-evolving landscape of insolvency law in Romania. It is essential to stay informed about the legal changes that may impact your life and to engage in discussions that promote understanding and awareness.

What are your thoughts on the recent developments in Romania's insolvency laws? Do you think these changes will positively impact the country's economy and business environment? Share your opinions and experiences in the comments below.