Romania: Court nixes law that could politicize state firms

BUCHAREST, Romania – Romania’s constitutional court has ruled that a new law which could lead to major state companies coming under political control is unconstitutional.

The court ruled Tuesday that an amendment to a law that would eliminate corporate governance in big state concerns was not permissible.

Romania’s parliament, which is dominated by a leftist ruling coalition, in December approved legislation to exempt 100 state companies from corporate governance. The companies that lawmakers could have brought under political control included major electricity, nuclear, natural gas and transportation companies.

Investors and other critics said that would lead to political interference to the detriment of professional competence and good management.