Interim Prime Minister Ilie Bolojan addressed, on Antena 1, the issues of state companies, highlighting their inefficiency and politicization, calling this system "PSD-ism".
He explained that profitability in monopolistic systems, such as public transport, is easy to achieve by raising prices or by requesting subsidies.
"If you have public transport and you are the only carrier, there is no problem at all. You do two things. You raise ticket prices, as those at Metrorex tried. Or you ask for higher subsidies from the ministry or from the city hall, if you are a local transport. And you cover all the inefficiency. That is one situation." said Ilie Bolojan.
Bolojan emphasized that in the case of loss-making companies, intervention and reform of the management selection process is essential. Criticizing the opaque competitions organized, he mentioned that these practices lead to high salaries without performance.
"At the moment when you have such poorly made contracts as a form of reward, because from these companies to extract rents, very high salaries, it is not a problem that you have high salaries. But without delivering, then I assure you that instead of putting pressure on them to make profits for this country, or to provide better services, or to reduce subsidies, we end up in bad situations."
Bolojan concluded that Romania could have had a better economic situation if state companies had been managed correctly in the last decade, warning against the excessive politicization of these positions.
Sources
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