Romania’s High Defense Council Meets For Talks On Railway Freight Co CFR Marfa Privatization

Romania’s high defense council CSAT will convene Monday for talks on the privatization strategy targeting state-run freight railway company CFR Marfa, the decentralization of the police service and the results of the fight against tax evasion, the Presidential Administration said in a press release.

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Romania’s High Defense Council Meets For Talks On Railway Freight Co CFR Marfa Privatization

The CSAT meeting is scheduled to take place at the Presidential Palace at 2 p.m..

People close to the matter told MEDIAFAX in August the defense council advised the Transport Ministry to hold talks with the Competition Council on the national security consequences of the privatization of CFR Marfa.

According to the sources, the ministry asked for CSAT's standpoint on the draft Government decisions regarding the privatization strategy targeting CFR Marfa and state-run airline Tarom.

Regarding Tarom, CSAT said it does not have the authority to approve its privatization strategy as the process has nothing to do with aspects concerning national defense and security. On the other hand, CSAT advised the ministry to analyze the national security implications of CFR Marfa's privatization.

Referring to the railway company, Competition Council sources told MEDIAFAX the institution analyzes only aspects regarding the state aid to be granted to railway companies which undergo reorganization.

Transport Minister Anca Boagiu said previously state-run railway companies to be reorganized would be supported by the state so they would be put back on track.

Under the law, draft normative acts are sent to CSAT for a standpoint only in exceptional cases.

The Government pledged during negotiations with the International Monetary Fund to sell a 20% stake in CFR Marfa and 20% of Tarom.

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