Economy Ministry state secretary: Even if the IMF disagrees, we must find solutions to carry on coal subventions

Joi, 27 mai 2010, 12:55 English | Business

The Romanian Economy Ministry intends to seek solutions so that it will not have to give up the subventions for the pit production, even if the International Monetary Fund disagrees. "We will have to look for solutions to keep the subventions coming even if the IMF said that this is no longer possible starting with the new year", Economy Ministry Tudor Serban declared during the Mediafax Talks About Energy seminar. In the intention letter addressed to the IMF, the Government pledges to steadily redraw the coal subventions by the end of the year.

"According to the EU regulations addressing competitiveness, we will gradually redraw the subventions for the coal extraction by the end of 2010 and we will elaborate an exit strategy that will unfold over the next five years", the intention letter shows.

Tudor Serban claims that the support for the mining industry needs to be carried on, bearing in mind that this is a very difficult activity. "We must not give up mining. Extracting coal from 1,000 meters deep is not a simple thing", the Economy Ministry state secretary said. According to him, the sector needs "be relieved from a historical burden" so that it could be included "as clean as possible", without debts, in the two large energy companies which are going to be created, namely Electra and Hidroenergetica.

Economy Ministry rep added that the investment to be made in this sector are going to increase the coal price. "We cannot make abstraction of this sector, even if it pollutes. But the sector needs be restructured, both in terms of central efficiency and in terms of personnel", Tudor Serban.