Guarantees for SMEs and investments in research - PSD promises for economic recovery

PSD wants new state guarantees for SMEs, support for investments in research, but also for the young workforce, according to the program "Recovery through investments, innovation and opportunities for young people", presented yesterday by Social Democratic President Sorin Grindeanu. The program relies on targeted investments and on the use of available, but insufficiently utilized, European funds.

The first important measure is the granting of a stability bonus of 1,000 lei per month in the first 12 months of employment and 1,250 lei per month in the following year, intended for unemployed young people and those in their first job. Given that unemployment among this social category exceeds 24%, PSD proposes not only immediate financial support, but also a scheme to ensure long-term integration, through the obligation of a minimum one-year employment contract after the end of the facility, mentoring periods and mechanisms through which the state recovers funds in case of non-compliance with the conditions.

The proposed economic package is not limited to the measure for young people. The Social Democrats come up with a scheme of state guarantees for SMEs, structured in two clear directions: 60% for investments in equipment, construction and digitalization and 40% for working capital. The idea is for the state to unlock lending in areas with potential, but considered too risky by banks, thus creating the premises for the development of thousands of businesses. In addition, PSD proposes a set of incentives for companies investing in research, development and innovation, including super-deductions of up to 200% for expenses incurred in a maximum of five years, tax credits of up to 50% for investments in data centers and artificial intelligence, a 30% tax credit for research-development-innovation expenses and access to low-cost research loans and direct support for projects with high added value.

According to the Social Democrats' calculations, the cumulative effects of these three facilities would mean the integration of at least 25,000 young people into the labor market, the support of over 1,000 research projects, the emergence of at least 200 new products and services and access to loans for SMEs totaling approximately 15 billion lei.

The program also provides for new investments of at least 20 million euros in the food, pharmaceutical, chemical, automotive, defense, metal construction, machinery and equipment manufacturing industries, support for investments of at least 5 million euros in production activities in economically underdeveloped areas, support for new investments of over 20 million euros in the processing of critical non-energy minerals: graphite, aluminum, copper, magnesium, rare earths, etc.

Sorin Grindeanu emphasized that the proposed measures do not put pressure on the state budget, being either self-financed or covered by European funds, and the tax credit method, applied for a period of five to ten years, would stimulate investments in disadvantaged areas.

"Romanians must see that the current government is capable of more than cuts and layoffs, that there is a path to development and modernization. If we want to stop the rise of populist parties, we must deliver growth and hope," said the interim president of the PSD, who stated that he would request the support of the governing coalition for the rapid transformation of these proposals into laws.