The Sovereign Investment Fund proposed by Dragnea, failed in implementation

Liviu Dragnea and PSD proposed, in February 2017, the establishment of the Sovereign Development and Investment Fund in 2017, the measure being part of the governing program of the social democrats for the period 2016-2020. As in the current Simion Plan, the FSDI proposed by Liviu Dragnea and PSD aimed to manage a portfolio of state companies and capitalize on national resources through a fund similar to the Norwegian model. The project proposed that the fund would include companies in strategic sectors such as energy, transport and natural resources, with the intention of generating income for investment in infrastructure and other key areas. The Sovereign Development and Investment Fund (FSDI) was initially adopted in Parliament in the spring of 2018 by the PSD-ALDE-Pro Romania-UDMR coalition, the law being declared unconstitutional by the Constitutional Court of Romania, which stated that such a fund must be approved through an act issued by the Government. Thus, in the fall of 2018, the Government approved an emergency ordinance for the establishment of this fund, which was to be supplied with 9 billion lei.

According to the normative acts of that year, 33 companies were to be part of FSDI, among which were: Engie România S.A., Societatea de Distribuţie si Furnizare a Energiei Electrice - Electrica S.A., E.ON Energie România S.A., OMV Petrom S.A., Telekom România Communication S.A., Compania Nationala Aeroporturi Bucureşti S.A., Societatea Naţională de Gaze Naturale Romgaz S.A., Chimcomplex S.A., Antibiotice S.A., National Company for the Control of Boilers, Pressure Vessels and Pressure Vessels S.A., Compania Nationala Loteria Română S.A., IAR S.A. and Unifarm National Company S.A. When the normative act reached the Parliament, the Oltenia Energy Complex, CFR SA, the Radiocommunication Society, the Romanian Post, the Timişoara Traian Vuia Airport, the Midia Thermoelectric Plant, the National Company for the Administration of Navigable Channels and the Administration of the Danube River Ports were also added to the above companies. .

• From FSDI to the National Development Bank

However, the plan has been met with criticism, being accused that it could lead to the politicization of resources and a lack of transparency in the management of the companies included in the fund.

The five main criticisms of the Sovereign Development and Investment Fund proposed by Liviu Dragnea and PSD were:

- Lack of transparency: One of the biggest criticisms focused on concerns about the transparency of the fund's administration. It was believed that the fund could operate without proper oversight and that it could become an opaque structure, vulnerable to corruption and the diversion of resources for political interests.

- Politicization of decisions: It has been argued that the fund would be politically controlled, which could lead to decisions based on the interests of the government or the party in power, rather than sound economic considerations. There is a risk that the appointments in the management structures will be politicized, and the funded projects will be prioritized based on criteria of political favoritism, not economic impact.

- Economic inefficiency: Critics pointed out that the state's management of a fund with a diverse portfolio of companies could lead to inefficiency and lower performance. It was said that many of the companies included in the fund were already underperforming and, instead of generating revenue, could exacerbate economic problems.

- High financial risks: The Sovereign Fund proposed by Dragnea and PSD would have controlled billions of euros in assets, and critics have warned of implicit financial risks, including the possibility that mismanagement could lead to major losses. It was also feared that the fund could be used to guarantee risky loans, affecting the country's financial stability.

- Violation of constitutionality: Legal critics have raised questions regarding the fund's compliance with the Romanian Constitution, especially regarding the method of transferring state assets to this fund. It was argued that the proposed procedures could have breached existing legislation, given that a significant part of public assets would have been managed in a way considered inappropriate to legal provisions and the public interest.

These criticisms contributed to blocking the implementation of the fund in the proposed form, and in November 2019, after the government was taken over by the PNL following the fall, through a motion of censure of the social democratic government led by Viorica Dăncilă, the idea of establishing such a fund was abandoned and the idea of creating a National Development Bank appeared, which was later recorded as a milestone/target in the National Recovery and Resilience Plan.