The Romanian and Hungarian governments are set to sign a memorandum of understanding to boost the transmission capacity of their power lines, Prime Minister Ilie Bolojan announced on Friday.

Following his recent visits to Budapest and Vienna, the prime minister emphasized the importance of regional market interconnection and integration, as well as collaboration among major operators in Romania, Hungary, and Austria.

'Interconnection and a single energy market are crucial, because at times we have a surplus of energy we could export at better prices, while at other times we need to import more cheaply from neighboring and Western European markets. To achieve this, we must expand interconnection capacity between Romania, Hungary, and Austria. During my recent stop in Budapest, Prime Minister Viktor Orbán and I agreed to prepare a memorandum of cooperation to double the existing transmission capacity in Arad County on the Bekescsaba line and to build new networks toward northwest Romania,' Prime Minister Ilie Bolojan said at a press conference at Victoria Palace.

He added that Austria is also willing to cooperate in boosting Hungarian-Austrian transmission capacity to facilitate trade and optimize energy prices.

'We will work through experts and our Energy Ministries on these projects. Next week we expect the European Commission's package to support increased interconnection capacity across Europe, which we intend to access,' the prime minister said.

Bolojan explained that the government's main goal is to ensure in the coming years energy at affordable prices for citizens and companies in Romania. In this regard, a series of measures are necessary domestically, but also measures related to collaboration with Romania's neighbors, he said.

Domestically, Prime Minister Ilie Bolojan argued that Romania must expand energy production capacities to reduce reliance on imports.

'We must continue financing gas-fired power plants, such as the Iernut project in Mures County, and support the photovoltaic plants now under construction. Completing advanced hydroelectric projects is also urgent. Another priority is increasing storage capacity. Although photovoltaic and wind power have grown significantly in recent years, storage remains insufficient. Next year we will ensure co-financing to expand these capacities,' he said.

On a different note, Prime Minister Bolojan remarked that Romanians form the second-largest community in Austria, and said bilateral talks focused on improving their working conditions.

'We will soon sign an agreement on education to support our compatriots and to adopt best practices from the Austrian system,' he added.

Bolojan also highlighted the expansion of Romanian companies in the region, stressing the need for explicit support from the Ministry of Foreign Affairs to help them grow into 'regional champions' headquartered in Romania.

Another key topic was Romania's accession to the OECD. 'We have already passed many of the committees required for entry and aim to join next year. In January, the fiscal affairs committee will meet, where we need support from Hungary and Austria. I am glad we have secured this backing, though some fiscal aspects with Austria - such as avoiding double taxation - are still under discussion between the Finance Ministries,' he said. AGERPRES (RO - writing by: Irinela Visan; EN - writing by: Simona Klodnischi)