Large and influential US and European companies from the defence industry are directly competing for signing major contracts on the Romanian market. Each of them brings forward its own arguments, including requests of honouring older promises.
The context seems to be simple: Romania, a country that decided to allocate 2% of GDP to the defence sector, has the imperative need to upgrade its military technology. But the country is facing a difficult decision, because the meaning of these future options is much more important.
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Five days ago, in his analysis made for cursdeguvernare.ro on the implications of the Rome Declaration in the common defence component, analyst Dan Dungaciu explained:
„As a second step, I believe that the European countries will receive the indication to purchase from Europe – this is important for Romania, for its relationship with the United States in the matter of the procurement of military equipment. It will be a challenge with an important political stake.”
In the last two days, delegations of US and French companies visited the Government and the Ministry of Economy.
Despite the official information that lacks details, it seems that Romania finds itself in the position to make the strategic choice much sooner than we might have guessed.
American Bell and French Airbus – in direct competition in Bucharest
Representatives of three large US companies – General Dynamics, Bell Helicopter and Boeing – met Wednesday with the Minister of Economy Mihai Tudose.
Officially, says the press release issued by the ministry, „during the talks with the three US companies, we have identified opportunities to develop concrete joint projects in the defence industry and attract investment that can create jobs and professionalise the employees, which would contribute to improving the living conditions in the areas where these companies operate.”
Bell Helicopters and IAR SA signed in May 2016 a memorandum of cooperation that might consist of technical support, provided that Romania buys an attack helicopter produced by the American company.
However, a few hours later, representatives of Airbus, IAR Brasov and diplomats from France and Germany arrived at the same ministry.
At the Ministry of Economy, there have been discussed the „principles of a general cooperation agreement for producing the H215M helicopter in Ghimbav, in the presence of the Minister of Economy, Mihai Tudose, the French Ambassador in Bucharest, H.E. Mr. François Saint-Paul and the Charge d’Affaires of the German Embassy in Bucharest, Mr. Achim Troester,” mentions the official release.
Airbus opened last year a helicopter factory in Ghimbav in the presence of President Hollande.
In December 2016, Airbus Helicopters, the helicopter division of the giant aircraft manufacturer Airbus sent an official letter to IAR SA Ghimbav, controlled by the Romanian state, with which the French company has a partnership for the maintenance and modernization of the helicopters, requesting information related to the memorandum signed by IAR with the US company Bell Helicopter, warning that it „jeopardizes the presence of Airbus Helicopters in Romania„.
Obviously, promises had been made: that Romania will be the first customer for the French helicopters produced in Brasov.
Curious case of corvettes. Netherlands seems to have lost them, Germany still has the conveyor
Another military contract with strong political implications has been „terminated” by the PSD government after winning the elections: Minister of National Defence, Gabriel Les, announced in March that the procedure for purchasing the multifunctional corvettes for the Romanian Army is to be relaunched, given that, under the previous government, the contract was likely to be awarded to a Dutch company.
The reason for the unexpected termination of this contract seems to have been urgent, given that the agreement has been completed through the same Gabriel Les, who was secretary of state at that time.
The new political power blocked the decision in the Parliament, offering Grindeanu government the possibility to relaunch negotiations, maybe not with all eight manufacturers that submitted the initial offers.
The only collaboration recently signed by the Romanian Government with a foreign producer which still seems to stand is the one concluded in November 2016 by the company Automecanica Moreni with German manufacturer Rheinmetall, the two having signed a shareholders’ agreement for establishing a joint Romanian-German company to produce armoured vehicles.
