Romania is moving the Defense Division tasked with defense acquisitions and stakes in defense companies, from the Economy Ministry to the Defense Ministry, reports local Profit.ro. The Defense Ministry would thus become shareholder representing the state in all state-owned defense companies.

The Romanian Senate has approved the move, as well as a new public acquisition regulation for the defense sector. Under the new law, contractors who do not fulfill their compensation commitments will be banned from public tenders for 10 years, from the current 5-year period.

Romania has pledged to spend 2% of its GDP on defense. It already signed multi-billion-dollar contracts for Patriot missiles, armored carriers and multi-role corvettes.

editor@romania-insider.com