The Romanian Government has given up its intention to sell the majority stakes in companies in the defense industry, and will keep a minimum 50% stake after their privatization, according to the new draft law on the defense industry, cited by local Digi24.

In the earlier draft presented for public debate this spring, the state wanted to keep only a 20% stake in the companies in the defense industry, after being privatized.

In May, the government decided to cancel EUR 247 million in debts of 15 companies in the defense industry which produce or sell arms, munitions and war material. Prime Minister Victor Ponta argued then that all military factories from Romania were doomed to fail without deleting their old debts.

editor@romania-insider.com