Quo Vadis Romanian Defence Industry
Quo Vadis Romanian Defence Industry

Author(s): Lucian Ivan
Subject(s): Security and defense, Military policy
Published by: Centrul tehnic-editorial al armatei
Keywords: defence industry; technology; European Defence Fund; investment; research;
Summary/Abstract: On 19 March 2019, the European Union’s governing bodies approved consistent programmesfor the period 2019-2020, totalling more than 500 million EUR, which are designed to ensureco-financing of projects developed by the defence industry within the EU Member States.At the same time, from 2021 onwards, the European Defence Fund is to be launched, aninnovative and competitive programme for the defence industry, which will substantially contributeto the strategic and military autonomy of the European Union. These unprecedented financialefforts for the defence industry of EU member States are part of the conjugated efforts todefend European citizens from possible hostile actions of certain state and non-state entities.Considering these consistent investment opportunities, Romania must be prepared tocooperate with major European companies in the defence industry, in order to develop viableprojects that are eligible to be funded through the European Defence Fund. Also, a priorityof the Romanian defence industry must be a substantial increase in research investments, animmediate result of increasing the competitiveness of the products achieved and, implicitly,increasing the volume of military equipment exports to the profile markets.In view of these objectives, Romanian companies operating in the defence sector need toinvest considerable sums in the field of research, in order to develop high-performance militaryproducts and technologies that enable the development of this field of strategic interest forRomania. Another opportunity for the Romanian defence industry is to provide the necessaryfacility to produce military equipment and technology meeting NATO standards, in order to beused by the Romanian army.In this context, the Romanian defence industry is expected to face great challenges in thefuture, the major opportunity and strategic advantage being the special relationship withNATO and EU partners, in particular the strategic partnership with the USA.According to the commitments assumed, at political and military level, the RomanianGovernment will invest in the next years, in the defence sector, 2% of GDP, a large part of thispercentage (over 20%) to be allocated to products that encompass advanced technologies,most of which are to be imported from EU and NATO member states, as well as from the localmarket.

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