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Romanian Gov't, defense industry unions sign 5-year financial support agreement

Business - CNN.com
beretta fabrica armament

The government and the unions of the national defense industry signed on Friday a major agreement containing legislative and financial support measures for the national defense industry for the next 5 years, the Ministry of Economy said in a release.

The agreement was signed in the presence of acting Prime Minister Viorica Dancila, Minister of Economy Niculae Badalau, Public Finance Minister Eugen Teodorovici, and Minister of European Funds Roxana Manzatu.

"This is a a historic agreement because for the first time in 30 years we are able to come up with a set of consistent measures everyone agrees with, for the rebound of the national defense industry. This industry has a very important two-pronged structure: on the one hand there is the security component and on the other hand, the economic component, because it is well known that the defense industry creates high-value added products. The objective of the Ministry of Economy was to support this industry through budgetary allocations and through a responsible management with a long-term vision. For example, 2019 allocations to this industry exceed the total amount allocated over 2015 - 2018. The agreement also contains measures that will have a direct impact on the sector's employees: fiscal facilities for employees and measures to improve working conditions," Minister of Economy Niculae Badalau said on the occasion of the signing of the agreement.

The document argues that the objectives regarding the protection of the national defense interests, including the key national security interests, are achieved by the engagement of the national defense industry in activities that ensure the integrated logistic support of military equipment, by protecting the companies in the national defense industry that hold strategic capabilities, and that stimulating investments in the defense industry, scientific research, technological development and innovation are objectives of national interest.

It is therefore necessary to ensure the supply, under conditions of efficiency and safety, of products and / or services for the institutions of the National Defense System Forces and maintain and develop the national defense industry as a strategic industry of national interest.

In this context, the Government of Romania pledges to take the necessary measures for the allocation, mainly from the state budget, of the necessary funds for the restructuring, modernization and re-engineering of defense production capacities and / or services of the companies in the defense industry, for offering these companies certain tax exemptions and for the improvement of working conditions.

The document also mentions that the main purpose of the Romanian state is to take all the necessary measures that will lead to the economic and financial rebound of the companies in the national defense industry, rendering them efficient and helping them develop in the medium and long term as viable structures ready to implement reorganization and / or restructuring programs, as well as attracting investments.

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