Nicu Fălcoi: "The only solution is the privatization of state companies in the defense industry"

The only solution is the privatization of the state companies in the defense industry subordinated to Romarm, if we want this sector of economic activity to modernize and become a competitive one, deputy Nicu Fălcoi (USR), vice-president of the NATO Parliamentary Assembly, told us , former military pilot.

Nicu Fălcoi stated: "Over time, the defense industry in Romania has been deeply politicized. People who were not only businessmen were put in charge of the companies subordinated to Romarm, who did not know how to bring such a company to profit. That's why most of the state companies in the defense industry are losing money, the Minister of Economy, Radu Oprea, came up with a strategy regarding this field, but it's a statement of good intentions and that's about it. It is clear that the defense industry should be zero priority for us in the current geostrategic context, but unfortunately it is not, although the war in Ukraine is prolonged and the other European countries intend to increase their budgets allocated to defense, and a third of these states want to acquire new military equipment. That's what we should do too. Unfortunately, at this moment we no longer have the know-how and our only short-term solution, at least, would be to import this know-how. In my opinion, the only solution is the privatization of state-owned companies in the defense industry, and the best example of this is the evolution of the aircraft factories in Craiova and Bacău".

• Debts of over 100 million lei written off by the state at Avioane Craiova

The vice-president of the NATO Parliamentary Assembly recalled that in 1990 the two companies started from the same point, only that the company from Bacău was privatized, and Avioane Craiova remained state property.

Nicu Fălcoi said: "Aerostar Bacău is permanently profitable, it does not have the slightest problem, it makes parts including for F-35 planes and is a maintenance hub for F-16 planes, while Avioane Craiova has lived for the last 15 years exclusively on the basis of contracts with the state - from time to time the Ministry of National Defense gave them for repairs. Now Avioane Craiova has the contract for the modernization of IAR 99 planes and based on it, it turned a profit in the first half of 2024. There is no other reason why it made a profit, because they had huge losses. Three years ago they benefited from a cancellation of debts of about 100 million lei, and at the town hall they had debits of 30-40 million lei for the payment of local taxes and fees. That is why I believe that this is not the solution, but the professionalization of the management of these state companies, which can only be achieved by the private sector. In most NATO countries, the strategic defense industry is private, even if the state has something to say in case of specific events. I believe that the privatization of state-owned companies in the defense industry is hindered by the lack of political will and the lack of necessary skills."

• Private investors in state-owned companies

Mr. Falcoi also said that in the current conditions where we have a war on the border, where ammunition is needed, we must also want to produce that ammunition. He mentioned that state companies could be rehabilitated through private investments, investments that must be attracted by the Ministry of Economy, Entrepreneurship and Tourism.

The vice-president of the NATO Parliamentary Assembly concluded: "Investors would be found, if the state, which is the owner of the respective companies, really wanted to attract private investors. I believe that the Ministry of Economy should be interested in this and look for the respective investors. We, through our geostrategic position, are located in a place where we have great opportunities, especially since we are a strategic partner of the USA, a country from which we should attract some investors in the national defense industry, especially since we have good relations in the area military and of the procurement of equipment and technical equipment".