As anticipated by FW MAG, the Government of Romania has delivered to Parliament a list detailing the military programs to be delivered with the use of the European Union SAFE funding mechanism (Security Action For Europe), and the largest beneficiary is the acquisition of new IFVs for the Army. The new vehicles are needed to succeed the MLI-84 Jderul, an obsolescent vehicle of "soviet vintage" which has been in service for decades.

Romania intends to procure the Rheinmetall LYNX KF-41, to be delivered through the Romanian subsidiary of the German firm, Rheinmetall Automecanica SRL (RAM).

The acquisition of LYNX will be concluded through direct negotiated procedure without prior publication, putting an end to talks of a competition between designs. Government writes that the intent now is to use SAFE funds for 232 vehicles between IFV and derivative variants, valued at approximately 2.59 billion Euro, while another 66 vehicles, estimated at around 739 million Euro, are to be procured through subsequent contracts, likely with money from the national budget.

There is some unease with the LYNX situation on two fronts: on one hand, Government itself has expressed irritation with the fact that suppliers set to benefit from SAFE have been observed hiking their prices by up to 30% compared to earlier, initial bids. This has been confirmed by Defense Minister Radu Miruta, with government warning publicly that it will not accept continued, excessive escalations.

Rheinmetall is reportedly among the firms that have revised pricing estimates upwards.

The other line of criticism pertains the lack of a competitive evaluation pitting LYNX against the several other contenders that were lining up for the Romanian requirement. The selection has reportedly hinged heavily on offset agreements and industrial investments into Romania promised by Rheinmetall.

Production of the vehicles is, for example, due to be centralized at the RAM plant in Medias, Transylvania. Rheinmetall has also established a joint venture with the state-owned company Pirochim Victoria to build a new propellant powder factory in Victoria (Brasov County), with investments estimated in approximately 535 million Euro.

The European Union's SAFE instrument promises member states with low-interest loans from a 150 billion funding pool, provided that at least 65 percent of the product value originates from EU countries or selected partner states.

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