Plans for 2005 provide for a more compact, effective, and flexible structure that is compatible with NATO standards and has a maximum strength of 112,000 military personnel and 28,000 civilians. The reform of the industry, which emphasizes restructuring and privatization, is still in its initial stages. Because of great economic difficulties at a time of transition to a market economy, Romania has kept annual budget allocations for its defense sector at a very low level. It is estimated that, in recent years, Romania s annual defense budgets covered only about 25 percent of needed procurement. The most important officials involved in decision making on military procurement are the Minister of National Defense, the Chief of the General Staff, and the Head of MND's Procurement Department.
Military procurement is conducted via tenders open to both domestic and foreign suppliers.
In the course of contract negotiation, inviting Romanian experts and MND officials to see production facilities and demonstrations of equipment is a normal procedure. Romtehnica, an import-export company under the MND, allows MND to contract directly with foreign companies. Romtehnica experts play an important part in contract negotiation. Army Building a modern communication system. Investment in this area is an absolute priority for the Romanian army, the main focus being on ensuring interoperability with PFP and NATO forces in multi-national operations.