Main headlines from this issue

Romania flouts defence directive, credits commercial offsets

Romania is still accepting indirect (commercial) offset projects despite Directive 2009/81/EC. Several defence contractors and service providers have told us of commercial projects with Romanian industry for which they have received offset credits. One contractor said: “Long may it continue.” Romania’s newly elected government removed the president of the Offset Office...

Brazil introduces “informatics law” with multipliers – tax breaks for compliance, penalties for non-compliance

Brazil has introduced an “Informatics Law.” The law provides tax incentives and regional multipliers for investment in R&D in the IT sector. Investments are mandatory for both foreign and local companies with a production unit in Brazil. The legislation is highly complex and published in Portuguese...

Germany to rely on Article 346 TFEU to favour domestic naval shipbuilding

Officials in Germany are finalising a policy to steer defence contracts to local shipyards. The move comes after the Bundeswehr awarded Damen the $6.7bn MKS-180 tender to build four frigates for the German Navy. Domestic industry criticised the decision to use a Dutch shipyard. The plan is to...

Australia to obligors: “We’re watching you!”

Australia’s Department of Defence has warned contractors that it is monitoring how they discharge their commitments. Melissa Price, Minister for Defence Industry, said the DoD will launch an assurance/audit process to check whether companies are leveraging Australian supply chains rather than using their own foreign supply chains.

Australian audit reveals submarine is project high risk

A new report by Australia’s auditor-general highlights technology transfer and local industry participation as key risk factors in the Future Submarine Program. The program has faced extensive delays. The audit report reveals that the DoD secretly considered walking away from the French submarine deal during protracted and at times bitter contract negotiations.