Rheinmetall’s Romanian aid sparks share plunge and loss of shipyard control

According to AUR senator Petrișor Peiu, Rheinmetall benefitted from a significant rescue package provided by the Romanian government, yet its market credibility suffered, reflected in a 40% decline in its share price this year. Peiu outlines a plan orchestrated by interim Prime Minister Ilie Bolojan, whereby state borrowing under the SAFE program was channeled to Rheinmetall, allowing the firm to acquire the Mangalia shipyard.

The shipyard, previously owned by Damen, entered bankruptcy after a failed restructuring attempt and was sold at a reduced price, after multiple auction rounds. Consequently, the Romanian state forfeited any control over the shipyard, which holds major strategic value for NATO’s eastern operations. Peiu criticises the government for prioritising such deals over domestic spending cuts, such as reductions in teachers’ salaries and student scholarships.