Romania to re-negotiate EADS border security contract

Romania will re-negotiate a contract for border security hardware awarded to European aerospace giant EADS without competition, Prime Minister Calin Tariceanu said Tuesday.

"The contract with EADS will be renegotiated because it duplicates programs already financed by the European Union to increase border security", Tariceanu said.

He added that a review of the contract, worth approximately one billion euros (1.3 billion dollars), would also mean that Romania would "pay the correct price".

Furthermore, the Romanian premier promised to reveal details of the deal, which had been classified as secret by the previous Social-Democrat government of Adrian Nastase, so that "its clauses are known to the authorities and the public".

The contract with the European Aeronautic Defense and Space companyto provide software, radars, helicopters and naval vessels was signed during a visit to Bucharest by German Chancellor Gerhard Schroeder in August.

The centre-right government of Tariceanu, named in December, has promised to review a number of contracts granted without competition, including a 2.5 billion euro highway construction deal with the US company Bechtel.

Romania hopes to join the European Union in 2007.