Helsinki - Slovenia plans to downsize its armored vehicle procurement ambitions and renegotiate a contract with Patria. The Finnish defense company signed an agreement in 2006 to deliver 135 armored fighting vehicles (AFVs) by 2014.

However, Slovenia may now reduce its AFV buy by almost 50 percent to 70 units. The original order was worth $355 million.

The expected downsizing happens against a backdrop of an investigation, headed by police agencies in Slovenia and Finland, into allegations of possible corruption in the awarding of the contract to Patria.

Slovenia's defense minister told a meeting of the Parliament's Defense Committee on July 19 that the country's weakened economic situation is deteriorating and all ministries are being required to reduce spending and curb major investments in new equipment.

Slovenia's economic crisis saw GDP contract by 7.8 percent in 2009.

The country's economic hardship will see Slovenia cut defense spending from 1.63 to 1.47 percent of GDP in 2010. That effectively means the government will not be able to achieve its target of raising its defense spending to 2 percent of GDP, as pre-agreed with NATO.

Slovenia has so far taken delivery of 24 AFVs from Patria and is due to purchase a further three units in 2010. Some of the AFVs have been equipped with Nemo mortars and others with Elbit 30mm remote control weapon stations and Kongsberg Protector turrets.