Romania secures €16.68 billion EU defence funding deal

Business Forum
The European Commission (EC) has finalised the signing of the SAFE loan agreement with Romania.

Through this agreement, Romania will access €16.68 billion in European financing, the second-largest allocation in the European Union under the SAFE instrument, after Poland. The programme is designed for major investments in defence, strategic infrastructure and strengthening the European defence industry.

The SAFE instrument allows member states to access European loans under favourable conditions for urgent security and defence investments. For Romania, the financing covers equipment projects, military technology, associated infrastructure and strategically relevant transport projects. According to the plan submitted to the EC, the allocation includes approximately €4.2 billion for national road transport infrastructure, with the remainder dedicated to equipment and infrastructure projects in defence and security.

"The signing of the agreement by the EC confirms that Romania has completed the necessary steps on time to access one of the most important European financing programmes dedicated to security," said Finance Minister Alexandru Nazare. "We are talking about €16.68 billion that can support defence, strategic infrastructure, the national industry and jobs in sectors with high added value. Through SAFE, Romania is not only investing in defence and security, but creating perhaps the most important opportunity in recent decades for connecting Moldova to major European infrastructure."

Romania signed the agreement on 12 May 2026, based on government and presidential approval of the memorandum. The first drawdown can be requested in October 2026, with the loan availability period running until 31 December 2030. After the agreement enters into force, the EC can provide Romania with pre-financing of 15% of the loan, approximately €2.5 billion. Each tranche will have a 45-year maturity with a 10-year grace period.

RECOMMENDED
BID Romania joins €100 million fund for CEE growth companies
Finance

BID Romania joins €100 million fund for CEE growth companies

The Romanian Investment and Development Bank (BID) has committed €20 million to the Three Seas Initiative Innovation Fund, becoming the fifth national promotional institution to support the EIF-led investment vehicle targeting growth-stage companies across Central and Eastern Europe.

Romanias logistics market records 64% demand surge on nine months
Real estate

Romania's logistics market records 64% demand surge on nine months

Romania's industrial and logistics sector recorded strong growth in the first three quarters of 2025, driven by activity in the Bucharest area. Total leasing demand reached almost 640,000 sqm between January and September, up 64% compared to the same period last year, according to Colliers data.

Romania leads Europe in construction with 8% GDP share
Real estate

Romania leads Europe in construction with 8% GDP share

Romania's construction sector represents nearly 8% of GDP in the past four quarters, the highest share in the European Union, according to Eurostat data analysed by Colliers. This level significantly exceeds the EU-27 average of 5% and confirms construction's growing importance in the local economy. Romania also recorded the second-fastest post-pandemic growth in construction activity within the EU.

RECOMMENDED FROM THE HOME PAGE
Finance

IT Genetics debuts on BVB's AeRO market

IT Genetics, a Romanian provider of integrated professional IT solutions, began trading today on the AeRO market of the BVB under the ticker symbol ITG.

Industry

TotalSoft expands in Republic of Moldova

TotalSoft, a global provider of software solutions for business operations management, is expanding its presence in the Republic of Moldova through a partnership with local company NetSafe.

READ MORE
Business Forum  |  21 May, 2026 at 5:30 PM
Business Forum  |  21 May, 2026 at 1:45 PM