Romania receives second-largest allocation in European Defence Fund

Business Forum

10 September, 2025 at 9:34 AM

The European Commission has committed €16.7 billion to Romania through the new Security Action for Europe (SAFE) financial instrument. This represents the second-largest allocation to an EU member state, following Poland, under the strategic €150 billion programme.

The funds will allow Romania to finance key projects for modernising military equipment and developing its domestic defence production capacity. The loans can have a maximum maturity of 45 years and a 10-year grace period, and states can also receive a pre-financing of 15%.

This initiative also aims to foster a shared approach to urgent defence procurement, strengthening the European defence industry and improving the interoperability of forces and equipment.

Alexandru Nazare, Minister of Finance, said: “This funding is a major support for modernising our military system and developing the defence industry, at a time when strengthening national security is vital. At the same time, these funds will allow us to provide greater safety for Romanian citizens in a period marked by major geopolitical challenges."

The SAFE instrument is a temporary emergency measure, set to be operational until the end of 2030.

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