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.