Romania received a first payment of EUR 2.5 billion under the European Union’s Security Action for Europe (SAFE) defense instrument, the European Commission and the Romanian government announced. The pre-financing represents 15% of the country’s total EUR 16.68 billion allocation.

The funds will be used to begin developing production capacities in Romania and secure orders for Romanian suppliers, according to the government.

Romania has received the second-largest allocation among EU member states under SAFE. Its plan includes approximately EUR 4.2 billion for strategic road transport infrastructure, while the remainder will finance defense and security procurement and infrastructure projects.

Each tranche, including the pre-financing payment, will have a maturity of 45 years and a ten-year grace period, the government said. Further payments will be made as Romania meets the agreed commitments and implementation milestones.

“Today’s EUR 2.5 billion payment to Romania under SAFE is a major milestone for European defense and a more sovereign Europe,” European commissioner for defense and space Andrius Kubilius said, as quoted in the European Commission’s press release.

“This funding will strengthen Romania’s defense capabilities and industrial base, while contributing to Europe’s overall security,” he added.

SAFE is a EUR 150 billion EU financial instrument that provides loans to member states for major defense investments. It primarily supports joint procurement of ammunition, missiles, air defense systems, and ground combat equipment produced within the EU.

The instrument is part of the European Commission’s ReArm Europe/Readiness 2030 plan, which aims to mobilize more than EUR 800 billion in defense investment across the bloc.

SAFE is financed through EU borrowing on financial markets, allowing member states to access competitively priced, long-term loans backed by the EU’s credit rating.

irina.marica@romania-insider.com

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