Romania included in group of countries set to receive EUR 28 billion to ease costs of Ukraine war
Romania is among the nine countries set to receive a funding package worth EUR 28 billion created by the European Union. The package is meant for states bordering Russia, Ukraine, and Belarus, in the context of the economic and security…
Radu Dumitrescu · Journalist
· Updated · 2 min read
Romania is among the nine countries set to receive a funding package worth EUR 28 billion created by the European Union. The package is meant for states bordering Russia, Ukraine, and Belarus, in the context of the economic and security effects generated by the war in Ukraine, Euronews reported.
Aside from Romania, Finland, Estonia, Latvia, Lithuania, Poland, Slovakia, Hungary, and Bulgaria will benefit from the package.
The initiative, which targets areas affected by reduced investments, population decline, and disruption of cross-border activities, aims to relaunch investments, support border regions affected by demographic decline, and strengthen resilience against hybrid threats.
The central element of the strategy is EastInvest, a mechanism that will provide loans worth EUR 28 billion, in cooperation with the European Investment Bank and the World Bank, to relaunch investments and economic activity in the affected regions.
"This Communication has been developed together with the territories and their communities to ensure they remain vibrant places to live, work, grow, and stay competitive," said Raffaele Fitto, Executive Vice-President for Cohesion and Reforms, cited by Euronews.
The strategy also includes the “anti-drone wall” to strengthen border security, support for integrating the Baltic electricity networks into the broader European grid, as well as educational and employment programs aimed at combating population decline in border areas.
The allocation of funds among member states has not yet been established. EU officials are set to meet with representatives of the member states at an EastInvest event scheduled for the end of February.
The fund comes to supplant the defense-oriented SAFE mechanism, under which Romania can access more than EUR 16 billion for military expenses, the second-largest allocation among EU member states, after Poland. The funds are borrowed by the state and repaid starting in 2035 over a period of 30 years, at an interest rate capped at around 3%, which the authorities described as highly advantageous.
(Photo source: Marian Vejcik|Dreamstime.com)
