Romania defense procurement scandal threatens €9 billion SAFE contracts

The Romanian Ministry of Internal Affairs awarded a €816.6 million contract for the Individual Weapon System (SAI) to a consortium led by the U.S. firm SIG Sauer, despite objections from European manufacturers that the bid violated EU SAFE programme rules on ownership and component limits. Companies such as Beretta, FN Herstal, Heckler & Koch and Ceska Zbrojovka complained about a lack of transparency and the ineligibility of SIG Sauer, whose main activities and intellectual property remain in the United States.

At the same time, the Ministry of Defence is under pressure to sign the remaining SAFE contracts before the end of the week. Of the 15 contracts funded by an EU loan of nearly €9 billion, only three have been signed. Failure to meet the deadline could cause Romania to lose access to billions of euros earmarked for modernising its armed forces. Negotiations have stalled as some defence firms have increased their prices beyond the amounts approved by parliament, prompting the minister to reject the hikes. The pending contracts cover battle tanks, naval vessels, helicopters, drones and missile launchers, raising concerns about both cost overruns and the suitability of the selected equipment for future conflicts.