Romania secures €16.68 bn EU SAFE loan for defence and infrastructure
The European Commission signed a Security Action for Europe (SAFE) financing agreement with Romania on 21 May, providing the country with €16.68 billion in low‑interest loans—the second‑largest allocation after Poland. The funds are earmarked for modernising the Romanian armed forces, strategic transport projects and strengthening the European defence industry.
Key terms include a 10‑year grace period, a 45‑year maturity, and a 15 % pre‑financing tranche of roughly €2.5 billion. About €4 billion will support road‑infrastructure projects in the Moldavia region, notably the Pașcani–Suceava–Siret and Pașcani‑Iași‑Ungheni motorways. The loan will be available until the end of 2030, with the first draw‑down expected in October 2026.
Prime Minister Ilie Bolojan highlighted five advantages: accelerated army modernisation, financing costs half of market rates, completion of the Moldavian highways, technology transfer to domestic defence firms, and revival of the national defence industry with new jobs. The Defence Ministry plans 21 procurement projects worth about €9.6 billion, including air‑defence and anti‑drone systems.
Domestic legislation on procurement contracts has been referred to the Constitutional Court, reflecting political scrutiny of the programme.