Romania seeks to modernize defense industry via EU SAFE program

Romania is positioned to receive approximately 16.68 billion euros through the European SAFE program, the second-largest allocation among member states after Poland. The program provides long-term loans on favorable terms to accelerate investments in military capabilities and the European defense industrial base.

Cristian Popa, a member of the Board of Directors of the National Bank of Romania, noted that the program offers a way to fund military modernization and infrastructure during periods of fiscal consolidation. The funding is seen as a necessity due to the proximity of the war in Ukraine and the increasing need for regional security.

However, the state-owned Romarm National Company, which oversees 15 subsidiaries producing ammunition, explosives, and artillery, faces internal challenges. Despite exporting 314 million euros worth of military equipment in 2025, reports indicate issues with mismanagement, political patronage, and corruption within some subsidiaries, including instances where factories have failed to deliver equipment for years despite receiving taxpayer funds.