January 23, 2026

Romania Secures €16.68 Billion SAFE Funding After EU Approval of Defense and Infrastructure Plan

SAFE

Bucharest, The Gulf Observer: Romania’s plan under the European Union’s SAFE (Security Action for Europe) Program has been approved by the European Commission, marking a major step toward strengthening the country’s security and boosting its economy.

Romania is among the first wave of eight EU member states—alongside Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, and Portugal—to receive approval for strategic defense investments under the SAFE framework. The program runs until 2027, and following negotiations, Romania secured the second-largest allocation in the European Union, totaling €16.68 billion.

The funding will be provided primarily in the form of loans at very low interest rates, made possible by the European Commission’s strong credit rating. Officials said this mechanism offers Romania the opportunity to finance critical security needs at significantly lower costs than those available on conventional financial markets.

The approval follows the endorsement of national priorities by the Supreme Council of National Defence (CSAT) and the subsequent submission of Romania’s plan to Brussels. Authorities highlighted that the decision reflects a coordinated inter-institutional effort involving the Presidential Administration, the Prime Minister’s Office, and the ministries of Defence, Economy, Foreign Affairs, Finance, Transport, and Interior, both in Romania and at the EU level, as well as with partner countries.

Romanian officials emphasized that the initiative goes beyond the procurement of military equipment, focusing instead on long-term investment within Romania. The plan places strong emphasis on localization, with investments designed to involve the domestic supply chain, generate contracts for Romanian companies, and create specialized jobs.

Funding will also support the modernization of the national defense industry through advanced protection systems and technologies, as well as the development of dual-use infrastructure serving both military and civilian purposes. This includes financing for key transport projects, notably sections of the A7 and A8 motorways, aimed at improving connectivity between Moldova and the rest of the country and strengthening links with neighboring states.

Romanian authorities said work is already underway to complete the remaining technical procedures at the EU Council level, with the objective of ensuring that SAFE resources are deployed as swiftly as possible to support Romania’s defense capabilities and economic development.