Romania secures €16.68 billion for defense and economic growth

President Nicușor Dan has signed the decree that endorses the law approving the urgent government ordinance establishing the 'Action for the Security of Europe' (SAFE) instrument. This significant step opens the door for Romania to receive €16.68 billion for its defense needs.

The legislative framework created by this act ensures the effective and timely use of this financial assistance. The funds are provided by the European Commission through the SAFE instrument, which aims to facilitate investments in the European defense industry within the 2026 budgetary exercise.

Notably, the implementation of this program can commence even before the approval of the state budget for 2026, allowing Romania to accelerate its defense initiatives. On June 4, the Constitutional Court of Romania confirmed the constitutionality of the ordinance, dismissing objections raised by 53 deputies.

The SAFE agreement brings a comprehensive package of benefits aimed at strengthening defense capabilities while fostering economic development. With a total value of approximately €150 billion, the European financing mechanism allows Romania to access favorable loans for military equipment acquisitions.

In addition to bolstering national defense, the program supports domestic defense industry growth through technology transfer. It also plays a crucial role in job creation and revitalizing existing industrial capacities.

The program includes strategic infrastructure investments, incorporating military and regionally relevant transport projects. These projects feature vital highways and critical connections with Moldova and Ukraine, enhancing both defense readiness and regional cooperation.