By allocating 16.68 billion euros, European Commission recognizes Romania's role in strengthening safer Europe

   The sum of 16.68 billion euros allocated to Romania by the European Commission through the new financial instrument "Security Action for Europe" (SAFE), is the second-largest amount distributed to a member state, after Poland, within this strategic program, the Ministry of Finance informs in a press release sent on Tuesday.SAFE, a European instrument with a total value of 150 billion euros, is created to support member states to make rapid and important investments in the defense industry and technology. Through loans with advantageous interest rates, Romania will be able to finance essential projects for the modernization of military equipment and for the development of its own production capacity."The allocation of 16.68 billion euros confirms that the European Commission recognizes both the security needs and Romania's active role in consolidating a safer Europe. This money represents major support for the modernization of the military system and for the development of the industry in this field, at a time when strengthening national security is vital. We obtained this financing through intense negotiations, without putting additional pressure on the national budget, which is essential in the current economic context. At the same time, these funds allow us to guarantee greater security to Romanian citizens, in a period marked by major geopolitical challenges," Minister of Finance Alexandru Nazare said.SAFE is a temporary emergency instrument, operational until December 31, 2030, which offers loans with a maximum maturity of 45 years and a grace period of 10 years. Depending on the state's option, a pre-financing of 15% of the loan may also be granted.Financing under this instrument also has the role of stimulating a common approach for the urgent acquisition of products for defense needs in a manner that strengthens the European defense industry, security of supply, interoperability of forces and equipment."The Ministry of Finance will continue to collaborate with the other ministries involved to finalize the necessary documentation and to ensure a rapid and efficient absorption of the funds, in accordance with the strategic security objectives of Romania and the European Union", the cited source emphasizes.The European Commission on Tuesday adopted the provisional allocation of 150 billion euros in financial assistance to strengthen defence preparedness across the Union.According to a release from the European Commission, this major step, taken under the Security Action for Europe (SAFE) programme, is designed to boost the EU's defence capabilities and help member states address critical gaps and jointly procure defence products.Following its adoption by the Council in May 2025, the SAFE programme has attracted strong interest, with 19 Member States expressing their intention to participate and requesting support beyond the available budget. SAFE will provide long-term, low-cost loans to help Member States acquire urgently needed defence equipment. SAFE will also allow the EU to continue supporting Ukraine by associating its defence industry to the instrument from the outset. The programme includes a 10-year grace period for loan repayment, competitive interest rates and options for bilateral agreements with third countries to extend eligibility. Member States can now prepare their national investment plans, outlining the use of possible financial assistance, to be submitted by the end of November 2025. The Commission will then assess these national plans, with the aim of making the first payments at the beginning of 2026, the EC release said.The SAFE Regulation was adopted on 27 May 2025, as part of the "Preparation 2030" package, a defence package that provides financial leverage to EU member states to stimulate a sharp increase in investment in defence capabilities.