Romania’s parliament has approved defense contracts worth 8.33 billion euros ($9.8 billion) under the European Union’s SAFE re-armament initiative, clearing a key procedural step ahead of a May 31 deadline, Defense Minister Radu Miruta said.
The approval allows Romania to move forward with its participation in the EU-backed program, which is designed to increase defense spending across the bloc through low-cost long-term loans.
EU-backed funding for military modernization
Romania is set to access up to 16.6 billion euros from the SAFE scheme between now and 2030. The wider EU initiative totals 150 billion euros and is aimed at strengthening defense capabilities among member states.
While the bulk of the funding will support military procurement, Romanian authorities also plan to channel part of the resources through the interior and transport ministries. These funds will be used for helicopters, radar systems and infrastructure projects, including transport links to Ukraine and Moldova.
Miruta said the program would help safeguard the Romanian army amid concerns over political instability.
Major European defense contractors involved
A significant share of Romania’s contracts under SAFE will go to Germany’s Rheinmetall, which is expected to receive around 5 billion euros in deals.
The projects include a munitions ignition powder factory, infantry fighting vehicles, Skynex air defense systems and tanks. Rheinmetall will also take over the bankrupt Romanian state-owned Mangalia naval shipyard through its Naval Vessels Lürssen unit, where four corvettes are expected to be built for the Romanian military by 2030.
France’s Airbus will also participate, with contracts to produce helicopters in Romania for multiple EU countries, according to the defense ministry.
Regional security concerns persist
Romania, an EU and NATO member, shares a 650-kilometre land border with Ukraine and has faced increasing security pressure since the start of the conflict.
Authorities have reported repeated incidents involving Russian drones entering Romanian airspace, as Moscow continues strikes on Ukrainian port infrastructure near the Danube River and as naval mines disrupt Black Sea trade and energy routes.
Eight of the approved contracts will include radar systems and anti-drone technology, reflecting growing concerns over aerial threats in the region.
