Romania signed a €16.7bn financing agreement with the European Commission under the EU-backed SAFE defence financing scheme, securing one of the bloc’s largest allocations for military procurement and strategic infrastructure projects, the Finance Ministry announced on May 22, according to Digi24 and Libertatea.

European Commissioner for Budget Piotr Serafin signed the agreement, which grants Romania access to long-term low-interest loans available until the end of 2030.

Under the agreement, Romania will receive an initial pre-financing tranche of 15%, equivalent to approximately €2.5bn, once the arrangement formally enters into force. The first payment request is scheduled for October this year.

The loans will carry maturities of up to 45 years and include a grace period of 10 years.

“SAFE is not just a financial instrument, but an investment in Romania's security and resilience,” acting Finance Minister Alexandru Nazare said.

According to the ministry, the financing will support defence procurement, military technology, strategic infrastructure and projects linked to the consolidation of Europe’s defence industrial base.

Of the total amount, around €4.2bn is earmarked for national transport infrastructure projects, while the remainder will finance defence and security-related investments.

Minister Nazare said the programme could significantly accelerate infrastructure development in Romania’s eastern Moldova region.

“Through SAFE, Romania is not only investing in defence and security, but is also creating perhaps the most important opportunity in recent decades to connect Moldova to the major European infrastructure,” he said.

The agreement comes despite an ongoing constitutional dispute regarding the domestic legislation required for the implementation of SAFE-financed procurement contracts.

The ordinance adopted by the interim government of Prime Minister Ilie Bolojan was challenged before the Constitutional Court both by Ombudsman Renate Weber and by Social Democratic Party (PSD) leader and Chamber of Deputies President Sorin Grindeanu.

Grindeanu argued that the interim government exceeded its constitutional powers after losing parliamentary backing, while the government maintains that it merely re-approved a previously adopted ordinance in line with recommendations from the Legislative Council.