Romania has received €2.5 billion in its first payment under the EU’s Security Action for Europe (SAFE) defence instrument, equal to 15% of the country’s total allocation of €16.7 billion.
SAFE is a €150 billion loan programme for EU member states, with funding focused on joint purchases of ammunition, missiles, air defence and ground combat systems produced within the EU, the European Commission informed on Wednesday.
The scheme forms part of the Commission’s ReArm Europe/Readiness 2030 plan, which it says is intended to unlock more than €800 billion in defence investment across the bloc.
The €2.5 billion payment was described as “pre-financing” and will be used by Romania for defence investments and military modernisation.
Andrius Kubilius, the European Commissioner for Defence and Space, said the funding would “strengthen Romania’s defence capabilities and industrial base” and contribute to Europe’s overall security.
How SAFE is funded and what happens next
The payment was made after all required procedural steps were completed, the Commission said.
Further payments to Romania are expected to follow as milestones are met and implementation progresses.
SAFE is financed through EU borrowing on financial markets, which the Commission said allows long-duration loans priced on the back of the EU’s credit rating.
