FinMin Nazare: Final negotiation for SAFE investment package

Romanian authorities are focusing, in the negotiations for the SAFE investment package, on solid planning, which should reflect the country's strategic priorities and confirm the Government's firm commitment to respecting the deficit trajectory, according to Finance Minister Alexandru Nazare.

"Final negotiation for the SAFE investment package. A snapshot from the latest negotiations on the SAFE program, created by the European Commission to support member states in modernizing their defense systems. Intense discussions at the Ministry of Finance with Commission's representatives, where we brought colleagues from the Ministry of National Defense, the Ministry of Transport and the Ministry of Internal Affairs to the same table. The joint efforts aim to maximize Romania's access to crucial funds for development and strengthening national security. A complex negotiation, which took into account the figures and the fiscal space related to these investments over the 2026-2030 horizon. We are focusing on solid planning, which reflects Romania's strategic priorities and, at the same time, confirms the Government's firm commitment to respecting the deficit trajectory. In this way, we ensure both the sustainability of public finances and the development of essential projects for economy and national security," the minister wrote on his Facebook account on Monday evening.

He stressed that it is very important for Romania that purchases under SAFE are exempt from VAT, and that loans are accessible and guaranteed by the EU budget, eliminating pressure on the national budget.

"We are on the border of a conflict that has already lasted for too many years, and increasing defense capacity is extremely important. The Commission will soon publish the allocation details for all member states, and we will closely monitor the impact of the spending," Alexandru Nazare said.

The EU Council adopted a regulation at the end of May establishing the "Security Action for Europe" (SAFE) instrument. SAFE is an EU financial instrument that will support member states that want to invest in defense industry production through joint public procurement focused on priority capabilities.

SAFE will finance urgent and large-scale investments in the European Defence Technological and Industrial Base (EDTIB). The aim is to boost production capacity so that defence equipment is available when needed and to close current capability gaps - ultimately strengthening the EU's overall defence readiness, according to a statement from the EU Council.

Through SAFE, the EU will provide up to 150 billion euros to interested Member States, upon request and based on national plans. Disbursements will take the form of long-term loans at competitive rates, to be repaid by the beneficiary Member States.

SAFE is the first pillar of the European Commission's "ReArm Europe Plan/Readiness 2030", which proposes to mobilize over 800 billion euros in defence spending.