Romania adopts legal framework for EU’s SAFE – unlocking EUR 16 bn for defence and strategic investment

Romania adopted Law no. 4/2026 approving Government Emergency Ordinance no. 62/2025, which provides for measures implementing Council Regulation (EU) 2025/1106 establishing the Security Action for Europe (SAFE) instrument (GEO 62).

This legislative framework sets out Romania’s internal procedural and procurement measures required for accessing EU SAFE funds. The EU has allocated approximately EUR 16.68 billion for Romania under SAFE—the second-largest share among EU member states—both to strengthen defence capabilities and to fund critical infrastructure.

The framework defines the responsibilities of Romania’s relevant public authorities to ensure the effective use of SAFE funds for urgent and major public investments in the defence industry. It also establishes the applicable public procurement conditions.

The SAFE programme offers long-term favourable loans, with extended maturities and grace periods intended to ease budgetary pressure while defence modernisation takes place.

GEO 62/2025 as approved through Law no. 4/2026 does the following:

• implements key operational requirements of the SAFE regulation into Romanian law by defining roles and responsibilities of public authorities involved in coordination, planning and implementation of projects eligible under SAFE;
• regulates institutional cooperation between ministries, the Supreme Defence Council and other relevant bodies, ensuring compliance with EU procedures and reporting obligations;
• introduces specific public procurement rules for defence and security procurement that falls within the scope of SAFE, including special provisions recognising the urgency criteria resulting from current security challenges;
• provides the procedure to set forth the conditions for industrial cooperation, supporting localisation of production and the participation of domestic industry in strategic investments funded by SAFE; and
• introduces special rules and exemptions applicable to procurement award procedures for projects funded through SAFE funds, departing from the rules generally applicable to other defence-related projects, including exemptions from offset regulations otherwise in place under defence procurement legislation.

Romania’s Investment Plan has been approved by the European Commission. Romania intends to allocate the EUR 16.7 billion available to a broad set of defence-related and strategic objectives, combining military modernisation with industrial and infrastructure development.

A substantial share of the funding is expected to support the acquisition of advanced defence equipment and the strengthening of national defence capabilities, while simultaneously fostering the domestic defence industry through investments in local production capacities and deeper integration into European supply chains.

Romania also plans to direct significant resources towards large-scale dual-use infrastructure projects, in particular strategic highway corridors designed to enhance military mobility and regional connectivity.

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