EU signs SAFE agreement with Romania

The European Commission (EC) has signed the SAFE (Security Action for Europe) agreement with Romania, the Romanian Ministry of Finance announced in a statement sent to BTA.

This will give the country access to EUR 16.68 billion for defence and strategic infrastructure - the second-largest loan in the EU under the instrument after Poland's, CE Report quotes BTA.

"Through SAFE, Romania is not only investing in defence and security but also creating perhaps the most important opportunity in recent decades to connect Moldova to the main European infrastructure," the Romanian Ministry reported.

SAFE is the EU's new financial instrument that allows member states to access European loans on preferential terms for urgent investments in security and defence. For Romania, the financing covers projects for equipment, military technology, related infrastructure, and transport projects of strategic importance.

According to the plan submitted to the EC, the allocation includes approximately EUR 4.2 billion for road transport infrastructure of national interest, with the remainder allotted for defence and security equipment and infrastructure projects, CE Report quotes BTA.

"We have also established a separate mechanism that will allow citizens to transparently follow how much is being invested annually in motorways and infrastructure until 2031," the Romanian Ministry further noted.

Once the agreement enters into force, the EC will grant Romania up-front financing amounting to 15% of the loan, namely approximately EUR 2.5 billion.

The Ministry of Finance will manage the funds disbursed, the Prime Minister's Office will provide overall oversight, and the beneficiary institutions will implement the projects and acquisitions undertaken through the Romanian Investment Plan.

Caretaker PM Ilie Bolojan said on his Facebook profile page that what is at stake is not only Romania's security, but also the country's ability to produce more in partnership with European industry.

"Without this loan, we would not have had funding for Moldova's motorways. Connectivity is a fundamental prerequisite for regional development, and the completion of work on the two sections will support the development of northern Romania and economic relations with Moldova and Ukraine," Bolojan added.

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