Romania's massive EU defence loan under fire over costs and broken promises
Romania stands to borrow €16.6bn under the EU’s SAFE defence programme — but analysts, generals and the country’s own state arms maker are warning that most of the money will flow abroad.
Romania is the second-largest recipient of EU defence loans under the SAFE (Security Action for Europe) instrument, with €9.5bn set aside for 21 military procurement programmes.
But as the first contracts take shape, a string of reports has raised questions about inflated prices, unrealistic deadlines and how little of the work will actually be done on Romanian soil.
A Monitorul Apărării investigation found that just two of the 16 programmes in the first procurement package are manufactured entirely in Romania — Thales Gap Filler radars and Rheinmetall 35mm ammunition produced at the Sadu plant.
The remaining programmes have at most 60% domestic content, likely limited to assembly and some communications equipment.
The same report flagged striking cost differences. Two patrol ships are priced at around €400m each — roughly double what comparable vessels cost elsewhere. Bulgaria paid a similar total for two ships, and Romania itself bought a Turkish-built corvette last year for €223m.
The report also questioned a decision to hand the selection of future Army small arms to the Ministry of Interior, which has no combat expertise. Italian manufacturer Beretta publicly demanded “a transparent and competitive selection.”
The head of Romarm, Romania’s state-owned arms company, told Ziarul Național that Romanian firms would receive “not a single cent” from the programme.
He warned that foreign companies might set up factories to fulfil contracts, then leave within a decade — while Romania continues repaying the loan for another 30 to 40 years.
Time is of the essence
The loan is structured over 45 years with a 10-year grace period, interest will add €7–8bn, bringing the total repayment to roughly €16bn — nearly double the borrowed amount. All equipment must be delivered by the end of 2030.
All 21 procurement contracts must be signed by the end of May 2026. As of late February, only one had been finalised — a €626m deal for Mistral portable air defence systems.
Missing the deadline could mean losing access to billions in EU funding.
