Romania’s Eur16.68 Billion Allocation: A new Era for Infrastructure and Strategic Development

Investor Briefing

Romania has entered a new chapter in its development journey. On September 9, 2025, the European

Commission announced that Romania will benefit from €16.68 billion under the Security Action for Europe (SAFE) program — the second-largest allocation among EU member states.

This unprecedented financing comes at a time of heightened geopolitical challenges and positions Romania as a key contributor to European defense and regional stability.

SAFE loans carry highly preferential terms (10-year grace, up to 45-year maturity, 15% pre-financing option) and will support:

• Modernization of Romania’s armed forces through equipment procurement.

• Expansion of domestic defense manufacturing capacity, integrating Romania into the EU’s

  defense supply chain.

• Dual-use infrastructure development, especially highways A7 and A8 in the northeast.

Defense & Industrial Impact

• Five-year procurement plan aligned with EU partners.

• Establishment of new defense production facilities in Romania.

• Recent projects highlight momentum: 

– €535m Rheinmetall gunpowder plant in Victoria, Brașov county. 

– Expansion of Lynx infantry fighting vehicle production in Mediaș. 

– Increased domestic ammunition output.

• Strengthens Romania’s position as a regional defense manufacturing hub.

Infrastructure Priorities

• SAFE will co-finance dual-use transport projects critical for both civilian mobility and NATO logistics: 

– A7 Highway: Pașcani – Suceava – Siret (to Ukraine border). 

– A8 Highway: Pașcani – Iași – Ungheni (to Moldova).

• Essential for cross-border trade, EU integration, and regional reconstruction logistics.

Financial Advantages

• EU-backed loan terms significantly below Romania’s independent borrowing cost.

• Long repayment horizon (45 years) stabilizes fiscal planning.

• No immediate budgetary pressure, given the 10-year grace period.

• 15% pre-financing option accelerates early project rollouts.

Investor Opportunities

• Dual-use infrastructure PPPs with long-term EU security backing.

• Joint ventures in defense production, R&D, and supply chain integration.

• Strategic positioning in Eastern Europe’s reconstruction corridor for Ukraine and Moldova.

• Partnerships with global defense leaders already active in Romania (e.g., Rheinmetall).

Conclusion

The SAFE program is more than a loan mechanism — it is a strategic enabler for Romania’s transformation. With €16.68 billion, Romania is poised to modernize its armed forces, build a resilient defense industry, and deliver infrastructure that will secure both its citizens and Europe’s eastern flank.

For investors and partners, this represents a rare EU-backed gateway into defense-industrial projects and critical infrastructure at the heart of Europe’s frontier.

At Averon Consulting, we see the SAFE allocation as a catalyst for transformative infrastructure development. With expertise in PPP structuring, concession negotiations, and EU-funded project advisory, we are ready to support stakeholders — governments, investors, and private partners — in unlocking the full potential of SAFE-backed infrastructure.

The SAFE program is not only about defense; it is about building the resilient, connected, and modern Romania of tomorrow. Averon Consulting stands at the forefront of this transition, bridging strategy with execution for projects that matter.

We are committed to guiding investors, governments, and private partners in unlocking the full potential of Romania’s SAFE program.