The European SAFE instrument represents a major opportunity for the development of the defence industry in Romania, by attracting investments, technology transfer and increasing the localisation of production, the acting Minister of Economy, Irineu Darau, said on Monday, after a meeting with representatives of trade unions, employers' associations, privately-owned companies and state-owned companies in the defence sector.

'Today we had the opportunity to dialogue among representatives of trade unions, representatives of employers' associations, representatives of privately-run companies, representatives of state-owned companies about the future of the defence industry in Romania and, of course, about the SAFE instrument (Security Action for Europe). I think we have done an absolutely fundamental exercise of open dialogue. We had a presentation of the general principles and architecture of SAFE, explaining the phase in which we are related to this process and the roles of each institution. We conveyed the important idea that we must make a journey together. I wish that, beyond certain political instabilities, this dialogue between institutions and the private sector, respectively state-owned companies and possible investors, will continue. It is very important to continue the discussions among them, because SAFE is a big, huge opportunity, but the horizontal and vertical opportunity, beyond 2030, is even greater,' said Darau.

According to him, SAFE could represent about 1% of Romania's GDP annually, with the objective being that at least half of the funds are spent in Romania.

'The SAFE means about 1% of Romania's GDP, annually, if we make a calculation, because it is a four-year programme. Compared with Romania's commitments to spending in the defence industry, we have even more to spend - while under SAFE we manage to impose about 50% real localization, measurable in Romania, I can only wish in the future that every percentage of GDP spent on defence has the same principle in which at least half can be spent in Romania. Very honestly, and that is what I have conveyed to all the participants, until May 31 we cannot have 100% certainty about anything. There are, of course, advanced discussions, negotiations. You know that some proposals have passed through the CSAT (Supreme Council for National Defence), through the defence commissions. We are working intensively to finalize these proposals,' Darau added.

He said that the Ministry of Economy proposes cooperation conditions to maximise the localisation of production in Romania under SAFE projects.

'The Ministry of the Economy had the role and continues to have the role of proposing the cooperation requirements, that is, to make realistic proposals, so that in four and a half years we will obtain the maximum percentage, I would say, of localisation in Romania. And that's what we did, product by product, project by project.'

In Sarau's opinion, expectations must be 'very realistic'. At the same time, the rejected the idea of a completely isolated defence industry, stating that SAFE aims to attract investments, technology transfer and develop production capacities in Romania.

'There are some statements in the public space that suggest that we could have the national defence industry isolated from the rest, that we could do 100% localisation, not receive technology from anywhere. I say that it is a false narrative. It is a narrative that, before the SAFE happens, wants to impregnate the environment with disappointment. We believe that we are doing exactly the right thing under SAFE. We really attract foreign investments, we meet local production, we have production facilities, they are not necessarily perfect, and they do not always have the latest technologies. We are trying to make sure that in four and a half years we will have new technologies in Romania, technology transfer including licenxes, as much as possible, and the development of human capital,' the minister added.

According to him, SAFE is an essential instrument for the common defence of Europe, which allows Romania to access financing on more advantageous terms than those on foreign markets.

'Another thing I want to say, because there are also some narratives from my point of view, these from the east, which say that we should not have SAFE. These narratives mean that we are left defenseless. SAFE is an instrument for the common defence of Europe, it is an instrument through which Romania will indeed take out loans, but at 3% interest, when Romania is somewhere at 7%, with a 10-year grace period and up to 45 years repayment period. Let's not forget that any percentage of GDP spent on defence or other areas in Romania, if we count it on the deficit side and loans, we borrow at Romania's costs. Therefore, the fact that, for the second time after the PNRR in the entire history of the European Union, European states mutualise their loans and bring down interest rates is a net benefit for Romania,' said Darau.





The minister stressed that Romania does not have such capital at its disposal, if such European instruments do not appear.

'We have to fight for them. It is, I think, a milestone victory: that the second allocation in terms of amount is for Romania, that we were on the first list approved by the European Commission and I hope it will be a victory before the end on May 31, if we meet all the deadlines. It is very important, because if May 31 passes, the only possibility will be joint procurement, where we will no longer have such a difficult word to say on location in Romania.'

Darau on Monday attended an event organised by the Ministry of the Economy, Digitaliation, Entrepreneurship and Tourism, with the theme 'What does SAFE mean for Romania's economy'.

The event took place ahead of preparations for Black Sea Defence & Aerospace 2026 and brought together representatives of the defence industry, specialised organisations and chambers of commerce, as an open dialogue on the evolution of the sector and development opportunities.

According to MApN, the Security Action for Europe - SAFE Program represents a special opportunity for Romania to complete its Army capability needs in an accelerated way, starting from the Army Endowment Plan (PIAR) approved by the CSAT and Parliament.

On May 5, 2026, the Government approved in a memorandum, the signing of the Loan Agreement (Action for Europe's Security Instrument - SAFE) between the European Commission and Romania, worth EUR 16.68 billion) by the Minister of Finance. After being signed, the loan agreement will be approved by law, according to the legislation on public debt. AGERPRES (RO - editing by: Nicoleta Banciulea; EN - writing by: Corneliu-Aurelian Colceriu)