EU countries will be able to benefit from reduced interest loans for the production of common armament or purchases, through a program worth 150 billion euros. Security expert Marius Ghincea analyzes the impact of this project for Romania.
The Romanian army needs modern armament. Photo: FB/Mapn
The Council of the European Union adopted on Tuesday, May 27, 2025, a regulation for the establishment of the action for Europe (SAFE), a new financial tool that will support the Member States willing to invest in industrial defense production through common acquisitions, focused on priority capacities.
Safe will finance urgent and large -scale urgent investments on the technological and industrial European defense basis (EDTIB).
The objective is to stimulate the production capacity, ensuring the availability of defense equipment in case of necessity, as well as the intervention in the existing capacity gaps, ultimately strengthening the general training of the EU.
Also, Safe will allow the Union to continue to support Ukraine, associating its defense industry from the new tool.
Ghincea: “The size of the budget deficit puts us in the position of not being able to really enjoy this program”
“The EU's arming program represents a first step in what is announced a more ambitious policy on common defense. However, the impact will be limited to most EU countries. 150 billion, in the form of loans, does not represent much money, given the real needs of the European Defense Industry.”says the political scientist Marius Ghincea, an expert in security at ETH University in Zurich (Switzerland) and at the European University Institute.
For Romania, the effects are even more limited due to the huge budget deficit.
“And in the case of Romania, the only advantage is that we can get money with lower interest than we could if we borrow directly from the financial market. But even so, the size of the budget deficit puts us in the position of not being able to really enjoy this program because any additional loan adds to the budget deficit“, The expert said.
Good news for Ukraine
Safe also comes with good news for Ukraine, which will be treated as a Member State, as the countries of the European Economic Area. These not only will be able to participate in common acquisitions, but they will be able to make purchases from their industries.
It is the second very good news that Ukraine receives in a short time. On Monday, May 26, the restrictions on the use of the armament received from the West were raised.
“The impact of this decision of the Western partners is to release Ukraine's ability to hit deep inside Russia. This will increase the economic impact and on the military infrastructure in Russia. It is important for Ukrainians to destroy the military production factories used to build the rockets with which the Ukrainian cities are attacked. Direct implication, a reduction in the capacity of the Russians to destroy the Ukrainian cities and an increase in the visible cost of the war for the ordinary Russian. “says the expert.
Ghincea remains reserved in terms of the other effects of the measure: “In connection with other implications, it is difficult to determine how decisively the dynamics of the conflict will change as a result of this decision. It remains to be seen how the Russians will answer, who will probably want to climb”.
What Safe contains
“We have adopted the first large -scale EU investment program, worth 150 billion euros. This is an unprecedented tool that will stimulate our defense capabilities and support our defense industry. The more we invest in security and defense, the more we will discourage those who will hurt us.” said the Polish minister for the EU Adam Szlapka.
According to the cited publication, regarding the operating mode of Safe, the Council shows that through the respective EU instrument provides 150 billion euros, which will be paid on request to interested Member States, based on national plans.
Payments will be made in the form of long -term loans with competitive costs, which will be repaid by the beneficiary states. In order to ensure the economies of scale and interoperability and to reduce the possible fragmentation of EDTIB, the beneficiary states will in principle make common acquisitions, in which at least two participating countries will be involved, in order to qualify for credits.
As a reaction to the current geopolitical situation and to the urgent need for massive investments in defense equipment, SAFE will allow for a limited period and acquisitions in which a single Member State is involved.
Regarding the involvement of third countries, Safe opens a new chapter in cooperation with them. Ukraine and the countries of See -Aels (European Economic Area – the European Free Trade Association) will be treated just like Member States. Not only will they be able to participate in common acquisitions, but they will be able to make purchases from their industries.
Safe will also allow adherence countries, candidate countries, potential candidates and countries who have signed security and defense partnerships, such as the United Kingdom, to participate in common acquisitions.
Moreover, SAFE offers the opportunity to conclude additional bilateral or multilateral agreements with these third states, according to which eligibility conditions will be opened.
Two categories of defense products
The eligible actions financed by Safe must be related to the first list of priority areas identified by the European Council on March 6, 2025 and are divided into two categories of defense products.
The first category includes ammunition and missiles, artillery systems, including high precision hit capabilities, terrestrial fighting capacities and support systems, as well as infantry equipment and armament; Also, the protection of critical infrastructure, computer science and military mobility, including counter-mobility.
The second category includes anti -aircraft and missile defense systems, surface and submarine capacities, drones and anti -drone systems, strategic support such as – but without limiting to them – strategic air transport, flight supply, C4 Istar systems (control, control, communications, computers (C4), information, information, information, spatial assets and services, protection of spatial assets, artificial intelligence and electronic war.
Safe is the first pillar of the Rearm Europe/Readiness 2030 plan of the European Commission, which proposes to amplify the defense expenses to 800 billion euros.
Ursula von der Leyen: “Europe has to re -enter”
Europe must be imperative and quick to re-start to have a “credible discouragement” by 2030, said the President of the European Commission on March 18, 2025, Ursula von Der Leyen, in a speech at the Danish Royal Military Academy in Copenhagen.
“By 2030, Europe must have a solid European defense position,” said the head of the Community Executive, in a speech at the Danish Royal Military Academy in Copenhagen, informs AFP and Reuters, quoted by Agerpres.
“Preparation 2030 means being re -armed and having developed capabilities to have credible discouragement. Preparation 2030 means to have a defense basis that is a strategic advantage. But to be” prepared in 2030“, We must move now,” said Ursula von der Leyen.
