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The Romanian parliament validates defense contracts worth 8.33 billion euros funded by the EU

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Romanian legislators approved defense contracts worth €8.33 billion (US $9.8 billion) on Tuesday to be funded as part of the new European Union armament initiative, SAFE, lifting the final hurdle before the May 31 deadline, the Defense Minister announced.

The country’s SAFE program was jeopardized this month following the withdrawal of the main party from the broad government coalition made up of four pro-European formations, leaving the government without a parliamentary majority as a vote of no confidence is scheduled for May.

Romania can access up to €16.6 billion by 2030 through SAFE, a €150 billion long-term, low-cost fund available to EU member states. This is Brussels’ solution to increase defense spending within the bloc.

The funds will be directed towards defense acquisitions with an emphasis on national production, but the Interior and Transport ministries will also use it to purchase helicopters, radars, and build transport links to neighboring Ukraine and Moldova.

Defense Minister Radu Miruta stated to journalists that this comprehensive project will help safeguard the Romanian army against political instability risks.

Europe’s largest arms producer, German company Rheinmetall, will be the main contractor for around €5 billion of Romania’s total SAFE contracts.

These include an ammunition primer factory, infantry fighting vehicles, Skynex air defense systems, and tanks.

The group will also take over the bankrupt Romanian state shipyard in Mangalia, where its new branch Naval Vessels Lurssen will build four corvettes for the Romanian army by 2030.

French company Airbus is another major European contractor that will secure a contract under SAFE to produce helicopters in Romania for multiple EU nations, according to Mr. Miruta.

He added that eight of the overall contracts will provide Romania with radars and anti-drone systems.

This EU and NATO member shares a 650km land border with Ukraine.

Russian drones have repeatedly violated its airspace during Moscow’s attacks on Kiev’s port infrastructure across the Danube, while mines drift into the Black Sea on key trade and energy routes.

(1 $ = 0.8546 euro)