Romania bolsters defence, energy security and transport corridors

Romania’s interim President Ilie Bolojan announced a phased increase in the nation’s defence budget to strengthen Romania’s military capabilities and bolster the Eastern Flank of NATO, following a Supreme Council of National Defence (CSAT) meeting on 30 April. The CSAT, Romania’s constitutional authority tasked with coordinating defence and national security, outlined several strategic priorities during the session.

Accessing EU defence financing

A key focus was Romania’s plan to tap into a European Union credit facility designed to support additional defence spending across member states. Bolojan revealed that a working group, led by the Prime Minister’s Chancellery and supported by the Ministries of Defence and Economy, has been established to prepare Romania’s application for this EU loan. The loan, described as highly favorable, offers a repayment period exceeding 40 years with a 10-year grace period. This structure allows Romania to enhance its military capabilities without immediate strain on the national budget.

The EU’s defence credit facility is part of broader initiatives, such as the European Defence Fund (EDF) and related programs, aimed at fostering collaborative defence investments among member states. Introduced to counter rising geopolitical tensions, particularly following Russia’s invasion of Ukraine in 2022, these funds enable countries like Romania to modernise their armed forces and align with NATO standards. The loan’s long repayment and grace periods reflect the EU’s strategy to incentivize sustained defence investments while minimizing fiscal pressure, particularly for Eastern Flank nations facing heightened security risks.

Bolojan emphasized that Romania aims to channel these funds into its domestic defence industry, both public and private, through partnerships that meet EU loan guidelines. By May or early June 2025, Romania plans to finalise its project list for submission at the NATO Summit in The Hague (June 24-25), and seek EU approval for financing specific defence initiatives.

Updating defence legislation

The CSAT also discussed the Romanian National Defence Law, one of four pending laws critical to modernizing Romania’s defence framework. Two of these laws have already been passed by Parliament, upheld by the Constitutional Court, and are set for promulgation by May 2025. The third is under government review, with CSAT approval expected by the end of May, followed by parliamentary debate. The fourth law’s timeline aligns with a June 2025 target for full promulgation. These laws will ensure Romania’s military operations are fully integrated with its NATO allies.

Enhancing military mobility

Another priority, according to Bolojan, is updating Romania’s military mobility plan, including its participation in a new North-South mobility corridor connecting Romania to the Balkans. A proposed bridge over the Danube, currently in the design phase, was highlighted as a critical infrastructure project to support this corridor, facilitating rapid troop and equipment movements in the region.

Energy security as part of the national defence

Bolojan underscored the strategic importance of completing Romania’s partially built hydroelectric power plants, some of which are 60-90% complete but stalled due to bureaucratic and legal hurdles. Declaring their completion a national security priority, the CSAT aims to unlock an additional 10% of Romania’s hydroelectric capacity, enhancing energy independence with clean, reliable, and cost-effective power. This initiative, alongside nuclear and gas projects, is expected to reduce energy costs, improve supply stability, and boost economic competitiveness. The CSAT has set a two-to-three-year timeline for finalizing these projects, with parliamentary approval processes starting in May 2025.

Romania’s defence strategy, as outlined by Bolojan, leverages EU financial support to modernise its military, updates critical legislation, enhances regional mobility, and secures energy independence. These measures aim to strengthen Romania’s role within NATO and the EU while addressing both security and economic challenges in a volatile geopolitical landscape.

The original article by EUalive’s partner Umbrela Strategica can be found here.