Summary: Amid growing security concerns and European Union’s prevention and defence readiness measures, Romania enhances its defence production and adjusts its procurement policies and legislation in order to contribute to the strengthening of the EU defence autonomy.
In the context of increasing threat of Russia’s aggression in Ukraine, all European Union (EU) member states (including Romania) pushed on the implementation of various measures in order to enhance industrial and procurement capacities.
For such purpose, among others, the Defence Readiness Omnibus (Readiness 2030 plan) was implemented at EU level in June 2025 for strengthening the EU’s military capabilities and recasting the industrial policy as security policy. The aim of the plan is to scale production inside EU, encourage common acquisitions, accelerate the underlying processes and procedures related to production, investments, procurement and cross border communication in the defence sector. The measures proposed under the Defence Readiness Omnibus are intended to raise the defence procurement budgets and to direct the awarding decisions on European footprint and interoperability. The plan is designed to facilitate at least EUR 800 billion in defence investments during the next four years and ensure that the regulatory frameworks are aligned to enable EU’s and member states defence readiness and rapid scaling of industrial base for the strengthening of the EU defence autonomy.
Romania’s defence posture is shaped by its NATO/EU commitments and Black Sea exposure, and the ambitious multi-year endowment plan for 2025-2034. In 2024, Romania devoted roughly 2.3% of GDP (about EUR 8.6bn) to defence and has recently committed to raise the defence spendings to 5% by 2035. In such context, Romania is planned to benefit of EUR 16.68 billion allocation[1] under the Security Action for Europe (SAFE) program, part of the Defence Readiness Omnibus. The funds are intended to be used to modernize military equipment and develop dual-use infrastructure and Romania’s own defence production capabilities. The list of projects to be financed under such program is under preparation by the Romanian government and the first tranches under the program are expected to be disbursed at the beginning of 2026. Also, Romania announced various plans for acquisitions of battle tanks, machine guns, ammunition, spare parts, simulation and testing equipment, support services, technical assistance, transport and training and the intention to produce internally various components and military equipment.
The military procurement is currently mainly done through (i) classical procurement under the Defence Procurement Law (Government Emergency Ordinance No. 114/2011) that transposes Directive 2009/81/EC on defence and security contracts, (ii) government to government acquisitions, (iii) industrial cooperation/offset mechanisms or (iv) exceptional awards on the basis of art. 346 TFUE for protection of essential national security interests. However, the awards under the current framework still face delays due to the various limitations and bureaucratic procedures. In order to ensure the commitments to NATO/ EU and the defence readiness, Romania is already in course of preparation of certain legislative changes, among others, aimed to ensure faster awards in defence procurement. Also, additional amendments to procurement legislation are expected in the context of implementation of the Defence Readiness Omnibus measures.
The noteworthy legislative changes currently under review refer to the draft legislation proposed by the Romanian government for implementation measures related to the EU Regulation[2] on SAFE Program and for the amendment of certain legislative acts. The legislative proposal establishes, among others, specific institutional procedures and responsibilities for the preparation and implementation of the projects financed through the SAFE program and introduces derogatory awarding procedures for the contracts financed under such program. Accordingly, the use of the negotiation without prior publication procedure is permitted for such contracts under specific conditions (thus implementing one of the measures proposed under the Defence Readiness Omnibus). The draft proposal also provides for a shorter deadline for the approval of the high value contracts. Thus, the approval by Parliament of the contracts exceeding EUR 100 million is proposed to be shortened to 20 days instead of 30 days as currently provided. In lack of issuance of approval, the procedure shall be construed as tacitly approved, thus the awarding authorities will be allowed to proceed with the initiation of the procedure. Other provisions of the draft legislation relate to the appointment of the Ministry of National Defence (and other public authorities) to carry out joint procurements with other EU member states.
Another proposed legislative amendment relates to the simplification and shortening of the approval process related to the specific circumstances and procedures for the award of defence procurement contracts on the basis of art. 346 of the TFUE. Accordingly, the approval thereof is proposed to be made through a government memorandum, rather than through a government decision as currently regulated under the Defence Procurement Law. Thus, the proposal aims to facilitate such exceptional contracts awarding framework.
We are keen on seeing the adjustments of the legislative framework both at Romania’s and EU level that will allow the reaching of the defence readiness goals and revitalization of Romanian defence industry.
[1] Second-largest allocation within the program.
[2] Council Regulation (EU) 2025/1106 of 27 May 2025 establishing the Security Action for Europe (SAFE) through the Reinforcement of the European Defence Industry Instrument.
*This ePublication is provided by Radu Taracila Padurari Retevoescu SCA and is for information purposes only. It does not constitute legal advice or an offer for legal services. The distribution of this document does not create an attorney−client relationship. If you require advice on any of the matters raised in this document, please call your usual contact at Radu Taracila Padurari Retevoescu SCA at +40 31 405 7777.
