Radu Miruţă: SAFE Program Does Not "Pawn the Future,” but Reduces Armament Costs

Defense Minister Radu Miruţă rejected criticism that Romania would "pawn the future of children” through the arms purchases made through the European SAFE program, explaining that the alternative would have been full payment from the national budget, at higher costs. The statements were made in the context of public debates on the financing of the military endowment plan.

The minister emphasized that SAFE is an advantageous financial instrument, which allows for long-term payment of equipment, with a reduced interest rate. "Romania's option was not whether or not to buy this equipment, because it is already provided for in the endowment plan, but whether to pay for it from the national budget or at an almost halved cost, through this mechanism,” Miruţă explained, live on TV. According to him, the interest is approximately 3%, below the inflation rate, and the repayment begins after 10 years and extends over 40 years, which makes the rates "affordable”.

• The armament plan was already approved

The minister specified that the purchases are not new, but are part of the multi-annual program of the Romanian Army, approved by the Supreme Council of National Defense and Parliament. Typically, the state buys only a part of the equipment annually, depending on the available resources and at higher financing costs. Through SAFE, the payment of these purchases is moved to a credit system with low interest and lower impact on the budget deficit.

• Advantage of joint purchases

Another benefit invoked is the possibility of joint purchases with other European states, which significantly reduces prices. "If Romania buys 10 pieces of equipment, and Germany or France buys 100, a joint order of 110 is made, and the price is calculated on this volume, not on the individual one," the minister explained. According to the data presented by the minister, Romania has 21 projects included in SAFE, with a total value of approximately 9.53 billion euros.

Of these: 10 are joint purchases with other states; 11 are individual projects of the Romanian state. Among the targeted equipment are MBDA Mistral missile systems, Airbus Helicopters H225 helicopters and air defense systems.