Abstract: This legal treatise maps the six overlapping statutory regimes governing aerospace, defense, and dual-use space infrastructure in Romania: Law 98/2016 (public procurement), Law 99/2016 (sectoral procurement), GEO 114/2011 (defense contracts under Directive 2009/81/EC), GEO 73/2025 (strategic defense manufacturing investments), GEO 46/2022 as amended by GEO 17/2026 (FDI screening by CEISD), and ANCEX dual-use export licensing under Regulation (EU) 2021/821. It delivers concrete transaction scenarios for prime contractors navigating SAFE, EDIRPA, and IRIS² component-origin thresholds, industrial offset requirements, and sovereign security clearances.
Romania is currently executing and preparing a series of large-scale acquisitions and industrial projects across the aerospace, dual-use, and space-related domains. These programmes take place against the background of substantial EU funding instruments-including the Security Action for Europe (SAFE) facility-continued participation in the European Space Agency (ESA), and national industrial-policy objectives aimed at strengthening domestic defense capacity.
The legal environment governing these projects, however, is far from unitary. A single transaction may simultaneously engage general public procurement rules, sectoral regimes, defense procurement frameworks, strategic defense investment incentives, foreign investment screening mechanisms, and – where the object of the transaction is a space activity rather than merely space-related industrial capacity – a forthcoming EU authorization regime that is not yet in force but is already shaping how sophisticated counterparties structure long-lead programmes.
Misclassifying a transaction or failing to sequence parallel regulatory clearances-such as FDI screening and dual-use export licensing-routinely leads to tender challenges, procedural delay at the contract-signature stage, and severe commercial disruption. None of these regimes is optional to consider; the only question is the order in which they are addressed.
The Legal Landscape: Six Key Statutory Layers
Understanding the interplay between these legal regimes is essential for operators, investors, prime contractors, and domestic suppliers navigating the Romanian market.
A. Project Classification & Structuring
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B. Regulatory Clearances Layer
Law 98/2016 establishes the baseline regime for public contracting, while Law 99/2016 governs sectoral procurement in utilities, energy, and transport. While both transpose standard EU directives grounded in equal treatment and transparency, Law 99/2016 frequently applies to civil space or dual-use infrastructure contracts that fall outside the specialized defense exception.
Transposing EU Directive 2009/81/EC, Government Emergency Ordinance (GEO) 114/2011 provides the specialized framework for defense and sensitive security contracts. It grants contracting authorities crucial procedural flexibility – such as negotiated procedures without prior publication invoking essential security interests (Article 346 TFEU) – and embeds specific rules on security of supply, information security, and industrial offset arrangements.
GEO 73/2025 (Official Gazette, Part I, No. 1152 of 11 December 2025) introduces a framework specifically tailored for major investments in Romania's defense industrial base. Projects meeting its threshold criteria benefit from:
Note on Legal Status: GEO 73/2025 remains subject to parliamentary approval (approved by the Chamber of Deputies, currently within Senate’s process of adoption, as the decisional chamber), the ordinary procedure for a government emergency ordinance. Commentary following its adoption has flagged that certain core definitions – notably the notion of "investor" and the precise mechanism for carrying out and unwinding an investment – may be clarified or amended during that process. Parties structuring a transaction around this regime should track the parliamentary file PL-x nr. 59/2026 (Chamber of Deputies – https://www.cdep.ro/ords/pls/proiecte/upl_pck2015.proiect?cam=2&idp=22970) and L587/2025 (Senate – https://www.senat.ro/legis/lista.aspx?AllowPaging=True#ListaDocumente) and build in contractual flexibility for the possibility of amendment before final legislative adoption.
Foreign investment screening in Romania is governed by GEO 46/2022, which implements Regulation (EU) 2019/452 and established the Commission for the Examination of Foreign Direct Investments (CEISD), operating within the Competition Council, with Government’s oversight. GEO 17/2026 substantially revised that framework and expressly added aerospace technologies and aerospace infrastructure to the list of sensitive sectors subject to screening. Key operational considerations include:
Dual-use technology transfers fall under Regulation (EU) 2021/821 and are monitored nationally by the Department for Export Controls (ANCEX). In parallel, projects accessing EU funding instruments such as SAFE, EDIRPA, ASAP, or IRIS² must comply with binding EU-content rules.
Under the SAFE Regulation in particular, at least 65% of the value of components in a SAFE-financed procurement must originate from the EU, EEA-EFTA states, or Ukraine, with a hard cap of 35% on components sourced elsewhere-a rule that materially shapes how non-EU prime contractors must structure joint ventures or local production commitments with Romanian partners in order to access this financing.
For projects involving space activities as such – rather than aerospace industrial capacity generally – a further layer is on the horizon. The European Commission's proposal for a Regulation on the safety, resilience, and sustainability of space activities in the Union (the EU Space Act, proposed 25 June 2025) would introduce a harmonized EU-wide authorization, registration, and supervision regime, including mandatory cybersecurity and resilience obligations, applicable to EU and non-EU operators alike.
The proposal is still moving through the ordinary legislative procedure – the Council issued its compromise text in December 2025 and the European Parliament's rapporteur published a draft report on 3 March 2026. Investors and operators structuring long-lead Romanian space-infrastructure programmes (particularly those linked to ESA or IRIS²) should factor the anticipated authorization regime into their planning horizon, as it will apply prospectively to operations currently being designed and financed.
In a high-value system acquisition, a contracting authority selects the GEO 114/2011 route, incorporating local industrial cooperation commitments.
A Romanian mid-sized enterprise seeks entry into a multi-tier supply chain for satellite components or ground infrastructure.
An investor builds or expands an aerospace manufacturing or testing facility using the strategic investment framework.
Romania's aerospace and defense legal framework offers significant incentives and flexibility, but its multi-layered nature rewards careful advance planning. Navigating the intersection of GEO 114/2011 procurements, GEO 73/2025 investment incentives, CEISD foreign investment clearances, ANCEX dual-use approvals, and (increasingly) the EU's evolving space-specific regulatory architecture requires a synchronized regulatory strategy from day one.
Operators and investors that correctly classify their projects, map their sequential approval pathways, and account for industrial cooperation and forthcoming EU obligations early will protect their execution timelines and minimize challenge risk.
Mararu & Mararu SCA assists international prime contractors, investors, and domestic technology companies in structuring defense and space acquisitions, securing regulatory clearances, and navigating complex procurement procedures in Romania.
Key Legal Sources & Primary Instruments
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Navigating Romania's aerospace, defense, dual use, and space programs requires understanding six overlapping legal regimes. This guide maps these regulatory frameworks and offers practical FDI and procurement compliance scenarios for investors.
