Arming Europe’s eastern frontier: How Bulgaria, Romania and Serbia are rewriting defence investment law

As Europe accelerates its rearmament agenda, Southeast Europe has moved decisively from the periphery to the centre of defence investment strategy. In a standalone article contributed by Wolf Theiss to SeeNext’s Defence & Security in Southeast Europe 2026 Edition report, Richard Clegg, Cornelia Postelnicu, Andreea Zvâc, Aleksander Ristic and Stefan Silobad examine how Bulgaria, Romania and Serbia are reshaping their legal and regulatory frameworks to accommodate a surge in defence and dual-use capital, driven in part by the EU’s SAFE instrument and heightened geopolitical urgency. The article, which provides a clear-eyed overview of how these three jurisdictions are responding to common pressures with markedly different regulatory solutions, creating both opportunities and complexity for investors, is an independent contribution within the wider report and can be read separately from the full publication.

Drawing on first-hand experience advising international defence and defence-technology clients, the authors offer a comparative analysis of screening regimes, licensing requirements, state participation models and investment incentives across the region. The article distils practical insights on sequencing, governance and structuring that are critical to executing transactions in a fast-evolving environment. It is essential reading for investors and industry participants seeking to understand the direction of Southeast Europe’s defence markets and how to navigate them effectively in 2026 and beyond.