The European Commission has approved Hungary’s EUR 5.4 billion defence investment plan under the European Union’s Security Action for Europe (SAFE) programme, paving the way for the proposal to be considered by EU member states.
Hungary to boost defence capabilities
Thomas Regnier, a spokesperson for the European Commission, announced the decision at a press briefing on Wednesday, confirming that Hungary’s plan was the last national proposal under the programme awaiting approval. The Commission’s decision endorses the EUR 5.4 billion allocation proposed for Hungary.
The plan will now be submitted to the Council of the European Union, which represents the bloc’s member states, for approval. Regnier added that, following the approval of the Hungarian governments’s plan, just over EUR 21 billion could remain available under the programme. The Commission is expected to contact member states at a later stage regarding the allocation of the remaining funds.
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What is the SAFE programme?
The SAFE initiative is a EUR 150 billion EU lending scheme designed to strengthen Europe’s defence capabilities. It provides member states with access to favourable, long-term loans to finance defence investments and joint procurement projects. The programme aims to help European countries expand their military capabilities and support cooperation in defence procurement.
Hungary’s allocation is significantly lower than the EUR 16 billion in loans previously envisaged for the country. The government subsequently reduced its planned borrowing to EUR 5.4 billion, reflecting a more cautious approach to taking on additional debt. Hungary is not the only member state seeking less than its initially allocated amount. Other countries have also decided not to use their full potential allocations, leaving funds available for redistribution.
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Further funding round expected
The European Commission is planning another application round for the unallocated funds later this year. The unused amounts must be offered again in 2026 or risk being lost under the programme’s timetable. Hungarian Defence Minister Romulusz Ruszin-Szendi said in September that decisions on SAFE borrowing should take account of the country’s economic capacity, stressing that the money would have to be repaid.
He also suggested the loans could be used to cover existing defence contracts or bring forward investments originally planned for later years. These could include projects related to transport infrastructure and cybersecurity, in addition to defence spending. Although the Commission has endorsed Hungary’s EUR multi-billion plan, the proposal must still pass through the Council before the next steps can proceed.
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