Hungary’s €5.4 billion defence loan application wins Commission approval
EU governments must still approve the funding. More than €21 billion remains available under the €150 billion SAFE programme.
The European Commission has cleared Hungary’s application to borrow €5.4 billion through Security Action For Europe (SAFE), bringing the programme’s opening round to a close. Disbursement remains conditional on approval from EU governments, followed by the signing of a loan agreement between representatives of Brussels and Budapest.
Hungarian Prime Minister Péter Magyar cut the borrowing request to €5.4 billion from €16.4 billion after entering office in April. The revised application was submitted in late September.
Across the first round, 19 member states sought a combined €129 billion for strategic defence investment. Poland secured €43 billion, the largest loan, while Denmark borrowed the smallest amount, €46.8 million. Commission spokesperson Thomas Reginer confirmed that the programme still had more than €21 billion available.
Member states will be invited to signal interest in further borrowing or first-time loans by December, with the Commission assessing possible new plans afterwards. Ireland stayed out of the initial round, but its defence minister, Helen McEntee, said in October that she wanted the country to participate.
Part of the Commission’s ReArm Europe 2030 plan, SAFE supports joint purchasing of priority military equipment to speed up orders, strengthen supply chains and expand manufacturing. It covers capabilities including ammunition, drones, anti-drone systems and air defence. Its rules require components originating in the EU, Ukraine and certain European Economic Area and European Free Trade Association countries to account for at least 65 per cent of component costs. The other 35 per cent may originate in any third country.
