Hungary reduces EU defence loan request to €5.4 billion

Hungary has informed the European Commission that it will reduce its request for low-interest defence loans under the Security Action for Europe (SAFE) programme to €5.4 billion. This figure is significantly lower than the €16 billion originally requested by the previous administration.

European Commission spokesperson Thomas Regnier confirmed that member states have the autonomy to decide how much of their allocated credit framework they utilize. The reduction follows a reassessment by the current Hungarian government, which reportedly sought to evaluate corruption risks associated with previous proposals. Hungarian defense officials noted that the decision considers the country's debt-bearing capacity, suggesting the funds could be used to replace existing contracts or accelerate planned investments in cybersecurity and transport.

In a similar trend, Italy has also requested a reduced amount under the SAFE programme, formally asking for €8 billion instead of the anticipated €14.9 billion. The SAFE programme is part of the Commission’s Readiness 2030 plan, which aims to mobilize up to €800 billion in additional defence spending across the bloc to strengthen military readiness and industrial capacity. The total funding envelope for the SAFE programme is €150 billion, distributed among 19 member states.