Hungary has sharply reduced its request for defence funding from the European Union.
The government now plans to seek €5.4 billion through the EU’s Security Action for Europe (SAFE) programme. The European Commission confirmed the figure on Friday.
The new request is far below the €16.4 billion originally sought under the previous government led by Viktor Orbán.
Hungary SAFE Defence Loan Request Changes Under New Government
The reduction follows a change in Hungary’s government.
Prime Minister Péter Magyar took office in April and has reassessed several policies inherited from the previous administration.
Hungarian authorities informed Brussels that they would limit their SAFE loan request to €5.4 billion.
European Commission spokesperson Thomas Regnier confirmed the decision. He said Hungary had been given the opportunity to review its earlier position.
The original allocation had been based on Hungary’s earlier indication that it wanted to use a much larger loan amount. Hungary had previously received an indicative SAFE allocation of about €16.2 billion.
Why Hungary Reduced Its Defence Loan Request
The change comes amid a broader review of government spending and defence financing.
The Hungarian government has indicated that it is considering how SAFE funding could support military development without placing excessive pressure on public finances.
Hungarian Defence Minister Ruszin-Szendi Romulusz said the government was weighing its options rather than completely ruling out participation in the programme.
Reports have also linked the reassessment to concerns surrounding the previous government’s handling of public funds. Those concerns have been part of the political debate surrounding the new administration.
Italy Also Cuts Its SAFE Loan Request
Hungary is not the only country seeking less money than initially expected.
The European Commission also confirmed Italy’s SAFE request at €8 billion.
That amount is well below the roughly €14.9 billion previously anticipated by Prime Minister Giorgia Meloni’s government.
The final figure followed negotiations between Rome and Brussels over Italy’s participation in the programme.
What Is the EU SAFE Defence Programme?
The Security Action for Europe, known as SAFE, is an EU lending programme designed to support defence investment across member states.
The programme provides long-term loans for defence-related procurement and aims to strengthen Europe’s military-industrial capacity.
The EU created a total SAFE funding envelope of €150 billion for participating member states. Nineteen countries initially expressed interest in receiving financial assistance.
SAFE forms part of the European Commission’s wider Readiness 2030 defence strategy.
The initiative is intended to encourage countries to increase defence investment and improve their ability to respond to security threats.
SAFE Rules Focus on European Defence Industry
The programme also includes rules governing where defence equipment can be sourced.
Under SAFE, at least 65% of the value of qualifying defence products must come from the EU, Ukraine, or countries covered by the relevant European defence-industrial arrangements.
The remaining share can come from other third countries, subject to the programme’s conditions.
For Hungary, the reduced request means the government will seek considerably less EU-backed financing than originally planned.
The final amount and associated investment plans will determine how the funds are ultimately used.
