More than €16 billion — equivalent to over HUF 6,600 billion at today’s exchange rate — could flow into the Hungarian economy before the 2026 parliamentary elections. The European Commission stands ready to provide this hefty sum to bolster Hungary’s defence development — naturally, not entirely divorced from the Russian threat that Mr Orbán’s government has so often downplayed. Such a financial boost would offer a substantial lift to Hungary’s stagnant economy. The key question remains: will the EU once again tie this payout to strict adherence to the rule of law and democratic standards?
16.2 billion euros on improving defence capabilities for the Orbán cabinet
Hungary has submitted its national investment plan under the European Union’s Security Action for Europe (SAFE) programme, the National Economy Ministry announced on Tuesday. The total amount of funding claimed in the plan is €17.4 billion, which exceeds the €16.2 billion SAFE ceiling previously earmarked for the country. The higher request, the ministry said, reflects the genuine, detailed development needs of the Hungarian defence forces and related sectors.
- Hungary getting the 3rd biggest fund from the EU for army development
Given Hungary’s geographical position, its stabilising role in the region and its stated commitment to NATO and EU membership, a significant share of SAFE funds is “justified and well-founded”. Beyond strengthening national defence capabilities and boosting the domestic defence industry, the programme could play a major role in reinforcing domestic supplier and innovation networks, increasing strategic autonomy and reducing budgetary interest costs, the Hungarian News Agency reported.
Possible rule-of-law concerns
According to Telex, this could yet pose a significant obstacle. Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, clarified that SAFE was not intended to ease the interest burdens of national budgets. She also indicated that the Council of the European Union would be prepared to approve a financial plan similar to the Recovery and Resilience Facility (RRF).
This would mean that Budapest must comply with at least the same — if not more stringent — rule-of-law requirements as under the RRF. Given the government’s failure to fully address the milestones and “super-milestones” linked to that scheme, Hungary has so far received only a fraction of the more than €10 billion originally allocated.
Favourable interest rate
The SAFE programme offers credit to be drawn gradually at an interest rate expected to be around 200 basis points below market financing levels. This could translate into annual interest savings of tens or even hundreds of billions of forints for public finances over the long term, potentially through the replacement of foreign-currency loans, the ministry noted.
Throughout the preparation of the National Investment Plan submitted under SAFE, Hungary held regular consultations with Commission experts in Budapest and Brussels.
The government intends to use the SAFE funds to strengthen Hungary’s defence capabilities, expand its defence industry, develop dual-use infrastructure and improve the long-term sustainability of public finances, the ministry said.
Following the Commission’s assessment and the Council’s decision, the credit agreement could be concluded early next year. According to the current timetable, an advance payment of 15pc of the support amount could arrive in spring 2026, the ministry said. Hungary’s next general election is scheduled for April.
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I’m curious. Can Orban and the rest of the Fidesz crew name what country poses a threat to Hungary that requires 17 billion euros to protect themselves from? If you can’t name it why should the EU give you anything? There is no military threat to Hungary according to everything Orban tells you.
Nothing, absolutely NOTHING should be received by Hungary, whilst the name – Victor Mihaly. Orban – the Fidesz Government are in governance of Hungary.
Spring of 2026 – the MUST of the downfall of Orban and his Fidesz Government will be the RIGHTFUL time, when Hungary under a new government that CREED will be “in practice” to DEMOCRACY law abiding to being a member country of the European Union – this WILL be the time for Hungary the FUTURE of Hungary to receive European Union funding.
History never Lies.
The (16) years of Victor Mihaly. Orbans time as Prime Minister of Hungary, his “second” coming, his “Judas” acts committed against the word DEMOCRACY and “other” crimes of the Fidesz Political Party found of guilt – in acts of “mis-representation” of lies – in the use of European Union funding, just a “toxic” in culture in the vein’s in the DNA of Orban and his Fidesz Government.
Trust a word that rightfully is DISMISSED when the name Victor Mihaly. Orban is bought into discussion especially in context or reference to the European Union.
Victor Mihaly. Orban has NO trust nor respect afforded to his name globally from countrys that are governed or respect embrace DEMOCRACY.
Mount Calvary will come again in Spring of 2026 which will enable Hungary – being SAVED – a new fresh wind, opening of windows that of HOPE – of opportunities, of clearer skies replacing the darkened skies of Hungary, delivered to US – after the (16) sixteen years plus that the name – Victor Mihaly. Orban has been Prime Minister.
Hungary – we have been CROSSED painfully individually in millions by the Greed, the Selfishness, the EXPLOITATION of Orban and his Fidesz Government – that deserve NO, absolutely NO – never to be APPEASED.
Im not hungarian but, has majority of all the major businesses seem to be from other EU member countries. Many of the best students leave for other EU countries- not because they hate hungary but, the western EU countries who didnt live under communism for 40 years. The US also spent billions to rebuild europe and businesses. Now the EU thinks going to war with russia is the answer. The US is also the one that spent trillions to end the USSR- little help financially from western europe. The US won’t be helping out again as long as trump is in office.. orban is the only leader the that worked to end the killing, along with having a brain. Leasers in the EU and UK are joke.