The Orbán government avoids calling it a loan, instead describing it as a financial shield with unlimited funding potential, without specifying an exact amount. Indicators suggest there is a friendly aspect to the arrangement, but should circumstances worsen, it would effectively become a loan. According to Péter Magyar, this move could saddle future generations with debt, while the government insists that EU funds will still arrive within two to three years. €16.2 billion could be secured for military development.
EUR 16.2 billion may be secured for military developments
Recent reports indicate that, before the elections, the Orbán government might reach an agreement with the European Commission for a €16.2 billion concessional loan (almost HUF 1,000 billion at current exchange rates) to support defence industry, military, and weapons procurement investments under the so-called SAFE programme. Despite strained relations with the Commission, developing Hungary’s defence capabilities is a shared priority, and this concessional loan could be a lifeline for Orbán’s government.
Hungary’s economy has failed to take off this year and is not expected to improve next year, contrary to the Prime Minister’s hopes for a rapid recovery. Budget shortfalls are being covered by borrowing and hidden tax increases (including loans from China), while consumer confidence remains very low. With elections approaching, the government is keen to inject money into Hungarian households, with Orbán even mentioning the possibility of a fourteenth pension payment.
Orbán could close major swap line scheme
Financial hardship might be eased through a developing “swap line” scheme inspired by Argentina’s example. Ahead of critical mid-term elections, the US provided Argentina’s central bank with $20 billion, while Argentina sent an equivalent amount in pesos to the US Federal Reserve. This swap stabilised Argentina’s sharply declining currency, helped President Milei win his election, and allowed spending in dollars, which later turned into a loan.
Péter Magyarics of Válasz Online suggests a similar mechanism could soon be set up between Hungary and the US. If necessary, the national bank could intervene to support the forint; yet the mere knowledge of such a dollar reserve could strengthen the Hungarian currency. The government might use the funds before the election, while experts expect austerity measures to follow afterwards.
The Prime Minister has given no specific details about the US–Hungarian financial shield but spoke of “unlimited financing opportunities” to accompanying journalists.
Márton Nagy confirmed that the reports from Válasz Online are accurate—negotiations are indeed underway for a so-called swap line deal. The Minister for National Economy added that there is already a similar Chinese safeguard arrangement in place, amounting to EUR 5 billion. He explained that such a measure is necessary because the European Central Bank cannot be relied upon in this matter.
The prime minister seeks another 2 to 3 years in office to obtain EU money
“That Hungary’s currency can be attacked, that the Hungarian budget can be put under strain, that the economy can be strangled financially — that’s over. We have resolved that with the Americans,” said the Prime Minister.
He claims the Americans have pledged to protect Hungary from “external financial attacks”. He also stated that he needs only another two to three years to secure EU funds domestically.
It remains unclear on what basis he makes these claims. Notably, while his allies are gaining ground in Europe (Le Pen in France, AfD in Germany), and Giorgia Meloni has risen to lead Italy, Orbán remains isolated from Brussels. Before Meloni’s election, he hinted that regaining manoeuvrability required a “great power ally”.
EUR 18 billion at stake in Brussels
Details of the financial shield remain unknown, but Péter Magyar believes it means Orbán is indebting future generations. He labelled the Trump administration the “new IMF”, from which the socialist-liberal government borrowed in the late 2000s — a government that Orbán replaced with a two-thirds majority win.
Magyar argues that Hungary should reclaim Brussels funds, as they are non-repayable, rather than take on loans. According to Szeretlek Magyarország, €18 billion (HUF 7,000 billion) in development funds are currently blocked by the European Commission due to rule-of-law issues.
Péter Ákos Bod, former central bank governor, says that if Orbán’s alleged swap line system proves real, it would be an important security measure but also a worrying sign. “Such solutions are usually turned to during crises, or when a crisis looms,” he said.
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Orban gives you debt to China and now the US. Magyar brings you EU money debt free. Oh. and one other thing. Orban won’t sacrifice your precious “sovereignty” to evil Brussels though it’s amazing how the organization that bends over backwards to fund Hungary and the rest of states which are behind in living standards is somehow an evil threat to Hungary.
Dear Larry,
Magyar does not bring money for free. He brings money already owed Hungary, and, as well, he brings submission to an Internationalist Corporate System which will rape and pillage Hungary just as it has other EU countries; those which have not had an Orban to lead them.
People carry on about how Putin is surreptitiously supporting his boy Viktor, and yet seem to think that Magyar is an organically risen product without any alien support.
That’s not a coherent position, because it is not a fair assessment of reality.
I defend your right to NOT see Bruxelles as a threat, but, it seems to me that the way Hungarians have voted over the last decade indicates that the majority of them do see it as exactly that.
Your views have a lot of support in Budapest, and not so much throughout the rest of Hungary.
Surely you know this.
When I hire new folks, one of the first things I have them do is trawl through our history with the EU, related finances and how our economy works / has developed. It never ceases to amaze me how ignorant how even young intellectuals are, with respect to these matters.
“”Our money!” – all those stupid Contributor countries. They owe us, you know. Unbelievable they do not put their own people first?
https://publikationen.bundesbank.de/publikationen-en/reports-studies/monthly-reports/monthly-report-october-2025-967186?article=eu-finances-member-states-financial-relationships-with-the-eu-in-2024-and-the-multiannual-financial-framework-for-2028-34-967188
You have to be wonderfully and eternally patient, Dear Norbert.
If you are the Norbert I have seen at YouTube, then I must state that you are a such a knowledgeable person that 99% of the populaces of every country will not be able to compete with you.
Thank you for putting forth the effort to know and for disseminating that information.
I apologize for recommending a video with Borvendeg Zsuzsanna to you, for I now realize you little need it.
I hope this message finds you well and enjoying the onset of Winter.
Hungarians are a nation of fools who don’t know better because virtually all media in Hungary is controlled by Fidesz. The sale of Blikk is proof positive of what has gone on. The only information you get is what has been messaged through Fidesz. Those people outside of Budapest watch Fidesz tv and read Fidesz newspapers. If you don’t speak or read in another language and make the effort to get your news from outside of Hungary you will have a warped view of reality and be led to support the government and put down the opposition. It is close to Orwellian when you see the billboards and nothing in opposition to the governing party. By the way even if you want to read news in English when you are in Hungary you have to change your browser settings to a different region because it automatically defaults to Hungary and you will be fed a lot of recycled Fidesz news put out in English.
I can second this. When searching for news about Hungary in English while in Hungary, the Google search is full of output from the likes of About Hungary, Hungarian Conservative, European Conservative, et al. These hits crowd out content from western media organs. I have to set my VPN to appear as if I’m in the UK in order to find articles from major international media. I don’t think this is deliberate (non-Hungarian speakers in Hungary are very unlikely to be able to vote in local elections), it’s more a side effect of local state owned and influenced media flooding the zone while Google prioritises hits local to where it detects you are.
Unfortunately, outside of the big cities, literacy in anything but Hungarian is rare. This is why independent local media is so important.
Dear Larry,
Most Americans have no idea of our own history, and we know even less of countries in Europe.
In my travels in Latin America I have found the same, just as I have found the same with many Europeans in many European countries.
That said, if Hungarians want to know the truth, all they have to do is go to YouTube and listen to Hungarian historians, from Far-Left to Far-Right, and they will soon know what is going on.
The only rule of thumb Hungarians would need to follow, to learn, is that of being truly investigative, instead of merely listening to those with whom they think they agree.
I find this Right or Left bias, in the knowledge people display, as a real obstacle to having a clue.
Don’t despair.
What Larry said is baseless.
There is no such thing as “free money”.
The EU wants to bring the LGBT and Migrant Quota into Hungary. Control how we live. Both China and the USA do not make such demands.
He didn’t write free money, it’s money that’s not tied to debt.
EU money is relieved from, inter alia, German, Dutch and Danish taxpayers and given to Hungary with the aim of reducing inequalities in living standards compared to more developed member states.
No strings attached with Chinese, US money, or Russian right? Just trademark, old-fashioned altruism and philanthropy.
https://www.ft.com/content/251314b5-8d6a-4665-a14b-0110dd88754c
Our Politicians thought it best to keep Chinese financing terms a secret – actually classify all construction contracts on the grounds that their publication could “threaten Hungary’s ability to pursue its foreign policy and trade interests without undue external influence”.
Nothing to see here, folks!
Factual Orban led Fidesz Government gargantuan Debt.
Factual Orban led Fidesz Government gargantuan Debts to the European Union in relation to FINES for non-compliance to the Laws of Membership of a European Union Member country.
Government Debt is Tax Payers DEBT which the (2) two referred previous in this commentary FALL under – Citizens – Tax Payers Debt on ALL Hungarians.
Orbans – Fidesz Government in their BORROWINGS high percentage being from China – the interest rate percentage is HUMONGOUS.
The DEBT to the European Union set as compound which means daily gargantuan level of interest is charged which GROWS this DEBT daily rapidly.
Orban – his Fidesz Government “talk” of additional Government Debt that is debt on individually ALL Hungarians – in BORROWINGS from the United States of America.
Hungary, a country under a Prime Minister – Victor Mihaly. Orban and his Fidesz Government that have DELIVERED Hungary, after (16) sixteen years in POWER to represent a country that is DEVASTATED – economically and financially.
Hungary’s – economic and financial position under title of Government DEBT – has no ABILITY as an economy for a Government, by use of tax payers money, what citizens pay to the Orban led Fidesz Government in their taxes, to make any NOT any investments for the FUTURE of Hungary.
Orban leads a DEBT “riddled” and “crippled” strangulated for income – of no revenue Fidesz Government – that has all signage “written” over it that will WORSEN and expose further individual DEBT to all the “ageing” decreasing in number citizens/population of Hungary.
PERILOUS for Hungary if HUNGARIANS allow Orban, his Fidesz Government – to FURTHER borrow money centered on Orban/Fidesz endeavouring to be re-elected come Spring of 2026.
Victor Mihaly. Orban his Fidesz Government evidence GROW’s – they have NOTHING, absolutely NOTHING, nothing to CONTRIBUTE to the FUTURE of Hungary – NOTHING.
Another Victory for orban. another new mansion to be buitl, meanwhile hungarian citizens get “cheap energy” amazing deal!