Hungary can expect up to EUR 16.2 billion in EU funding for its defense procurement and investments under the European Security Action Facility (SAFE). This represents the third largest amount in the European allocation after Poland and France, Világgazdaság reported.
The aim of the SAFE program is to support rapid and significant investments in the European defense technology and industrial base. The funds can be used for new purchases, expanding production capacity, providing defense equipment, or addressing capability gaps. Investments generally require the participation of at least one other member state or a third country specified in the regulation, but in special cases, a member state may make a sole purchase.
Under SAFE, member states receive loans at favorable interest rates: the program is 200 basis points cheaper than market financing, which could mean interest savings of tens or even hundreds of billions of forints in the long term.
The program will run from 2025 to December 31, 2030, providing a total of EUR 150 billion in defense investment and procurement funding to EU member states.
According to the Hungarian government, the country’s geographical location, its stabilizing role in the region, and its committed NATO and EU membership justify a significant share of SAFE resources.
In order to conclude the loan agreement, member states must submit a defense industry investment plan to the European Commission by November 30, which will be evaluated before the European Council makes a decision.
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Via vg.hu; Featured photo: honvedelem.hu
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