SAFE programme: Brussels approves Hungary's €5.4bn defence loan
With Hungary's plan, the Commission has approved every national application in the first round of its €150bn scheme. Budapest asked for €5.4bn instead of €16bn. Around €21bn remains unallocated.
Symbolic image · Photo: U.S. Air Force photo by Tech. Sgt. Justin Carnahan / Wikimedia Commons, Public domain (cropped and resized)
The European Commission has approved Hungary's €5.4 billion defence investment plan. Commission spokesperson Thomas Regnier on Wednesday in Brussels called it "the last and remaining SAFE plan". This means all national plans in the first round of the Security Action for Europe programme have been cleared. Through SAFE, the EU offers up to €150 billion in long-term loans for joint defence procurement. Hungary's plan still needs approval from the Council of member states.
Hungary had originally been allotted €16 billion in loans, but the government scaled back its request sharply. Defence Minister Romulusz Ruszin-Szendi said in September that the decision had to reflect the country's economic capacity, since the money must be repaid. Possible uses include existing defence contracts, investments brought forward, transport infrastructure and cybersecurity.
After the first round, around €21 billion remains unused. The Commission plans to survey member states' interest again, with the process due to finish by the end of the year. All EU countries can apply, including those that did not take part in the first round.