Péter Magyar’s incoming government will review a national defence plan for cheap European financing to rearm Hungary issued under the watch of Viktor Orbán citing corruption concerns, Euronews has learned.
A revision of the plan’s goals and scope in line with the priorities of the Magyar’s government is possible, and the European Commission has agreed to their request to review it and assess it before making taking further steps.
The low-interest loan scheme was launched last year by Brussels to strengthen defence industries and military readiness across the bloc in response to the threat posed by Russia. SAFE will distribute €150 billion among 19 member states.
Hungary submitted its plan, worth €16.2 billion, last December, detailing defence and dual-use projects. As the Commission has yet to approve the submission, experts from Magyar’s incoming government are now scrutinising it and may propose changes.
“We will critically review the list submitted by the outgoing government and make decisions based on real needs and an assessment of corruption risks,” a source within the Tisza Party told Euronews on condition of anonymity.
The corruption risks referred to are understood to relate to Hungarian industrial interests with ties to Viktor Orbán’s outgoing government.
National plans submitted to the Commission are treated as confidential given their sensitive nature. The Commission confirmed it is engaging with the incoming Hungarian authorities on the matter.
“The Commission is, of course, open to engaging on the Hungarian SAFE plan with the incoming government,” Commission spokesperson Thomas Regnier told Euronews, adding that the assessment of Hungary’s defence plan remains ongoing and will be approved once it is ready.
Hungary’s plan last in the queue
In March, the Commission approved the Czech and French SAFE national plans, leaving Hungary’s submission as the last pending case. The Commission’s position at the time mirrored its current stance: that the plan was not yet ready for approval.
Hungary subsequently wrote to the Commission requesting an update on the review’s status. The Commission responded by insisting that revisions were required.
Hungary’s envelope of €16.2 billion was among the three largest requests, trailing only Poland and Romania, and exceeded France’s allocation — Paris sought €15.1 billion.
Hungarian diplomats familiar with the matter maintain that the delay was politically motivated and that Budapest had met all the necessary criteria for a positive assessment.
“Looking at the timeline, the Commission decided in early February not to approve the Hungarian plan before the elections. Until then, the procedure had followed the same pattern as with other member states,” a senior Hungarian official told Euronews on condition of anonymity.
“Afterwards, the Commission went completely silent: no feedback, no questions, no justification — not even replies to official inquiries. This is not a regular procedure; it is an obvious political blockage,” the official added.
The Commission this week rejected allegations that the Orbán government’s SAFE plan had been held up for political reasons.
“I firmly rebut the suggestion that it has been blocked for political reasons. We have not blocked any SAFE plan,” spokesperson Regnier said, noting that Hungary had been asked for revisions.
High-level EU delegation visits Budapest
Over the weekend, a senior European Commission delegation travelled to Budapest for initial informal talks with officials from Magyar’s incoming team.
Ursula von der Leyen’s chief of staff, Björn Seibert, led the EU delegation, which included several director-generals. The visit was notable given that discussions took place with Tisza Party officials who have not yet assumed formal governmental authority.
Although the Director General for Defence Industry and Space, Timo Pesonen, was not present, Hungary’s SAFE plan featured in the discussions.
Following the meeting, both sides expressed willingness to resolve the issue of Hungary’s frozen EU funds — worth €17 billion out of the €27 billion earmarked for Hungary in the current budgetary period.
Magyar and Commission President von der Leyen had previously agreed to establish a direct communication channel between their teams to work towards unblocking the funds.
Hungary stands to lose €10 billion in recovery funds if a deal is not reached by the end of August. Releasing frozen EU funds — blocked by Brussels during the Orbán government over rule-of-law and anti-corruption concerns — was the central pledge of Magyar’s election campaign.
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