At a time when investment in Europe’s defence and security is more important than ever, what the European Commission is now planning under a new initiative amounts to a serious strategic mistake. Under the “SAFE” funding programme, Hungary could be granted access to loans worth more than €16 billion. Only two other Member States – Poland and Romania – are set to receive more.

What is SAFE?

Under SAFE, Member States can apply for financial support to modernise their armed forces. The funds can be invested, for example, in joint defence projects, ammunition production, or the development of new technologies. The aim is to accelerate Europe’s rearmament by 2030 and increase the production capacity of the European defence industry. For countries such as Romania and Hungary, SAFE loans are more favourable than the financing they would normally obtain on the financial markets.

Why are loans to Hungary a mistake?

It is highly unlikely that the money would be used for its intended purpose. Under Viktor Orbán, Hungary has become the most corrupt country in the EU. Large parts of Hungary’s defence industry, which would benefit directly from the funds, have been placed in the hands of an Orbán ally. Moreover, Hungary has no intention of defending the European Union. Deterring Russia does not feature on Orbán’s agenda. Instead, he routinely denounces the EU as a warmonger and blocks every attempt at a common position.

A significant share of EU funds for Hungary is already frozen because the country has been violating EU values for years. Orbán’s corrupt government has, among other things, curtailed press freedom and undermined the independence of the judiciary. Allowing new money to flow now would reward precisely this behaviour.

Daniel Freund, Coordinator of the Greens in the Budgetary Control Committee:

“Orbán denounces the EU as a warmonger, yet now wants to pocket €16 billion to strengthen his own military? No one believes that. And yet the Commission is once again on the verge of financing its most outspoken opponent. If Hungary’s application is waved through, more than €2 billion will flow before the April election. That money will be missing from Europe’s defence. Instead, Orbán will use the money to buy the election. He must not be given such a gift. The Commission and the Council must reject Hungary’s application.”