EU may announce new tranche of rearmament loans after Hungary’s move
The European Commission could soon unveil up to €10 billion in additional loans under the SAFE defense program, as Hungary plans to reduce its original request.
According to Euractiv, the European Commission may announce a new round of loans for rearmament under the SAFE program, as Hungary is likely to scale back its request for defense credits. The new tranche could be worth up to €10 billion, drawn from funds originally allocated to Budapest.
Hungary is the only one among 19 member states that have applied for SAFE funds whose plan has not yet been approved by the Commission. Budapest was initially allocated €16.2 billion but has withdrawn its original proposal and intends to submit a new, smaller plan.
This revision would reduce total SAFE commitments to around €140 billion, leaving approximately €10 billion for other EU countries that have expressed interest. Several capitals have informed the Commission they would be interested if additional funds become available. Italy has also publicly indicated it wants to cut its €15 billion allocation by more than half, due to internal government disputes.
Czechia, Finland, Slovakia, Bulgaria, and Estonia are expected to sign loan agreements with the Commission by the end of the month, while Denmark, Portugal, and Spain plan to approve their agreements in early July. Poland was the first to sign a SAFE agreement and is the program’s largest beneficiary, receiving over €40 billion.
