Hungary has sharply reduced the amount it plans to borrow under the European Union’s SAFE defense program, with Prime Minister Péter Magyar’s government opting to take €5.4 billion instead of the €16.4 billion previously allocated to the country. The European Commission confirmed the revised figure on Friday, saying Hungary’s new government had reassessed its needs and decided to borrow less. Brussels stressed that member states determine how much of their available SAFE allocation they ultimately take. Italy has also scaled back its plans, submitting an updated request for just over €8 billion. The Commission is currently assessing both countries’ revised plans. The reductions could leave close to €20 billion available for reallocation within the €150 billion program. SAFE provides low-interest loans aimed at accelerating European defense procurement and strengthening the continent’s defense industry. Poland remains the program’s largest participant, having signed a €43.7 billion loan agreement in May. It was the first participating member state to finalize such a deal. The funding is expected to support Polish projects including air and anti-drone defenses and military infrastructure.
