RMF24: The EU Blocks Hungary’s €16 Billion Rearmament Loan Due to Its Veto of a Loan for Ukraine

The European Union (EU) has frozen the allocation of approximately €16 billion in rearmament loans to Hungary under the SAFE program due to Hungary’s blocking of a €90 billion loan to Ukraine.

An EU diplomat told the Polish publication RMF24 about this.

On Wednesday, March 25, the European Commission approved defense plans under this program for France and the Czech Republic.

Thus, only Hungary’s plan remains unapproved among the 19 countries that have expressed interest in joining the SAFE mechanism.

“It is difficult for the European Commission to approve billions of euros for Viktor Orbán when he violates the principle of ‘loyal cooperation’ and blocks funds for a country at war with Russia,” the unnamed diplomat explained.

The publication noted that Budapest is very interested in receiving funds for rearmament under the SAFE program, demanding over a billion euros more than Brussels is offering. The estimated amount proposed to Hungary by the European Union is 16.2 billion euros.

Meanwhile, European Commission spokesperson Thomas Rignée told “European Pravda” that the loan plan for Budapest is still under review and must be approved once this process is complete.

Hungarian Prime Minister Viktor Orbán stated on March 19 that he would not approve any decision favorable to Ukraine until Kyiv resumes supplying Russian oil via the Druzhba pipeline.

The SAFE (Security Action for Europe) program focuses on preferential financing for the procurement of weapons for the armies of EU countries.

The program’s popularity is attributed to European countries’ desire to rapidly strengthen their own capabilities in the face of Russian aggression. European-made weapons are the priority for procurement.

Loan for Ukraine

According to the plan, of the €90 billion scheduled to be provided in 2026–2027, two-thirds—that is, €60 billion—will go toward military support. Thus, implementing this decision is critically important to ensuring the capabilities of the Ukrainian Armed Forces in the short and long term.

In particular, Ukraine plans to use part of this funding to purchase Swedish Gripen fighter jets. Funds may also be directed toward procuring critical equipment “outside the EU.”