Brussels (Brussels Morning Newspaper) September 26, 2026 – The European Commission confirmed on Friday that Hungary has reduced its requested European Union defence loan under the Security Action for Europe (SAFE) initiative from over €16 billion to €5.4 billion. The downward revision by the administration of Hungarian Prime Minister Péter Magyar, alongside reductions from other member states including Italy, leaves nearly €20 billion in unallocated funds for upcoming European defence procurement rounds.
European Commission Confirmation and Loan Allocation Details
The European Commission formally verified the updated financial request during a regular press briefing in Brussels on Friday. Commission spokesperson Thomas Régnier addressed reporters to confirm that Budapest had substantially lowered its initial allocation.
Originally, Hungary was allocated more than €16 billion under the €150 billion SAFE instrument. Following the reduction to €5.4 billion, European Union officials stated that they are maintaining close communication with Hungarian authorities regarding the revised spending plan.
“We welcome this move towards us. We are now in close contact with the Hungarian authorities on the updated plan that we are supposed to get pretty soon,”
Régnier told reporters during the briefing.
Hungary, alongside Italy, represents one of the final two nations among the 19 participating countries seeking a share of the SAFE instrument that have yet to officially sign their respective agreements. Both countries have experienced internal political developments, with Hungary having installed a new government earlier in the year. Concurrently, Italy adjusted its initial allocation of €14.9 billion down to a request of slightly over €8 billion.
Broader Impact on Unallocated SAFE Funds and Reallocation Plans
The substantial reductions submitted by Hungary and other member states—including France trimming its respective requests—have collectively expanded the pool of leftover resources. According to European Commission figures, the total remaining capital available for subsequent rounds of allocations has risen to close to €20 billion.
The legal deadline for the European Commission to officially launch a second call for these remaining funds is set for the end of the year. Commission representatives confirmed that administrative preparation remains active to ensure the publication occurs within the designated timeframe.
“So work is ongoing, and you can definitely expect the publication of the call this year,”
Régnier stated regarding the upcoming secondary distribution.
Future Deployment of Remaining European Defence Resources
European Union officials indicated that the nearly €20 billion in unallocated funds will be redistributed to participating member states through structured mechanisms. Priority for the subsequent call will centre on collaborative initiatives.
The European Commission verified that the remaining capital is projected to be directed towards joint defence procurement projects. Specific emphasis during the secondary allocation phase will target joint procurement ventures involving Ukraine, aligning with broader strategic security objectives defined within the Union.
