Hungary has reversed its earlier opposition and joined 17 other EU member states in applying for loans under the European Union’s €150bn defence financing initiative, the Security Action for Europe (SAFE) programme, the European Commission confirmed this week.

The scheme was launched to boost Europe’s defence manufacturing capacity through joint procurement and investment in military production. According to the Commission, 18 countries submitted applications totalling €127bn by the July 30 deadline, in what Brussels described as a show of unity and ambition in EU security and defence policy.  The loans will be paid back in 45 years.

While Hungary abstained during the vote when the legal framework was agreed on May 21, it is now among applicants, though it has yet to disclose the size of its request

The final deadline for formal submissions is November 30 and member states must present specific programmes and associated budgets by then.  At this stage, applicants have indicated only minimum and maximum amounts and the final figures will be released once the national plans are completed.

National Economy Minister Marton Nagy signalled the government’s change in stance earlier this week, citing favourable borrowing terms. Analysts suggest economic pragmatism may have prevailed over political rhetoric, particularly as Hungary seeks to maintain defence capacity while navigating budgetary constraints.

SAFE also serves as a mechanism to continue EU support for Ukraine through joint procurement schemes. Member states are not required to provide national co-financing for the EU loans. Poland, one of the most ambitious applicants, has already announced it will seek €45bn under the programme, according to Deputy Prime Minister Władysław Kosiniak-Kamysz.