Hungary's new government, led by Péter Magyar, is reassessing a major EU defence funding proposal submitted by the defeated administration of Viktor Orbán, citing serious concerns about corruption risks, according to a report by Euronews.
The plan in question involves Hungary's application under the SAFE instrument, a European Union mechanism designed to facilitate joint defence procurement across member states. The Orbán government had submitted a proposal worth €16 billion before losing power, but Magyar's team is now scrutinising whether the plan contains adequate safeguards against misuse of funds.
Corruption concerns at the centre of the review
Officials from the new Hungarian administration have indicated that the original proposal lacked sufficient transparency measures and anti-corruption protections, according to Euronews. The concern is that large-scale defence contracts, if awarded without proper oversight, could benefit politically connected companies - a pattern critics had long associated with the Orbán era.
The review signals a significant shift in governing priorities. Magyar's Tisza party campaigned heavily on an anti-corruption platform and on restoring Hungary's relationship with EU institutions, which had deteriorated sharply under Orbán's leadership over more than a decade.
European Commission open to dialogue
The European Commission has indicated it is prepared to engage constructively with Hungary's new government on the defence plan, Euronews reported. Brussels had previously withheld billions of euros in EU cohesion funds from Hungary over rule-of-law concerns during the Orbán years, making the new administration's overtures a notable diplomatic development.
The SAFE mechanism - which stands for Security Action for Europe - was established as part of the EU's broader push to strengthen European defence capabilities in response to the ongoing war in Ukraine. Member states can access the instrument to co-finance purchases of military equipment and other defence-related goods.
A broader reset underway
The defence plan review is one of several policy reassessments Magyar's government has signalled since taking office. Hungary's relationship with the EU is expected to be a central priority, with the new administration seeking to unlock frozen funding and reposition the country as a cooperative member state after years of friction.
How quickly the revised proposal could be agreed upon with Brussels remains unclear. Renegotiating the terms of a €16 billion submission is likely to be a complex process involving both domestic political considerations and European-level approvals.
The outcome could have implications not only for Hungary's access to EU defence funds, but also for the broader signal it sends about the new government's commitment to institutional reform.
