The European Commission has decided to suspend the approval of the loan plan for Hungary under the SAFE defense program. This decision is related to Budapest’s continued blocking of the allocation of a €90 billion loan for Ukraine.
This is reported by Finway
Reasons for Delays in Funding for Hungary
According to official information, the European Commission emphasizes that “the evaluation of the loan plan for Hungary is ongoing, and it will be approved when it is ready.” Meanwhile, unofficially, European institutions may freeze funding until the Hungarian authorities stop blocking financial assistance to Ukraine.
“The European Commission finds it difficult to agree to billions of euros for Viktor Orban when he violates the principle of ‘loyal cooperation’ and blocks funding for a country that is at war with Russia,” a European diplomat told reporters.
Political Context and Impact on the SAFE Defense Program
According to media reports, as early as the beginning of February, the European Commission planned to postpone the approval of the loan package for Hungary until after the parliamentary elections. In these elections, the opposition party “Tisa,” which supports the Euro-integration course, may win. However, the unwavering position of Prime Minister Viktor Orban, who reaffirmed his veto on the loan for Ukraine at the EU summit on March 19, has been decisive in the matter of freezing funding.
Hungary is interested in attracting funds from the SAFE program, which provides for the allocation of €150 billion in concessional loans primarily for the purchase of European military equipment. However, Hungary’s further participation in this program will depend on its stance regarding support for Ukraine.