Magyar's government to review Orbán's defense plan due to corruption risks - media

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Hungary's new government will change its defense strategy to receive €16.2 billion in EU loans. The European Commission has already started negotiations with Péter Magyar's team.

In Hungary, the new government of Péter Magyar will review the national defense plan developed under the premiership of Viktor Orbán, citing corruption problems, with the aim of obtaining cheap European funding for the country's rearmament, Euronews has learned, writes UNN.

Details

A review of the plan's goals and scope in line with Magyar's government priorities is possible, and the European Commission has agreed to their request to review and evaluate it before taking further steps.

The low-interest loan scheme was launched last year by Brussels to strengthen defense industry and military readiness across the bloc in response to the Russian threat. SAFE will distribute 150 billion euros among 19 member states.

Last December, Hungary submitted its 16.2 billion euro plan, detailing defense and dual-use projects. As the European Commission has not yet approved it, experts from Magyar's new government are now carefully studying it and may propose changes.

"We will critically review the list submitted by the outgoing government and make decisions based on real needs and an assessment of corruption risks," a source in Magyar's Tisza party told Euronews on condition of anonymity.

It is implied that the corruption risks are related to Hungarian industrial interests connected to the outgoing government of Viktor Orbán.

National plans submitted to the European Commission are considered confidential given their sensitive nature. The European Commission confirmed that it is engaging with the new Hungarian authorities on this matter.

"The European Commission is, of course, ready to discuss the Hungarian SAFE plan with the new government," European Commission spokesman Thomas Regnier told Euronews, adding that the assessment of the Hungarian defense plan is ongoing and will be approved once it is ready.

Hungary's plan is the last in line

In March, the European Commission approved the national SAFE plans of the Czech Republic and France, leaving Hungary's application last in line. The European Commission's position at that time coincided with its current position: the plan was not yet ready for approval.

Subsequently, Hungary sent a letter to the European Commission requesting an update on the status of the review. The European Commission responded, insisting on the need for amendments.

Hungary's 16.2 billion euro package was one of the three largest requests, trailing only Poland and Romania, and exceeding France's allocation – Paris requested 15.1 billion euros.

Hungarian diplomats familiar with the matter claim that the delay was politically motivated and Budapest met all necessary criteria for a positive assessment.

"If you look at the timeline, in early February the European Commission decided not to approve the Hungarian plan before the elections. Until then, the procedure followed the same pattern as with other member states," a senior official told Euronews on condition of anonymity.

"After that, the European Commission remained completely silent: no feedback, no questions, no justifications – not even responses to official requests. This is not a normal procedure; it is an obvious political blockade," the official added.

This week, the European Commission rejected claims that the Orbán government's SAFE plan was delayed for political reasons.

"I strongly refute the suggestion that it was blocked for political reasons. We have not blocked any SAFE plan," spokesman Regnier said, noting that Hungary had been asked to make changes.

Over the weekend, a high-level delegation from the European Commission visited Budapest for initial informal talks with officials from Magyar's team.

Ursula von der Leyen's chief of staff, Björn Seibert, led the EU delegation, which included several director-generals. The visit was notable because discussions were held with representatives of the Tisza party, who have not yet assumed official government responsibilities.

Although the Director-General for Defence Industry and Space, Timo Pesonen, was not present at the meeting, the Hungarian SAFE plan was included in the discussions, the publication writes.

Following the meeting, both sides expressed their readiness to resolve the issue of frozen Hungarian EU funds – amounting to 17 billion euros out of 27 billion euros allocated to Hungary for the current budget period.

Magyar and Commission President von der Leyen had previously agreed to establish a direct communication channel between their teams to work on unblocking the funds.

Hungary could lose 10 billion euros in recovery funds if an agreement is not reached by the end of August. The release of frozen EU funds, blocked by Brussels during Orbán's rule due to rule of law and corruption issues, was a key promise of Magyar's election campaign, the publication indicates.

European Commission puts forward demands to Magyar for unblocking 35 billion euros14.04.26, 01:38

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