Parliament raises questions over oversight as Hungary seeks one of the largest allocations under the EU’s Security Action for Europe programme.

The European Parliament has raised questioned over Hungary’s application for €17 billion in loans under the EU’s flagship defence financing facility, Security Action for Europe (SAFE).

MEPs discussed whether the size and timing of the request, ahead of Hungary’s April 2026 national elections, could warrant closer scrutiny to ensure the funds are used solely for defence modernisation.

SAFE, launched in 2025 with a total envelope of roughly €150 billion, provides low-cost loans to member states for national defence investment plans. Hungary’s request, submitted in December 2025, is among the largest single allocations under the programme to date.

Parliamentary critics highlighted the need for strong oversight and clear rules to make sure SAFE loans are spent appropriately, noting Hungary’s previous disputes with the EU over rule-of-law and transparency. MEPs called for monitoring mechanisms to ensure funds are directed to approved defence projects.

The European Commission and Hungary have not publicly commented on the parliamentary debate.

The first round of SAFE loans totalling €38 billion have been approved in recent days by the European Council, including a request by Hungary’s neighbour Romania. SAFE loan requests for other countries are currently pending approval from the European council before financing is expecting to be approved later this year.