Italy is reportedly considering using funds from a European Union loan program to finance the purchase of new armored vehicles and tanks from Germany’s Rheinmetall.
The financing would come from the EU’s low-interest SAFE loan initiative, designed to help member states strengthen their military capabilities in light of growing security concerns along the bloc’s eastern borders due to Russia’s actions.
Earlier this year, EU officials announced plans to distribute approximately €150 billion in affordable defense loans among member countries. In September, allocations were revealed: Poland was granted €43.7 billion, Romania €16.7 billion, France and Hungary each €16.2 billion, and Italy €14.9 billion, among others. Member states must submit their spending plans by November 30, with disbursement expected in 2026.
Under the terms of the program, countries cannot use the funds for independent arms purchases. Instead, the EU is encouraging cooperative procurement between at least two member states to reduce costs and enhance defense collaboration across Europe.
This topic surfaced in Rome on Monday during a meeting between Hungarian Prime Minister Viktor Orbán and Italian Prime Minister Giorgia Meloni. Following the discussion, Meloni’s office stated that both leaders “reviewed the opportunities offered by the European SAFE scheme and explored possible areas of cooperation between Italy and Hungary to support their industrial and technological sectors.”
Italy and Hungary already share one active defense program and another potential collaboration. Both are involved in acquiring and customizing Rheinmetall’s Lynx tracked armored vehicle, and they are also linked through plans to adopt Rheinmetall’s new Panther main battle tank. Italy intends to procure 272 Panthers, while Hungary entered into an agreement with Rheinmetall in 2023 to co-develop and manufacture the tank.
An Italian defense official, speaking anonymously said, Italy’s acquisitions of both the Lynx and Panther could be financed through the SAFE loan program. Italy is set to purchase 1,050 Lynx variants, fitted with turrets produced by Italian defense firm Leonardo. Hungary, on the other hand, signed a deal in 2020 to buy roughly 218 Lynx vehicles, with all but the first 46 being manufactured domestically. Those initial 46 units have now been delivered.
Although Hungary has applied for €16.2 billion in SAFE loans—making it one of the largest beneficiaries—its participation is notable given Prime Minister Orbán’s frequent criticism of the EU. Ironically, on the same day he discussed the SAFE initiative with Meloni, Orbán told reporters, “The European Union counts for nothing.”
