Hungary’s push to meet NATO’s defense spending requirements has been a monumental effort, with the government pouring billions into military development and modernization.
Prime Minister Viktor Orbán admitted the journey was grueling, stating Hungary had to “sweat blood” to hit the 2% GDP benchmark. However, any demand to increase this figure to 5%, as speculated by the Financial Times regarding NATO’s potential future expectations, would severely strain the Hungarian economy, Orbán warned.
“Hungarians are interested in disarmament for this reason alone: they are a peaceful people. It would be good if we didn’t have to pay even 2 percent of our GDP,” he remarked, adding that NATO’s demands could force Hungary into debt.
Despite these challenges, Hungary has embarked on an ambitious military modernization program. Security policy expert Attila Demkó highlighted the billions spent on arms development. “Six arms factories have been built in Hungary since 2017, including the most modern and one of the largest ammunition factories in Europe,” Demkó noted, emphasizing the partnerships with NATO allies and Israel to produce NATO-compatible weapons and ammunition.
The defense industry is thriving, with factories manufacturing everything from radar systems and armored vehicles to laser technology and small arms. Notable hubs include Zalaegerszeg for tracked and wheeled vehicles, Várpalota for ammunition, and Kaposvár for radar and weapons systems integration.
Personnel recruitment has also ramped up. Defense Minister Kristóf Szalay-Bobrovniczky launched extensive campaigns to staff Hungary’s upgraded military. In 2023, crews were recruited to operate the advanced Panzerhaubitze 2000 self-propelled guns, with salaries starting at HUF 737,000 (€1,700) per month. By early 2024, hundreds of young recruits had joined Hungary’s armed forces, undergoing training on cutting-edge equipment like the Lynx KF–41 armored fighting vehicles.
Reservist enlistment has also surged. The territorial defense forces, now organized into seven regiments covering the entire country, saw 3,500 new members join within months. Reservists are offered flexible training schedules, allowing them to balance civilian jobs and military service. Benefits include salaries, referral bonuses, and scholarships for students in higher education or vocational training.
Orbán’s government has modernized the military on an unprecedented scale while wrestling with the economic burdens of NATO’s expectations. As Hungary bolsters its defense capabilities, the nation’s leaders remain wary of further spending increases that could jeopardize their economy.
