This Prosum Foundation policy paper examines one of the most important strategic questions facing Hungary after 2026: how a future government should manage the defence industrial capacities built up during the previous governmental cycle.

The study argues that Hungary’s interest does not lie in dismantling existing defence industrial assets, but in depoliticising them, increasing transparency, and placing critical capabilities under a clear framework of strategic state control. It assesses the ownership, institutional and national security challenges surrounding Hungary’s emerging defence industrial ecosystem, including armoured vehicles, ammunition production, military mobility, lifecycle support, digital defence technologies, cybersecurity and dual-use capabilities.

The paper proposes a differentiated approach to state and private ownership, based not on ideology but on military function, security of supply, critical infrastructure protection and alliance obligations. It also examines how Hungary’s defence industry can be integrated more effectively into the structure and readiness requirements of the Hungarian Defence Forces, NATO capability planning, and the European Union’s new defence industrial initiatives.

Rather than treating defence industry as a purely economic sector, the study frames it as a national capability-development challenge. Its central recommendation is strategic consolidation: preserving what has real military and industrial value, reforming politically over-concentrated structures, strengthening democratic and national security oversight, and turning inherited economic-military assets into accountable national capabilities.

The policy paper is intended for policymakers, defence professionals, analysts and stakeholders interested in Hungary’s post-2026 defence policy, NATO integration, European defence industrial cooperation and the future of strategic state capacity.

It is available in both English and Hungarian.