Hungary has vetoed a proposed €10 million military aid package for Armenia under the European Peace Facility, calling for Azerbaijan to be included in related discussions to preserve regional balance, Western diplomatic sources report.

The proposed aid, aimed at establishing a fully equipped battalion-level field camp in Armenia, was intended to bolster the country’s defense capabilities amid ongoing regional tensions. However, Hungary objected, citing the need to maintain neutrality and its strategic partnership with Azerbaijan.

Budapest’s stance underscores its broader geopolitical orientation in the South Caucasus and reflects its deepening economic and energy ties with Baku. Hungarian officials are reportedly unwilling to support unilateral measures that may be perceived as excluding key regional actors.

The European Peace Facility is the EU’s external funding mechanism designed to enhance the defense and security capabilities of partner countries. While it has previously supported peace and stability efforts in the South Caucasus, Hungary’s veto is likely to delay or alter EU planning in the region.