New era of infrastructure investments

In accordance with the new government’s program, Hungary is committed to fulfilling NATO’s 5% spending requirement by 2035. This dedication is not only about meeting the expectations of the alliance, but also about leveraging the unique opportunities provided for developing dual-use solutions in healthcare, transportation, industry, and railway infrastructure – all closely linked to national defence.

In practical terms, this means Hungarian market participants stand to benefit from investments that strengthen both civilian and military capabilities, positioning the country at the heart of a new wave of strategic and transformative infrastructure projects.

What does NATO’s 1.5% mean?

Beyond traditional defence procurement, NATO’s updated targets place increasing emphasis on the protection and resilience of civilian critical infrastructure. The new NATO benchmark allocates up to 1.5% of a country’s GDP specifically for the protection of critical infrastructure, enhancing network security, boosting civilian preparedness and resilience, supporting innovation, and strengthening the defence industrial base.

However, the precise requirements and eligible expenditures within this category are yet to be clearly defined by NATO, accordingly further clarification of these details will be crucial for parties involved in infrastructure development.

Hungary has already invested in modern defence systems, such as NASAMS air defence, the Lynx KF41 infantry fighting vehicle, and Leopard tanks, meeting and even exceeding previous NATO commitments. Looking ahead, the emphasis is expected to move beyond traditional defence spending toward dual-use solutions, with infrastructure development playing a central role. This shift offers a wide range of opportunities for the infrastructure development sector in Hungary, as future investments could increasingly benefit both national security and civilian needs.

Hungary’s role in driving smart dual-use solutions in NATO-related infrastructure

Hungary is expected to prioritize dual-use infrastructure investments, particularly those that support both civilian and military needs, which may be associated with the following priority areas:

• Railway infrastructure designed to support both heavy armored vehicle transport and general freight, utilizing a blend of EU funding and national resources. These projects aim to enhance military logistics while improving civilian connectivity, following the lead of initiatives in Poland (CPK) and the Baltic States (Rail Baltica) that have strengthened both defence and public rail networks.
• Roads, bridges, tunnels, and motorways constructed to accommodate military-grade vehicles and heavy loads, with dual-use capabilities for emergency deployment and civilian traffic. These motorways may incorporate features that allow for temporary conversion into airstrips, supporting both defence mobility and commercial transportation needs. Examples include Germany’s Autobahn network, which is designed for rapid military mobilization and allows sections to be used as emergency airstrips; Poland’s S3 and S8 expressways, which have reinforced bridges for armored vehicles; and Sweden’s roadways that are regularly used in exercises for military logistics.
• Airports with flexible configurations for military and civilian use, ensuring Hungary can facilitate NATO transit while maintaining commercial aviation operations and emergency response capability. For instance, Germany’s Leipzig/Halle Airport serves both civilian and military transport, and Estonia’s Tallinn Airport is used for NATO logistics as well as commercial flights. Poland’s Rzeszów-Jasionka Airport has played a key role in NATO logistics and humanitarian missions.
• Reinforced energy networks and telecommunications infrastructure, designed to ensure operational resilience and uninterrupted service for both defence operations and public needs. Examples include Finland’s Fingrid electricity grid, which is engineered for redundancy and cyber resilience; Lithuania’s enhanced energy infrastructure for NATO exercises; and Estonia’s secure national communications networks, used for both civilian internet and defence purposes.