Two German lawmakers have blocked or forced the renegotiation of defense procurement contracts valued at more than €1 billion, exerting strict parliamentary oversight over the military’s budget spending.

According to a report by the Financial Times, Andreas Mattfeldt of the Christian Democratic Union (CDU) and Andreas Schwarz of the Social Democratic Party (SPD) serve on the Budget Committee of the Bundestag, Germany’s federal parliament.

The committee holds the authority to approve all military procurement projects valued at over €25 million.

In January, the two lawmakers vetoed a €600 million contract intended for Munich-based electronics group Rohde & Schwarz to supply a mobile intelligence system. The parliamentarians objected to the contract being awarded directly without a competitive bidding process.

One month later, they blocked a €462 million direct agreement with defense contractors Rheinmetall and MBDA. The contract was aimed at developing a laser system designed to protect naval vessels from drone attacks.

In February, the lawmakers also successfully lowered the maximum cost of three contracts intended for the procurement of kamikaze drones. Later in April, they halted the planned purchase of 900 diesel fuel tanker containers for the German armed forces, the Bundeswehr. The representatives intervened after discovering that the price of the tankers had doubled compared to a similar purchase made five years prior.

“We have brought about a paradigm shift because we are responsible for the immense amount of money entrusted to us by taxpayers,” Mattfeldt said in an interview with the Financial Times. “I want to be able to say that we have contributed to the Bundeswehr getting the best equipment at the best price.”

Schwarz, who, like his colleague, previously served as a municipal mayor, added: “We do not get involved in ideologies; we use our common sense.” While colleagues and aides jokingly refer to the pair as “the two Andys,” the two lawmakers have nicknamed themselves “the A-Team.”

Budget committee powers stem from past cost overruns

The extraordinary powers of the budget committee over defense procurement date back to 1981. At the time, parliament reacted to severe cost overruns in the Tornado fighter jet program by decreeing that all military projects exceeding 50 million deutsche marks must receive legislative approval.

Today, that threshold stands at €25 million, a limit that one official described as “completely outdated.”

A spokesperson for the German Ministry of Defense said: “Parliamentary control over major acquisitions is an important oversight tool in our democracy.”

German defense contractor Rheinmetall is selling its automotive supplier division to the private equity firm Aequita.

Rheinmetall announced on Wednesday that the two companies “signed an acquisition agreement today, opening up a future for Rheinmetall’s former Power Systems division under new management.”

The group described the divestment of its civilian unit as a “milestone in its strategic restructuring,” which allows it to “shift its focus to its military business.”

The transaction is expected to close in the fourth quarter of this year and remains subject to regulatory approvals.

The preliminary purchase price for 100% of the shares has been set at 350 million euros, though this figure remains subject to adjustment prior to the closing of the deal.

Rheinmetall recently reported record profits and swelling order books in its defense business. Conversely, the automotive supply industry remains mired in crisis.

“The further deterioration of the business situation, particularly in the automotive sector, affected the terms and conditions of the final agreement,” Rheinmetall said in a statement.

Rheinmetall, which has seen its business surge since the start of the war in Ukraine as Europe increases its defense spending, had been seeking a buyer for the Power Systems division since last year and classified the unit as discontinued operations in December 2025.

Rheinmetall added that Aequita, an investment firm specializing in acquiring and restructuring companies, plans to retain the unit’s approximately 6,250 employees worldwide.

“This company is an excellent addition to our automotive division, which will now generate approximately 5 billion euros in revenue,” said Axel Geuer, Chairman and Co-CEO of Aequita.

Geuer added that Aequita will support the long-term development of the company and seek to create synergies across its broader automotive portfolio.

Rheinmetall specified that assets excluded from the sale include the three German plants of aluminum casting specialist KS Huayu AluTech, the stake in the automotive sensor joint venture Dermalog SensorTec, and auto parts manufacturer Pierburg’s Abadiano factory in Spain.

Hungary’s newly elected Prime Minister Péter Magyar has pledged to block all illegal migration, reject European Union quotas, and challenge Brussels’ punitive fines, signaling a highly restrictive border policy even as he vows to restore ties with European partners.

In his first interview with the German newspaper Frankfurter Allgemeine Zeitung since taking office, Magyar outlined his administration’s strategic roadmap. He addressed the smear campaigns directed against him by the former government of Viktor Orbán, relations with the EU, migration policy, and the economic necessity of maintaining energy ties with Russia.

Reflecting on his transition to power, Magyar noted that the Orbán administration targeted him, his family, and his colleagues during a highly polarized campaign.

“I have known Viktor Orbán for a long time. What happened during the election campaign was no surprise to me, even if it might be difficult to imagine in other countries,” Magyar said. “The mudslinging campaign was not just directed at me personally, but also against my family, my colleagues, and my friends. However, those who faced each other were not Hungarians against Hungarians; it was Viktor Orbán and his vassals standing against the Hungarian nation. One of our most important campaign promises is that we will do everything we can to reunite the Hungarian nation.”

Despite running a pro-European campaign to secure victory, Magyar acknowledged fundamental disagreements with Brussels, particularly on migration. He argued that former Prime Minister Orbán’s hardline stance during the 2015 European migrant crisis was correct.

“My government will pursue an extremely strict and decisive policy regarding illegal migration,” Magyar said. “You can be as angry with Viktor Orbán as you want—and no one has criticized him more than I have—but when the migration crisis began in 2015, he was right. Many member states have now admitted they made wrong decisions at the time. In any case, we will protect our homeland, our country’s borders, and the external borders of Europe.”

“Hungary will not accept any illegal migrants”

Responding to whether Hungary would comply with newly implemented EU asylum rules, which mandate member states to conduct processing procedures at external borders, Magyar delivered a firm refusal regarding quotas and penalties.

“I can only say this: Hungary will not accept any illegal migrants. We will not pay any penalties for this either,” Magyar said. “However, we will help protect Europe’s external borders, whether in Greece, Malta, or Italy. The 2015 migration crisis must be a lesson for Europe. The most important duty of European politicians is to protect the safety of the people. I believe there are many ways to stop illegal migration without violating European Union rules. It is simply a matter of being able to negotiate.”

Magyar also dismissed the current relevance of a European Court of Justice ruling imposing a daily fine of 1 million euros on Hungary for failing to implement EU asylum procedures, arguing the decision is outdated.

“The court’s decision was made at a very different time and under a different legal framework,” Magyar said. “Today, we are in a completely different situation. This decision no longer reflects today’s reality. Today, there are many countries acting just like Hungary, yet this European Court of Justice decision does not apply to them. I find this incredibly unfair. In order to protect our borders and avoid having to pay the daily fine of 1 million euros, we will hold talks with our European partners and find a common solution.”

While acknowledging that the judicial ruling is final and cannot be appealed, Magyar described the financial burden on Hungarian citizens as unjust.

“The decision cannot be appealed. We are looking for new rules and opportunities to avoid paying the fine,” he said. “It is unfair and disproportionate that the people of Hungary must pay a fine of 1 million euros every day. Similarly, it is a great injustice that while other member states receive these funds, Hungary has been provided with no financial resources for the wire fence it constructed to protect the external border of the European Union.”

“Exclusion only makes the far-right stronger”

Magyar strongly opposed pushback from member states—particularly pressure from Germany—to transition EU foreign policy decision-making from unanimity to qualified majority voting, defending the preservation of national sovereignty.

While rejecting the confrontational rhetoric favored by Orbán toward Brussels, Magyar emphasized the importance of compromise among sovereign states.

“I served as a diplomat within the European Union for a long time, and I know very well how difficult it is to reach a consensus among 27 countries. Yet, most of the time, this is achieved,” Magyar said. “Orbán always said, ‘We must defeat Brussels.’ I do not think that is the point. The point is to understand each other, to persuade, and not to try to defeat one another. People do not want a United States of Europe; they want a European Union based on strong member states. For this reason, I do not support transitioning to a majority voting system in many areas instead of the unanimity rule at this stage. We will negotiate and find a middle ground.”

Addressing the political rise of far-right parties across Europe, particularly in France and Germany, Magyar criticized traditional political elites for being disconnected from public anxieties and relying on political moralizing.

He warned that isolating these populist movements is counterproductive.

“I do not like labels like far-right or far-left. I do not like ideological wars,” Magyar said. “People deserve more than politically correct speeches where ideological labels are slapped on one another. I have no intention of interfering in the internal affairs of other member states, and I will not do so; on this point, I differ from Orbán. However, I observe that some countries make mistakes in combating extremist parties. In many countries, politicians do not act honestly. They do not understand people’s fears and expectations, and they do not dare to talk openly about problems and face them. They use the language of political correctness and, at the end of the day, fail to grasp reality itself. These are precisely the mistakes that certain groups exploit. Excluding these people and these parties, building a wall of isolation around them, is not a solution on its own. Exclusion only makes these forces stronger. In many countries, these mistakes have been recognized, but not yet everywhere.”

Asked if this critique applied to Germany, Magyar maintained his criticism of governing establishments.

“In many countries, the political, media, and economic elites protect their own positions and do not always address the real fears and problems of the people. But the public does not forget this. That is why what we need is honesty, honesty, and once again, honesty,” he said.

On the debate over whether conservative factions in the European Parliament should cooperate with the Alternative for Germany (AfD) party, Magyar shared his perspective on the future strategy of the European People’s Party (EPP), which includes his own party, Tisza.

“In the European Parliament, political forces must always seek a majority, and grand coalitions between the center-left and center-right can function. Germany and Austria are good examples of this,” Magyar said. “However, this does not always work, and that is why the CDU/CSU and the European People’s Party, which includes my party Tisza, may have to make a decision one day. In my view, the European Conservatives and Reformists (ECR) are the natural allies of the European People’s Party. Whether they want to cooperate with the AfD is not my decision to make. However, I believe that talking to one another and listening to the other’s arguments never causes harm. What we accept from each other’s proposals is an entirely separate matter.”

“Europe will partially return to Russian energy after the war”

Defending Hungary’s decision to continue importing crude oil and natural gas from Russia despite the war in Ukraine, Magyar emphasized the country’s landlocked geography and economic constraints.

“The Hungarian people elected me as the Prime Minister of Hungary. My government’s duties include ensuring energy security, security of supply, and the lowest possible energy prices,” Magyar said. “In recent years, Hungary has become one of the poorest and most corrupt countries in the European Union. Three million people live below the poverty line. Our neighbors in the European Union must understand that Hungary is a landlocked country. We are still dependent on Russian oil, and we cannot change this overnight. We have not seen economic growth for years, and we need cheap energy to grow. Of course, we are doing everything we can to diversify our energy resources, but we cannot afford to see our companies’ competitiveness decrease further and Hungarian families’ energy poverty increase. I think Europe will partially turn back to Russian energy resources and lift sanctions when the war ends, because the competitiveness of all of Europe is at stake here. In a future state of peace, no one has an interest in maintaining a new economic and political Cold War. For this, of course, the war must first end.”

While Orbán maintained close ties with American conservative movements and received explicit support from Donald Trump, Magyar indicated that the change in leadership in Budapest would not damage relations with Washington.

“The US is Hungary’s natural ally in NATO and a highly important economic partner. What happened during the election campaign will not change this. We will maintain good relations with every American administration,” Magyar said.

Magyar criticized Orbán’s personal relationship with Russian President Vladimir Putin, arguing instead for a pragmatic, non-ideological approach to Moscow in the post-war era.

“I know the role of Russia in Hungarian history very well. I have not forgotten the years 1849 and 1956. In both periods, Russian troops bloodily suppressed the Hungarian freedom movement,” Magyar said. “But on the other hand, the reality is that geography does not change. We must accept this as it is. Therefore, we must develop pragmatic relations with Russia once the war against Ukraine ends. Nonetheless, it is extremely clear that Russia currently poses a security risk to all of Europe. It is unacceptable that people in Europe must live in fear of Russian sabotage or a Russian attack. That is why this war must end, and we must provide international security guarantees to Ukraine. However, Europe can only develop when normalcy returns, and Russia cannot have an interest in a new Cold War becoming permanent on the continent.”

“We can turn a new page with Ukraine”

Magyar pledged to end the hostile state-sponsored propaganda directed at Ukraine by the previous administration, emphasizing his respect for Ukraine’s territorial integrity and his personal involvement in humanitarian efforts.

“We want to build good relations with all our neighbors, not least because a Hungarian minority lives in each of them. This also applies to Ukraine,” Magyar said. “We have always stated that Ukraine is the victim in the Russia-Ukraine war and that Ukraine has the right to its territorial integrity. When the Russians bombed the largest children’s hospital in Kyiv in the summer of 2024, I immediately went to Kyiv with our volunteers and personally delivered the humanitarian aid of the Hungarian people. Right after the attack, we set off in a 30-year-old Ford Transit and reached Kyiv within 20 hours under air raids and missile bombardments. I did not see any other European politician at that bombed hospital. We are currently holding talks with Ukraine at a technical level, and we are working to reach an agreement within a few days to restore and guarantee the language, education, and cultural rights of the 100,000 Hungarians living in Ukraine. Today, we need to clarify certain matters with Ukraine regarding our minority in that country, and I hope we will achieve this in the coming days. Ethnic Hungarians there currently do not have the opportunity to use their mother tongue in their relations with official authorities. However, if we resolve these issues on the basis of mutual interest, we can turn a new page.”

Magyar cautioned that future security guarantees for Ukraine must be concrete and enforceable, unlike previous international agreements.

“In 1994, the famous Budapest Memorandum was signed, in which the US and other major powers guaranteed Ukraine’s independence and integrity. However, these promises were not kept, because empty slogans are of little use,” Magyar said. “Right now, everything is at stake in Ukraine. A large number of people are dying, and it is possible that this country will lose part of its territory. Therefore, Ukraine needs real, enforceable international guarantees.”

However, the Prime Minister reiterated that Hungary would remain militarily uninvolved in the conflict, stating that arms shipments do not constitute a genuine security guarantee.

“I do not believe that weapons are a security guarantee. Security guarantees can only be provided by the international community,” the Hungarian leader concluded. “Hungary cannot play a decisive role here; this is the work of the major powers. We can provide diplomatic and humanitarian aid, and Hungary can also provide a suitable ground for negotiations.”