Swedish defence and aerospace group Saab will establish a flight development centre in Budapest. The new centre will support high-end research and engineering tied to Gripen fighter jet programme, which has underpinned Hungary's air defence for over two decades, Hungarian Foreign Minister Peter Szijjarto announced on April 16 in Linköping.

The announcement comes as Hungary prepares to expand its Gripen fleet from 14 to 18 aircraft by next year, enabling it to deepen its role in regional air policing missions to half a dozen other countries.

Hungary finalised a defence cooperation agreement with Sweden in February 2024, which included the purchase of four additional JAS-39 Gripen fighter jets and also the establishment of the facility by Saab.  

The deal marked a symbolic end to a prolonged diplomatic standoff over Sweden’s NATO accession, which Hungary had delayed ratifying for months. The true motifs remain unclear 14 months later.

The agreement was widely seen as a gesture to ease tensions and reset bilateral ties, while also reinforcing Hungary's military capabilities through continued reliance on Swedish-made aircraft

Hungary signed the lease contract with Sweden for the leasing of 14 Gripen fighter jets in 2001, which has been extended twice. The aircraft are expected to be fully transferred to Hungarian ownership by 2026.

Szijjarto said the initiative would not only bolster the country's technological capabilities but also place Hungary on the map as a player in Europe’s combat aircraft development landscape.

Hungarian jets already participate in protecting the airspace of Slovakia, Slovenia, Croatia and the Baltics, where Hungarian pilots will serve again from August.

"The geopolitical turbulence of our time has increased demand for advanced fighter jets and made NATO's eastern flank a critical zone," he said.

Saab's R&D centre is expected to provide new high-tech career opportunities for Hungarian engineers and contribute to the country's industrial modernisation, according to the minister.