Hungary’s race to access EU’s 10.4 billion euros is ambitious but possible, say officials
Key Points
Hungary is racing to meet an August 31 deadline to become eligible for 10.4 billion euros ($12.2 billion) from the European Union’s post-pandemic recovery fund. While the task is ambitious, EU officials have stated it remains achievable.
EU Funding Details
Hungary’s share of the EU recovery fund includes 6.5 billion euros in grants and 3.9 billion euros in low-cost loans. However, the disbursement of these funds has been frozen by the EU, adding pressure to the government to finalize negotiations.
Recent Developments
- Prime Minister Péter Magyar, who is set to take office next month, has held successful talks with top European Commission officials on unlocking EU funding.
- EU officials are meeting in Budapest to discuss the release of billions of euros held in the recovery fund, with a focus on accelerating disbursement.
- Brussels has urged Hungary to reduce its demand for loans to speed up payments, indicating a potential point of contention in negotiations.
Outlook
With the August 31 deadline looming, failure to reach a deal could result in the loss of the entire funding package. Hungary’s new government is moving quickly to repair ties with the EU and secure access to the funds.