The European Commission is ready to unlock €10bn of funds for Hungary. But the country must meet deadlines that are closing in fast, and any funds are unlikely to be released until the end of this year. With a looming 31 August deadline, Hungary essentially has only shot to get
Nikolaj Nielsen
Hungary’s new government will have to work double time in order to obtain billions of previously frozen EU funds, following a political agreement with the European Commission on Friday (29 May).
“If every time I come here, I go back with this amount of money, I’ll be coming here more often,” Hungary’s prime minister Péter Magyar joked to reporters in Brussels at a press conference with commission president Ursula von der Leyen.
In reality, Magyar will only return to Budapest with an agreement to access €16.4bn in proposed funds, representing some 13 percent of Hungary’s total budget.
The challenges faced by Magyar’s Tisza government are considerable.
The €16.4bn is composed of €10bn in pandemic Covid-era funds, €4.2bn in cohesion funding, while the remaining €2.2bn is geared towards academic freedom. Most of that is in grants.
Gaining access to the funds, including the remaining €10bn will be tricky.
Hungary has a 31 August deadline to pass all the necessary reforms before the commission agrees to release the €10bn, which comprises €6.5bn in grants and €3.5bn in loans.
