Hungary Seeks to Free Up €10.4bn in Blocked EU Funds

Hungary is seeking access to €10.4bn from the European Union's recovery fund before the end of August. EU officials describe the target as challenging but achievable.

The funds, comprising €6.5bn in grants and €3.9bn in low-interest loans, have been blocked over rule of law concerns under former prime minister Viktor Orban. A further €7bn in EU structural funds remains frozen for the same reason.

New Prime Minister Peter Magyar, who took office on Saturday, has been negotiating with the European Commission to unlock the funds since his party's victory in the 12 April elections. Budapest is reportedly due to present a revised spending plan on 27 May, following talks between Magyar and Commission President Ursula von der Leyen.

The new proposal must align with the recovery fund's core objectives of building a greener, more digital and more resilient economy. EU officials say the original 2022 plan is no longer viable.

The Commission is also recommending that Hungary redirect the money toward safer and faster-moving projects to ensure the funds can be used before the deadline.

(reuters, bak)