Hungary – “The EU finance ministers have approved Hungary’s amended recovery plan, another obstacle to the disbursement of funds due to Hungary has been removed,” Hungarian Finance Minister Mihály Varga announced in a statement sent to our Mandiner after the ECOFIN meeting in Brussels.
The minister stressed that this means that the recovery plan has been officially supplemented with a loan of €3.9 billion and a €0.7 billion non-repayable contribution from the REPowerEU plan, in addition to the €5.8 billion in non-repayable aid.
„We are confident that the cohesion and reconstruction funds will be released soon, as we have met all the conditions, so Hungary will be able to receive the funds it is entitled to as soon as possible”, the Minister stressed. He said that the first instalments in the form of advances from the RePowerEU funds, which have just been approved, could be paid early next year, after the signing of a financial agreement, which represents € 920 millions.
The Hungarian magazine explains that the Finance Minister reminded that in addition to the REPowerEU support, “the Hungarian government will also contribute from the loan part mainly to investments and developments that support the green transition. Compared to the 48% of the original programme, 67% of the budget will go to such programmes, and the green focus of the revised plan is very strong. This shows that the Hungarian government is strongly committed to being a winner in the green transition,” he said.
The EU’s conflict with Hungary centers on concerns over the erosion of democratic values and the rule of law. Hungary, under Prime Minister Viktor Orbán, has faced criticism for alleged backsliding on democratic principles, media freedom, and the independence of the judiciary. The EU contends that Hungary’s laws, such as those targeting NGOs and restrictions on academic freedoms, threaten the core values of the union. The EU has initiated Article 7 proceedings, a mechanism designed to address violations of fundamental values within member states. Tensions persist as the EU seeks to balance the preservation of democratic norms with maintaining unity within the bloc.
