The EU Council has approved a new Recovery and Resilience Plan (RRP) for Hungary, which will unlock €10 billion. According to the statement from the institution representing the governments of the 27 member states of the European Union (EU), this amount will be distributed approximately as €6.5 billion in subsidies and €3.5 billion in loans.
Context of the new plan
This RRP was agreed upon in May by the new Hungarian government, led by conservative Péter Magyar, and the European Commission. Previously, access to these €10 billion had been blocked since 2022 because Brussels considered that the policy of the previous Prime Minister, Viktor Orbán, violated the principles of the rule of law.
Reasons for the plan change
In its statement, the EU Council noted that the former Hungarian plan had become unfeasible due to a number of factors. These include rising costs caused by energy price volatility, unexpected changes in the geopolitical situation, unforeseen implementation difficulties, and delays related to temporary restrictions and other events.
Requirements of the new RRP
The institution stated that the new RRP aims to strengthen the anti-corruption system, increase transparency in the use of public resources and public procurement. Furthermore, it includes measures designed to enhance the independence of the judiciary and ensure the rule of law.
Conditions for receiving funds
Nevertheless, the EU Council emphasized that, like all national plans, payments under this new RRP will only be made as Hungary meets the established targets. The institution clarified that the Commission transfers funds to the country only after it fulfills the agreed control points and objectives for the reforms and investments included in the respective plan.
Implementation timeline
Thanks to the approval of the EU Council, Hungary is now racing against time to gain access to the €10 billion. The deadline for all member states to meet the established milestones within their national RRPs expires on August 31.