EU and Hungary Strike Agreement: Billions Unlocked Pending Legal Reforms
EU-Kommission - Audiovisueller Dienst
A total of €16.4 billion is set to flow to Budapest – nearly the entire sum of EU funds still frozen for Hungary. European Commission President Ursula von der Leyen and Hungary’s new Prime Minister Péter Magyar announced this on Friday, with a celebratory tone. The Hungarian side had done little to manage expectations beforehand, already calling it a “historic moment” before the two even addressed the public.
To the casual listener, it might have seemed Magyar would leave with the unfrozen billions the same day. But reality is different: After intense negotiations, Hungary’s new government and the Commission have agreed on legal reforms necessary to restore the rule of law – at least on paper. These laws must now pass through Hungary’s parliament. Only then will the funds be released.
Time is short. If the conditions are not met by August 31, a large portion of the money will be lost: €10 billion in COVID recovery funds.
Daniel Freund, Green Party Coordinator on the Budgetary Control Committee:
“Magyar is returning home with a promise, not a suitcase full of cash. He and his team must now quickly push the necessary laws through parliament. EU funds will only flow once the reforms are adopted. And even then, the work isn’t done. An independent judiciary and the fight against corruption must exist in practice, not just on paper.”