Hungary may get billions of euros as the EU rolls out war-zone border aid

The European Commission is launching a new financing platform called the EastInvest Facility to make it easier for EU regions bordering Russia, Belarus and Ukraine to access funding.

The programme forms a central pillar of the EU’s new eastern strategy, driven by the heightened economic and security risks following Russia’s war against Ukraine.

According to the EU, border regions have been particularly exposed to trade disruptions, declining cross-border traffic and demographic pressures, making targeted support necessary.

Several major international financial institutions are joining forces behind EastInvest, including

• The European Investment Bank (EIB) Group
• European Bank for Reconstruction and Development
• Nordic Investment Bank
• Council of Europe Development Bank

Participants estimate the instrument could mobilise at least €28 billion in public and private investment across the eastern regions.

The timing of the initiative reflects the mounting pressure experienced by eastern border regions over the past two years. In several areas, cross-border trade has fallen, transport costs have risen and outward migration has accelerated.

The Commission warns that, over the longer term, these trends could significantly weaken the Union’s internal stability, which is why a targeted financial tool has been deemed necessary.

Border security also in focus

Beyond economic support, the strategy also encompasses the European Drone Wall initiative, aimed at reinforcing monitoring and protection along the eastern borders through the use of advanced technologies.

The package also supports the integration of the Baltic electricity system into the wider European grid, which Brussels considers crucial for energy security. Special attention is likewise being given to the social challenges of border regions, with efforts focused on improving education and employment in order to mitigate population decline and economic lag.

Hungarian projects may also gain momentum

Nine Member States are involved in the programme: Finland, Estonia, Latvia, Lithuania, Poland, Slovakia, Hungary, Romania and Bulgaria. One of the key features of the scheme is that it simplifies access to loans and advisory support in border areas.

In practice, this could enable Hungarian municipalities, state investors and companies to launch infrastructure, economic development and even security-related projects more easily.

However, it is important to note that EastInvest is fundamentally a financial and lending instrument, rather than a traditional non-repayable grant programme. This means projects must be financially viable, and a significant share of the funding will be provided in repayable form.

A key question in the coming period will be how quickly and effectively Hungarian development actors can prepare projects, as this will determine the country’s eventual share of the €28 billion investment pool.

Meanwhile, tensions around the war in Ukraine continue to shape European politics – read our latest article on Viktor Orbán’s criticism of von der Leyen and Zelensky.