Black day of the Orbán cabinet approaches: Hungary may lose euro billions next week

The European Union established a EUR 650 billion scheme in 2021 to aid in the economic recovery of the European continent following the COVID-19 pandemic. Hungary is entitled to EUR 10.4 billion, of which 6.5 billion is non-refundable. However, Budapest has not yet received anything from that fund because the Orbán cabinet could not address the European Commission’s rule of law concerns. Next week, the Brussels body is expected to announce that the scheme’s deadline will not be extended beyond August 2026. That means Hungary will lose EUR 10.4 billion at a time when every euro could count for the struggling Hungarian economy.

Hungary may lose euro billions on 4 June

According to Politico, Hungary is not the only EU member state fighting for the postponement of the RRF scheme’s 31 August 2026 deadline. Italy, Spain, Portugal and Poland are also in that team, but it seems they will not be successful in their struggle. Based on the media outlet, EC officials will announce their refusal to extend the deadline on 4 June.

Meanwhile, multiple countries are trying to maximise the use of the RRF monies. One example is Poland, which reassigned EUR 6 billion from green development projects to defence and infrastructural developments due to Russia’s ongoing invasion of Ukraine. The European Commission helps member states to maximise the use of the “free cash”.