Hungary won major battle in Brussels yesterday?

Hungary has won “a major battle” in Brussels, securing access to the whole tranche of the country’s EU recovery monies and unsuspended parts of its cohesion funding, according to a Centre for Fundamental Rights political analyst.

Hungary will have the opportunity to access the rest of cohesion funds at a later point, Levente Szikra told public broadcaster M1 on Tuesday, adding that the deal meant more battles lay ahead. Still, market confidence in Hungary is likely to improve, he added. The analyst said Hungary had fulfilled all its commitments in connection with the suspended funds and represented its interests in Brussels “very effectively”, though European Parliament pressure meant the government had not reached its aims entirely.

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EU ambassadors propose approval of Hungary recovery plan

The ambassadors of European Union members have positively assessed Hungary’s recovery plan which awaits the a decision of European Union leaders, the European Council said on Monday. The council also said at the same time that the Committee of Permanent Representatives has proposed suspending payment of cohesion funds to the country totalling 6.3 billion euros. If the proposal is accepted and Hungary completes 27 “milestone” reforms to reinforce the rule of law, it may access 5.8 billion euros of EU recovery funding to offset the impacts of the coronavirus pandemic and finance the transition to a green and digital economy, the council’s statement said.

According to the ambassadors’ evaluation, the Hungarian plan is made up of reforms and projects that would contribute to meeting the EU’s country-specific recommendations, adding that it was designed to provide a thorough and balanced response to the economic and social situation in the country. The Hungarian plan includes a thorough package of key institutional reforms aimed at meeting country-specific recommendations concerning the rule of law, which serves protection of the community’s financial interests. Stepping up the fight against corruption, promoting competition in public procurement and strengthening the independence of the judiciary will also contribute to the efficiency and resilience of the economy, the statement said.

Hungary will be required to fully and appropriately complete its reforms before the EU makes any payment to the country under the Recovery and Resilience Facility, the statement warned. The council’s Czech presidency said on Twitter that the Hungarian plan may be approved on Tuesday.

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Source: MTI