Where EU funding could end up in Hungary

The Association of Hungarian Municipalities (MOSZ) is proposing that the government should allocate “a substantial part” of the European Union’s recovery fund’s loan component to local governments for supporting energy saving investments, the mayor of Budapest said after MOSZ’s board meeting on Wednesday.

At a press conference, Gergely Karácsony, a co-leader of MOSZ, welcomed the government’s plan to spend the loan in full on developing and transforming Hungary’s energy system.

“The government must use the funds by 2026 and local governments can be an excellent partner if the government wants to prepare Hungary for a period of rising energy prices and transform its energy system,” Karácsony said.

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He said local governments had already faced serious financial problems because of the coronavirus pandemic, changes in the financing of the municipalities and the energy crisis. “Without receiving funds to be spent on more energy efficient public services or on renewable energy sources, local governments would most certainly go bankrupt”.

György Gémesi, the president of MOSZ, said Elisa Ferreira, European Commissioner for Cohesion and Reforms, will pay a visit to Hungary in early March and MOSZ is organising a meeting for her with 25-30 mayors to discuss the use of EU cohesion funds.