What Hungary must do to receive EU funds frozen under Orban
Prime Minister Peter Magyar and European Commission President Ursula von der Leyen announced a deal that could free up over €16 billion in EU funds
Prime Minister Peter Magyar and European Commission President Ursula von der Leyen announced a deal that could free up over €16 billion in EU funds for Hungary. Now, Magyar's new government needs to deliver. Hungary's new government and the European Commission have struck a deal that puts the country on track to unlock €16.4 billion ($19 billion) in EU funds frozen over concerns about corruption and the rule of law during the rule of Viktor Orban. Now, the government, led by Prime Minister Peter Magyar, has until August 31 to make good on the pledges he made to European Commission President Ursula von der Leyen during their meeting on Friday. These include commitments to structural reforms and anti-corruption measures, as well as steps to bolster academic freedom in Hungary. When will Hungary receive the EU funds? Friday’s deal does not guarantee that Hungary will get the money. “We haven’t agreed on disbursal," a senior EU official told journalists at a background briefing on Friday. "We have agreed on the conditions that need to be met." The most important of these are the EU's 27 binding conditions, or "super milestones." If Hungary fails on any of these, it will get no funding, EU officials said. Even with the two-thirds parliamentary supermajority Magyar's Tisza party won in early May, meeting the criteria will be a challenge, Julia Pocze, a legal expert with the Brussels-based think tank Centre for European Policy Studies, told DW — and that could make the government vulnerable to political attacks.
"They talked a lot about wanting to legislate in a way that allows for proper debate, or even consultation with the public," Pocze said. "There won't really be time for that." Intense high-level negotiations The agreement was preceded by lengthy talks between Hungary's government and the European Commission — even leading to a rescheduling of the announcement, which was initially expected on Thursday. "The reason it took us longer was to be absolutely sure that we have a list of reforms and investments which can be met by August 31," another EU official told journalists. As a result of the talks, changes to Hungary's pension and tax systems were taken off the list of requirements, as they were not deemed feasible in the current economic circumstances and the short time frame. Issues such as Hungary's position on opening negotiations on Ukraine's accession to the European Union — which Orban's government had blocked — were not part of these negotiations, EU officials said. Of the total €16.4 billion, €12.9 billion comes in nonrefundable grants and about €3.5 billion in loans. After August 31, €10 billion from the European Union's pandemic recovery funds will be gone for good. Peter Magyar and his government have got their work cut out for them Image: Omar Havana/REUTERS What does Hungary have to do? Magyar's government has signaled its willingness to meet the criteria, even going beyond the necessary requirements in some cases — for example, by announcing that it would join the European Public Prosecutor's Office (EPPO), a body that aims to protect EU funds from corruption.
The BriefWire