Ministers shared details about how Hungary will get the EUR billions from the EU

Change language:

The government’s goals set in June have been fulfilled, Tibor Navracsics, the regional development minister, said after European Union ambassadors on Monday sent a proposal to the European Council to approve Hungary’s recovery plan and unblock its recovery funding.
Also, the goal was to strike a deal with the European Commission on cohesion funding by Dec. 31 to ensure that Hungary does not lose any of these monies, Navracsics told a press briefing on Tuesday, adding that agreement was reached. Navracsics said he trusted that the partnership agreements on the recovery fund and the operative programmes would be signed within days. Monday’s decision means that Hungary, like other member states, would be able to access EU resources. Under the arrangements of the RRF, access to some 5.8 billion euros will be available to Hungary, he said, while by the end of 2027, some 14,000 billion forints can be accessed, including for operative programmes with Hungarian co-financing.

Some 48 percent of the monies involved in the RRF will be spent on programmes that help achieve climate and energy policy goals, while 30 percent will enable the development of digital infrastructure and public services and supporting companies’ digital transition, he said. Concerning the monies available under the arrangements of the operative programmes, more than 4,000 billion forints have already been approved by the EC for agricultural and rural development so 9,000-10,000 billion forints will be left for other areas, depending on the exchange rate, he added.

Hungary maintained an open strategy at the talks, he said, adding that the government had given serious consideration to all requests and concerns coming from the Commission, and it was open to compromise if a good solution was offered. Accordingly, an agreement was reached with the EC concerning the rule-of-law procedure by September, allowing the sides to focus on the talks concerning the two large funds, and this brought about results by late November, he said.

At the end of November, the EC said that it considered Hungary’s national recovery plan “excellent” and saw no further concerns regarding the cohesion funds, either, he added. The current development demonstrates the Council’s recognition of the efforts made so far, he said. In response to a question, he said the last stage in the schedule of implementation was at the end of March and then the package of laws will have to be approved by Hungarian parliament. The EC said that if the end-of-March deadline is sustainable, then the freezing of funds can be lifted in April or May, he added.

He said he trusted that there would be no further demands by the EU. Continual dialogue has been maintained with the EC, and the milestones currently achieved demonstrated that Hungary’s efforts had been recognised, he said. The government will make an effort to clarify any possible problems raised during the talks with a view to preventing the need to raise any further demands, he added. Navracsics said there was no date set as yet for the signing of the partnership agreement. Monday’s deal had to be reached first and now within a few days, the date of signing the agreement will be announced, he added. The plan is to announce 25 new tender invitations by the end of March, he said.

Commenting on the loan part involved in the recovery fund, he said there were six months left to decide whether a loan would be taken out or not. The government will make its decision depending on the economic environment at the time, he added. Commenting on the milestones set for Hungary during the EU talks, he said Hungary had a good chance of showing an example to other member states how to “handle an ideologically driven campaign of hysteria” by means of substantive measures, and how to make further steps in the areas of public procurements and the whitening of the economy.

Continue reading

One comment

  1. Politicians banging on about “ideology” and then riding their 9 percent corporate tax rate into the sunset.

    Again. The global minimum tax is a global deal to ensure big multinational companies firms with 750 million euros in sales globally to pay a minimum tax rate of 15 percent and make it harder for them to avoid taxation. It should also put an end to decades of tax competition between governments to attract foreign investment.

    At no point was Hungary at risk of having to increase taxes. If we would not charge these big international firms, other countries would do it for us. It was all about leverage and showing off to some major MNCs – and everyone knows it.

    I wonder what facts Mr. Gulyás bases his statement the corruption situation in Hungary is ” not worse … than in western Europe or countries that joined the EU more recently”.

    Lovely little interactive map: https://www.transparency.org/en/cpi/2021

    The whole notion of hálapénz may be on the way out – but only slowly!

Leave a Reply

Your email address will not be published. Required fields are marked *