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President of the European Council António Costa and President of the European Commission Ursula von der Leyen
Many in the European Commission doubt whether the new government will be able to draw down the full amount of EU funds from the Recovery Fund available through August of this year, reports Népszava.
The new government is in a race against time to utilize the €10.4 billion allocated to Hungary. Any funds not spent by the end of August will be lost forever, but numerous reforms must still be implemented to access them, writes the left-leaning newspaper.
From the Recovery and Resilience Facility (RRF) established in the wake of the pandemic, Hungary is entitled to €6.5 billion in non-repayable grants and €3.9 billion in loans, however, Hungary is the only member state that has not even begun to draw down the funds, as the outgoing government has not, in the Commission’s view, satisfactorily implemented the necessary anti-corruption and transparency requirements (the so-called 27 “super milestones”). In addition, numerous sectoral reforms and concrete investments were planned in the Hungarian recovery plan. Under the rules of the RRF, disbursements are only possible if the cabinet meets these requirements. While the Orbán government has taken steps in certain cases, it has ignored EU requirements in many areas.
I had a highly constructive and productive meeting with the President of the European Commission.
We agreed that, as Prime Minister of Hungary, I will return to Brussels in the week of 25 May to conclude the political agreement necessary for Hungary and the Hungarian people to… pic.twitter.com/7J7nThrUeQ
— Magyar Péter (Ne féljetek) (@magyarpeterMP) April 29, 2026
The negotiations currently taking place at the technical level between the designated government and the European Commission now focus on determining which parts of the previous recovery plan are feasible, and which new goals and reforms Péter Magyar’s cabinet could implement in just a few months.
This is because, according to the rules of the RRF, there are no exceptions: all 27 member states have only a limited amount of time to achieve the goals. The requirements are strict, so that for many other countries as well, it poses a challenge to achieve all the goals and thus utilize the full amount of funds.
According to information from Népszava, however, TISZA is considering a list of projects during the negotiations that exceeds the total amount; it will become clear in the near future which of these projects can be realized within the tight deadline. Even if not all projects can be implemented, this will allow the largest possible portion of the budget to be utilized.
As Népszava has learned, the European Commission is aware of the special situation;
The Commission assumes that Hungary will not be able to utilize a certain portion of the credit line.
For this reason, discussions are currently underway regarding changes to the recovery plan, so that the new government will submit the changes—which have already been informally approved—at the end of May as part of a bureaucratic procedure. Adherence to the original objectives, including promoting the digital and green transitions, is a key criterion. The amended plan must also be approved by the EU Council, which represents the governments of the member states.
I had a useful and constructive meeting with @eucopresident, President of the European Council.
The President confirmed that the EU institutions and member states will provide full support to ensure that Hungary and the Hungarian people receive the EU funds they are entitled to… pic.twitter.com/mKF3UrxeDp
— Magyar Péter (Ne féljetek) (@magyarpeterMP) April 29, 2026
There are specific projects that clearly cannot be implemented within a few months: The original plan included the renovation of the HÉV rail lines. In this case, there would be the option of establishing a separate organization tasked with coordinating this after August. Péter Magyar also pointed to such a solution a few weeks ago at a press conference.
The top priority for TISZA is to apply for as much EU funding as possible for projects that represent long-term investments, an internal party source told Népszava.
A sort of second-highest priority is to settle accounts for projects already completed wherever possible: By reallocating investments funded from cohesion funds for poorer regions, Hungary would also gain time. More time is available for the use of cohesion funds, and member states have greater leeway regarding their use.
According to a source from the Commission, a reallocation of projects worth around €800 million is already planned: for example, investments in energy efficiency carried out in recent years could be accounted for using RRF funds.
Via Népszava; Featured image: Facebook/European Commission
The post Brussels Skeptical about a TISZA Government’s Chances of Drawing Down All EU Funds appeared first on Hungary Today.
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