Hungary is seeking the release of EUR 10 billion in exchange for reforms. In response The European Commission sent a high-ranking delegation to Budapest to start talks.
The meetings are scheduled to last two days and are being conducted urgentlyas Hungary may lose access to the funds if no agreement is reached before the end of August.
A European Commission delegation, led by Björn Seibert, head of cabinet of President Ursula von der Leyen, met with representatives of Peter Magyar's TISHA party. Directors-General of the Commission and future members of the Hungarian government also participated in the talks.
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Sending such a high-ranking team to a party that has not yet taken power is an unprecedented situation.
The first informal talks after the elections
Conversations in Budapest were the first informal contact between Brussels and the future Hungarian government, which is being established after the victory of the TISZA party in the elections and the end of Viktor Orban's 16-year rule. In a statement, the European Commission emphasized that the meetings were an opportunity for practical discussions on how to unblock EU funds that had been frozen due to concerns about corruption and violations of the rule of law. The Commission announced the continuation of these activities.
Hungary currently has EUR 17 billion of the EUR 27 billion of EU funds allocated to it blocked. The reason is concerns about the rule of law and corruption. Additionally, Budapest is applying for EUR 17 billion from the EU SAFE loan instrument, which is intended to support the modernization of the arms industry..
If both of these sources of financing are unlocked, Hungary could receive a total of EUR 34 billion in the coming years, which would have a significant impact on the country's economy.
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The most pressing issue remains the €10.4 billion from the Recovery and Resilience Facility (RRF). Without reaching an agreement by the end of August, Hungary may irreversibly lose these funds. A source from the TISZA party, quoted by euronews, pointed out that the time to use RRF funds is running out quickly, and the European Commission is aware of this and is taking appropriate actions.
