Budapest stands on the brink of unlocking a substantial €10 billion in European Union recovery funds, with officials from both the European Commission and Hungary expressing confidence that all necessary criteria will be met by the critical end-of-August deadline. This development represents a significant political achievement for Prime Minister Péter Magyar, who swept into power in April, ending Viktor Orbán’s 16-year tenure, on a platform that prominently featured the recovery of these suspended EU monies.
The funds in question originate from the EU’s post-pandemic Recovery and Resilience Facility (RRF), a program set to expire later this year. An additional €6.4 billion from Cohesion Funds, which do not face the same immediate expiration, was also part of a broader agreement struck in May between Prime Minister Magyar and European Commission President Ursula von der Leyen. This larger sum, totaling €16.4 billion, had been frozen due to long-standing concerns regarding rule of law and corruption under the previous Orbán administration. The current focus remains acutely on the €10 billion RRF tranche, given its imminent deadline.
Progress toward fulfilling the requirements appears to be steady. A Commission source recently indicated that “the process is going well; we have every chance that Hungary can fulfil all criteria on time and withdraw all recovery money by autumn.” This sentiment is echoed in Budapest, where a spokesperson from the Ministry of Transport and Investment, the body overseeing the EU funds process, confirmed that two-thirds of the commitments have already been met, with the remaining cases in their final stages of settlement. The government has not yet detailed the specific outstanding milestones but maintains that there is no requirement where fulfillment is not considered realistic.
The European Commission initially set out 27 “super milestones” for Hungary to achieve. A significant portion of these, 21 in total, address issues of corruption and transparency. Four milestones pertain to judicial independence, and two involve audits of how the funds are ultimately spent. While the four judicial reform milestones had already been satisfied, the Hungarian parliament faced a busy summer, pushing through a series of complex legislative measures to address the remaining requirements.
Key legislative actions have included the adoption of a comprehensive anti-corruption package in June. This package introduced stricter asset-declaration rules for politicians, enhanced transparency in public tenders, and nationalized public-interest asset-management foundations, known as KEKVA. These foundations had been a point of contention, previously used to transfer state assets, including universities, into what critics described as private-style control. Further parliamentary activity in July saw amendments to the tax code aligned with RRF milestones and the passage of related legislation impacting the energy sector. Beyond legislative changes, the Magyar government has also established a new anti-corruption body, the National Asset Recovery and Protection Office, specifically tasked with reclaiming state assets linked to alleged Orbán-era corruption. Prime Minister Magyar has additionally initiated the process for Hungary to join the European Public Prosecutor’s Office, signaling a deeper commitment to combating financial crime within the EU framework.
Hungary has also proactively amended its National Recovery Plan to ensure the timely utilization of the funds. The revised plan outlines specific measures aimed at modernizing the country’s energy grid, improving its railway infrastructure, and upgrading its rental housing stock. Should Hungary successfully meet all its milestones by the end of August, the European Commission is expected to conduct its assessment in September, paving the way for a payment request and the eventual disbursement of these crucial funds later in the year. The coming weeks will determine if Budapest can indeed secure this significant financial injection.
