EU greenlights €10 billion recovery package for Hungary

The Council of the European Union has approved Hungary's revised Recovery and Resilience Plan (RRP), paving the way for the country to receive up to €10 billion in EU funding under the bloc's post-pandemic recovery program.

The approved package consists of approximately €6.5 billion in grants and €3.5 billion in loans, according to the Council.

The revised plan follows Hungary's recent submission after delays in implementing its previous recovery program made the original version unworkable. The Council said the earlier plan became unattainable due to rising costs linked to energy price volatility, changing geopolitical circumstances, unforeseen implementation challenges, and scheduling delays.

The new RRP outlines a package of reforms and investments intended to support all of the Recovery and Resilience Facility (RRF) policy pillars. According to the Council, the measures are designed to strengthen Hungary's anti-corruption framework, improve transparency in the management of public resources and procurement, increase stakeholder and social partner participation in the legislative process, and reinforce judicial independence and the rule of law.

As with all national recovery plans under the RRF, EU funding will be released only after Hungary meets agreed milestones and targets.

The Council also approved targeted amendments to the recovery plans of Cyprus, Finland, Germany, Latvia, Lithuania, Luxembourg, the Netherlands, and Slovenia.

According to the European Commission's assessment, the changes do not undermine the relevance, effectiveness, efficiency, or coherence of those countries' overall recovery plans.

The Recovery and Resilience Facility, the central pillar of the NextGenerationEU program, was established to help EU member states recover from the economic and social impact of the COVID-19 pandemic while accelerating the green and digital transitions and strengthening long-term resilience and sustainable growth.

To receive the full amount of available funding, member states must complete all reforms and investment commitments included in their recovery plans by the end of August 2026.

According to the Council, more than €429 billion has been disbursed under the Recovery and Resilience Facility to date.

By Vafa Guliyeva