EU set to approve Hungary's €10 billion recovery package

EU finance ministers are expected to approve Hungary's revised National Recovery Plan at the ECOFIN meeting on July 10, clearing the way for Budapest to access up to €10 billion in post-pandemic recovery funding once all remaining conditions are met.

The move would mark a significant breakthrough after Brussels withheld a substantial portion of Hungary's recovery and cohesion funds for years over concerns about systemic corruption risks, Caliber.Az reports, citing Euronews.

Hungarian Prime Minister Péter Magyar, who secured a landslide victory in April's elections, pledged during his campaign to unlock the frozen funds and has since reached a political understanding with European Commission President Ursula von der Leyen to advance the process.

An EU diplomat, speaking on condition of anonymity, expressed confidence that member states would back the proposal, noting that discussions had progressed smoothly.

The approval requires unanimous support from all 27 EU member states.

Hungary must also fulfill all remaining "super milestones" by the end of August before the funds can be disbursed.

"It will be an important meeting, as this is the last legal step before our country can access several thousand billion forints of EU funds," Hungarian Finance Minister András Kármán said in a social media post ahead of the Brussels meeting.

Following the April parliamentary elections, Hungary's new government revised the recovery plan originally submitted by the administration of former Prime Minister Viktor Orbán.

The updated proposal includes investments in suburban railway projects, energy infrastructure and housing development.

The European Commission has already issued a positive assessment of the revised plan ahead of the vote by EU finance ministers.

By Bakhtiyar Abbasov