Politico: Hungary in dispute with European Commission over €10 billion

Hungary’s incoming Prime Minister Péter Magyar has entered into a dispute with the European Commission over the amount of EU funds Budapest expects to unlock after implementing reforms, Politico reports, citing sources in the EU and Hungary.

The issue concerns €10.4 billion from the EU post-COVID recovery fund, access to which had been frozen due to Brussels’ concerns over Hungary’s compliance with EU rule-of-law standards during the government of Viktor Orbán.

According to the report, the European Commission is prepared to approve only the grant portion—around €6.5 billion—while Budapest insists on receiving the full amount.

The new Magyar administration is expected to submit an official request by August 31, with the Commission having until the end of the year to disburse the funds.

In Brussels, officials argue that transferring the full €10.4 billion on time would be difficult, as payments depend on Hungary fulfilling a series of reforms and EU conditions.

For Magyar’s team, agreeing to a partial payout could be politically sensitive, as he had campaigned on “resetting” relations with Brussels.

Last week, Magyar said he expects flexibility from the EU and hopes Hungary will receive “every eurocent” it is entitled to.

By Vugar Khalilov