The European Commission has approved Hungary's revised recovery plan, a key step toward unlocking €10 billion in EU post-pandemic funds. Prime Minister Péter Magyar's government submitted the plan, which includes rail, energy, and housing projects, after weeks of intense negotiations.
The approval signifies a potential thawing of relations between Hungary and the EU, crucial for the country's economic recovery and reintegration into the European mainstream after years of strained ties under the previous government.
The European Commission has given rapid approval to Hungary's revised recovery plan, a move that could unlock €10 billion in EU post-pandemic funds. The decision comes as Hungarian Prime Minister Péter Magyar attended his first European summit.
The plan is central to the new government's strategy to access these funds, which are earmarked for projects including rail, energy infrastructure, and housing schemes. However, full funding is contingent on the approval of all EU member states in the Council in July and Hungary meeting 27 specific "super milestones" by the end of August.
This development follows an agreement in May between Prime Minister Magyar and European Commission President Ursula von der Leyen to release a total of €16.4 billion in funds that had been frozen during the tenure of former Prime Minister Viktor Orbán due to corruption concerns. Hungary submitted its revised plan just nine days prior, after weeks of intensive negotiations with the Commission. Magyar's government ousted Orbán's right-wing administration in the April parliamentary elections, with a key campaign promise to bring Hungary back into the European mainstream and secure previously withheld funds.