Hungary’s efforts to unlock EU funding have so far fallen short. After meeting with Hungary’s European Affairs Minister János Bóka on Tuesday, Budget Commissioner Piotr Serafin remarked that the country’s actions are “not quite what we were hoping for.”
To secure the frozen funds, Hungary must implement key reforms, including changes to its anti-corruption and conflict-of-interest legislation. Under EU rules, member states have a two-year window to claim back money withheld by the European Commission. However, Hungary risks permanently losing over €1 billion in regional funding from the 2022 budget if it fails to meet these requirements.
“That’s a lot of money for any country, but especially for Hungary,” said an anonymous EU diplomat familiar with the sensitive negotiations.
The looming funding loss adds pressure to Hungarian Prime Minister Viktor Orbán, who is nearing the conclusion of his six-month term at the helm of the EU’s rotating Council presidency. This role gives him considerable influence in setting agendas and chairing meetings in Brussels.
Meanwhile, Hungary’s economic outlook remains challenging. The nation’s growth lags behind the EU average, and its budget deficit, at 5.4 percent of GDP this year, is among the highest in the bloc.
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