Hungary's Magyar heads to Brussels to reset EU ties and unlock funds

Hungary’s new Prime Minister Péter Magyar will meet European Commission President Ursula von der Leyen in Brussels on Friday in an effort to secure a largely symbolic deal aimed at resetting Hungary’s relationship with the EU.

Magyar is also scheduled to meet Belgian Prime Minister Bart de Wever and NATO Secretary General Mark Rutte on Thursday. The Hungarian Prime Minister announced the trip on social media.

“Tomorrow I will be meeting with the NATO Secretary General and the Belgian Prime Minister, and on Friday with the President of the Commission in Brussels. Everyone is working on bringing back the EU’s billions,” Magyar said on his Facebook.

Magyar’s Tisza Party won a sweeping victory in April’s parliamentary elections, ousting Viktor Orbán’s nationalist, Eurosceptic government. He has pledged to normalise Hungary’s relations with the EU and unlock €17 billion in EU funds frozen over concerns about corruption and rule-of-law deficiencies.

The meeting on Friday is intended to secure what Magyar described as a “political agreement” based primarily on commitments. Hungary must fulfil all remaining conditions by the end of August in order to access the funds, with the first payments potentially arriving before the end of the year.

Racing to save Hungary’s €10.4bn recovery envelope

Magyar’s most pressing priority is securing the timeline to access the €10.4 billion allocated to Hungary under the EU’s post-Covid-19 Recovery and Resilience Facility (RRF). Hungary risks losing the entire amount if it fails to meet the conditions set out in the regulation by the end of August.

The package comprises €6.5 billion in non-repayable grants and €3.9 billion in loans. The European Commission has previously urged Hungary to focus on the grants, given the country’s weak budgetary position.

Budapest is currently revising its national recovery plan. In a recent interview for Hungary’sRTL Klub television, Magyar said the updated plan would prioritise railway projects, energy infrastructure and a rental housing programme. He also acknowledged for the first time that Hungary may not be able to access the full amount.

“Our goal is to bring the €10.4 billion that is stuck for Hungary. I am not saying that we can bring all 100 per cent, but every euro cent that we can bring here is needed to jump-start the Hungarian economy,” Magyar said.

Sources familiar with the technical negotiations between Hungary and the EU told Euronews that both sides are engaging constructively, but that time is short and Hungary’s fiscal position remains precarious.

Hungary must also submit a revised national recovery plan. A submission was initially expected this week.It is currently unclear whether Hungary will submit the plan on Friday or delay the submission until early June.

Defense, Erasmus + and rule of law on the agenda

Beyond the recovery funds, Magyar also has several other issues on the agenda for his meeting with von der Leyen.

Billions of euros in cohesion funds remain frozen, although unlocking the recovery funds would automatically release most of the cohesion financing. One tranche, however, is conditional on Hungary amending its previous anti-LGBTQ+ legislation and asylum law.

Hungary’s request to join the EU’s joint defence borrowing scheme, the Security Action for Europe (SAFE), is also being reassessed in Budapest over corruption concerns connected to Orbán’s inner circle. Magyar has also suggested that Hungary’s original €16 billion programme may be excessive in scale.

Magyar may additionally seek agreement with von der Leyen on resolving the Erasmus+ dispute, which has seen thousands of Hungarian students barred from foreign exchange programmes following the transfer of universities to private foundations.

Restoring the rule of law remains a cross-cutting requirement. Hungary must guarantee the independence of the National Judicial Council and reduce political influence over judicial appointments, among other reforms.

“It is encouraging to see the commitment and dedication of the new Hungarian government to swiftly proceed with rule-of-law reforms,” said Michael McGrath, the EU Commissioner for democracy, justice and the rule of law, at a press conference on Tuesday.

Ukraine’s EU membership

Von der Leyen and Magyar are also expected to discuss Ukraine, where the opening of an accession negotiating chapter is contingent on Hungary lifting its veto.

Orbán’s government had opposed Kyiv’s EU membership bid, framing it as a threat to European security and the economy.

Magyar’s government has indicated that it is prepared to open the first chapter, provided Ukraine addresses the language and educational rights of the Hungarian minority in the Transcarpathia region.

Technical talks between Budapest and Kyiv on the minority issue are ongoing.

EU Enlargement Commissioner Marta Kos has said she expects to greenlight the opening of the first chapter in June.

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