The European Union (EU) Commission, within the scope of the bailout program prepared to alleviate the economic effects of the Kovid-19 epidemic, the 5.8 billion euros that Hungary is expected to receive and the 7.5 billion euros that are expected to receive from the EU budget, if the country makes progress in the rule of law. he offered.
EU Commission Vice President Valdis Dombrovskis, Commission members Johannes Hahn and Didier Reynders held a press conference in Brussels on the decision taken regarding Hungary’s use of various EU funds.
Stating that they positively evaluated the rescue program plan submitted by Hungary to the EU Commission, Dombrovskis said, “Hungary has a solid reform and investment program that meets all the conditions of the relevant regulation.” said.
Dombrovskis stated that they approved the rescue plan of Hungary and that they did not evaluate the implementation of the plan at this stage.
Reminding that the plan must be approved by the member states in the European Council for the plan to come into effect, Dombrovskis stated that they will evaluate the program to be implemented and if they find it sufficient, they will release the funds.
“Hungary needs to meet 27 key milestones before it can start receiving payments from the recovery program,” Dombrovskis said. said.
Stating that milestones are also included in the scope of the conditionality mechanism, Dombrovskis said that Hungary should take steps regarding remedial measures.
Pointing out that the conditionality mechanism regarding the EU budget works differently, Dombrovskis stated that they decided to suspend 7.5 billion Euros, which represents 65 percent of the harmonization funds that Hungary can receive within the scope of the mechanism.
– About the process
The EU has long criticized Hungary for its regression in key areas such as democracy and the rule of law. In addition, the EU did not approve of Hungary’s rescue program and did not transfer EU funds to the country under the rule of law mechanism.
On 18 September, the Commission proposed to suspend approximately 7.5 billion euros of the funds provided to Hungary from the EU budget on grounds of violating the rule of law. Hungary, in turn, committed to take 17 remedial measures.
In the final assessment, the Commission found Hungary’s steps insufficient and recommended that EU funds not be sent to the country.
The European Council is expected to take its decision on the Commission proposal by a qualified majority in December.
– Recovery program
After the epidemic, the EU had prepared a recovery program of approximately 800 billion euros, called the “Next Generation EU”.
The EU Commission borrows in the capital markets for the bailout program with the guarantees of the member states. The Commission distributes this resource to the member countries as loans and grants with favorable conditions in line with the investment and reform plans they have prepared. Member countries are investing this resource in line with their digital transformation and climate goals.
The EU Commission did not approve of the funds it will give to Hungary within the scope of the recovery fund prepared for the member states in order to combat the economic consequences of the Kovid-19 epidemic.
All other EU member states had their programs approved, and most countries had received billions of euros in funding.
Hungary was expected to receive a grant of 5.8 billion euros from the recovery funds. The country would have lost 4.1 billion euros of these funds if the bailout plan was not approved by the end of this year.
With the final decision, the EU Commission has approved Hungary’s plan. However, in order to send the funds, it required Hungary to make progress on 27 criteria.
Among the reforms that the EU expects from Hungary are various areas such as judicial independence, supervision of the spending of EU funds, fighting corruption and reporting.