Hungary is entitled to receive more than EUR 37 billion, which is now more than 14,000 billion forints, while Hungary’s GDP was HUF 66.387 billion in 2022. That money is significant, part of it must be spent until 2026, while the other part’s expenditure deadline is 2030. However, the EU began rule of law procedures against Hungary and froze all funds. But Orbán mentioned about a plan to open Brussels money taps.
Hungary is entitled to a lot of EU money, yet it faces an economic crisis when e.g. state investments needed to be halted due to the lack of financial resources. That is because billions of euros belong to Hungary only on paper. The European Commission froze almost all EU expenditures towards Hungary due to rule of law concerns.
As a result, Hungary cannot get EUR 5.8 billion in grants from the Recovery and resilience fund (RRF). Moreover, Budapest could not use EUR 9.7 billion in loans from the RRF. To make matters worse, Hungary cannot use EUR 0.7 billion in grants. Meanwhile, the deadline for use is coming closer and closer: August 2026. Furthermore, Hungary should get EUR 21.77 billion from the EU’s Cohesion Funds between 2021 and 2027.
Here is Orbán’s plan: blackmailing the Commission
Of course, the Hungarian government needs those funds badly since the Hungarian economy no longer thrives as before. Critics said that the Hungarian economic growth is because of the EU funds, and it seems they were right. Thus, it is not surprising that PM Viktor Orbán was asked at the Tusványos summer university in Tusnádfürdő this weekend how the cabinet would like to acquire the funds to give a boost to the economy. Interested about what he said in other issues, e.g. a possible China-US war? Click HERE.
According to Világgazdaság, the prime minister said it is doubtful Hungary would ever receive money from the RRF fund. However, the cohesion fund is another question. He said Hungary would receive EUR 3 billion for three years and pay EUR 1 billion. That makes the net balance plus EUR 2 billion (HUF 800 billion yearly). He highlighted that the Hungarian GDP was HUF 80,000 billion. Therefore, the Hungarian economy does not depend on that 1 pc. But the EU funds are important to receive preferential loans on the money markets. Thus, cutting that money tap’s indirect effects would be much more devastating.
However, Orbán has a plan. The EU budget needs to changed and that process requires a unanimous vote from all member states. Brussels wants member states to put much money into the EU budget. Orbán suggested the green light’s prerequisite will be that Hungary receives the EU’s allocations. He added that autumn will be exciting concerning EU summits.
