• Home
• Channel: Finance
• Lack of EU Deal May Cost Hungary €1.4 Billion

Lack of EU Deal May Cost Hungary €1.4 Billion

• 4 Jul 2022 8:10 AM
• Hungary Around the Clock

The government’s failure to submit a plan that would be approved by the EU and pave the way for the release of EU reconstruction fund money for the country has cost Hungary €1.4 billion, Népszava writes.

Hungary was to originally receive €7.2 billion from the EU’s pandemic recovery fund, but this will be reduced to €5.8 billion after the European Commission on Thursday adjusted the amount in line with the Hungarian growth data for 2020-22, which significantly exceeded the previous expectations.

In order for the Hungarian government to have access to the money, the European Commission must approve the government’s plans for spending it.

The two sides could not reach agreement, and an important deadline came in the meantime.

The calculation of the maximum financial contribution was updated in June, in line with regulations, taking into account the results for the change in aggregate GDP in 2020 and 2020-2021. This is what happened now, and the budget was reduced by €1.4 billion.

And it could get worse, Népszava adds, as Hungary will not even get most of the reduced amount if the two parties do not manage to come to an agreement soon. If no agreement is reached by the end of the year, then the country could lose 70% of the total amount.

As the approval process in Brussels takes several months, the deal must be finalised in September at the latest so that the money is not in jeopardy.

• How does this content make you feel?
• I love it
• I like it
• I dislike it

• EU Deal

XpatLoop Media Partner

Hungary Around the Clock

Since 1995 Hungary Around the Clock has proven to be one of the most comprehensive sources of daily English-language news about Hungary. It covers ongoing domestic politics and foreign relations, as well as business and economic matters. For a free trial of HATC visit www.hatc.hu and click on 'Free Trial Subscription’.

Explore More Reports

Hungarian Opinion: Brussels Unlocks €10 Billion in Frozen EU Funds for Hungary

• 18 Dec 2023 10:14 AM

A liberal foreign policy expert believes that releasing one-third of the €30 billion suspended over rule-of-law concerns is part of a deal whereby Hungary will not oppose further EU payments to Ukraine.



U.S. - Hungary Tax Treaty Termination: What Will Happen to Expats?

• 20 Sep 2023 1:55 PM

The tax treaty between the U.S. and Hungary will expire in less than six months, with no new treaty on the horizon. Instead of looking for reasons and hoping for a future agreement, it is better to examine the reality we are facing from January 1, 2024.



Hungary Should Not Remain Tax Haven, Says LMP

• 17 Dec 2022 5:16 AM

Now that Hungary has been exempted from applying the global minimum tax, the country will remain a tax haven, the opposition LMP party said.



Hungarian Opinion: Tug-of-War Over EU Funding

• 13 Dec 2022 10:11 AM

A left-wing columnist accuses the Hungarian government of trying to unlock EU funding by threatening to veto key EU decisions. A pro-government analyst, on the other hand, accuses the EU of blackmailing Hungary.