Hungary’s PM says he will conclude political deal on EU funds with von der Leyen

BUDAPEST – Hungarian Prime Minister Peter Magyar said on May 29 he would conclude a political agreement on the release of frozen European Union funds at a meeting with European Commission President Ursula von der Leyen later in the day.

Mr Magyar arrived in Brussels on May 28 to negotiate the release of EU funds that were frozen under the previous government led by Mr Viktor Orban due to concerns over the rule-of-law and guarantees against corruption.

“At 1pm I will hold talks with the President of the European Commission, and we will conclude the political agreement on the EU funding of thousands of billions of forints due to our country,” Mr Magyar wrote in a Facebook post.

In a later post Mr Magyar said that at the meeting he would present the Commission’s president with Hungary’s official request to join the European Public Prosecutor’s Office. On May 28, Mr Magyar said a deal on EU funds was “very close” as there was agreement with Brussels on many issues, although some questions remained over the fight against corruption.

Hungary’s new government is under pressure to unlock the country’s share of the EU recovery fund money before an Aug 31 deadline: €6.5 billion (S$9.6 billion) in grants and €3.9 billion in cheap loans.

Some €7 billion in EU structural funds are also frozen, but the country has several years to access this cash.

The release of EU funds is vital for the Hungarian economy, which has been virtually stagnant for three years and also for the severely stretched Hungarian state budget. REUTERS