‘Swift work to be done’ after call with Hungary’s Magyar, EU’s von der Leyen says
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European Commission president Ursula von der Leyen speaking at a press conference in Brussels, Belgium, on April 13.
PHOTO: REUTERS
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- Von der Leyen discussed with Peter Magyar reforms to unlock €17 billion in frozen EU funding for Hungary.
- Hungary faces an August 31 deadline to strengthen judicial independence and accountability to access €10 billion.
- Analysts highlight a tight deadline and existing officials as potential hurdles for Magyar's government to deliver reforms.
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BUDAPEST - European Commission President Ursula von der Leyen said on April 14 that she spoke with Hungary’s election winner Peter Magyar and there is swift work to be done to introduce reforms needed for unfreezing EU funding.
“We discussed immediate priorities,” Dr von der Leyen said, in a post on social media platform X.
“There is swift work to be done to restore, realign and reform. Restore the rule of law. Realign with our shared European values. And reform, to unlock the opportunities offered by European investments,” she added.
Hungary has a total of about €17 billion (S$25 billion) of EU funds frozen over rule of law concerns under the outgoing government of Prime Minister Viktor Orban.
Hungary is also still waiting for the European Commission to sign off on a €16 billion defence investment plan under the bloc’s SAFE loans scheme for defence projects.
Mr Magyar, whose Tisza party won a two-thirds supermajority in Hungary’s Parliament, has pledged to prioritise unlocking the funds and is now under pressure to quickly implement reforms to unlock the money after his government takes office, likely in mid-May.
“The ball is in Magyar’s court to prove he’s serious about his campaign promises of wanting to mend ties with Brussels,” said one EU diplomat.
“Now it’s time to show, not tell,” they added.
Part of Hungary’s EU funding is frozen due to lack of compliance with EU standards in areas such as academic freedom and right to asylum. Around €10 billion from the bloc’s post-pandemic recovery fund is frozen until Hungary fulfills requirements to strengthen judicial independence and accountability, with a deadline of Aug 31 to implement reforms.
Mr Magyar said in a post on Facebook after the call that Dr von der Leyen told him the European Commission would work closely with the new Hungarian government to make sure results are delivered within the “extremely tight deadline” available to release the funds.
Officials and analysts say introducing the required reforms will not be an easy feat.
“The most important constraint is the deadline on Aug 31 for completing all Recovery and Resilience Facility milestones – a window that may prove too narrow to unlock the roughly €10 billion of frozen EU funds available,” said Mr Liam Peach, an economist at Capital Economics.
Credit ratings agency Moody’s said on April 13 that “Tisza’s parliamentary supermajority will facilitate the implementation of these plans”.
But it added that “officials appointed by Fidesz remain in position across key institutions” and “political differences across the country’s institutions can complicate or delay legislative change, limiting the new government’s ability to deliver deep reforms.” REUTERS
