Hungary Opens Fresh Negotiations With EU to Unlock 10.4 Billion Euros in Funds
Hungary's Efforts to Secure EU Recovery Funds
Renewed Talks With the European Commission
BUDAPEST, May 18 (Reuters) - Hungary will start another round of talks on Monday with the European Commission about releasing suspended EU funds, Prime Minister Peter Magyar said, adding he hoped to sign a political agreement on the matter in Brussels next week.
Urgency to Meet EU Fund Eligibility Deadline
Hungary is racing to meet an August 31 deadline to become eligible for 10.4 billion euros from the European Union's post-pandemic recovery fund. While the task is ambitious, it is achievable, three EU officials said last week.
Leadership Change and Diplomatic Engagements
Magyar, who ousted former right-wing leader Viktor Orban in an April 12 election landslide, said he had exchanged letters with European Commission President Ursula von der Leyen over the weekend, followed by a high-level visit to Budapest this week.
Economic Challenges Facing Hungary
Hungary needs the funds to shore up its state finances. Magyar inherited a soaring budget deficit and an economy that barely clambered out of recession in the first quarter after years of stagnation.
Contentious Issues and Negotiation Goals
"There are some contentious and debated issues, but we agreed with the president of the Commission that this money belongs here in Hungary," Magyar told a press conference, adding there was no full clarity yet on the size of Hungary's deficit.
Magyar said the new round of talks, which was scheduled to wrap up on Friday, was aimed at hammering out an agreement paving the way to a political agreement that could be signed in Brussels next week.
He said that would allow Hungary to resolve all outstanding issues by the end of August, with funds starting to flow in the autumn.
Legislative and Procedural Hurdles
The task is ambitious because even though Magyar's centre-right Tisza Party has a constitutional majority that allows it to push through any law it wants, some laws require procedural steps, such as consultations, and time to process.
Review of Defence Spending Plans
Magyar also said his government would review defence spending that Orban's government had intended to fund from a favourably priced EU loan, keeping only the projects that he said Hungary's military really needed.
(Reporting by Gergely Szakacs; writing by Anna Wlodarczak-Semczuk;; editing by Rod Nickel)
