BUDAPEST, Hungary (AP) — EU officials are in Budapest, meeting with the team of Péter Magyar, the newly elected Hungarian Prime Minister. They aim to discuss urgent matters, such as a substantial loan for Ukraine and releasing 17 billion euros ($20 billion) in aid that has been on hold due to concerns about corruption and democratic issues under former Prime Minister Viktor Orbán’s leadership.
Magyar’s administration is set to begin in May, but the European Union wants to jumpstart conversations before that. European Commission spokesperson Paula Pinho explained the urgency, emphasizing the need to act quickly once the new government is in place.
The EU paused funding for Hungary over allegations of democratic backsliding during Orbán’s tenure, but now both sides are eager to unlock these funds to boost Hungary’s struggling economy. Ursula von der Leyen, the European Commission President, stated on social media that it’s crucial to “restore the rule of law” and align with European values to access the funds.
Magyar, who leads a party with a strong majority in parliament, has promised reform focused on judicial independence, media freedom, and anti-corruption measures. In his first press conference after a decisive victory, he noted Hungary’s tough financial situation and the need to regain access to those funds.
Notably, he also recognized a prior agreement to support Ukraine with a 90 billion euro loan, which Orbán had blocked.
The 17 billion euros are split between 10 billion euros for COVID recovery and 6.3 billion euros for cohesion funds aimed at helping weaker economies in the EU. There’s an urgent push to unlock the COVID funds, as they are set to expire soon.
Hungary has faced significant criticism over its departure from democratic norms. The EU has accused Orbán of undermining democracy and media freedom while harming minority rights. Orbán has consistently denied these allegations, claiming they infringe on Hungary’s sovereignty.
In 2022, the EU froze funds due to these issues. However, a year later, reforms allowed the release of approximately 10.2 billion euros. Zsolt Darvas, a fellow at Bruegel, a Brussels-based think tank, believes the new government can quickly enact necessary reforms. “With the Tisza party’s will, legislative changes could happen in a day,” he said, noting that reforms could affect how judges are appointed and their authority.
Though Hungary has already missed out on about 2 billion euros due to past delays, the new government can still salvage remaining funds. Despite the tight timeline, Hungary could also follow models from Poland and Portugal in managing and disbursing funds effectively.
In addition to addressing domestic concerns, Hungary may benefit from the EU’s 150 billion euro Security Action for Europe initiative. This program aims to strengthen defense readiness, particularly as the U.S. reduces its involvement in European security. Hungary is eligible for 16 billion euros under this initiative, which could significantly impact the country’s GDP.
With Hungary’s challenges in light of the upcoming changes, the next steps for the new leadership are crucial. Restoring trust with the EU and achieving meaningful reforms could set the stage for economic recovery and stability.
For more information on Hungary’s relationship with the EU, check out this detailed report from the European Commission.
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Viktor Orban, Hungary, Europe, European Union, Hungary government, General news, Corruption, Ursula Von Der Leyen, Economy, Politics, World news, Paula Pinho, Government regulations, Jeremy Cliffe, Coronavirus, World News
