Ahead of Magyar-von der Leyen Meeting, EU Politician Barley Calls for Gradual Release of Frozen Funds to Hungary

A deadline of the end of August has been set for the COVID recovery fund money. If those funds are not released, they could expire, and a large portion of the roughly 10 billion euros would become permanently inaccessible for Hungary in the coming months.

The release of the blocked EU funds was a central part of Magyar's election promises. The billions are urgently needed to fill budget holes, and his government holds a two-thirds majority, enabling it to pass important laws.

Political Promises and Tight Deadlines

Magyar had already announced he would abandon Orbán's blocking stance at the EU level, including on Ukraine aid. However, the time frame for implementing the required changes is very tight.

EU Parliament Vice President Katarina Barley referenced the case of Poland, where the Commission released blocked funds all at once after the former PiS government was replaced and new Prime Minister Tusk promised progress on the rule of law.

Actual progress in Poland fell short of EU expectations, partly because the Polish government could only implement decisions to a limited extent. In Hungary, the government has more possibilities due to its two-thirds majority.

The Poland Precedent

Barley argued for a step-by-step approach, stating that one should not demand the impossible. A full release of the blocked funds remains controversial within the EU.

It remains open whether Magyar is willing to reverse expropriation measures introduced by Orbán, who had simplified the expropriation of foreign companies to fill state coffers.

Outstanding Questions

If the EU Commission does not extend certain deadlines, part of the funds could expire. It is possible that a large portion of the money could be released even if not all milestones are met by the end of August.

Formally, the new Hungarian government must first complete a checklist of 27 so-called super milestones set by the European Commission. The meeting today is seen as a crucial step in determining how much of the frozen billions can be saved.