Hungary uses the euro

Better not to interfere: Hungary only wants 43 percent from EU funds

According to the Hungarian media, by deciding not to apply for cheap loans from the EU fund, Prime Minister Orbán's government wants to avoid a debate with the EU about how the money will be used.

Hungary wants to claim less than half of the money it is entitled to from the EU reconstruction fund. The Hungarian right-wing head of government Viktor Orbán surprisingly announced to EU Commission President Ursula von der Leyen that he only wanted to access around 43 percent of the 5800 billion forint (around 16 billion euros) EU reconstruction fund for his country, reported the Hungarian online portal "444 .hu "on Tuesday.

Orbán only wants to access the non-repayable grants of 2,500 billion forints (6.88 billion euros) of the aid package, officially on the grounds that Hungary does not want to go into debt any further. However, the loan of 3300 billion forints (EUR 9.08 billion) to which Hungary is entitled is a cheap loan with low interest rates and a long repayment period. Observers therefore suspect that Orbán's rejection is rather Hungary's unwillingness to discuss how the funds will be used with the EU Commission.

Who decides what to do with the money?

According to information from the online portal "444.hu", Brussels is said to have criticized the Hungarian government for not wanting to use enough funds from the reconstruction fund for country-specific EU recommendations - for example for projects related to the rule of law and the fight against corruption. If Hungary received less money, the Brussels claims would take on different proportions with regard to the country-specific recommendations and the demands of the Hungarian government would gain weight, according to the government's suspicions.

Hungary will submit the plan to the EU Commission in the coming days. The EU Commission then has two months to assess it.

(APA)