EU Funds Linked to Rule-of-Law Procedure Outcome
Hungary Expects EU Recovery Fund Loans of HUF 380 Billion Soon
According to Tibor Navracsics, Minister of Regional Development, Hungary is expecting a loan of HUF 380 billion (EUR 1 billion) from the EU Recovery Fund to arrive soon. This announcement was made during InfoRadio’s Aréna program, where he also provided an update on the progress of Erasmus negotiations.
In addition to the expected loan, the Hungarian government has applied for a total of HUF 1,500 billion (EUR 3.9 billion) in loans for investments as part of the Recovery Fund. As these projects need to be completed by 2026, the government is keen on securing the requisite funding. Unveiling the progress made, the minister stated that the national plan had been submitted by the end of August and is now being recommended to the Council for adoption by the European Commission. If the decision is favorable, the advance payment can be made. The funds can be utilized based on a national plan drafted by the Ministry of Energy, primarily for energy projects such as energy saving, residential renewable energy tenders, and grid development.
However, larger EU funding packages, such as the HUF 2,300 billion (EUR 6 billion) non-reimbursable part of the Recovery Fund, are still pending. The delay in agreeing on these funds is due to concerns about the alleged threat to the independence of the judiciary. Navracsics disclosed that the government is receiving fewer questions from the Commission and is working to provide quick responses in the hope that the European Commission will decide by the year’s end that Hungary has met its requirements, thereby granting access to the funds.
Nevertheless, the minister expressed concerns about reaching an agreement in the rule of law conditionality procedure. He pointed out that the European Commission is deliberately prolonging the process to test the political environment, raising fears of potential retaliation from the European Parliament (EP). This stance might impact the future of Hungarian universities’ participation in international programs.
Navracsics emphasized the need for an agreement to secure funding without interruptions, stating that both parties need to exhibit political will to resolve the outstanding issues. He expressed hope that an agreement can be reached to avoid disruption in funding from September onwards.
The minister highlighted the ongoing negotiations regarding the exclusion of Hungarian universities from international cooperation programs, which, according to him, have become increasingly complex. He attributes this complexity to the Euroepan Commission’s indecision, which has led to the exclusion of politicians from university boards of trustees engaged in model switching.
Despite these challenges, the minister believes that with political will and a shared desire to resolve the issues, negotiations could reach a fruitful conclusion. However, as the negotiation process continues, the minister is optimistic that an agreement will be reached and funding will be secured.
In his closing remarks, Navracsics underscored the government’s efforts to ensure the competitiveness and efficiency of the country’s universities, while also focusing on expanding academic freedom.
Via Infostart
Featured image: Pixabay
