Hungary is set to comply with all requirements necessary for the disbursement of European Union (EU) cohesion funds “within weeks,” thanks to an amendment of the law on the judiciary. This was revealed by the head of the Prime Minister’s Office, Gergely Gulyás, during a recent press conference. While Hungary’s compliance with the EU’s demands was “baseless,” Gulyás said the country had met and exceeded these requirements. He added that Hungary hopes to send invoices to Brussels within a month and receive payments in return. The funds will come from the EU’s budget for the 2021-2027 financial cycle aimed at managing the economic fallout of the coronavirus pandemic. However, Hungary’s government faces opposition in Brussels and within the country’s left-wing opposition parties.
Meanwhile, the government announced that it is extending the freeze on interest rates for small and medium-sized companies until the base rate drops below 10 percent. The government aims to ensure that these companies have access to all the necessary resources, with Gulyás noting that the pace of inflation and the base rate make it impossible to scrap the measure now. However, as soon as the central bank base rate falls under 10 percent, the government will phase out the freeze on interest rates, with the expectation that inflation will reduce to single digits by the end of the year.