The European Commission approved on Friday 19 June the revised post-Covid-19 recovery plan submitted to it by Péter Magyar’s government ten days earlier (see EUROPE 13885/31).
Based on the political agreement endorsed by European Commission President Ursula von der Leyen and Mr Magyar (see EUROPE 13877/1), this revised plan is intended to unlock €10 billion in European funds, including €6.5 billion in grants and €3.5 billion in loans. Access to these funds will only be possible once Hungary has carried out the 27 required preliminary reforms (‘milestones’) relating to the rule of law, respect for fundamental rights and the fight against corruption.
“On 9 June, Hungary submitted a request to replace its RRP, and the adoption by the Commission on 19 June ensures that the Council can review and approve the plan in July. Hungary has a bit more than two months left to fully deliver on its plan, like all other Member States”, said Maciej Berestecki, spokesperson for the European Commission, in a statement sent to Agence Europe on Monday 22 June.
According to the EU institution, the revised Hungarian plan complies with the European legislation establishing the Recovery and Resilience Facility (RRF), the budgetary instrument of the European recovery plan Next Generation EU.
In particular, the allocation aimed at facilitating the climate transition accounts for 52.9% of the total, with the largest budget items in this area linked to the deployment of renewable energy (investments in solar energy for economically less-favoured municipalities and faster permit delivery for wind energy). The modernisation of the electricity grid is also given prominence, through increased storage capacity and measures to decarbonise production, as well as the renovation of public facilities.
In addition, in the transport sector, railway lines will be electrified and public procurement of ‘zero-emission’ buses will be promoted.
The Hungarian plan also provides for measures to protect the environment and biodiversity, including a water retention project aimed at preserving the ecosystem of an area of 18,000 hectares and the modernisation of the Kvassay pumping station on the Danube.
The digital transition has not been overlooked in the revised recovery plan, as it represents 24.1% of the total budget allocation. Significant investments are planned to boost the use of digital tools in education (the purchase of computers for pupils) and in public administration.
A voluntary contribution to the EuroHPC joint undertaking will support projects by giga-enterprises active in the field of artificial intelligence. Likewise, Hungary will allocate financial support to programme IRIS2 aimed at improving the European communications satellite infrastructure.
The Ecofin Council will be invited on Friday 10 July to adopt the revised Hungarian plan, so that the country’s authorities can carry out the maximum number of investments and reforms by the end of August, the deadline laid down in European legislation.
See the draft EU Council decision adopting the Hungarian plan: https://aeur.eu/f/mhh ; as well as its annex: https://aeur.eu/f/mhi ; and the accompanying European Commission document: https://aeur.eu/f/mhj (Original version in French by Mathieu Bion)