EU stopped recovery tranches to Hungary

Hungary doubts access to millions of recovery euros due to remaining issues with Brussels over democratic reforms that can last until the summer.

The country expects to receive 5.8 billion euros in free grants and a further 9.6 billion euros in cheap loans from the European Union. Still, the EU has stopped any payments until Budapest’s government takes action on reforms to improve judicial independence and tackle corruption.

Hungary’s parliament is expected to pass the subsequent judicial reforms in March following negotiations with EU officials. However, the experts doubt the number of changes will convince the Commission to release tranches. The Hungarian government expects to resolve all the issues with the Commission until the summer of 2023.

It will be an ongoing process during which the parties will develop and implement laws and move towards certain agreements to get funds unlocked. 

Hungary is one of the few EU members lagging in getting the funds amid sharp criticism from the Commission that their right-wing populist governments are damaging democracy and the rule of law.