Hungary's newly appointed Prime Minister Péter Magyar will dispatch a letter to European Commission President Ursula von der Leyen on Thursday, outlining his administration's stance on challenging political conditions associated with EU financing.
Magyar announced this during a press conference after the initial cabinet meeting of his administration, which took place in Ópusztaszer.
Magyar committed to reclaim €17 billion in EU funds that were withheld by his predecessor Viktor Orbán due to worries over corruption and the rule of law. Out of that total, €10 billion from the EU's Recovery and Resilience Facility may expire at the end of August if the incoming government does not utilize it.
In conversation with reporters, Magyar detailed various specific disagreements regarding the funds.
"Key issues include project challenges like the recapitalization of the Hungarian Development Bank, forming a dedicated project company, and finding ways to structure investments in transport, railways, and suburban rail that are deemed acceptable," Magyar stated, mentioning that his team is also developing proposals for rental housing and energy efficiency initiatives.
Hungary is in the process of assessing a national development plan created by the former government and will present it to the European Commission prior to the end of May.
Magyar recognized that many EU requirements for fund release are politically delicate for his administration and suggested he does not plan to follow all of them.
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The expectation of the European Commission, for instance, is that the government will slowly eliminate certain special taxes. "This clearly benefits the Hungarian economy as well, yet given the current budgetary circumstances, the Hungarian government cannot commit to this," Magyar stated.
Hungary has implemented a range of sector-specific taxes on banking and energy firms. The European Commission has condemned these actions in its recommendations tailored for each country.
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"I am set to send a comprehensive letter to Commission President Ursula von der Leyen tomorrow, outlining areas where we can demonstrate flexibility, identifying what remains reasonable from the perspective of the Hungarian economy and its citizens — and what does not." "I am aware of this now, yet we will come to an understanding," Magyar stated.
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The Prime Minister also stated that a senior European Commission team will visit Budapest next week for five days of talks regarding the suspended funds.