Belgium, (Brussels Morning Newspaper) Hungary’s EU negotiator Tibor Navracsics noted that the country is hoping to sign agreements to regain access to EU funds in the coming days.
The European Commission previously blocked Hungary’s access to EU funds earmarked for recovery from the coronavirus crisis over concerns that democratic standards are eroding in the country, according to a Reuters report on Tuesday.
Speaking at a press conference on Tuesday, Navracsics reminded that Hungary agreed with EU counterparts on additional aid for Ukraine and the introduction of a global minimum corporate tax earlier this week.
In exchange, rules on the use of Hungary’s unblocked EU funds will be more flexible to allow the country to cushion the blow of the crisis, stabilize its currency and reassure investors.
The Commission’s move to block Hungary’s access to EU funds over concerns about democratic standards was unprecedented, with the body later lowering the number of blocked funds.
Worst option avoided
After months of negotiations with EU institutions, Hungary struck a deal on Monday that helped it to eliminate the possibility of irrevocably losing 70% of its recovery funds, but its access to the money still hinges on Budapest meeting EC’s demands.
“We have a performance timetable that was agreed in September,” Navracsics reminded and added, “so far we have met all conditions, the last stage of this process will come at the end of March.”
He announced the Hungarian parliament would pass a new package of regulations to regain access to the funds by April, expressing hope that the money will be released in January.
“We consider the Council’s approval as a formal step,” Erste Group economists noted and added, “the disbursement of money will depend, however, on the fulfillment of 27 ‘super milestones’ regarding institutional reforms to strengthen the rule of law.”
The EC also cut Poland’s access to EU money set aside for recovering from the coronavirus crisis, over concerns about the rule of law in the country, with Warsaw and Brussels still negotiating plans to regain access.
According to Polish media, the government is prepared to implement more judicial reforms to meet the Commission’s demands and unblock the cash.
