European Commission and Hungary's Incoming Government Collaborate to Unlock EU Funds
The European Commission has initiated talks with Hungary's incoming government, led by the Tisza Party, to release frozen European funds designated for Hungary. This development follows a high-level delegation visit to Budapest, marking the first informal contact between Brussels and Hungary's future government. The discussions aim to unlock billions in recovery funds before an end-of-August deadline. The Commission has previously blocked €17 billion of the €27 billion earmarked for Hungary due to concerns over corruption and rule-of-law deficiencies. Hungary is also seeking an additional €17 billion from the EU's joint defense borrowing instrument, SAFE, to modernize its defense industry. The immediate focus is on the €10.4 billion Recovery and Resilience Facility (RRF), which Hungary risks losing without an agreement by the end of August.