Hungary seeks breakthrough deal with EU to unlock billions in frozen funds

Magyar said technical-level discussions with the European Commission are continuing in Budapest and expressed hope that an agreement could be signed during his planned visit to Brussels next week, News.Az reports, citing Euro News.

He said both sides are working to resolve all outstanding issues before the deadline, despite what he described as an intense summer negotiation process. Magyar added that if the agreement is finalised, the funds could begin arriving in Hungary during the autumn.

The Hungarian prime minister noted that negotiations involve not only legislative changes but also reforms to institutional systems. He also confirmed exchanging letters with European Commission President Ursula von der Leyen regarding unresolved matters linked to the release of the funds.

Magyar said his government would reject certain Commission demands related to phasing out windfall taxes on the financial and energy sectors, arguing that some requests contradict broader expectations for budget stability.

The government is also preparing to submit a revised spending plan for the recovery funds before the end of May, with priority projects expected to include railway modernisation, suburban transport, energy infrastructure and electricity grid development.

Magyar additionally said his administration is reviewing Hungary’s defence loan request under the EU’s SAFE programme. He criticised the previous Orbán government’s plans for defence borrowing, claiming the intention had been to increase debt while benefiting politically connected companies.