ECOFIN Clears Hungary's New RRF Plan

European Union finance ministers approved Hungary's new Recovery and Resilience Facility (RRF) plan at an ECOFIN meeting in Brussels on Friday.

The new plan should allow for EUR 10 billion to be disbursed to Hungary, made up of around EUR 6.5 billion in grants and EUR 3.5 billion in loans, the Council said in a statement.

Measures outlined in the new plan will ensure the protection of the EU's financial interests in relation to the plan's implementation, strengthen Hungary's anti-corruption framework, enhance transparency of public resources and public procurement, and improve the involvement of stakeholders and social partners in the legislative process, it said. The new plan also includes measures to strengthen judicial independence and rule of law in Hungary, it added.

The Council noted that payments under the new plan — as with all national plans — would be performance-based, and the European Commission would pay out amounts only when milestones and targets towards completing the reforms and investments were achieved.

Delays in meeting super milestones in Hungary's previous RRF plan meant that it was no longer achievable due to cost increases stemming from energy price volatility, unexpected shifts in geopolitical circumstances, unforeseen implementation challenges, delays resulting from time constraints or scheduling pressures, as well as other developments, the Council said.

The RRF is the centerpiece of NextGenerationEU, the EU's temporary instrument to facilitate and accelerate the green and digital transitions in member states, while increasing resilience, cohesion and sustainable growth.

The deadline for paying out RRF monies is the end of 2026.