The European Commission (EC) has approved a EUR 2 billion capital injection by the state of Hungary into the Hungarian Development Bank (MFB).
The measure, to be funded by the Recovery and Resilience Facility (RRF), supports the development of economic activities", the EC said, justifying its approval.
According to the statement, the European Commission concluded in its assessment that the Hungarian measure promotes the development of economic activities, including infrastructure, agriculture, environmental protection, education, tourism, sports, rural development, regional convergence, and urban development.
"The aid is necessary and appropriate to achieve the stated objectives. It is proportionate, as it is limited to bridging market gaps, thereby minimizing distortions of competition," they stated.
Hungary has also committed to several measures, including the limitation of financial activities to relevant market failures and implementation measures to prevent crowding out of private sector operators, ensuring that the MFB will not undercut private financial institutions active in the Hungarian market, it added.
Hungary recently reached an agreement with the EC unlocking EUR 10 billion of the country's RRF funding.
Top 5 Articles
What Awaits the Hungarian Economy in 2026 and 2027? April 24, 2026 - 'Recharge' Campaign Launched to Boost Domestic Tourism January 21, 2026
- Hungary’s Growth Stalls as Inflation Returns to Target Range February 6, 2026
- Consolidating the Good Bilateral Relations May 10, 2026
- Business, Consumer Confidence at Two-Year High in April April 23, 2026
