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EU holds talks with Hungary's incoming government

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Key Points
  • EU officials are in Budapest for unprecedented talks with Hungary's incoming government to reset relations and address frozen funds.
  • Hungary's Tisza party won a landslide election victory, ending Viktor Orbán's 16-year rule and gaining power to amend the constitution.
  • The talks focus on unlocking €17bn in frozen EU funds, with an immediate deadline for €10.4bn in recovery funds by end of August.

The European Commission dispatched the delegation for two days of informal talks ending Saturday, marking the first contact between Brussels and Hungary's future government. The talks are happening weeks before Hungary's new government takes office. The EU aims to persuade Hungary to lift its veto on a €90bn loan to Ukraine.

Hungary's political landscape shifted dramatically when the opposition Tisza party won a landslide victory in Sunday's election, according to multiple reports. The victory brings an end to Orbán's 16 years in power. Péter Magyar's Tisza party won a supermajority, giving it the power to amend the constitution and potentially roll back key pillars of Orbán's 'illiberal democracy', major media reports indicate.

There is full agreement on one point: real work must begin to ensure that the EU funds due to the Hungarian people finally arrive in Hungary.

Péter Magyar, Prime Minister-elect of Hungary

A central focus of the talks is unlocking about €17bn in frozen EU funds. The European Commission has agreed to work with Hungary's incoming government from the Tisza Party to release frozen European funds earmarked for Hungary. The immediate focus is the €10.4bn Recovery and Resilience Facility (RRF), which Hungary risks losing entirely without an agreement by the end of August. Prime Minister-elect Péter Magyar has announced a four-step plan to unblock the money, centred on combating corruption, restoring judicial independence, and safeguarding press and academic freedom.

Additional financial stakes include Hungary seeking €17bn from the EU's joint defence borrowing instrument, SAFE, to modernise its defence industry. Orbán's government said the ousted leader would not attend his final EU summit next week.

The meetings were an early opportunity for practical discussions on how to move forward and make real progress to unlock EU funds earmarked for Hungary that are frozen due to corruption and rule of law concerns. This necessary work will continue.

European Commission, EU executive body

We intend to fully deliver on these commitments once in government, including our promise to bring home the EU funds that rightfully belong to Hungarians.

Péter Magyar, Prime Minister-elect of Hungary
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EU holds talks with Hungary's incoming government | Reed News