With the clock ticking, the European Commission is looking into measures to assist Hungary free up billions in EU financing, sending a group to Budapest next week. Brussels has told Budapest it will be hard to get the whole €10 billion in recovery funding by an August deadline, saying it may get the full grants but not the loans. But the Commission will dispatch a team of senior officials to conduct a more comprehensive review alongside the newly in office government.
One of the options being considered by the Commission is to utilize the country’s investment bank Exim Bank to channel the funding but Brussels is also concerned it will lose oversight of the process, which is seen as crucial, as the core cause for the delayed funding is the rule of law.
Hungary will only get cash in upfront payments if it can satisfy the requirements set down by the Commission, but time is short. However, the Hungarian investment bank could be a catalyser for future ventures allowing disbursements even if all prerequisites are not completed upfront.
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