Recovery and Resilience Facility: Hungary submits official recovery and resilience plan

May 12, 2021 by European Union 1 Comment

This article is brought to you in association with the European Commission.

The Commission has received an official recovery and resilience plan from Hungary. This plan sets out the reforms and investment projects that Hungary plans to implement with the support of the Recovery and Resilience Facility (RRF).

The RRF is the key instrument at the heart of NextGenerationEU, the EU’s plan for emerging stronger from the COVID-19 pandemic. It will provide up to €672.5 billion to support investments and reforms (in 2018 prices). This breaks down into grants worth a total of €312.5 billion and €360 billion in loans. The RRF will play a crucial role in helping Europe emerge stronger from the crisis, and securing the green and digital transitions.

The presentation of the plan follows intensive dialogue between the Commission and the Hungarian national authorities over the past months.

Hungary’s recovery and resilience plan

Hungary has requested a total of €7.2 billion in grants under the RRF.

The Hungarian plan is structured around the key policy areas of green transition, healthcare, research, digital, cohesion and public administration. The plan includes measures in sustainable transport, energy transition and the circular economy. Projects in the plan cover the entire lifetime of the RRF until 2026. The plan proposes projects in five of the seven European flagship areas.

Next steps

The Commission will assess the Hungarian plan within the next two months based on the eleven criteria set out in the Regulation and translate its content into legally binding acts. This assessment will notably include a review of whether the plan contributes to effectively addressing all or a significant subset of challenges identified in the relevant country-specific recommendations issued in the context of the European Semester. The Commission will also assess whether the plan dedicates at least 37% of expenditure to investments and reforms that support climate objectives, and 20% to the digital transition. Based on a proposal by the Commission, the Council will have as a rule four weeks to adopt the Commission proposal.

The Council’s approval of the plan would pave the way for the disbursement of a 13% pre-financing to Hungary. This is subject to the entry into force of the Own Resources Decision, which must first be approved by all Member States.

The Commission has now received a total of 15 recovery and resilience plans, from Belgium, Denmark, Germany, Greece, Spain, France, Italy, Latvia, Luxembourg, Hungary, Austria, Poland, Portugal, Slovenia, and Slovakia. It will continue to engage intensively with the remaining Member States to help them deliver high quality plans.

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