“According to Hungary’s position, over-bureaucratic solutions must be avoided during EU crisis management, and the situation instead requires rapid and flexible solutions”, Minister of Finance Mihály Varga declared at a session of the European Union’s Economic and Financial Affairs Council (ECOFIN).

“Hungary suggests a flexible framework system that also acknowledges the individual idiosyncrasies of member states during the drawing up of national programs. This is vital to ensuring that the European recovery mechanism will already be able to tangibly contribute to the financing of economy-boosting measures in early 2021, in accordance with the guidelines of the heads of government”, the Minister emphasised.

With relation to the Recovery and Resilience Facility (RRF), which forms the backbone of the EU program, Mr. Varga repeated: “In addition to green and digital requirements, the financed projects must also include those infrastructure investment projects that reduce the developmental differences between countries and facilitate convergence”. “During our negotiations with relation to the European Union’s recovery instruments, we represented the position that member states should be given a greater role during the course of decision-making”, Mr. Varga stated, emphasising that it would be important for the European Council to be given the opportunity to also take action against the Commission’s negative opinion on the issue.

In July, the European Union’s heads of state and government agreed on the 1074-billion-euro multiannual financial framework for the period 2021-2027, and concerning the most important issues relating to the 750-billion-euro restoration package that is linked to the budget. The budget of the RRF, which forms part of the latter, is currently 672.5 billion euros. However, member state opinions differ with relation to the conditions relating to the evaluation of the national restoration programs that enable the drawing down of funding, as well as with relation to the Commission’s proposals concerning the course of the procedure. Similarly to many other member states, according to Hungary’s position the gradual appearance of over-bureaucratic solutions must be avoided, and for this reason aspects relating to economic recovery must be placed at the forefront during the development of national programs.

During the videoconference of EU finance ministers, in addition to the Recovery Facility, the ministers also discussed the European Commission’s Digital Finance Package, and the EC’s Action Plan to boost the European Union's Capital Markets Union (CMU).

(Ministry of Finance/MTI)