EU member states welcomed the positive assessment of the Hungarian national recovery and resilience plan by the European Commission. Meeting at the Committee of Permanent Representatives ambassadors of EU member states advised the Council to adopt its implementing decision approving Hungary’s national plan.
Hungary will be able to use the facility’s funds up to a total allocation of €5.8 billion in grants. This financing will enable Hungary to foster its economic recovery from the COVID-19 pandemic and finance the green and digital transitions.
Hungary’s Reforms and investments
Hungary’s plan includes a set of reforms and investments that represents a comprehensive and adequately balanced response to Hungary’s economic and social situation.
The Hungarian plan devotes 48.1% of its total allocation to measures that support the climate objective. The measures included in the plan are expected to contribute to the decarbonisation and energy objectives as identified in the National Energy and Climate Plan 2021-2030. Investments in residential solar power systems and the strengthening of the electricity grid, combined with comprehensive reforms, aim at facilitating the development and connection of renewable energy sources. The renovation of buildings will decrease their impact on overall greenhouse gas emissions and improve air quality. Measures to make transport more sustainable, such as investments in railways, the deployment of electric buses and a reform of the tariff system, are expected to result in a cleaner, smarter, safer and more efficient transport sector.
Hungary’s plan devotes 29.8% of the total allocation to support the digital transition. This includes measures to digitalise and improve education and public administration. The digitalisation of transport, energy and healthcare is expected to foster long-term economic development. The plan fulfils all relevant criteria and that none of the measures therein included is expected to significantly harm the environment, in line with the requirements laid out in the Recovery and Resilience Facility (RRF) regulation.
The plan also includes a comprehensive set of key institutional reforms to strengthen the rule of law, which are also expected to improve the efficiency and resilience of the economy by reinforcing the fight against corruption, promoting competitive public procurement and strengthening the independence of the judiciary.