"But we don't only have the judicial reforms. There also is a whole list of corruption reforms" needed, including on improving public procurement, to get the money, they said. In more than a decade in power, Hungarian Prime Minister Viktor Orban has had many bitter run-ins with the EU and its executive arm, the European Commission, over Budapest restricting the rights of gays and migrants, as well as tightening state controls over non-governmental organizations, academics, media and courts. No official comment from Budapest or the Commission was available on Thursday. Last month, Hungary's negotiator said ironing out remaining issues with Brussels over democratic reforms prescribed to win the recovery funds could last until the summer. "We are almost there, not quite there yet, but we are getting there" with the judicial reforms, said second EU official, who is involved in negotiations between the Brussels-based Commission and Budapest. The person said that meeting those requirements would open Budapest's access to up to 20 billion euros in development funds, but it was unlikely that any would be sent straight away. The lag is due to how these funds are spent, with member countries first financing projects on their own and only later asking the Commission for reimbursement. The officials said Budapest would unlikely have the bills ready to send in even if it unlocks access to the money mid-year. The sources said some recovery payments could be possible this summer but that mostly the money would come later in the year if Hungary meets the necessary conditions.
Hungary and Poland are the only EU members lagging behind in
getting the recovery funds, which the Commission has blocked
over accusations that the countries' nationalist, populist
governments damage democracy and the rule of law.
The Commission is withholding Hungary's access to the
development funds over the same concerns around corruption and
freedom of courts.
Under pressure from high inflation at home, Orban has sought
to strike a deal with Brussels on the money, while also
wrangling with the EU on issues including support for Ukraine
and punishing Russia for invading its neighbour.
($1 = 0.9167 euros)
(Reporting by Gabriela Baczynska; Editing by Richard Chang)
