Hungary’s New Government: Unblocking EU Funds and Restoring Relations

Hungary's newly elected Prime Minister, Péter Magyar, is taking swift action to address the country's relationship with the European Union (EU). With billions of euros in EU funds frozen under the previous government, Magyar is eager to negotiate a political agreement by mid-May, outlining Hungary's reform plans until the end of August.

This move is seen as a potential breakthrough in unblocking the €90 billion loan for Ukraine, which has been delayed due to Hungary's previous stance under Viktor Orbán. French President Emmanuel Macron expressed optimism, stating that the change in government could lead to the loan's approval, benefiting both Ukraine and the EU's credibility.

Magyar's press conference in Budapest revealed his intention to stop Hungary's withdrawal from the International Criminal Court, potentially reshaping its relations with Israel. He also confirmed parts of a plan to unlock EU funds, including the use of special purpose vehicles (SPVs) for more flexibility in fund deployment, a strategy previously employed by Poland.

The new government aims to implement these changes by August, demonstrating a commitment to rapid progress. Magyar's approach to the Druzhba pipeline and the €90 billion loan for Ukraine shows a pragmatic stance, seeking to restore relations and ensure the flow of funds.

The EU's foreign policy chief, Kaja Kallas, also expressed hope for a shift in Hungary's position on sanctions against violent Israeli settlers, indicating a potential change in the country's international stance.