Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

EU seeks two-month delay in talks on Hungary recovery plan -PM

Published 07/23/2021, 03:11 AM
Updated 07/23/2021, 03:16 AM
© Reuters. FILE PHOTO: Hungary's Prime Minister Viktor Orban addresses the media as he arrives on the first day of the European Union summit at The European Council Building in Brussels, Belgium June 24, 2021. John Thys/Pool via REUTERS

BUDAPEST (Reuters) - The European Union is seeking a two-month delay in talks on Hungary's pandemic recovery plan, with funding likely to be delayed over contested issues as part of an "ideological war" with Brussels, Prime Minister Viktor Orban said on Friday.

A European Commission spokesperson said on Thursday that Hungary's recovery plan, which would see it get 7.2 billion euros ($8.47 billion) in grants from the EU, was still under evaluation and it was unclear what the next steps in the process were.

The Commission evaluation and infringement steps launched against Hungary over a law the EU says discriminates against the LGBT community, were two separate processes although they did run in parallel, the spokesperson said.

Orban told public radio Hungary was nearing an agreement with the Commission on the economics of its recovery plan, blaming the delay entirely on a row over the LGBT legislation, which has been heavily criticised by EU leaders.

"The way I see it now is that the EU will seek a two-month delay in the resumption of talks (over the recovery plan), but this calls into question the very essence of the fund," Orban said.

He said Hungary would start financing the same projects partially approved by Brussels from its national budget to avoid any further delays in access to the funds.

"Whether the money arrives from Brussels or not, we will pay out these funds from the Hungarian budget," Orban said.

Justice Commissioner Didier Reynders said on Tuesday that the European Commission would not approve Hungary's recovery plan until it carries out judicial reform and guarantees that corruption cases are investigated.

Reynders cited systemic problems with the rule of law in Hungary, adding that the Commission was ready to use all tools to protect democracy, including the suspension of EU funds.

"Corruption is often cited as an issue, but we were already close to an agreement," Orban said. "All of a sudden, after approving the law about the protection of children, we became very corrupt. This is obviously a cover story, a pretext."

© Reuters. FILE PHOTO: Hungary's Prime Minister Viktor Orban addresses the media as he arrives on the first day of the European Union summit at The European Council Building in Brussels, Belgium June 24, 2021. John Thys/Pool via REUTERS

The measures, which have caused anxiety in the LGBT community, ban the use of materials seen as promoting homosexuality and gender change at schools.

($1 = 0.8496 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.