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EU Reach Deal to Unlock Hungarian Funds

HUNGARY
  • EU countries reached a preliminary agreement to clear the way for Ukraine to receive crucial aid from the bloc after Hungary dropped its opposition in exchange for graft-related reduction in financial penalties, Bloomberg report. In the process of debating the un-freezing of Hungarian cohesion funds, Netherlands and Sweden pushed for the EU to maintain a full suspension, but eventually a French-German proposal to unlock funding proportional with legislative progress (hence €6.3bln remains frozen, with €1.2bln unlocked) met a qualified majority.
  • The news has seen HUF rally against regional peers early Tuesday, with EUR/HUF well below the 50-dma at 410.81 and PLN/HUF around 2.1% below the cycle high printed yesterday.
  • Cabinet Minister Gulyas and Navracsics, the minister responsible for EU funds, will hold a briefing in Budapest at 0830 GMT/0930 local time.
  • Elsewhere, according to a Facebook post by Prime Minister Orban on Tuesday, Hungary are to raise pensions by 15% in 2023.

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