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Government Bullish Despite EU Funding Recommendation

HUNGARY
  • The European Commission have recommended that €7.5bln in funding earmarked for Hungary is suspended over continued accusations of graft and corruption in the country. The move would still need to be approved by member states (some states including Poland are opposed to such a move). Member states now have a month to consider the proposals.
  • Navracsics, the minister taking responsibility for EU funds, has welcomed the progress evident in the EU’s decision to allocate EU funds to Hungary, stating that this allows a swift conclusion to the talks, meaning the government is now hopeful that negotiations will be concluded by year-end.
  • The government are now to submit to parliament proposals that would end the EU’s conditionality mechanism (the tool through which proposals were made to suspend funding). Gulyas said that after months of intensive negotiations on the issue, there are no more unresolved issues.
  • The government have formally extended the price cap on basic foodstuffs and fuel, according to a note from Orban’s chief of staff published on Saturday. Additionally, the freeze on retail mortgage rates (due to expire on Dec 31st) will also be extended by at least six months.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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