HUF Remains Weak as EU Poised to Keep Funding Frozen

On the earlier Hungary headlines - full story here: https://www.faz.net/aktuell/politik/ausland/f-a-z-exklusiv-bruessel-fuer-harten-kurs-gegen-ungarn-18481762.html

"As the FAZ learned from a reliable source in the commission, the responsible bodies in the commission came to the conclusion that Budapest had not adequately fulfilled its promises of reform in the fight against corruption. At its meeting on Wednesday next week, the Commission will therefore recommend the Member States to freeze EUR 7.5 billion from three cohesion programs. In addition, the payment of 5.8 billion euros from the reconstruction fund will be linked to these points and further judicial reforms."

• Looks as if the EU are looking to tie together both funding lines from the cohesion funds (E7.5bln) as well as from the yet-to-be-approved COVID recovery fund (as much as E5.8bln)
• EU set to blame Hungary's failure to meet anti-corruption and judicial reform criteria (as pointed out by MEP panel last week)
• However, there's also a political element. FAZ writes: "They thus have a lever in their hands to persuade Budapest to veto the introduction of a minimum tax for multinational companies and 18 billion budget support for Ukraine."
• Deadline here is December 6th - so Hungary could still turn the tide, but a failure to accept the COVID recovery fund this year, will not mean E4.1bln in subsidies are frozen, but will expire entirely on Dec31.