Hungary's National Recovery and Resilience Plan: Latest state of play

Briefing 20-04-2023

Initially, Hungary's share of the total financial envelope of the Recovery and Resilience Facility (RRF) was €16 830 million, of which €7 176 million was for grants and €9 663 million loans (the latter being available until August 2023). Hungary has requested the full estimated amount of grants available, but not any loans. Taking into account Hungary's updated data on its gross domestic product (GDP) for 2020-2021 and according to the revision applied in June 2022 to all EU Member States, the Hungarian resource limit for non-reimbursable support has diminished by €1 363 million. As a result, the Hungarian National Recovery and Resilience Plan (NRRP), approved by the Council of the EU on 5 December 2022, amounts to €5 811 million in EU grants, which represents 4 % of the country's GDP in 2019 and 0.8 % of the entire RRF. In addition, following the amendment to the RRF Regulation that enables Member States to include REPowerEU chapters with new or reinforced energy measures in their NRRPs, Hungary may now benefit from an additional €701.6 million allocation in grants, if such a chapter is submitted and approved. Hungary submitted its first official Recovery and Resilience Plan to the European Commission on 11 May 2021 and updated it twice following discussions with the Commission before coming up with its final NRRP. This final plan, the last to be approved by the Council under the RRF, includes a broad investment- and reform-oriented programme to increase the resilience and sustainability of the Hungarian economy. At the same time, it meets the climate (37 %) and digital (20 %) minimum investment targets of the RRF Regulation, with 48.1 % of resources contributing to the green transition and 29.8 % to the digital transformation. The disbursement of the allocation is planned in seven instalments, scheduled to be requested between June 2023 and September 2026. Due to the late approval of the plan, the EU made no pre-financing. In addition, for any payment to be made under the RRF, Hungary needs to meet all 27 milestones that it agreed with the Commission in relation to rule of law reforms under the plan. This briefing is one in a series covering all EU Member States.