Reforms on pensions and taxation have emerged as the main sticking points between Budapest and Brussels in technical negotiations to unlock billions of euros in EU funding for Hungary, Euronews has learned.
According to several European Commission officials, Hungary's new prime minister, Péter Magyar, is resisting both reforms, arguing they would put additional pressure on the country's budget.
Magyar and his cabinet have been in talks with the European Commission to unlock a total of €17 billion in EU funds frozen under the previous administration of Viktor Orbán over rule-of-law and corruption concerns.
Hungary could lose €10.4 billion in recovery funding if it fails to meet the August 31 deadline required to access the money. Commission officials say they could simplify some milestones but they have ruled out any extension of the deadline.
Officials within Magyar’s government admit that there may not be enough time to carry out sweeping sectoral reforms before the end-of-August deadline for unlocking post-COVID Recovery and Resilience Facility funds.
