EU funds 16 January 2024, 10:02am

European Commission releases another €140 million for Hungary

MTI

The European Commission has released €140.1 million (around HUF 53.2 billion) to Hungary as part of the pre-financing for the EU's REPowerEU energy security funds under the EU's Recovery and Restoration Facility (RRF), the last tranche of the REPowerEU pre-financing, the Brussels-based body said on Monday.

This is the second and final instalment of the REPowerEU pre-financing, following the first pre-financing of €779.5 million for the EU's REPowerEU programme for more affordable, secure and sustainable energy, which was disbursed to Hungary on 28 December.

In a communication, the EU Commission stressed that the advances will help kick-start the implementation of key investment and reform measures outlined in some of the chapters of the EU's REPowerEU programme. It will help accelerate the achievement of energy efficiency, clean energy and energy diversification targets to help Europe become independent from Russian fossil fuels, they said.

The allocation of the pre-financing on Monday was made possible by the approval by the European Council of Hungary's revised plan, which includes the REPowerEU chapter of the recovery fund, and the signing of the financial agreement, according to the statement.

Pre-financing payments represent up to 20% of the resources requested to finance the REPowerEU heading in each member state, they said.

Hungary's revised €4.6 billion (around HUF 1,800 billion) REPowerEU Recovery Plan, which aims to deliver more affordable, secure and sustainable energy, was approved by the European Commission in November. The plan is now worth €10.4 billion (around HUF 4,060 billion), of which €6.5 billion is in the form of grants and €3.9 billion in the form of loans. This amount covers 67 reforms and 47 investments.

Under the RePowerEU heading, Hungary will receive a loan of €3.9 billion and a grant of €0.7 billion. At the end of December, the 20% advance from the loan part had already been received, and this one came from the grant leg. No more can be disbursed until the government has fully met the super milestones needed to meet the €5.9 billion of the recovery fund.