The European Commission has quietly submitted Hungary’s revised Recovery and Resilience Facility (RRF) plan to the Council of EU Finance Ministers—along with a recommendation for approval. The published documents reveal a shift in priorities. Ironically, funding is now being cut in the very areas of education and health that were considered core campaign promises of the TISZA Party during the election.
The Hungarian Recovery Plan has been significantly revised compared to the original version approved at the end of 2022. As Világgazdaság reports, the Council of Finance Ministers could approve the revised package as early as its July 10 meeting under an expedited procedure.
Although detailed breakdowns in euros for the individual education, health, and housing programs are not yet available, the European Commission’s summary leaves no doubt that several investments have been fundamentally restructured.
Brussels justifies the move on the grounds of feasibility and significant time pressure. Since all projects funded by the EU Recovery Fund must be fully completed by August 2026 at the latest, the government in Budapest had little leeway.
The cuts are hitting the country’s social infrastructure hard:
Healthcare: The original 2022 plan had allocated 516 billion forints (1.5 billion euros) for the healthcare system. Less than a third of that amount remains. Among the projects that have been cut or severely scaled back are the expansion of hospital infrastructure, digital upgrades, and a digital life-support program worth over 90 billion forints (253 million euros) for people in need of care.
Social Housing: Originally, 52.5 billion forints (148 million euros) had been budgeted for the renovation and construction of social housing in economically disadvantaged communities. This item has been completely removed from the list of funded areas.
While social infrastructure is taking a hit, funds are now being channeled into large-scale projects. The clear winner of the restructuring is the transportation sector, with a modified and increased budget for this area totaling 2.8 billion euros.
The funds are being directed toward the expansion of suburban and TEN-T rail transport, the procurement of zero-emission buses and trams, and the electrification of rail lines.
The largest single item in the transportation sector is the establishment of a new state-owned rolling stock company (ROSCO). With a capital injection of 1.8 billion euros, this company is to purchase new commuter trains (HÉV) and interregional multiple-unit trains and subsequently lease them out.
There has also been a shift in energy policy. Instead of promoting the energy-efficient retrofitting of private residential buildings, as was previously the case, the focus is now almost exclusively on industrial grid expansion, the expansion of energy storage capacities, and the integration of renewable energy.
The total budget for the Hungarian program amounts to 10.43 billion euros (of which 6.5 billion euros are non-repayable grants and 3.9 billion euros are loans).
The funds are now allocated to the individual priority areas as follows:
Sustainable green transportation: 2.80 billion euros
Business environment: 1.80 billion euros
Energy: 1.70 billion euros
Digital innovation: 1.10 billion euros
Demographics and public education: 765.65 million euros
REPowerEU chapter (energy independence): 704.50 million euros
Highly Skilled and Competitive Workforce: 613.00 million euros
Healthcare: 478.20 million euros
From the European Commission’s perspective, the plan continues to formally meet the strict EU requirements for the green and digital transitions. 52.9% of the funds are earmarked for climate action, while 24.1% are being allocated to digitalization.
Nevertheless, the submission to the Council is not a free pass for automatic disbursement.
The Commission made it unmistakably clear that, in order to actually draw down the funds, Hungary must first meet the agreed-upon “super milestones” in the areas of the rule of law and the fight against corruption. This marks the start of a two-pronged race against time for the TISZA government. It must not only meet the tight construction and project deadlines by summer 2026, but also overcome the political roadblocks in Brussels.
Via Világgazdaság; Featured image: Pixabay
