The European Commission is exploring new technical pathways to help Hungary access billions of euros in stalled European Union funds, with a high-level delegation of officials set to arrive in Budapest next week.
The move comes as a critical August deadline approaches. Brussels previously warned that Hungary risks losing its entire €10 billion recovery package if specific rule-of-law milestones are not met. However, recent shifts in dialogue suggest the Commission is looking for a compromise that would allow Hungary to receive grants, even if loans remains off the table for now.
The “Exim Bank” Proposal
One of the primary options under discussion is a plan to channel the funds through Hungary’s state-owned investment bank, Exim Bank.
While this could expedite the distribution of money, it has raised red flags in Brussels. Officials are concerned that utilizing a state bank could diminish the EU’s direct oversight—a mechanism considered vital given the ongoing concerns regarding judicial independence and systemic corruption that led to the funds being frozen in the first place.
Key Deadlines and Conditions
Under current regulations, Hungary is only eligible for advance payments if it satisfies the “super milestones” established by the Commission. The proposed involvement of a state investment bank could potentially bypass some of these hurdles, allowing for the release of funds even if all conditions haven’t been met.
- August 2026: The absolute deadline for Hungary to meet established criteria to secure the full package.
- Late Autumn 2026: Sources in Brussels suggest that if an official payment request is submitted soon and the upcoming mission is successful, the first disbursements could reach Budapest by the end of the year.
Geopolitical Stakes
The push to find a solution reflects a broader desire within the EU to stabilize internal relations at a time of high external tension. However, the Commission remains under pressure from the European Parliament and several member states to ensure that any deal with Prime Minister Viktor Orbán’s government does not compromise the Union’s commitment to the rule of law.
The outcome of next week’s delegation visit will be a decisive indicator of whether a middle ground can be reached before the funding window closes for good.
