BUDAPEST, Sept 17 (Reuters) – The Hungarian government will submit new laws to parliament next week to end its dispute with the European Commission and unblock the country’s access to EU funds, the chief of staff said on Saturday. of Prime Minister Viktor Orban.
The EU executive will recommend the suspension of billions of euros earmarked for Hungary over corruption concerns, two officials told Reuters on Wednesday, in what would be the first such measure taken against Viktor Orban.
On Thursday, a large majority of European lawmakers voted to condemn the attacks on democracy in Hungary under the regime of the leader, in power since 2010, thus intensifying the pressure on the European Union to reduce funds intended for the former communist country.
Hoping to break the deadlock, which has put the forint and bond markets under pressure, Budapest has announced it will create an anti-corruption authority and a task force with non-governmental groups to oversee the spending of EU funds. .
“The government either accepted the demands of the European Commission, or – in the areas where we could not accept them – we managed to find a satisfactory compromise for both parties,” said Viktor Orban’s chief of staff, Gergely. Gulyas, during a press briefing.
“During today’s meeting, the government discussed these commitments and approved them,” he added, adding that the Orban government would ask Parliament to adopt the corresponding legislation through an accelerated procedure.
The new laws are due to come into force in November, which could – according to Gergely Gulyas – mark the end of sanctions against Hungary, with access to billions of euros at stake.
EXTENDED PRICE CAPS
“Instead of mutual distrust, the constructive series of negotiations with the Commission over the past two months can be seen as a step towards mutual trust,” he said, adding that Hungary was waiting for the decision to the EU with “perfect calm”.
According to the EU’s anti-fraud agency, Hungary recorded by far the highest number of irregularities in the entire bloc when it came to spending EU funds between 2015 and 2019. Brussels has long called for transparency, competition and accountability in Hungarian public procurement.
Hungary has also extended by three months, until the end of the year, the ceiling on the prices of fuels and basic foodstuffs in order to protect its population against galloping inflation.
Budapest has strongly criticized European Union sanctions against Russia following the invasion of Ukraine, saying they have failed to significantly weaken Moscow while causing oil prices to soar. food and energy.
Combined with the forint’s fall to record levels, price increases have propelled inflation in Hungary to peaks not seen in two decades, forcing the National Bank to raise its base rate sharply to 11.75%. (Report Gergely Szakacs and Krisztina Than, French version Benjamin Mallet)