Index – Economy – Hungary would receive twice as much support from the Russian dependency liquidation fund
More than seven hundred million euros would go to Hungary from the support fund they planned, which could be used to reduce energy dependence on Russia: this is double the originally proposed amount.
Only one country, Slovakia, was absent on Tuesday, when the members of the European Union voted to finance the new financial fund, which includes the reduction of fossil energy imports from Russian sources as necessary investments. Compared to the May commission proposal on REPowerEU, the most positive change for Hungary is that our country’s support has doubled from the original amount: from EUR 346 million to EUR 701 million.
The difference is caused by the fact that the council has changed the keys for the distribution of new financial resources in light of the fact that cohesion policy, their dependence on fossil fuels and the increase in investment costs are also taken into account. The original proposal of the European Commission was much more favorable to the countries of southern Europe, because it is based on its keys for the distribution of recovery funds suitable for mitigating the effects of the Covid epidemic.
The solution based on compromises, which suits all members, was proposed by the incoming Czech EU presidency. As the only country, Slovakia expressed its dissatisfaction with the amount offered and therefore abstained. However, the current decision is not the final result, because the European Parliament, as a co-legislator, will vote on its own position in the coming weeks, after which negotiations with the Council on the final legislation will begin, writes the Free Europe.
The European Commission estimated the amount needed to reduce the energy dependence on Russia at three hundred billion euros: twenty billion euros is only a small fraction of that. According to the European Commission, with the help of this amount, dependence on Russia can be completely eliminated by 2026-2027.
The remaining frame will be made up of the two hundred billion euros available from the largest recovery fund (RRF), as well as the 12 and a half percent redistribution of cohesion rural development funds available for them. The latter is merely an option.