The domestic construction industry could see a boost – there is potential to unlock €16.4 billion in EU funding

The news that emerged from Brussels early on Friday afternoon regarding the agreement between the President of the European Commission and the Hungarian Prime Minister could also have a significant impact on the near future of the Hungarian construction industry. Péter Magyar and Ursula von der Leyen agreed on the release of €16.4 billion, approximately 6,000 billion forints, in EU funds – the Hungarian Prime Minister announced this at a press conference in Brussels following the agreement.

„We have agreed on a secure and robust financing framework, subject to the adoption of reforms and the implementation of investments,” the Hungarian News Agency quoted Ursula von der Leyen as saying.

According to the President, subject to the adoption of reforms and the implementation of investments, €10 billion in funding could be made available to Hungary from the Next Generation EU fund. In addition, the European Commission has also released €4.2 billion in cohesion funds linked to the conditionality mechanism. A further €2.2 billion in cohesion funding could become available following the implementation of reforms relating to academic freedom.

Developments are expected in the fields of transport, railways, water management and environmental protection

Further details were revealed at Friday’s press event in Brussels. According to these, out of the €16.4 billion – equivalent to 13 per cent of Hungary’s annual budget – Hungary will, under the agreement, have access to €2.2 billion in funding for university development and innovation.

In addition, there is an opportunity to draw down €4.2 billion in cohesion funding, which

• transport,
• railway infrastructure,
• the development of water management;
• social,
• healthcare 
• and environmental improvements;
• and can be used to support small and medium-sized enterprises.

In addition, Hungary will be able to procure new HÉV trains and InterCity carriages for €1.8 billion.