Hungary to receive significant EU funds for infrastructure and energy projects

Hungary is poised to unlock substantial European Union funding for a range of critical development projects, bolstering its infrastructure and energy sectors. The government announced that the successful acquisition of EU funds will create significant budgetary flexibility for new investments.

Among the key initiatives, funds previously not earmarked for the Recovery and Resilience Facility will be redirected. This includes the accounting for Budapest's CAF trams, which will bring in net additional EU funds, enabling further investments. Additionally, 1.5 billion euros have been secured for the development of the national electricity grid, with a specific focus on enhancing renewable energy integration and expanding storage capacity.

The allocated resources for the energy sector will be channeled through the Hungarian Development Bank via a capital increase by August 31. Subsequently, tenders will be issued for electricity providers to utilize the funds. Furthermore, a significant sum of 1.8 billion euros is designated for the renewal of the HÉV suburban railway and its rolling stock. This initiative includes a complete overhaul of the HÉV lines, with agreements already in place for the procurement of at least 35 new multiple-unit trains.