EU approves Hungary’s recovery plan, but holds cash, moves to freeze other funds

BRUSSELS (Reuters) – The European Commission approved on Wednesday Hungary’s post-pandemic recovery plan to keep open the possibility of EU disbursements later, but will hold back any payouts from the 5.8 billion euro total until Budapest fulfils all agreed conditions.

Separately, the EU executive also asked EU governments to freeze 7.5 billion euros that Hungary would normally be getting from the EU budget as part of the funds the EU transfers to its poorer member to equalise standards of living across the bloc.

(Reporting by Jan Strupczewski)