COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Hungary Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION amending the Implementing Decision of 15 December 2022 on the approval of the assessment of the recovery and resilience plan for Hungary
Date: 2026-06-19
Institutions: European Commission, Reform and Investment Task Force
Subjects: EU aid, Hungary, digital transformation, economic and social cohesion, economic recovery, economic reform, energy policy, green economy, investment, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 19.6.2026  SWD(2026) 171 final  COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Hungary Accompanying the document Proposal for a COUNCIL IMPLEMENTING DECISION amending the Implementing Decision of 15 December 2022 on the approval of the assessment of the recovery and resilience plan for Hungary {COM(2026) 316 final}  
 
 
Table of contents 

1. 

Executive summary ............................................................................................................................... 2 

2.  Objectives of the plan ........................................................................................................................... 3 

2.1 The new RRP addresses the main challenges facing Hungary ............................................................ 3 

2.2 Components and their associated estimated costs ............................................................................ 3 

2.3 Implementation aspects of the plan ................................................................................................... 7 

3. 

Summary of the assessment of the plan .............................................................................................. 8 

3.1. 

3.2. 

Comprehensive and adequately balanced response to the economic and social situation ........ 8 

Link with country-specific recommendations and the European Semester ............................... 11 

3.3.  Growth potential, job creation, economic, institutional and social resilience, European Pillar of 
Social Rights, mitigating the impact of crisis, and social territorial cohesion and convergence ............ 12 

3.4. 

The principle of ‘do no significant harm’ .................................................................................... 13 

3.5.  Green transition .......................................................................................................................... 14 

3.6. 

3.7. 

Digital transition .......................................................................................................................... 15 

Lasting impact of the plan ........................................................................................................... 15 

3.8.  Milestones, targets, monitoring and implementation................................................................ 16 

3.9. 

Costing ........................................................................................................................................ 17 

3.10.  Controls and audit ....................................................................................................................... 18 

3.11.  REPowerEU ................................................................................................................................. 24 

3.12.  Cross-border or multi-country dimension or effect ................................................................... 25 

ANNEX I: Climate tracking and digital tagging ........................................................................................ 27 

1 

 
 
 
 
 
 
 
 
 
 
 
1.  EXECUTIVE SUMMARY  

After three years of stagnation the economy  in Hungary is expected to recover. Economic 
growth  in  2025  remained  sluggish  at  0.5%,  following  a  0.7%  increase  in  2024  and  a  0.8% 
contraction in 2023. The resilient labour market  and moderating but significant wage increases 
bolstered  consumption.  However,  investment  and  exports  were  subdued  due  to  uncertainties 
around trade prospects and weak performance in Hungary's sizeable automotive industry. GDP 
growth is forecast to gain momentum in 2026-27, underpinned by domestic demand and exports, 
as well as improved confidence. Inflation is set to moderate from 4.4% in 2025 to 3.2% in 2026 
and 3.1% in 2027, thanks to currency appreciation and easing domestic inflation pressures.  

Nevertheless,  Hungary  continues  to  face  significant  challenges  primarily  related  to  high 
government debt and high government financing needs, competitiveness, and house prices. 

Hungary still faces concerns over the rule of law and the effectiveness of measures to protect 
the financial interest of the Union. Allegations of political influence over the courts, weakened 
oversight bodies, and patchy implementation of European Court judgments along with the use of 
state resources and regulatory frameworks to favour government-aligned interests, and pressure 
on  civil  society  and  independent  media,  further  eroded  transparency,  accountability,  and  the 
consistent application of the rule of law. The new government has committed to addressing these 
challenges systematically, and the Recovery and Resilience Plan (RRP) provides a comprehensive 
package of measures aimed at achieving that objective. In particular, measures in the RRP ensure 
the protection of the financial interest of the Union in relation to the implementation of the RRP, 
reinforce  the  anti-corruption  framework,  guarantee  the  transparency  of  public  resources  and 
organisation of public procurement, and more effectively involve stakeholders and social partners 
in law-making. 

Hungary submitted a reasoned request to the Commission to make a proposal to replace its 
RRP  (grants  and  loans)  relying  on  the  legal  basis  of  Regulation  (EU)  2021/241.  Notably, 
Hungary provided a reasoned request to the Commission to make a proposal to replace the Council 
Implementing Decision on the basis of Article 21(1) of Regulation (EU) 2021/241, due to objective 
circumstances making it no longer possible to implement the RRP in force.  

Based  on  the  assessment  of  the  replaced  RRP,  including  the  REPowerEU  chapter,  the 
Hungarian new plan receives an A-rating on all criteria, except for costing, where the plan 
receives  a  B-rating  (unchanged  from  the  assessment  of  the  original  plan).  All  REPowerEU 
measures address at least one REPowerEU objective listed in article 21(c) of the RRF Regulation 
and they can be considered as having an even stronger cross-border dimension, which would be 
above the 30% threshold requirement. 

(1) 
Balanced 
Response 

(2) 
CSRs 

(3) 
Growth, 
jobs… 

(4) 
DNSH 

(5) 
Green 
target 

(6) 
Digital 
target 

(7) 
Lasting 
impact 

(8) 
M & T 

(9) 
Costing 

(10) 
Control 
Systems 

(11) 
Coherence 

(12) 
REPowerEU 

(13) 
Cross-
border  

A 

A 

A 

A 

A 

A 

A 

A 

B 

A 

A 

A 

A 

2 

 
 
 
 
 
 
 
2.  OBJECTIVES OF THE PLAN  

2.1 The new RRP addresses the main challenges facing Hungary 

The  Country  Report  identifies  wide-ranging  structural  challenges  facing  Hungary.  These 
span  governance  and  rule  of  law  (anti-corruption  framework  and  transparency),  fiscal 
sustainability  (sustainability  of  government  finance  and  of  the  pension  system),  business 
environment and access to finance for business, green transition (electrification, decarbonisation, 
climate  adaptation  and  water  management)  and  social  outcomes  (skills,  education,  affordable 
housing and primary care). Moreover, Hungary also faces challenges concerning the short time 
remaining  for  the  absorption  of  the  available  EU  funds.  Fiscal  constraints  have  so  far  limited 
national  pre-financing  of  EU  funded  measures  and  protective  measures  adopted  under  the 
Conditionality Regulation (Regulation 2020/2092) due to breaches of the principles of the rule of 
law affecting the Union budget have limited access to specific Union.  

Hungary’s  new  RRP  raises  the  level  of  ambition  in  protecting  the  EU’s  financial  interests  and 
strengthening the rule of law. It expands well-performing measures, phases out those that cannot 
be  completed  within  the  timeframe  of  the  RRF  and  introduces  new  measures  to  enhance  fund 
absorption while addressing the ongoing and emerging challenges outlined above.  

The replacement of the plan does not affect the amount allocated to Hungary for non-repayable 
financial support pursuant to Article 18(2) and Article 21a and 22b, whilst it reduces the support 
requested  previously  under  Article  14(2)  of 
loans  by 
EUR 429 974 916. 

the  RRF  Regulation  for 

the 

Pursuant  to  Article  21(1)  of  the  RRF  Regulation,  Hungary  has  justified  the  replacement  of  its 
existing plan on the basis of objective circumstances. The objective circumstances invoked include 
the  reduction  of  administrative  burdens  and  simplification  of  the  RRP,  in  line  with  the 
Commission’s communication on the “Road to 20261”; heightened ambition in the areas of rule of 
law  and  energy  reforms;  cost  increases  stemming  from  energy  price  volatility  (driven  by 
geopolitical events) and legal and administrative challenges. The revised plan streamlines measure 
requirements while retaining their core objectives, and replaces underperforming measures with 
alternative investments and reforms that can be completed by 31 Augustus 2026.  

2.2 Components and their associated estimated costs  

Component 1: Demography and public education 

This component addresses access to inclusive quality education through digitalization, increasing 
participation of disadvantaged students and children with special education needs in mainstream 
education,  reducing  school  segregation,  raising  the  attractiveness  of  the  teaching  profession 
through  significant  wage  increases,  and  expanding  crèche  places  and  upgrading  school 
infrastructure. 

1 COM(2025) 310 final/2 

3 

 
 
 
 
 
 
 
 
Component 2: Highly qualified and competitive workforce 

This  component  aims  at  modernizing  vocational  and  higher  education  to  strengthen  Hungary's 
human  capital  for  the  green  and  digital  transitions.  It  introduces  innovative  practice-oriented 
elements  in  higher  education  programmes,  develops  digital  learning  content,  upgrades  and 
renovates  buildings  in  higher  education  and  vocational  training  institutions  to  improve  energy 
efficiency  and  digitalisation,  and  financially  supports  research  and  development  activities.  The 
component also includes development of a Central Examination Centre in Budapest to improve 
the quality of professional qualifications assessment. 

Component 3: Catching-up settlements 

This  component  addresses socio-economic  and territorial  challenges in  the most disadvantaged 
municipalities in Hungary. It aims to reduce energy poverty through the installation of photovoltaic 
capacity for households, support the participation in labour socialisation programmes to improve 
the  employability  of  residents,  and  promote  inclusive  community-oriented  pedagogical 
development in local public education institutions. The component contributes to social cohesion, 
territorial convergence, and the green transition. 

Component 4: Water management and circular economy 

This component tackles Hungary's water scarcity and waste management challenges. On water, it 
establishes a sustainable water management action plan and carries out controlled water retention 
interventions, as well as completing the Kvassay pumping station to secure the ecological quality 
of  the  Danube  branch.  On  circularity,  it  introduces  legislation  on  deposit  systems,  single-use 
plastics,  extended  producer  responsibility,  and  abandoned  waste,  adopts  a  national  waste 
management plan, and launches a public communication campaign on waste hierarchy. 

Component 5: Sustainable green transport 

This  component promotes modal shift  and decarbonisation of the transport sector.  It  invests  in 
suburban and TEN-T railway infrastructure, delivers zero-emission buses, trams and trolleybuses 
for  urban  public  transport,  electrifies  additional  railway  sections,  supports  corporate  uptake  of 
electric  vehicles,  and  sets  up  a  financial  instrument  through  the  Hungarian  Development  Bank 
(MFB) to increase the roll-out of charging station infrastructure. It moreover establishes a Rolling 
Stock  Company  (ROSCO)  to  own  and  lease  rolling  stock  under  competitive  public  service 
contracts. The component includes a tariff reform that encourages greater use of public transport.  

Component 6: Energy – green transition 

This component addresses Hungary's climate and energy targets for 2030 by expanding renewable 
capacity  and  modernising  the  electricity  system.  Reforms  liberalise  onshore  wind  permitting, 
simplify grid connection procedures for renewables and introduce gross metering for residential 
solar. Investments support transmission and distribution grid upgrades, installation of residential 
solar panels  combined with heating modernisation,  battery energy storage, smart  meter rollout, 
and energy efficiency renovation of public buildings. A major MFB-managed grant scheme for 
grid development is also included, scaled up further under the REPowerEU component. 

4 

 
 
 
 
 
 
 
Component 7: Health 

This  component  addresses  several  challenges  in  the  Hungarian  health  system,  including 
overreliance on hospitals, regional workforce shortages, and informal gratuity payments. It aims 
to eradicate gratuity payments through new employment contracts for doctors and criminalisation, 
modernise hospital infrastructure and medical equipment, accelerate the digital transformation of 
healthcare  via  the  e-health  system,  develop  primary  care  through  GP  praxis  communities  and 
chronic disease management and prevention programmes, and upgrade local health and social care 
facilities. 

Component 8: Governance and public administration 

This  component  includes  measures  that  are  expected  to  be  effective  in  addressing  persistent 
weaknesses  in  the  following  broad  areas:  strengthening  the  anti-corruption  framework  (by  the 
establishment of an Integrity Authority with broad competences and wide access to information, 
the setting up of an Anti-Corruption Task Force, start of the process to become part of the EPPO, 
introducing  a  possibility  for  judicial  review  of  prosecutorial  inaction,  introducing  strict  asset 
declaration  obligations  coupled  with  transparency,  oversight  and  sanctions,  the  phasing-out  of 
public interest asset management foundations, facilitate access to public information); reinforcing 
the  integrity  and  transparency  of  public  procurement  procedures  (develop  a  monitoring  tool  to 
follow  the  development  of  the  share  of  public  procurement  resulting  in  single  bids,  public 
procurements receiving Union support resulting in single bids, introduce conflict of interest rules 
and  additional  reporting  and  publication  obligations  for  contracting  authorities,  develop  a 
performance measurement framework to regularly assess the efficiency and cost effectiveness of 
public  procurements  ,  upgrading  the  Electronic  Public  Procurement  System  to  increase 
transparency of public procurement and thereby facilitate independent oversight and analysis of 
competition,);  judicial  independence  (strengthening  the  National  Judicial  Council  by  adopting 
provisions  on a motivated binding opinion by the NJC  for a number of matters regarding both 
individual  decisions  and  regulations,  reforming  the  Supreme  Court's  governance  related  to  the 
rules on the election of the Kúria President, the rules on the case allocation scheme of the Kúria, 
and  the  rules  on  the  functioning  of  the  Kúria,  including  by  abolishing  a  simplified  application 
procedure for future members of the Constitutional Court to become judges and then be appointed 
to  the Kúria,  removing  obstacles  to  CJEU  preliminary  rulings,  abolishing  Constitutional  Court 
review  of  final  judgments);  protection  of  the  financial  interest  of  the  Union  (introduce  and 
implement strict rules related to the prevention, detection and correction of conflict-of-interest, to 
ensure the oversight of staff working in sensitive positions, to introduce strict rules to ensure that 
the  Arachne  risk-scoring  tool  is  systematically  and  effectively  used  by  bodies  involved  in  the 
management, control and audit of Union support in Hungary, to reinforce the independence and 
capacity of the body responsible for auditing  the management and  control  of Union support in 
Hungary  ,  to  ensure  that  conditions  for  OLAF  to  carry  out  its  investigations  in  Hungary  are 
reinforced); improve the quality and transparency of the decision-making process through effective 
social dialogue, engagement with other stakeholders and regular impact assessments; and public 
finance and tax (spending  reviews, fiscal  framework reform,  transfer pricing,  non-deductibility 
rules on outbound payments, tax simplification, and reform of subsidized lending schemes..  

5 

 
 
 
 
 
 
 
Component 9: REPowerEU 

The REPowerEU chapter complements Component 6 by deepening Hungary's energy market and 
improving its security of supply. It introduces a new methodology for network tariffs, broadens 
smart  meter  obligations,  strengthens  the  role  of  aggregators,  allows  dynamic  pricing  contracts, 
opens balancing markets to competition, expands energy communities, creates a comprehensive 
regulatory  framework  for  energy  storage,  and  simplifies  geothermal  energy  permitting.  On  the 
investment  side,  it  scales  up  the  MFB-managed  electricity  grid  grant  scheme  and  establishes  a 
financial instrument for energy efficiency of residential buildings energy efficient. 

Component 10: Business environment 

This component features a capital injection in the MFB together with the reform of its governance 
and operations. The capital injection aims to provide financing to new affordable housing projects 
and support the competitiveness of innovative business through venture capital and loan financing 
programmes. Part of the MFB capital injection is intended to be channelled to an EIB-managed 
fund.  The  reform  of  the  governance  and  operations  of  the  MFB  aims  to  bring  additional 
transparency and independence in the operations of the bank. 

Component 11: Digital innovation 

This  component  strengthens  Hungary's  digital  infrastructure  and  public  services  across  three 
dimensions.  It  includes  voluntary  contributions  to  the  AI  Gigafactory  and  IRIS²  satellite 
programmes  with  the  aim  of  strengthening  the  technology  sector  and  Europe’s  technological 
sovereignty  and  promotes  the  uptake  of  e-government  services  in  the  area  of  electronic 
identification and trust service. 

Table of components and associated costs 

Component 

Costs (EUR million) 

1: Demography and public education 

2: Highly qualified, competitive workforce 

3: Catching up settlements 

4: Water management and circular economy 

5: Sustainable green transport 

6: Energy 

7: Health 

8: Governance and public administration 

9: REPowerEU 

10: Business environment 

11: Digital innovation 

6 

765.65 

613 

65.60 

19.67 

2 802.17  

1 721.30 

478.22 

0  

704.51  

1 815.15 

1 014.72  

 
 
 
 
 
 
 
2.3 Implementation aspects of the plan  

Consistency with other initiatives  

The new RRP of Hungary is consistent with other EU initiatives, such as the National Energy and 
Climate Plan, the Partnership Agreement with Hungary, the Operational Programmes receiving 
financing from the cohesion policy funds, the Medium-Term Fiscal-Structural Plan and the Youth 
Guarantee  Programme.  The  new  Hungarian  RRP  includes  measures  that  have  been  transferred 
from other EU programmes, which consequently will be removed from those.  

Administrative organisation of the implementation of the RRP 

Hungary has established an adequate structure to implement the plan as well as to monitor and 
report on progress. The National Authority, whose role is performed by the National Development 
Centre  (NFK),  an  organisational  unit  with  independent  legal  personality  operating  within  the 
Ministry of Rural and Regional Development, acts as the central coordinating body. The National 
Authority is responsible for the overall coordination of the implementation of the plan, monitoring 
progress  towards  milestones  and  targets,  preparing  payment  requests  and  signing  the 
accompanying management declarations. 

The  National  Authority  coordinates  the  work  of  the  policy-responsible  ministries  and  other 
implementing bodies responsible for the implementation of the components of the plan. Following 
changes  in  the  allocation  of  government  responsibilities,  the  designation  of  policy-responsible 
ministries has been updated, while the role of the National Authority and the overall governance 
framework of the plan remain unchanged. 

The collection, storage and reporting of implementation data are ensured through the FAIR-EUPR 
monitoring information system. The National Authority coordinates the reporting of milestones 
and targets, relevant indicators and data on final recipients based on information recorded in the 
monitoring  system.  The  monitoring  arrangements  are  considered  adequate  to  support  the 
implementation  of  the  plan  and  the  reporting  requirements  under  the  Recovery  and  Resilience 
Facility. 

Gender equality and equal opportunities for all  

The  plan  includes  targeted  measures  to  reduce  gender  disparities  in  education,  labour  market 
participation,  and  access  to  essential  services.  In  early  childhood  education  and  care,  the 
construction  of  110  new  crèche  places  (C1.I4)  will  support  parents,  particularly  women,  in 
balancing work and family responsibilities, thereby enhancing female labour market participation. 
The  RRP  also  promotes  inclusive  education  through  measures  to  reduce  school  segregation 
(C1.R1)  and  support  students  with  special  educational  needs  (C1.I2),  ensuring  equal  access  to 
quality education for all children, regardless of gender or background. 

State aid  

State aid and competition rules fully apply to the measures funded by the Recovery and Resilience 
Facility. Union funds channelled through the authorities of Member States, like the RRF funds, 
become State resources and can constitute State aid. When this is the case and State aid is present, 
these measures must be notified and approved by the Commission before Member States can grant 
the aid, unless those measures are covered by an existing aid scheme or comply with the applicable 
conditions of a block exemption regulation, in particular the General Block Exemption Regulation 
(GBER) declaring certain categories of aid compatible with the internal market in application of 

7 

 
 
 
 
 
Articles 107 and 108 TFEU2. When State aid is present and it requires notification, it is the duty 
of  the  Member  State  to  notify  State  aid  measures  to  the  Commission  before  granting  them,  in 
compliance with Article 108(3) TFEU. In this respect, the State aid analysis carried out by Hungary 
in the RRP cannot be deemed a State aid notification. In as far as Hungary considers that a specific 
measure  contained  in  the  RRP  entails  de  minimis  aid  or  aid  exempted  from  the  notification 
requirement, it is the responsibility of Hungary to ensure full compliance with the applicable rules. 

3.  SUMMARY OF THE ASSESSMENT OF THE PLAN  

3.1. Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 

situation 

The new RRP, including the REPowerEU chapter, cover in a comprehensive manner the six pillars 
structuring the scope of application of the Facility: (i) green transition, (ii) digital transformation, 
(iii) smart,  sustainable and inclusive growth,  (iv) social and territorial  cohesion,  (v) health and 
economic, social and institutional resilience, and (vi) policies for the next generation. The coverage 
of  the  Hungarian  plan’s  components  towards  the  six  pillars  is  summarized  in  table  below.  All 
pillars are covered by at least one component, while a component may contribute to several pillars.  

The  range  of  actions  of  the  new  RRP  corresponds  to  the  objectives  of  the  Facility  with  an 
appropriate  overall  balance  between  pillars.  The  allocations  to  green  and  digital  transitions  (of 
respectively 52.9% and 24.1%) exceed the requirements of the RRF Regulation (respectively 37% 
and 20%), and the plan therefore contributes significantly to those objectives.  

The measures included in the new plan contributes to the following pillars: 

Green transition 

The green transition pillar of Hungary’s new RRP focuses on decarbonisation, energy sovereignty, 
and circular economy principles and thereby aligns with the EU’s climate objectives. Reforms and 
investments can be organised along three main objectives: encourage the deployment of renewable 
capacity (wind and solar) and connection to the grid; improve grid capacity and flexibility of the 
electricity market, for example through smart-meters, batteries and storage systems, and enhanced 
balancing services market; energy efficiency. Circular economy reforms target waste management 
legislation, including extended producer responsibility schemes and a deposit system for beverage 
bottles, alongside water retention interventions to enhance climate resilience. Sustainable transport 
is  advanced  through  zero-emission  bus  fleets,  railway  reconstruction  and  electrification,  and 
charging infrastructure investments, underpinned by a financial instrument to incentivise private 
sector  rollout.  These  interventions  collectively  aim  to  reduce  fossil  fuel  dependency,  improve 
resource efficiency, and contribute to Hungary’s 2030 climate targets, while ensuring compliance 
with the ‘do no significant harm’ (DNSH) principle.  

2 Commission Regulation 651/2014, OJ L 187, 26.6.2014, p. 1. 

8 

 
 
 
 
 
 
 
 
Digital transformation 

Hungary’s new RRP places significant emphasis on digitalising public services, education, and 
infrastructure to enhance competitiveness and resilience. Additionally, the plan fosters innovation 
and  research  through  financial  support  for  R&D  institutions  and  includes  a  EUR  500  million 
voluntary  contribution  to  the  EuroHPC  Joint  Undertaking  for  AI  infrastructure  and  a  
EUR 500 million voluntary contribution to IRIS² satellite programme. The voluntary contributions 
to the EuroHPC Joint Undertaking and the IRIS² satellite program contribute significantly to the 
overall digital rating of the plan. These measures collectively aim to bridge digital divides, improve 
service  accessibility,  and  strengthen  Hungary’s  long-term  digital  resilience,  while  ensuring 
alignment with the EU’s Digital Decade targets. 

Smart, sustainable and inclusive growth 

Hungary’s RRP promotes smart, sustainable, and inclusive growth through targeted reforms and 
investments  that  enhance  productivity,  social  cohesion,  and  economic  resilience.  To  boost 
competitiveness  and  innovation,  the  plan  includes  a  governance  reform  of  the  Hungarian 
Development  Bank  (MFB)  to  strengthen  its  independence  and  operational  framework,  coupled 
with  an  equity  injection  of  EUR  1.8  billion  to  support  SMEs,  affordable  housing,  student 
dormitories  and  venture  capital.  Part  of  the  MFB  capital  injection  includes  the  transfer  of 
EUR 688 million of capital to an EIB-managed fund. Inclusive growth is advanced by tackling 
demographic  challenges,  such  as  labour  market  integration  of  vulnerable  groups  (e.g.,  Roma 
communities) through upskilling programmes and early childhood education expansion including 
the construction of crèche places. The Catching-Up Settlements Programme targets Hungary’s 300 
most  disadvantaged  municipalities  by  promoting  employment  and  skills  development  and 
renewable  energy  access.  Additionally,  community-oriented  pedagogy  and  local  economic 
initiatives aim to reduce poverty and improve social inclusion.  

Policies for the next generation 

Hungary's new RRP places significant emphasis on future-oriented policies designed to empower 
younger generations through education reform, digital skills development, and improved labour 
market prospects. The public education system undergoes substantial modernisation, including the 
distribution of digital devices to schools. To make the teaching profession more attractive, the plan 
mandates teacher wage increases, with additional incentives for those working in disadvantaged 
areas. Early childhood education is expanded through the construction of new crèche places, while 
measures  to  reduce  school  segregation  and  support  students  with  special  educational  needs 
promote inclusive learning environments. The vocational education and training (VET) and higher 
education systems are modernised with digital infrastructure upgrades and practice-oriented higher 
education  programmes  to  better  align  skills  with  labour  market  demands.  These  interventions 
collectively  aim  to  improve  educational  outcomes,  enhance  employability,  and  foster  social 
mobility for young Hungarians, addressing long-term demographic challenges while aligning with 
the European Pillar of Social Rights and EU Youth Guarantee principles. 

9 

 
 
 
 
 
 
 
Social and territorial cohesion 

Hungary's  RRP  prioritises  social  and  territorial  cohesion  through  integrated  interventions 
addressing  regional  disparities,  poverty  reduction,  and  equal  access  to  essential  services.  The 
Catching-Up  Settlements  Programme  targets  the  300  most  disadvantaged  municipalities, 
implementing  social  solar  power  plants  to  combat  energy  poverty  while  creating  employment 
opportunities through labour socialisation programmes. Community-oriented pedagogy enhances 
educational  outcomes  in  deprived  areas,  complementing  nationwide  efforts  to  reduce  school 
segregation and improve early childhood education access.  Territorial  cohesion  is  strengthened 
through sustainable transport investments, including railway electrification and zero-emission bus 
fleets, which improve connectivity. The healthcare system modernisation ensures equitable access 
to  services,  particularly  in  underserved  areas,  while  affordable  housing  initiatives  supported 
through the MFB equity injection address urban-rural housing disparities.  

Green 
transition 

Digital 
transformation 

Smart, 
sustainable 
& inclusive 
growth 

Social and 
territorial 
cohesion 

Health, 
economic, 
social and 
institutional 
resilience 

Policies for 
the next 
generation 

Demography and Public 
Education  

Highly Qualified, 
Competitive Workforce 

Catching Up Settlements 

Water Management and 
Circular Economy 

○ 

○ 

○ 

Sustainable Green Transport  ● 

Energy – Green Transition 

● 

Health 

Governance and Public 
Administration 

REPowerEU 

Digital innovation  

Business environment 

● 

○ 

○ 

 ○ 

○ 

○ 

● 

● 

○ 

● 

○ 

● 

● 

○ 

● 

● 

● 

○ 

● 

○ 

○ 

● 

○ 

● 

● 

 ○ 

○ 

○ 

● 

● 

○ 

 ● 

 ○ 

○ 

○ 

○ 

● 

● 

○ 

Key: “●” investments and reforms of the component significantly contribute to the pillar; “○” the component 
partially contributes to the pillar 

Taking into consideration all reforms and investments envisaged by Hungary, its RRP represents, 
to a large extent, a comprehensive and adequately balanced response to the economic and social 
situation, thereby contributing appropriately to all six pillars referred to in Article 3 of the RRF 
Regulation, taking the specific challenges and the financial allocation of Hungary into account. 
This would warrant a rating of A under criterion 2.1 in Annex V to the RRF Regulation. 

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2. Link with country-specific recommendations and the European Semester  

The  new  RRP  addresses  the  Country  Specific  Recommendations  from  2019  to  2025.  In 
particular,  a  sustainable  mobility  investment  for  an  extended  trolleybus  fleet  contributes  to 
investment-related economic policy on transport infrastructure and on focusing investment on the 
green transition, in particular sustainable transport (2019 CSR 3, 2020 CSR 3). The plan addresses 
the Country Specific Recommendation on improving flexibility and competition in the electricity 
sector (2025 CSR 4) by investing significant resources in the development of the electricity grid 
to better accommodate renewable energy integration, opening up the balancing market – especially 
to aggregators, and encouraging the deployment of energy storage facilities. The improvements to 
the domestic fiscal framework contribute to addressing the Country Specific Recommendation on 
strengthening the medium-term budgetary framework, aligning the preparation of annual budgets 
with  the budgetary year  and limiting discretion in the implementation  of annual  budgets  (2024 
CSR 1, 2025 CSR 1).  

The reform of subsidised lending contributes to addressing the Country Specific Recommendation 
on phasing out remaining price and interest rate caps to reduce distortive effects and facilitate the 
smooth transmission of monetary policy (2024 CSR 1, 2025 CSR 1). The equity injection into the 
Hungarian Development Bank as well as the contributions to the EuroHPC Joint Undertaking for 
AI infrastructure and to the EU Secure Connectivity Programme (IRIS²) contribute to supporting 
the Country Specific Recommendations on strengthening the innovation framework for the public 
sector and businesses by improving the predictability of public R&D spending and better targeting 
existing  measures  towards  SMEs  (2025  CSR  3).  The  equity  injection  into  the  Hungarian 
Development Bank also contributes to stimulating the development of capital markets (2025 CSR 
3) and targeting support measures in the housing sector to low-income households and increase 
housing supply, including for social housing (2025 CSR 6). 

Taking  into  consideration  the  reforms  and  investments  envisaged  by  Hungary,  its  new  RRP  is 
expected to contribute to effectively addressing all or a significant subset of challenges identified 
in  the  country-specific  recommendations,  or  challenges  in  other  relevant  documents  officially 
adopted  by  the  Commission  under  the  European  Semester,  and  the  plan  does  represent  an 
adequate response to the economic and social situation of Hungary. This would warrant a rating 
of A under criterion 2.2 in Annex V to the RRF Regulation. 

3.3. Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European Pillar of Social Rights, mitigating the impact of crisis, and social territorial 
cohesion and convergence  

Hungary’s new RRP represents a comprehensive strategy to enhance the nation’s growth potential 
while building economic, institutional, and social resilience against future shocks. By integrating 
investments  with  structural  reforms,  the  plan  creates  a  robust  framework  for  sustainable 
development that aligns with the European Pillar of Social Rights. 

At  the  heart  of  Hungary’s  growth  strategy  lies  a  significant  commitment  to  modernising  its 
economic infrastructure. The newly established Rolling Stock Company (ROSCO), supported by 
an equity injection of EUR 1.8 billion, will catalyse the renewal of Hungary’s rolling stock and 
create the basis for a more efficient management of railway services, thereby further contributing 
to  the  country’s  broader  decarbonisation  efforts.  Complementing  this,  investments  in  urban 
mobility, including the acquisition of new trams and trolleybuses, will enhance connectivity. The 
REPowerEU chapter places particular emphasis on strengthening Hungary’s energy independence 

11 

 
 
 
 
 
and accelerating its green transition. By expanding electricity grid capacity and flexibility, the RRP 
enables the integration of renewable energy sources at scale. The onshore wind energy deployment 
supported by streamlined permitting processes, will significantly increase Hungary’s renewable 
energy generation. Simultaneously, the modernisation of transmission and distribution networks 
ensures  that  this  renewable  energy  can  be  effectively  integrated  into  the  national  grid.  These 
measures  are  complemented  by  existing  investments  in  energy  storage  facilities  and  efficiency 
renovations in public buildings, creating a more resilient and sustainable energy system. 

Hungary’s  EUR  500  million  contribution  to  the  EuroHPC  Joint  Undertaking  will  support  the 
establishment of an AI Gigafactory or other EuroHPC compute infrastructure, aligning with the 
European Commission’s vision for technological sovereignty. This investment will accelerate the 
development of advanced computing capacity, reinforcing Europe’s competitiveness in the global 
digital economy.  

Similarly,  Hungary’s  EUR  500  million  contribution  to  the  EU  Secure  Connectivity  Program 
(IRIS²) will address critical security and resilience challenges by strengthening secure sovereign 
communications,  enhancing  the  resilience  of  critical  infrastructure  and  public  services,  and 
improving preparedness against cyber, hybrid and other security-related disruptions.  

The equity injection into the Hungarian Development Bank’s (MFB) will facilitate SMEs’ access 
to financing, growth capital and venture capital markets, thereby boosting their competitiveness. 
By  leveraging  public  capital  to  attract  private  investments,  the  equity  injection  will  strengthen 
market structures and launch financial instruments to generate sustainable, measurable impact. 

The RRP places equal emphasis on job creation and social resilience, recognising that sustainable 
economic  growth  must  be  inclusive.  Through  labour  market  integration  programmes  targeting 
vulnerable groups, the plan aims to provide opportunities in labour socialisation initiatives. The 
construction  of  new  crèche  places  further  supports  working  parents,  particularly  women,  in 
balancing family and professional responsibilities. 

The  modernisation  of  healthcare  facilities  ensures  equitable  access  to  quality  medical  services 
across  the  country.  Additionally,  the  equity  injection  into  the  MFB  will  channel  private 
investments towards the construction of affordable housing, addressing urban-rural disparities and 
supporting low-income households and students. 

By combining  these economic, social, and institutional  reforms,  Hungary’s new RRP creates a 
comprehensive  framework  for  mitigating  the  impact  of  recent  crises  while  building  resilience 
against future challenges. The plan’s focus on energy independence, digital transformation, and 
social  inclusion  ensures  that  Hungary  is  well-positioned  to  achieve  sustainable  growth  and 
convergence with more advanced EU economies.  

Taking  into  consideration  all  reforms  and  investments  envisaged  by  Hungary,  its  new  RRP  is 
expected to have a high impact on strengthening the growth potential, job creation, and economic, 
social  and  institutional  resilience  of  Hungary,  on  contributing  to  the  implementation  of  the 
European Pillar of Social Rights, including through the promotion of policies for children and 
youth, thereby enhancing the economic, social and territorial cohesion and convergence within 
the Union. This would warrant a rating of A under criterion 2.3 of Annex V to the RRF Regulation.  

3.4. The principle of ‘do no significant harm’  

Hungary’s RRP is  compliant  with  the 'do no significant  harm' (DNSH) principle. Hungary has 
submitted comprehensive self-assessments demonstrating compliance with DNSH requirements 

12 

 
 
 
 
 
concerning environmental objectives, as defined under Article 17 of Regulation (EU) 2020/852, 
in accordance with the DNSH Technical Guidance (2021/C 58/01). 

For all relevant measures, potential environmental and climate risks are systematically addressed 
through  robust  safeguards  ensuring  adherence  to  applicable  criteria.  Environmental  risks  are 
preventively mitigated by incorporating specific conditions into the implementation framework. 
Activities covered by the EU Emissions Trading System (ETS) must achieve projected greenhouse 
gas emissions that are below the relevant benchmarks. Additionally, a prohibited activities list has 
been  established  for  all  financial  instruments  to  exclude  support  for  any  activities  or  assets 
misaligned with the DNSH principle. 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  no  measure  for  the 
implementation of reforms and investments projects included in the new Hungary’s recovery and 
resilience plan is expected to do a significant harm to environmental objectives within the meaning 
of Article 17 of Regulation (EU) No 2020/852 (the principle of ‘do no significant harm’). This 
would warrant a rating of A under the assessment criterion 2.4 of Annex V to the RRF Regulation.  

3.5. Green transition  

The  replaced  RRP  of  Hungary  meets  the  requirement  that  at  least  37%  of  its  total  allocation 
supports climate objectives, as stipulated under assessment criterion 2.5 of Annex V to the RRF 
Regulation. This includes both the overall plan and the dedicated REPowerEU chapter, with the 
climate tracking methodology applied in accordance with Annex VI ensuring that the new RRP 
maintains  its  alignment  with  the  EU’s  2030  climate  targets  and  the  2050  climate  neutrality 
objective. 

For  the  new  RRP  as  a  whole,  climate-related  expenditures  represent  52.9%,  with  the  most 
significant  contributions  coming  from  investments  in  renewable  energy  deployment  and  grid 
modernisation. The plan supports the deployment of weather-dependent renewable installations 
(solar and wind) and their connection to the grid through streamlined permitting procedures and 
modernised  transmission  and  distribution  networks.  Energy  efficiency  measures,  such  as  the 
renovation of public buildings and the installation of smart meters, contribute to reducing energy 
consumption and emissions.  

In the transport sector, the electrification of railway sections and the procurement of zero-emission 
buses  will  significantly  lower  greenhouse  gas  emissions,  supporting  Hungary’s  broader 
decarbonisation goals. 

Within the REPowerEU chapter, climate-related measures also meet the 37% target (100%). The 
grant  scheme  will  extend  the  scope  of  electricity  grid  modernisation  to  further  enhance  the 
integration  of  additional  renewable  capacity  into  the  grid,  while  residential  energy  efficiency 
investments  contribute  to  decrease  dependence  on  fossil  fuels  The  REPowerEU  chapter  will 
moreover  improve  grid  flexibility  by  supporting  the  installation  of  energy  storage  capacity, 
encouraging  the  colocation  of  batteries  and  weather-dependent  installation,  and  reforming  the 
market for balancing services. 

The measures in Hungary’s RRP are expected to make a significant and lasting contribution to the 
green  transition,  supporting  the  EU’s  2030  climate  targets  and  the  2050  climate  neutrality 
objective. The expanded renewable energy capacity, combined with grid modernisation and energy 
efficiency improvements, will reduce Hungary’s reliance on fossil fuels and lower greenhouse gas 

13 

 
 
 
 
 
emissions. These measures are designed to have a durable impact and to deliver environmental 
benefits long after implementation. 

In addition to climate mitigation, the plan includes elements that contribute to biodiversity and 
environmental  protection.  Water  retention  interventions  will  enhance  ecosystem  resilience  and 
support biodiversity in agricultural areas, while the modernisation of the Kvassay pumping station 
will improve the ecological status of the Danube branch. These investments align with broader 
environmental objectives, complementing the plan’s primary focus on climate action.  

Taking into consideration the assessment of all the measures envisaged, the new RRP, including 
its REPowerEU chapter, is expected, to a large extent, to make a significant contribution to the 
green transition or to address the challenges resulting from it and ensures that at least 37% of its 
total allocation contributes to the climate target. At least 37% of the total estimated costs of the 
REPowerEU  chapter  contribute  to  the  climate  target.  This  would  warrant  a  rating  of  A  under 
criterion 2.5 of Annex V to the RRF Regulation  

3.6. Digital transition  

The new RRP of Hungary meets the 20% digital expenditure target as required under assessment 
criterion 2.6 of Annex V to the RRF Regulation, with key contributions coming from investments 
in digital education, higher education modernization, and the digitalization of public services. The 
plan includes digital notebooks and digital tools for schools, which will enhance digital literacy 
and equip students with the skills needed for the digital economy. Additionally, the modernization 
of higher education infrastructure, including the development of digital learning content and the 
digitalization of higher education facilities, will improve access to digital education and support 
the  transition  to  online  and  hybrid  learning.  The  expansion  of  electronic  health  procedures, 
including the rollout of a central healthcare mobile application, will digitalize healthcare services, 
improving efficiency and accessibility. 

The new and modified measures in Hungary’s RRP are expected to significantly contribute to meet 
the digital expenditure target and the digital transformation of both economic and social sectors.  

The  investment  in  the  AI  Gigafactory  initiative  supported  by  a  EUR  500  million  voluntary 
contribution  to  the  EuroHPC  Joint  Undertaking,  will  accelerate  the  development  of  advanced 
computing capacity and reinforce Hungary’s support for Europe’s digital sovereignty. Similarly, 
Hungary’s  EUR  500  million  contribution  to  the  EU  Secure  Connectivity  Program  (IRIS²)  will 
enhance  the  country’s  secure  satellite  communications  infrastructure,  addressing  critical 
challenges in digital security and resilience.  

Taking into consideration the assessment of all the measures envisaged, the RRP is expected, to a 
large extent, to make a significant contribution to the digital transition or to address the challenges 
resulting from it and ensures that at least 20% of its total allocation (excluding the measures in 
the REPowerEU chapter) contributes to supporting digital objectives. This would warrant a rating 
of A under criterion 2.6 of Annex V to the RRF Regulation. 

3.7. Lasting impact of the plan  

The new RRP is expected to generate sustained positive effects on the Hungarian economy. The 
replaced  plan  elevates  reform  ambition  in  line  with  the  recommendations  of  the  European 
Semester, while introducing transformative investments in key areas such as decarbonization of 
transport, modernization of electricity grids, and support for SMEs.  

14 

 
 
 
 
 
The  replaced  RRP  allocates  significant  resources  toward  the  green  transition,  with  a  particular 
focus on enhancing the capacity and flexibility of the electricity grid to integrate higher level of 
weather-dependent  renewable  energy  generation.  This  is  further  reinforced  by  ambitious 
regulatory reforms that facilitate investments in wind energy production. Together, these measures 
are expected to strengthen Hungary’s energy security, mitigate energy price volatility, and reduce 
dependence  on  Russian  fossil  fuel  import,  thereby  delivering  long-term  economic  and 
environmental benefits.  

The RRP also includes forward-looking measures to accelerate the adoption of electric vehicles 
and the electrification of railways. These initiatives are complemented by a comprehensive tariff 
reform.  

To  further  enhance  the  competitiveness  of  Hungary’s  business  environment,  the  replaced  plan 
includes  targeted  capital  injection  in  the  National  Development  Bank  to  invest  in  affordable 
housing and innovative SMEs. The impact of these investments is amplified by structural reforms 
designed  to  improve  the  operational  efficiency  of  the  National  Development  Bank,  phase  out 
distortive sectoral taxes, and promote transparent market functioning through strengthened anti-
corruption  measures  and  enhanced  beneficial  ownership  transparency.  The  take-up  of  the  RRP 
loan envelope would increase Hungary’s general government debt by 1.4pp of 2025 GDP.  

Taking  into  consideration  all  reforms  and  investments  envisaged  by  Hungary  in  its  plan,  their 
implementation is expected, to a large extent to bring about a structural change in the relevant 
institutions and in relevant policies and to have a lasting impact. This would warrant a rating of 
A under criterion 2.7 of Annex V to the RRF Regulation. 

3.8.  Milestones, targets, monitoring and implementation  

Adequacy of the structure tasked with the implementation of the plan, monitoring of progress 
and reporting 

The new plan reflects some of the amendments stemming from the establishment of the National 
Development Centre (NFK) and subsequent changes in the allocation of ministerial responsibilities 
affecting  the  policy-responsible  ministries  for  certain  measures.  The  restructuring  of  the 
government however does not affect the designation, task and roles of implementing bodies and 
the  task  allocation  between  the  National  Authority  -  which  remains  the  coordination  body  for 
implementation  –  and  the  implementing  bodies.  Parallel  to  the  increasing  role  played  by  the 
Hungarian Development Bank in managing the implementation of measures in the replaced RRP, 
including  that  linked  to  its  capital  increase,  a  specific  reform  is  included  in  strengthening  the 
operational efficiency, transparency and oversight of the bank. In addition, it is clarified that the 
legal mandate governing the management, control and audit of the RRP needs to extend beyond 
2026 to ensure continued monitoring and reporting.  

Milestones and targets 

The milestones and targets of the new Hungarian RRP enable an adequate monitoring of the plan’s 
implementation. Each of the new reforms and investments introduced includes at least one target 
and/or milestone that contains the key elements of the measure and allows for the assessment of 
the achievement of its objectives.  

The performance of the investments included in the new components and REPowerEU chapter 
will be assessed on the basis of the achievement of multiple milestones and targets monitored by 
each public entity in charge of implementing the measures and capturing the key implementation 

15 

 
 
 
 
 
stages of each investment. The targets chosen are consistent with the objectives, cost estimates and 
implementation schedule of each measure and quantified by specific indicators reflecting the result 
of the works undertaken. 

Overall organization arrangements 

The new plan sets out an amended organizational structure for the implementation of the measures 
contained  in  it.  The  National  Authority  delegates  the  implementation  tasks  to  Implementing 
Bodies, a Sub-Granting Body (for certain measures in Component C) and – for certain measures 
– the Hungarian Development Bank. The detailed task allocation between the National Authority 
and the different bodies involved in the implementation are defined in a government decree and 
further operationalized through delegation agreements and, in case of the Hungarian Development 
Bank, through implementing agreement.  

The  responsibilities  of  the  different  bodies  involved  in  the  coordination,  implementation, 
monitoring, control, and audit of the plan are set out in the amended government decree, which 
reflects the establishment of the National Development Centre (NFK) as the organizational unit 
with  independent  legal  personality  performing  the  tasks  of  the  National  Authority,  as  well  as 
changes in the designation of policy-responsible ministries and implementing bodies for certain 
measures. 

The administrative capacity of the National Authority, the implementing bodies and the Hungarian 
Development Bank (whose role in implementation has increased and whose operational capacity, 
governance, transparency and oversight  framework are being  strengthened through  a dedicated 
reform) helps ensure the effective implementation of the replaced RRP. In addition, and as further 
developed  below  (see  Section  3.10  Audit  and  Control),  Hungary  has  sufficiently  described  the 
relevant  verification  mechanisms,  data  collection  systems  and  responsibilities  that  also  can  be 
qualified as clear, robust and effective to ensure effective completion of milestones and targets 
including those related to new measures. 

The arrangements proposed by Hungary in its RRP are expected to be adequate to ensure effective 
monitoring  and  implementation  of  the  RRP,  including  the  envisaged  timetable,  milestones  and 
targets, and the related indicators. This would warrant a rating of A under the assessment criterion 
2.8 of Annex V to the RRF Regulation. 

3.9. Costing  

Hungary  has  provided  cost  estimates  for  all  the  amended  or  new  investments  of  its  RRP  and 
sufficient information to consider that costs are overall reasonable and plausible. Measures have 
been estimated amongst others based on market prices or prices of similar units in past investments, 
contracts signed or on indicative offers. For other measures, a top-down approach is used where 
the overall cost of the project is based on similar projects from the past.  

Reasonable costs  

Based on the assessment of the cost estimates and related supporting documents, the cost estimates 
for most of the measures in the plan are deemed reasonable.  

The reforms and investments included in the plan comply with the eligibility criteria set out in the 
Regulation. Based on the information provided by the authorities, costs supported under the RRF 
are incurred only for reforms and investments implemented after 1 February 2020 or 1 February 
2022 for REPowerEU chapter measures, exclude value-added tax (VAT), and do not substitute 

16 

 
 
 
 
 
recurring national budgetary expenditure. Hungary did not provide an independent validation of 
the cost estimates.  

Plausible costs  

Based on the assessment of individual cost estimates and related supporting documents, most of 
the measures in the Hungary plan are deemed plausible. The amount of the estimated total costs 
of the plan revision is in line with the nature and type of the envisaged reforms and investments. 
Hungary has submitted sufficient costing evidence underpinning the claims presented in the plan. 
In the replaced plan, for the costs of new measures, including those in the REPowerEU chapter, 
the estimates have been deemed, to a medium extent, as plausible.  

No double funding  

Hungary  has  indicated  that  new  and  modified  measures,  including  those  in  the  REPowerEU 
chapter, funded under the RRF will not be financed by other Union funding. For those measures 
that have been transferred from other Union programs, the respective projects or parts thereof that 
are included in the RRP will be withdrawn from Union support under those programs. Therefore, 
no double-funding can occur.  

Commensurate and cost-efficient costs  

The  new  measures  are  expected  to  address  a  significant  subset  of  the  challenges  identified  in 
relevant  CSRs.  Therefore, the  new  RRP is  assessed as being  in  line with the principle of cost-
efficiency and is commensurate with the expected national economic and social impact.  

The justification provided by Hungary on the amount of the estimated total costs of the new RRP 
is  to  a  medium  reasonable,  plausible,  in  line  with  the  principle  of  cost-efficiency  and  is 
commensurate to the expected national economic and social impact. Hungary provided sufficient 
information and evidence that the amount of the estimated cost of the reforms and investments of 
the RRP to be financed under the Facility is not covered by existing or planned Union financing. 
This would warrant a rating of B under criterion 2.9 of Annex V to the RRF Regulation. 

3.10. 

Controls and audit  

A robust national internal control system should ensure the protection of the financial interests of 
the Union (prevent, detect and correct fraud, corruption, double funding and conflicts of interest), 
as well as the accuracy of the data underlying the achievement of milestones and targets. 

Robustness of internal control system and distribution of roles and responsibilities  

The national set-up of Hungary’s internal control systems for the Recovery and Resilience 
Facility is clearly defined and the role of the bodies involved is clearly described. The National 
Authority is designated as central coordinator. The National Authority role is performed by the 
National Development Centre (NFK), an organisational unit with independent legal personality 
operating  within  the  Ministry  of  Rural  and  Regional  Development.  The  plan  also  details  the 
ministries  that  are  responsible  for  supporting  the  National  Authority  and  monitoring  the 
implementation  of  each  of  the  components  of  the  plan.  The  designation  of  policy-responsible 
ministries has been updated following changes in the allocation of government responsibilities, 
without affecting the role of the National Authority or the overall governance framework of the 
plan.  

17 

 
 
 
 
 
The  National  Authority  will  perform  management  verifications  of  the  fulfilment  of 
milestones and targets in line with applicable law. These verifications  will be done by desk 
reviews or on-the-spot checks. Where implementing bodies or sub-granting bodies are involved, 
the management verifications (both desk-based and on-the-spot) may also be carried out by those 
bodies based on the delegation agreement. Since August 2024, first-level on-the-spot verifications 
within  the  NFK  are  carried  out  by  the  Joint  Services  Directorate,  acting  as  an  internal  service 
provider  to  the  implementing  bodies.  The  implementing  bodies  remain  responsible  for  the 
performance of delegated tasks and for the work carried out by Joint Services Directorate. The 
National Authority supervises the implementing bodies and sub-granting bodies and carries out 
regular controls on them.  

The plan clearly sets out that the National Authority is responsible for preventing, detecting 
and  correcting  serious  irregularities.  A  dedicated  unit  within  the  National  Authority  is 
responsible for dealing with irregularities, including for assessing their appropriate follow-up. In 
case of suspected irregularities, the RRF Complaint and Irregularity Management Unit within the 
National  Authority  is  the  body  to  decide  how  to  deal  with  the  situation  and  what  legal 
consequences should be applied if an irregularity is found.  

That unit examine all complaints made in relation to the use of RRF resources; carry out desk-
based checks, carry out on-the-spot checks as part of its function, as well as request information 
and  data  from  the  bodies  implementing  RRF  measures  as  deemed  necessary.  To  ensure 
independence, the unit is legally protected from receiving instructions in the performance of its 
activities in connection with decisions on irregularities and complaints relating to the use of RRF 
resources within its remit. In addition, Hungary has committed to maintaining the legal framework 
governing the implementation, control and audit of the plan, including the key control functions 
and safeguards, throughout the implementation period. Dedicated milestones require that the legal 
mandates  of  the  institutions  involved  in  the  implementation  of  the  plan  and  the  core  control 
requirements remain in force beyond 2026. 

The  Directorate  General  for  Audit  of  European  Funds  (EUTAF)  is  designated  as  audit 
authority and will carry out the audit of the implementation of the plan. EUTAF has extensive 
audit experience and sufficient administrative  capacity and is  expected to conduct  both  system 
audits  and  substantive  testing.  In  light  of  the  increased  responsibilities  of  EUTAF,  Hungary 
committed to ensure the necessary legislative and budgetary arrangements to provide necessary 
financial and human resources to the EUTAF and to safeguard its independence to enable it to 
carry  out  its  tasks.  The  EUTAF  has  developed  an  effective  audit  strategy  in  line  with 
internationally accepted audit standards. The audit strategy is expected to be updated to include 
detailed arrangements for the audit of the implementation of the plan for the period until at least 
end-2028, including ex post verification activities and the audit treatment of the additional control 
mechanisms introduced under the plan. Based on its audit work, EUTAF is expected to prepare a 
summary of the audits carried out to accompany the payment requests to the Commission. The 
final version of the audit strategy is included as a milestone in the plan, to be fulfilled before the 
submission of the first payment request. In 2025, EUTAF carried out a thematic audit covering 
changes to the internal control system resulting from the establishment of the NFK and the related 
institutional restructuring. 

Persons involved at any level in the implementation of the plan have to avoid any (perceived) 
conflict  of  interest,  which  is  checked  by  the  Directorate  for  Internal  Audit  and  Integrity 
(DIAI).  All  staff  are  required  to  regularly  declare  their  interests,  and  they  need  to  report  any 

18 

 
 
 
 
 
conflict of interest or risk thereof that may come to their attention. Following the establishment of 
the NFK in August 2024, the DIAI operates within the organisational framework of the NFK while 
remaining organisationally separate from the National Authority and the implementing bodies. Its 
functional independence is safeguarded by law. The DIAI is responsible for carrying out regular 
controls  of  the  veracity  of  conflict  of  interest  declarations.  The  DIAI  is  independent  from  the 
National Authority. Its work is supervised by the Integrity Authority. Detailed procedures are in 
force  governing  the  prevention,  detection  and  management  of  conflicts  of  interest,  including 
regular verification of declarations and systematic follow-up of identified risks. Verifications of 
conflict of interests cover all staff involved in the implementation of the RRF, including personnel 
carrying  out  on-the-spot  checks  within  the  Joint  Services  Directorate.  In  addition,  specific 
procedures  apply  to  staff  occupying  sensitive  functions,  including  mandatory  rotation 
requirements, risk-based and random allocation of assignments, enhanced managerial review and 
additional monitoring measures.  

Adequacy of control systems and other relevant arrangements 

The plan contributes to the protection of the financial interests of the Union by reinforcing 
the anti-corruption framework and ensuring that detected irregularities are appropriately 
followed up and sanctioned, including through the judicial system. The plan includes several 
measures to reinforce the anti-corruption framework, including through the setting up of an Anti-
Corruption  Task  Force  with  a  significant  involvement  of  independent  non-governmental 
organisations, through the reinforcement of the accountability of investigating authorities and the 
prosecution  services  when  handling  corruption  cases,  and  through  increasing  independent 
oversight  by  means  of  reinforced  transparency  and  access  to  public  data.  Moreover,  the 
establishment  of  an  independent  Integrity  Authority  is  expected  to  reinforce  the  prevention, 
detection and correction of fraud, conflict of interest and corruption as well as other illegalities 
and  irregularities  concerning  the  implementation  of  Union  support,  with  a  particular  focus  on 
public  procurement.  Finally,  the  reinforcement  of  the  judicial  system  will  ensure  that  detected 
irregularities will be effectively dealt with by the judiciary, thus ensuring their correction and the 
protection of the interests of the taxpayers. Since 2022, the anti-fraud and anti-corruption strategy 
and the related action plan for Union support have been reviewed on an annual basis. The results 
of these reviews are used to update risk assessments and strengthen mitigating measures where 
necessary. 

The  arrangements  and  mechanisms  to  collect,  store  and  make  available  data  on  final 
recipients  seem  appropriate.  Article  22(2),  point  (d),  of  the  RRF  Regulation  provides  for  an 
obligation  of  the  Member  States,  for  the  purpose  of  audit  and  control,  to  collect  data  on  final 
recipients,  contractors,  subcontractors  and  beneficial  owners.  Information  collection  on  the 
implementation of the RRF in Hungary will be ensured through the FAIR-EUPR monitoring IT 
system  which  was  originally  developed  for  monitoring  the  implementation  of  cohesion  policy 
funds. The institutional changes introduced following the establishment of the NFK did not affect 
the  operation  of  the  FAIR-EUPR  system.  The  Development  Policy  Informatics  Department 
established  within  the  NFK  coordinates  the  development  and  operation  of  the  system  and 
cooperates with the RRF Monitoring and Reporting Department in relation to data quality, system 
developments and reporting requirements. Hungary presented sufficient assurance that adequate 
and regular  checks will be in  place to  ensure the quality,  reliability and veracity of data in  the 
monitoring  system.  Those  controls  include  automatic  consistency  and  logical  checks  of  the  IT 
system itself that prevents uploading the same supporting documents twice and checking whether 

19 

 
 
 
 
 
some of the main characteristics are in line with each other, availability of interfaces with official 
public  administration  databases  that  supports  the  “once  only”  principle  and  ensures  that  only 
official data is used in the system. Various controls on the data provided and targeted audits are 
expected to provide sufficient assurance.  

Hungary is expected to provide access to data and to do so speedily and effectively. The related 
roles and obligations of bodies involved in the implementation, monitoring, control and audit of 
the RRF in Hungary are set out in a legislative act. This is envisaged in a dedicated milestone on 
the entry into force of the Government Decree setting out the roles and responsibilities of bodies 
involved in the implementation, audit and control of the plan, as well as in a dedicated milestone 
on the repository system, both to be completed before the submission of the payment request. In 
addition,  dedicated  milestones  require  that  the  legal  framework  governing  the  implementation, 
control and audit of the plan, including the key institutional mandates and core control safeguards, 
remain in force throughout the implementation period, including beyond 2026. 

Hungary is expected to systematically and effectively use the Arachne data-mining and risk-
scoring tool provided by the Commission. Hungary has operationalised the systematic use of the 
Arachne tool for both RRF and other EU funds. Relevant data are uploaded on a regular basis, and 
binding procedures require implementing, control and audit bodies to assess, document and follow 
up risks identified by the tool. Detailed arrangements are in force that ensure that a wide set of 
data  is  uploaded  into  the  system  every  two  months  and  that  the  different  control  and  audit 
authorities systematically use the risk-scoring generated by the Arachne tool and take them into 
account  during  their  controls  and  audits.  It  is  also  ensured  that  the  different  implementing  and 
control bodies systematically follow-up on risks indicated by the Arachne tool based on binding 
procedural guidelines that should describe steps to be taken by these bodies in cases where the 
Arachne tool indicates risks. The adequacy of the practical arrangements of the use of the Arachne 
tool is subject to a dedicated audit. 

While the overall implementation architecture remains broadly unchanged, the Hungarian 
Development  Bank  (MFB)  is  expected  to  assume  a  more  prominent  implementation  role 
under  certain  measures.  This  increased  role  is  accompanied  by  a  comprehensive  reform 
programme aimed at strengthening the institution’s operational capacity, internal control systems, 
governance and supervisory arrangements, as well as the transparency of its operations. The reform 
also includes a streamlining of activities designed to reinforce its focus on its core mandate and 
ensure the effective implementation of Union-funded measures, notably those supported under the 
RRF. 

Detailed procedures are in force governing the prevention, detection and management of conflicts 
of interest  and the supervision of staff occupying sensitive positions. These include mandatory 
rotation requirements, risk-based and random allocation of tasks, enhanced managerial oversight 
and regular compliance checks.  

Dedicated audit and control milestones, to be fulfilled before the submission of the payment 
request, are in place to ensure that the internal control system of the RRF in Hungary is effective 
in preventing, detecting and correcting fraud, corruption, conflict of interests, double funding and 
other irregularities. Additional milestones reinforce the durability of the institutional framework 
and  the  effectiveness  of  audit  and  control  arrangements  throughout  the  implementation  period, 
including  through  enhanced  audit  requirements  and  comprehensive  ex  post  verification 
mechanisms for newly introduced measures and safeguards. These controls are required to cover 

20 

 
 
 
 
 
a  significant  proportion  of  financing  agreements,  public  procurement  contracts  and  related 
payments under the plan and focus on fraud, corruption, conflicts of interest and double funding 
risks. The satisfactory fulfilment of these milestones will give the necessary reassurance that the 
legal  obligation  of  Hungary  to  protect  the  financial  interests  of  the  Union  is  met.  Taking  into 
account  the  systemic  irregularities,  deficiencies  and  weaknesses  identified  for  Hungary  in  the 
procedure  under  Article  6  of  Regulation  (EU,  Euratom)  2020/2092  on  a  general  regime  of 
conditionality  for  the  protection  of  the  Union  budget  (‘the  Conditionality  Regulation’),  a 
significant  number of milestones to  be fulfilled prior to  the submission  of the payment request 
under the plan have been identified.  

Overall, Hungary’s procedures to prevent fraud, corruption and conflicts of interest as well 
as to ensure compliance with applicable law seem comprehensive, provided that all dedicated 
audit  and control  milestones are satisfactorily  fulfilled.  The participation of Hungary in  the 
enhanced cooperation establishing the EPPO further strengthens the framework for the protection 
of  the  financial  interest  of  the  Union,  by  reinforcing  the  capacity  to  investigate  and  prosecute 
criminal offenses affecting Union funds. Based on the expected adequacy of the different control 
and audit layers of the institutional framework, on the expected legislative and practical provisions 
that are envisaged to significantly tighten requirements regarding the implementation and control 
of the use of Union support in Hungary, as well as on the additional arrangements Hungary has 
committed to implement, it can be concluded that the arrangements can reasonably be expected to 
be effective in preventing, detecting and correcting fraud, corruption, conflict of interest and other 
irregularities when implementing the plan. 

Adequacy of arrangements to avoid double EU funding 

The arrangements to detect and avoid double funding from RRF and other EU funds and 
programmes are clearly described in the plan. Responsibility for avoiding double funding lies 
with the National Authority and entails close monitoring using a common monitoring IT system. 
Hungary identifies in detail the main demarcation lines regarding the source of financing between 
the RRF and other EU funds.  

In addition, there is coordination of the different funding streams. In particular, the National 
Authority coordinates the planning and implementation of both cohesion policy spending and RRF 
support. The work involves regular consultation at management and expert level for both funding 
streams.  Further  coordination  is  envisaged  through  the  Development  Policy  Coordination 
Committee,  which  is  a  government  preparatory  body  for  the  coordination  of  the  development 
actions co-financed by EU funds in Hungary. 

Finally, Hungary monitors its RRF spending by using the same monitoring IT system it uses 
for cohesion policy spending (FAIR-EUPR). This allows to track measures in a single database 
and thus make it easier to identify potential overlaps and double financing. The authorities also 
systematically use the Commission’s Arachne risk-scoring tool for both financing streams, which 
also contribute to the identification of the risks of potential double funding. 

The arrangements described in the plan seem sufficient and adequate to exclude the possibility of 
double funding. 

Legal empowerment and administrative capacity of control function 

Hungary’s  plan  demonstrates  that  the  ministries  and  bodies  responsible  for  carrying  out 
controls on the implementation of the plan (i.e. the measures and the underlying investments 

21 

 
 
 
 
 
and reforms) have sufficient legal mandates (authority) to exercise these tasks. This is set out 
in the Government decree No 373/2022. The National Authority’s number of staff  (39) and its 
distribution as presented in the submitted plan seem to be adequate. A proper internal separation 
of functions is ensured as well. Furthermore, the authorities indicated that additional administrative 
capacities  are  available  at  the  level  of  the  line  ministries  to  support  the  work  of  the  National 
Authority in ensuring the monitoring and the complementarity of implementation of the different 
measures. Implementing bodies to which certain implementation tasks of the National Authority 
are delegated were selected on the basis of their professional expertise and available administrative 
capacity to carry out their tasks, which will be continuously supervised by the National Authority.  

The  EUTAF  is  expected  to  perform  a  broader  set  of  responsibilities  in  relation  to  the 
implementation of the RRF, including audit and reporting tasks linked to relevant milestones and 
targets under Component I of the plan, as well as tasks stemming from Hungary’s commitments 
undertaken in  the  context  of the Conditionality  procedure under the Regulation  (EU, Euratom) 
2020/2092. It is expected that the EUTAF will have appropriate resources to effectively perform 
these increased tasks in a timely manner. For that purpose, a milestone is added which has to be 
fulfilled before the submission of the first payment request under the plan. The reform establishing 
reinforced guarantees for the financial, operational and professional independence of EUTAF has 
been adopted and expected to contribute to ensuring that the audit authority can effectively perform 
its audit responsibilities. 

The arrangements  proposed by Hungary in  the  RRP to  prevent,  detect  and correct  corruption, 
fraud  and  conflicts  of  interest  when  using  the  funds  provided  under  the  Facility,  including  the 
arrangements aimed to avoid double funding from the Facility and other Union programmes, are 
assessed to be adequate subject to the implementation of the identified audit and control milestones 
before the first payment request. This would warrant a rating of A under the assessment criterion 
2.10 of Annex V of the RRF Regulation. 

Coherence  

Hungary’s  RRP  is  structured  into  11  mutually  coherent  components,  supporting  the 
strengthening of the economy, employment and social outcomes, and advancing the green 
and digital transitions.  

Mutually reinforcing measures  

The plan includes measures that create multiplier effects, accelerating progress toward Hungary’s 
strategic goals. The interplay between transport decarbonisation and grid development is expected 
to  drive  systemic  changes.  The  electrification  of  railway  sections  increases  demand  for  clean 
electricity, which is met by the modernisation of the grid which in turn supports the expansion of 
charging  stations  for  electric  vehicles.  The  grid’s  enhanced  capacity  and  flexibility  (achieved 
through  investments  in  smart  grid  storage  facilities  and  transmission  upgrades)  are  essential  to 
managing the additional load from the electrified transport.  

Complementary of measures  

The new measures included further strengthen Hungary’s green and digital transitions. The Energy 
Component and REPowerEU chapter include measures targeting different segments of the energy 
system.  While  residential  solar  panel  support  empowers  households  to  generate  their  own 
renewable  energy,  onshore  wind  development  focus  on  large-scale  renewable  capacity  and 
geothermal energy reforms unlock potential for industrial and district heating. Grid development 

22 

 
 
 
 
 
acts  as  a  critical  complementary  measure  by  ensuring  that  the  transmission  and  distribution 
infrastructure can accommodate the increased capacity and variability of these renewable sources.  

Regarding  the  digital  transformation  the  new  voluntary  contribution  to  the  AI  Gigafactory 
initiative  strengthens  high-performance  computing  capabilities,  while  healthcare  digitalisation 
modernises  public  service  delivery.  Smart  metering  dissemination,  another  complementary 
measure,  enhances  energy  efficiency  and  grid  management  by  providing  real-time  data  on 
consumption. This allows for better demand-side management, which is critical as Hungary’s grid 
integrates more variable renewable energy sources. Together, these investments ensure that key 
aspects of the digital transition, whether industrial, public, or infrastructural, are supported.  

Taking into consideration the qualitative assessment of all components of Hungary’s new RRP, 
their  individual weight (importance, relevance, financial allocation) and their  interactions, the 
plan  contains  measures  for  the  implementation  of  reforms  and  public  investments  which,  to  a 
high/medium  extent,  represent  coherent  actions.  This  would  warrant  a  rating  of  A  under  the 
assessment criterion 2.11 of Annex V to the RRF Regulation. 

3.11. 

REPowerEU  

The measures included in the REPowerEU chapter together with those under Component 
Energy  –  Green  transition  contribute  to  energy  security,  accelerating  the  deployment  of 
renewable energy, and improving energy efficiency by reducing overall energy demand and 
by  replacing  fossil  fuels  with  renewable  energy  sources.  Hungary’s  REPowerEU  chapter 
contributes to the objectives set out in Article 21c(3), point (b) of Regulation (EU) 2021/241, and 
addresses Hungary's significant dependence on fossil fuels - particularly natural gas for residential 
heating - and the grid bottlenecks that have constrained the integration of additional renewable 
energy capacity. The historically low share of onshore wind, resulting from a decade-long de facto 
moratorium under the applicable regulatory framework, further underscores the need for targeted 
regulatory reform. 

Electricity market reforms in the REPowerEU chapter aim at enhancing demand flexibility through 
aggregation  mechanisms  and  participation  in  the  balancing  market.  Specifically,  C9.R3 
strengthens  the  role  of  aggregators  by  allowing  active  users  to  make  self-generated  electricity 
available  through  aggregator  contracts;  C9.R5  opens  the  balancing  market  to  competition  by 
removing  barriers  for  weather-dependent  generators  and  storage  facilities;  and  C9.R4  allows 
residential  consumers  and  micro-enterprises  to  opt  voluntarily  for  dynamic  pricing  contracts. 
Complementing these reforms, enhancing the rollout of smart meters by extending the mandatory 
smart  meter  installation  obligation  (C9.R2),  expanding  energy  communities  (C9.R6),  and 
incentivizing  the  uptake  of  storage  (C9.R7)  contribute  to  harmonizing  electricity  demand  with 
weather-dependent  supply.  A  reform  on  network  tariff  methodology  (C9.R1)  ensures  that  the 
resulting framework is cost-reflective and non-discriminatory, providing the correct price signals 
to support the overall market transition. 

Hungary's  distribution  grid  faces  significant  saturation  constraints  that  limit  the  capacity  of 
additional  renewable  energy  installations  to  connect  and  feed  into  the  network.  The  chapter 
contains a grant scheme for investment in the grid (C9.I1) to address this bottleneck by financing 
cables, transformers, smart meters, and other grid infrastructure through grants to DSOs and the 
TSO and eligible private operators, managed by the MFB. The financial instrument established to 
support  residential  energy  efficiency  (C9.I2)  consists  of  combined  loan  and  grant  support 
channelled through financial intermediaries by MFB, requiring households to achieve at least 30% 

23 

 
 
 
 
 
primary  energy  savings  as  certified  by  energy  performance  certificates.  This  instrument 
contributes to the decrease in energy demand and fossil fuel dependence.  

Investment in the grid (C9.I1) is in coherence with a similar investment in Component 6 (C6.I1), 
along with the reform in Component 6 accelerating the uptake of onshore wind power generation 
(C6.R2). The latter reform includes the commitment to increasing the number of priority areas for 
the development of wind installations to 25 where permit granting procedures are accelerated and 
rules simplified. The reform moreover requires the adoption of a plan of annual auctions allocating 
a minimum of 4 GW of wind energy production capacity for the period 2026–2030.  

A first tender of at least 700 MW  will be published by 31 August 2026. The grant scheme for 
investment  in  the  grid  (C9.I1)  further  supports  the  dissemination  of  smart  metering,  adding  on 
investment C6.I4. The REPowerEU chapter moreover opens the possibility for consumers to opt 
for electricity contracts at market price - or dynamic pricing contracts (C9.R5).  

The  financial  instrument  supporting  residential  energy  efficiency  investments  complements  a 
similar measure under Cohesion policy. Together with reform C6.R4 in Component 6 that sets 
minimum energy efficiency standards, these measures contribute to decreasing energy demand. 
Considering that gas is the dominant energy source used for residential heating in Hungary, these 
measures are expected to contribute significantly to a decrease in demand for fossil fuels in the 
country.  

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged  in  the  REPowerEU 
chapter, the chapter is expected, to a large extent, to contribute effectively to energy security, the 
diversification of the Union’s energy supply, an increase in the uptake of renewables and in energy 
efficiency, an increase of energy storage capacities or the necessary reduction of dependence on 
fossil fuels before 2030. This would warrant a rating of A under criterion 2.12 of Annex V to the 
RRF Regulation. 

3.12. 

Cross-border or multi-country dimension or effect  

The RRP has a strong cross-border and multi-country dimension. The REPowerEU chapter 
includes  key  reforms  and  investments  incentivising  the  uptake  of  renewable  energy  sources, 
strengthening flexibility markets and the resilience of the electricity network and improving energy 
efficiency, thus contributing to the reduction of reliance on fossil fuels.  

The electricity network development aims to support the uptake of renewable energy and improve 
the consumer and producer electricity connections. Coupled with the reforms incentivising energy 
storage,  onshore  wind  energy  connection  and  the  functioning  of  the  flexibility  market,  this 
investment is a critical measure fostering the resilience of the electricity network of the EU and 
reducing reliance on fossil fuels. 

Lastly,  the  financial  instrument  supporting  the  energy  efficiency  improvements  of  residential 
dwellings  is  an  enabler  to  multiply  the  effect  of  the  a  forementioned  reforms  and  investment 
through reducing energy consumption of households. 

The total estimated costs of these measures account for a total of EUR 704 510 827, representing 
100% of the estimated costs of the REPowerEU chapter, exceeding the indicative target of 30%. 

The  REPowerEU  component  plays  a  pivotal  role  in  addressing  Hungary’s  Country-Specific 
Recommendations (CSRs), specifically CSR 2022/5, CSR 2022/6, and CSR 2023, by advancing 
energy efficiency, infrastructure modernisation, and cross-border connectivity. 

24 

 
 
 
 
 
Another flagship project under the RRP is the reconstruction and the electrification of the Szeged–
Röszke railway line, extending to Hungary’s border with Serbia, alongside the construction of a 
new electrified delta track connecting railway lines  136 and 140. These upgrades will enhance 
cross-border  rail  transport  efficiency,  reduce  reliance  on  fossil  fuels,  and  align  with  the  EU’s 
decarbonisation and sustainable mobility goals. By modernising critical infrastructure, the project 
supports Hungary’s green transition, strengthens regional economic ties, and improves logistics 
for both passenger and freight services.  

These  initiatives  reflect  broader  REPowerEU  objectives,  among  which  accelerating  energy 
independence, boosting renewable integration, and reinforcing EU-wide transport resilience while 
addressing socio-economic disparities through targeted energy and infrastructure investments. 

Hungary's contribution of EUR 500 million to the AI Gigafactory initiative has a clear cross-border 
dimension.  AI  Gigafactories  are  Union-level  strategic  infrastructures  designed  to  provide 
European researchers, startups, and businesses across all Member States with access to large-scale 
computing power and training capabilities for frontier AI models. The benefits of the investment 
- in terms of shared AI capacity, open access to supercomputing resources, and strengthening the 
EU's technological sovereignty - will by design extend well beyond Hungary's borders. 

Finally, Hungary's contribution of EUR 500 million to the EU Secure Connectivity Programme 
IRIS²  has  an  inherent  cross-border  dimension.  IRIS²  infrastructure  and  benefits  -  including 
enhanced  communications  resilience  and  reduced  dependence  on  non-EU  providers  -  will  by 
design accrue across all Member States, well beyond Hungary's borders. 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged  in  the  REPowerEU 
chapter, the measures in the chapter are expected, to a large extent, to have a cross-border or 
multi-country dimension or effect. This would warrant a rating of A under criterion 2.13 of Annex 
V to the RRF Regulation. 

REPowerEU measure 

Costs (EUR 
million) 

Contribution to the 
target in % 

C9.I1.  Grant  scheme  for  the  development  of  the 
electricity grid  

C9.I2: Setting up a financial instrument to improve 
the energy efficiency of residential buildings 

643.2 

61.3 

91% 

9% 

25 

 
 
 
 
 
 
 
 
ANNEX I: Climate tracking and digital tagging  

Measure/ Sub-
Measure ID 

Measure/Sub-Measure 
Name 

Budget 

(EUR m) 

Climate 

Digital 

Int. 
Field 

Coeff. 

Int. Field 

Coeff. 

HU-C[C1]-I[I1.02] 

HU-C[C1]-I[I3.01] 

HU-C[C1]-I[I3.02] 

HU-C[C2]-R[R1.01] 

HU-C[C2]-R[R1.02] 

HU-C[C2]-I[I1] 

HU-C[C2]-I[I2.01] 

HU-C[C2]-I[I2.02] 

HU-C[C2]-I[I2.03] 

HU-C[C2]-I[I2.04] 

Development of 
competitive public 
education using 21st 
century technology 

Construction of childcare 
facilities - 
Renovation/extension of 
existing buildings 

Construction of childcare 
facilities - New buildings 

Modernization of higher 
education programmes – IT 
services and applications 

Modernization of higher 
education programmes – 
Support to digital content 
production and distribution 

Institutional innovation in 
higher education 

Digitalization and 
modernization of higher 
education infrastructure – 
Capacity development 
activities, including 
organization of trainings, 
skill development 

Digitalization and 
modernization of higher 
education infrastructure - 
Digital equipment 

Digitalization and 
modernization of higher 
education infrastructure - 
Energy efficiency 
renovation 

Digitalization and 
modernization of higher 
education infrastructure - 
New buildings 

423.8 

012 

100% 

17.8 

026 

40% 

109.2 

025ter 

40% 

0.5 

0.03 

16.0 

6.9 

74.8 

012 

100% 

021bis 

100% 

108 

100% 

016 

40% 

012 

100% 

40.3 

026bis 

100% 

4.9 

025ter 

40% 

26 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HU-C[C2]-I[I3.01] 

HU-C[C2]-I[I3.02] 

HU-C[C2]-I[I4.01] 

Vocational education and 
training infrastructure for 
the 21st century - Energy 
efficiency renovation 

Vocational education and 
training infrastructure for 
the 21st century - Purchase 
of ICT equipment 

Development of the Central 
Examination Centre - 
Energy efficiency 
renovation 

19.0 

026bis 

100% 

14.7 

108 

100% 

5.5 

026bis 

100% 

HU-C[C2]-I[I5] 

Support for research and 
development 

204.0 

021 

40% 

HU-C[C3]-I[I1] 

Production and use of 
renewable energy in 
disadvantaged 
municipalities 

20.3 

029 

100% 

HU-C[C4]-R[R1] 

Awareness raising - water 

HU-C[C4]-I[I1] 

Nature protection 

HU-C[C5]-I[I1] 

Development of suburban 
railway  

0.4 

19.3 

103.5 

040 

035 

067 

40% 

40% 

100% 

HU-C[C5]-I[I2] 

HU-C[C5]-I[I3.1] 

HU-C[C5]-I[I3.2] 

HU-C[C5]-I[I4.1] 

HU-C[C5]-I[I4.2] 

HU-C[C5]-I[I4.3] 

HU-C[C5]-I[I5] 

Rail network congestion 
switching on TEN-T 
corridor 

Development of zero-
emission bus transport - 
buses 

Development of zero-
emission bus transport – 
charging stations 

Development of tram and 
trolleybus system - CAF 
trams 

Development of tram and 
trolleybus system- 
Trolleybuses 

Development of tram and 
trolleybus system – 
Constructions 

Electrification of railway 
sections 

390.6 

067 

100% 

64.2 

074 

100% 

3.1 

077 

100% 

135.2 

074 

100% 

30.5 

074 

100% 

1.3 

073 

100% 

141.8 

069bis 

100% 

27 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HU-C[C5]-I[I6] 

HU-C[C5]-I[I7] 

HU-C[C5]-I[I8] 

HU-C[C6]-I[I1] 

HU-C[C6]-I[I2.01] 

HU-C[C6]-I[I2.02] 

HU-C[C6]-I[I3] 

Boosting companies’ 
uptake of electric vehicles 
(EVs) 

Setting up a financial 
instrument to increase the 
rollout of recharging 
stations for electric 
vehicles (EVs) 

Equity injection into a 
newly created Rolling 
Stock Company “ROSCO” 

Classic and smart grid 
development of 
transmission system 
operator and distribution 
system operators 

Support for the use of 
residential solar panels and 
heating modernization - PV 
panels 

Support for the use of 
residential solar panels and 
heating modernization - 
Renovation 

Installation of grid energy 
storage facilities for energy 
market participants 

112.6 

ADHOC 

100% 

19.4 

077 

100% 

1 800.0 

072bis 

100% 

425.0 

033 

100% 

033 

40% 

100.7 

029 

100% 

110.5 

025 

40% 

133.1 

033 

100% 

033 

40% 

HU-C[C6]-I[I4] 

Dissemination of smart 
metering 

62.6 

033 

100% 

033 

40% 

HU-C[C6]-I[I5] 

HU-C[C6]-I[I6] 

HU-C[C7]-I[I2] 

HU-C[C9]-I[I1] 

HU-C[C9]-I[I2] 

Energy efficiency 
investments in public 
buildings 

Grant scheme for the 
development of the 
electricity grid 

Supporting the digital 
transformation of health 

Grant scheme for the 
development of the 
electricity grid (top up) 

Setting up a financial 
instrument to improve the 
energy efficiency of 
residential buildings 

32.7 

026 

40% 

856.8 

033 

100% 

033 

40% 

24.7 

095 

100% 

643.2 

033 

100% 

61.3 

025bis 

100% 

28 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HU-C[C11]-I[I1] 

E-government services 

14.7 

011 

100% 

HU-C[C11]-I[I2] 

HU-C[C11]-I[I3] 

AI Gigafactory and other 
EuroHPC compute 
infrastructure 

Voluntary contribution to 
IRIS² 

500.0 

500.0 

021quater 

100% 

051 

100% 

29