EU unlocks billions in funds for Hungary after reform progress under new government

The European Union agreed on Friday to release billions of euros in previously frozen funds for Hungary following what European Commission President Ursula von der Leyen described as "rapid and concrete progress" on structural reforms under Budapest's new government.

Following a meeting in Brussels with Hungarian Prime Minister Peter Magyar, von der Leyen said at a press conference that Hungary has undertaken "long-overdue reforms" aimed at strengthening anti-corruption safeguards, improving public procurement rules, and reinforcing the rule of law framework.

She said the changes include Hungary's decision to join the European Public Prosecutor's Office, strengthening the national Integrity Authority, revising procurement legislation, and phasing out public interest trust structures seen as high-risk for "state capture."

According to von der Leyen, these steps, combined with agreed investment plans under the EU's recovery framework, allow the gradual release of funds.

"I am very happy to announce today that we can unlock €10 billion (about $11 billion) for Hungary," she said, adding that a further €4.2 billion in cohesion funds linked to conditionality milestones would also be released.

Hungary and the European Commission also agreed on a revised investment package under NextGenerationEU, targeting sectors including energy, housing, transport, and small and medium-sized enterprises.

Magyar said the agreement marked a "historic breakthrough" reached within weeks of the new government taking office, arguing that previous delays in funding were linked to corruption concerns rather than political disagreements over issues such as migration or Ukraine policy.

"We've listened to the previous government a number of times, hearing their objections to why things cannot be done. They have been lying to the Hungarian people. They have been lying about the European Union," he said.

Magyar said Hungary has accepted anti-corruption measures, including expanded powers for integrity institutions and new asset recovery mechanisms, adding that "just a few weeks were enough" to reach an agreement that had previously been stalled.

He said that releasing the funds would help Hungary's public finances and pledged that the resources would be used to support economic recovery and public services, stressing that there was no link between the unfreezing of the funds and the opening of the first chapter of the Ukraine talks.

The tension between the EU and Hungary began in 2010, when the bloc accused Viktor Orban's government of promoting conservative policies that go against EU rules.

Later, the EU decided to initiate Article 7 proceedings, increasing its criticism over corruption, press freedom, and human rights, and EU funding was made conditional due to rule-of-law concerns.

Magyar's Tisza party won against Orban in the April 12 parliamentary elections, ending Orban’s 16-year rule.