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EU releases frozen funds to Hungary
European Commission President Ursula von der Leyen announced the release of €16.4 billion in suspended EU funding to Hungary, contingent on Prime Minister Péter Magyar's government implementing overdue reforms. The decision follows Magyar's landslide election victory over former leader Viktor Orbán last month.
Reforms and trust rebuilding
Von der Leyen praised Magyar's team for restoring confidence with the EU, stating, "We can already feel a strong wind of change across Hungary." The funds were previously frozen due to concerns over democratic backsliding and corruption under Orbán's government. Magyar's Tisza party made unlocking the funds a central campaign promise.
Breakdown of the funding
The €16.4 billion package includes €10 billion from a COVID-19 recovery fund, which Hungary must access before an August deadline. The Commission tied this sum to "super-milestones," including anti-corruption measures and rule-of-law reforms. An additional €6.4 billion comes from EU cohesion funds aimed at strengthening economic and social infrastructure.
"We will take no shortcuts; we will address all issues,"
Ursula von der Leyen, European Commission President
Key reforms and investments
Von der Leyen highlighted Hungary's progress, including joining the European Public Prosecutor's Office and revising public procurement laws. The government also plans to dismantle "public interest trusts," which Orbán used to place hospitals and universities under political control.
Magyar outlined plans to allocate the funds to health, transport, and education. Specifically, €1.5 billion will modernize the electricity grid, focusing on solar and wind energy, while €2 billion will upgrade intercity trains. He emphasized that the funds represent 13% of Hungary's total budget.
Political shifts and future challenges
Magyar accused Orbán of misleading Hungarians about the reasons for the frozen funds, stating, "Corruption was at an incredible rate in Hungary." He argued that anti-corruption measures and reforms were sufficient to secure the deal within weeks.
Orbán, who stepped down as an MP last month, faces an uncertain future as Fidesz party chairman, with a decision expected in June. Meanwhile, Tisza's two-thirds parliamentary majority has enabled a constitutional amendment limiting prime ministers to an eight-year term, effectively blocking Orbán's potential return.
Erasmus programme reinstated
Von der Leyen also announced the reinstatement of Hungary's participation in the Erasmus exchange programme. The EU had suspended funding for over 20 Hungarian universities in 2022 after they were placed under political control through public interest trusts.
