The European Commission has proposed releasing €4.2 billion in previously frozen cohesion funds to Hungary, following the country’s efforts to address rule-of-law concerns impacting the European Union budget. This proposal also seeks to reinstate Hungary’s full access to the Erasmus+ and Horizon Europe programs, benefiting Hungarian students and researchers.
The Commission acknowledged Hungary’s progress in implementing reforms related to public procurement, anti-corruption measures, managing conflicts of interest, and enhancing the effectiveness of prosecutorial actions. These steps were deemed significant in addressing the rule-of-law issues that led to the initial freezing of funds.
Despite this proposal, the release of the funds is not yet finalized. The Council of the European Union must still approve the Commission’s recommendation. The Council has one month to make a decision on lifting the measures that were imposed on Hungary in 2022. Until such approval is granted, the funding restrictions will remain in effect.
The proposed €4.2 billion represents a portion of the EU funds that remain restricted for Hungary. Other cohesion funds are still blocked under different conditions, and Hungary’s access to recovery funds is being evaluated through a separate process. The outcome of these assessments will determine further financial engagements between the EU and Hungary.