EC proposes unlocking €4.2b in frozen funds for Hungary

The European Commission on Wednesday proposed unlocking 4.2 billion in cohesion funding for Hungary, which has been suspended over rule-of-law concerns under the country's previous government, reported Xinhua.

The Commission said it had proposed that the Council of the European Union (EU) should lift protective measures imposed on Hungary in 2022 under the bloc's Conditionality Regulation, concluding that the country had addressed the rule-of-law breaches.

If approved by the Council, the decision would not only reinstate the suspended cohesion policy commitments, but also restore full access to the Erasmus+ student exchange program and the Horizon Europe research program for students and researchers at universities maintained by Hungarian Public Interest Trusts.

"Hungary has taken important steps to strengthen the rule of law and protect the Union's financial interests," European Commission President Ursula von der Leyen said, adding that the decision showed that "reforms deliver results."

According to the Commission, Hungary has addressed shortcomings in public procurement, the country's anti-corruption framework, conflicts of interest, and the effectiveness of prosecutorial action.

These shortcomings were identified by the EU in 2022, leading to the freezing of 55 percent of budgetary commitments for three Hungarian cohesion policy programs. Restrictions were also imposed on EU funding for Hungarian Public Interest Trusts, affecting participation in Erasmus+ and Horizon Europe.

Prime Minister Peter Magyar, who took office after defeating Orban in the April 2026 parliamentary election, has made restoring Hungary's access to the suspended EU funds a key government priority.

The Council of the EU now has one month to decide whether to approve the Commission's proposal.

Hungarian Minister of Transport and Investment David Vitezy has welcomed the announcement, saying the European Commission had officially initiated the closure of the rule-of-law procedures against Hungary.