Key facts
- The European Commission proposed unblocking €4.2 billion in cohesion funds for Hungary.
- The funds were frozen in 2022 due to rule-of-law violations under former PM Viktor Orbán.
- Hungary has taken steps to strengthen the rule of law and protect the EU's financial interests.
- Unblocking EU funds was a key priority for current PM Péter Magyar.
- Hungary amended over a hundred pieces of legislation as part of reforms.
The European Commission on Wednesday proposed to unblock €4.2 billion in cohesion funding for Hungary, which had been frozen since 2022 due to concerns over rule-of-law violations under the previous government led by Viktor Orbán. Cohesion funding is designed to support economic and social reforms in less affluent EU member states.
The EU's executive branch stated that Hungary has taken significant steps to address the rule-of-law breaches affecting the EU budget, thereby protecting the Union's financial interests. Commission President Ursula von der Leyen acknowledged these efforts on X.
Since replacing Orbán as prime minister in May following an election victory, Péter Magyar has prioritized the release of these funds. His government has reportedly amended over a hundred pieces of legislation, including reforms related to anti-corruption measures and Hungary's accession to the European Public Prosecutor’s Office (EPPO).
Justice Commissioner Michael McGrath anticipates the Council will adopt the Commission's proposal, viewing it as an important and positive development for both Hungary and the European Union. He also emphasized the importance of continued constructive engagement and monitoring of progress.