Key facts
- The Council of the EU has ended the 2022 conditionality mechanism on Hungary.
- This decision frees €4.2 billion in EU funding for Hungary.
- Hungary's access to Erasmus+ and Horizon Europe programs is restored.
- The mechanism was imposed in 2022 under former PM Viktor Orbán over corruption risks.
- New Prime Minister Péter Magyar's government adopted anti-corruption reforms.
- European Commission President Ursula von der Leyen agreed to release €16.4 billion for reforms.
The Council of the European Union has concluded the conditionality mechanism that was put in place in 2022 to address corruption risks in Hungary. This decision unfreezes €4.2 billion in EU funds and reinstates Hungary's participation in the Erasmus+ student exchange program and the Horizon Europe research initiative.
The conditionality mechanism, introduced under former Prime Minister Viktor Orbán's government, had made access to EU funds contingent on adherence to the rule of law, leading to the suspension of significant funding.
Following the election victory of the Tisza Party, led by Péter Magyar, the new government implemented a series of anti-corruption and transparency measures. European Commission President Ursula von der Leyen has agreed to release a total of €16.4 billion in exchange for these reforms and investment plans, which had been frozen due to rule-of-law and corruption concerns during Orbán's tenure.
Von der Leyen stated on social media, “A new chapter starts today. For Hungary and for Europe.” In addition to the €4.2 billion released now, Hungary is seeking €10 billion from the EU’s post-pandemic recovery funds, with an additional €2.2 billion linked to improvements in academic freedom. Hungary indicated at the end of August that it had met all requirements to access these funds, and the European Commission is currently evaluating these claims, with potential access to the remaining money by year-end.