EU releases billions for Hungary – first major success for Prime Minister Magyar

Additionally, 2.2 billion euros in cohesion funds are to be made available once Budapest implements further reform steps. In total, the released package amounts to up to 16.4 billion euros.

The EU had frozen the funds under the previous government of Viktor Orbán. The reasons cited were years of violations of the rule of law, restrictions on the rights of sexual minorities, and corruption.

The Change of Government in April

Orbán, who had governed the country for four terms, was voted out in the parliamentary elections on April 12. Magyar's conservative Tisza party secured a two-thirds majority.

Since then, teams from Brussels and Budapest have been negotiating the release of the funds. Magyar had signaled to the EU that Hungary would now take a different course.

"I am very pleased to announce today that we are releasing ten billion euros for Hungary," von der Leyen said verbatim. She added that further steps were necessary, but "we are on the right track."

Magyar spoke of a "historic day for Hungary" and a "historic breakthrough." His team had "fought for every eurocent."

Reforms Under Time Pressure

The ten billion euros from the Corona fund are intended for specific projects such as energy and housing construction. Hungary must now submit an official plan with the projects before the money can actually flow.

Furthermore, the other EU member states must still approve the release. Reforms and investments within the framework of the Corona program must be implemented by August 31, otherwise the funds risk being lost.

In recent weeks, the Tisza government had already initiated several reform steps. On Tuesday, parliament passed a law that reverses Hungary's announced withdrawal from the International Criminal Court initiated by Orbán.

Additionally, Tisza deputies introduced a constitutional amendment that would limit the term of prime ministers to eight years. This regulation would also apply to Magyar himself.

Comparison with Poland

At the end of May, Magyar announced the establishment of six parliamentary inquiry committees to investigate events from the Orbán era. One of these committees will examine suspicions of embezzlement of public funds at the Hungarian National Bank, possibly amounting to hundreds of millions of euros.

However, the full release of the blocked funds is controversial. The Vice-President of the EU Parliament, Barley, pointed to the case of Poland: there, the Commission had released frozen funds all at once after the change of government under Donald Tusk.

However, actual progress in Poland fell short of the EU's expectations, partly because the government could only implement decisions to a limited extent. Tusk governs with a broad coalition without a constitutional amendment majority and faces a powerful president from the PiS camp.

Magyar, on the other hand, has a two-thirds majority in parliament. However, key positions such as the presidency, the president of the Constitutional Court, and the Attorney General's office are still held by Orbán loyalists.

Foreign Policy Continuity

Law professor John Morijn from the University of Groningen warned Politico that attempts to remove these loyalists could trigger a constitutional crisis.

In terms of foreign policy, Budapest remains on a familiar path: at a meeting with NATO Secretary General Mark Rutte, Magyar confirmed that Hungary would not supply weapons to Ukraine. Kremlin spokesman Dmitry Peskov welcomed this stance, stating it was commendable if one side did not deem it necessary to "pour oil on the fire."

More than two billion euros in EU funds for Hungary had already definitively expired under Orbán because reform requirements were not met on time. Approximately one billion euros each expired at the end of 2024 and the end of 2025.