The European Commission has proposed the release of €4.2 billion in previously frozen cohesion funds to Hungary, a step toward resolving rule-of-law concerns that have affected the country’s access to EU budget resources. This proposal also includes reinstating Hungary’s full access to the Erasmus+ and Horizon Europe programs, which are crucial for Hungarian students and researchers.
The Commission acknowledged that Hungary has made progress in addressing several issues related to EU budget management. These include implementing reforms in public procurement processes, enhancing anti-corruption measures, addressing conflicts of interest, and improving the effectiveness of prosecutorial actions. These reforms are seen as necessary steps toward ensuring the integrity of EU funds utilized within Hungary.
The proposal is now in the hands of the Council of the European Union, which has a month to decide on the recommendation to lift the funding restrictions. Until the Council reaches a decision, the current financial constraints remain in effect. The €4.2 billion represents only a portion of the EU funds that were restricted from Hungary; other cohesion funds remain blocked under different conditions, and Hungary’s access to recovery funds is being evaluated through another process.
The decision to propose unfreezing part of Hungary’s EU funds comes after measures were imposed in 2022 due to concerns over Hungary’s adherence to EU rule-of-law principles. The European Commission’s latest move indicates an acknowledgment of Hungary’s efforts to align with EU standards, although full restoration of all funding is contingent upon further evaluations and decisions.