European Commission Moves to Unfreeze €4.2B for Hungary After Reforms

The European Commission said Wednesday it plans to unfreeze €4.2 billion ($4.8 billion) in EU funding for Hungary, after concluding that Budapest has made enough progress on rule-of-law and anti-corruption reforms to regain access to the money.

The funds had been frozen over corruption allegations during the tenure of former Prime Minister Viktor Orbán. In a statement, Commission President Ursula von der Leyen said Hungary had taken important steps to strengthen the rule of law and protect the Union's financial interests.

The Commission pointed to reforms introduced since current Prime Minister Péter Magyar took office in May, saying Budapest had addressed shortcomings in public procurement, the anti-corruption framework, risks of conflicts of interest, and the effectiveness of prosecutorial action.

Under the plan, Hungary would be able to access part of the frozen funds — €4.2 billion in support for economically disadvantaged regions — and participate fully in the EU's Erasmus student exchange program and the Horizon research funding scheme.

The proposal is not final. EU member states still need to approve the release. In May, the Commission said it was prepared to unlock a total of €16.4 billion if Hungary successfully implemented the required reforms, making Wednesday's plan a significant but partial step toward restoring Budapest's access to EU money.

For Hungary, the funding could ease pressure on regional development projects, as well as research and education programs that have faced uncertainty. For Brussels, the decision signals a willingness to reward verified reforms while keeping the remaining funds tied to continued compliance with EU rule-of-law standards.