EU to unlock €16.4 billion for Hungary after Magyar reforms

The European Union announced that it will release up to €16.4 billion (about 13 % of Hungary’s annual budget) that had been frozen during Viktor Orbán’s tenure. The money will be disbursed once Prime Minister Péter Magyar’s government completes a series of reforms, including restoring judicial independence, joining the European Public Prosecutor’s Office, tightening anti‑corruption measures and improving the rule of law. The package comprises roughly €10 billion from the COVID‑19 Recovery fund, €4.2 billion in cohesion funds and €2.2 billion tied to academic‑freedom commitments.

The fund release is tied to concrete spending plans: billions earmarked for transport, health, social projects, environmental upgrades, support for SMEs, electrification of the power grid, railway modernisation and university research. President Tamás Sulyok has asked the Venice Commission to assess a constitutional dispute that arose over his refusal to resign, a conflict that the government says could delay the legislation needed for the funds. Former prime minister Viktor Orbán has demanded disclosure of the details of the EU‑Hungary agreement, but the coalition maintains that the deal is a “historic breakthrough” for the country’s economy and EU integration.