Hungary has recently resolved a significant issue in European financing. Effective May 29, the Hungarian government reached an agreement with the European Commission, paving the way for the release of €16.4 billion, equivalent to approximately $19 billion. This funding, which had been held up for years due to concerns related to governance and the rule of law, will now return to Hungary.
The Prime Minister expressed the deal's importance, stating that the country will regain access to its funds without having to concede significantly. The primary requirement was to terminate the corruption practices that characterized the previous administration.
What Funding Components Are Included?
The allocated €16.4 billion is divided into three main categories. Around €10 billion is sourced from the EU’s recovery and resilience funds. An additional €4.2 billion is contingent on adherence to rule-of-law standards, while the final €2.2 billion is set for initiatives promoting fundamental rights and academic freedom.
Importantly, this funding reinstates Hungary's involvement in the Erasmus educational exchange program, restoring connections between Hungarian universities and the broader European academic community.
In return for this financial support, Hungary has made commitments to finalize specific legislative reforms by August 31, 2026. These reforms encompass essential areas such as judicial independence, transparency in government operations, and a significant pledge to join the European Public Prosecutor’s Office (EPPO).
The EPPO serves as the EU's independent authority focused on investigating and prosecuting fraud that impacts EU finances, a body Hungary had previously declined to join under the Orbán government. This shift represents a crucial step toward increasing oversight on Hungary's expenditure of EU funds.