Hungary regains access to €4.2 billion in EU funds
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Hungary’s government enacted rule-of-law reforms that led the European Commission and Council to release EUR 4.2 billion in previously frozen funding.
In December 2022, the Council had suspended funding to three cohesion policy programs, initially freezing EUR 6.3 billion, because of concerns about corruption and public money management. Hungary responded by amending over 100 laws to increase oversight of public spending, strengthen the Integrity Authority, and create new conflict-of-interest rules.
The government also increased transparency around asset declarations and private equity funds, and began to dismantle public-interest asset management foundations, known as KEKVA, dissolving those without university responsibilities in August. Foundations operating universities will dissolve by August 31, 2027. Hungary will also join the European Public Prosecutor’s Office, a move the Commission acknowledged as demonstrating a commitment to fighting corruption, though it wasn’t a requirement for regaining the funds.
Restrictions on Hungary’s participation in the Erasmus+ and Horizon Europe programs have also been lifted, with full participation expected to resume in the spring after cooperation agreements are signed.
