The European Commission has proposed the release of €4.2 billion in previously frozen cohesion funds to Hungary, signaling a positive assessment of Hungary’s efforts to address EU rule-of-law concerns. The proposal also includes restoring full access for Hungarian students and researchers to the Erasmus+ and Horizon Europe programs. These steps are part of an initiative to resolve issues related to public procurement, anti-corruption measures, conflicts of interest, and prosecutorial effectiveness that were affecting the EU budget.
Before the funds can be unlocked, the proposal requires approval from the Council of the European Union, which has a month to make its decision. Until the Council grants its approval, the financial restrictions will remain in place. The €4.2 billion represents only a portion of the EU funds that have been restricted from Hungary. Additional cohesion funding remains blocked under other conditions, and Hungary’s access to recovery funds is being evaluated through a different process.
This development comes after measures were imposed on Hungary in 2022 due to concerns over its rule-of-law practices. The European Commission’s decision acknowledges Hungary’s recent reforms and signals a potential thaw in the relationship between Hungary and the EU regarding budgetary allocations and program participation.
Hungary’s efforts to address the EU’s rule-of-law concerns could pave the way for further releases of funds and improved access to EU programs. However, the final decision rests with the Council of the European Union, whose approval is essential for the proposed changes to take effect.