The President of the European Commission, Ursula von der Leyen, announced that the European Union can unlock 10 billion euros for Hungary through the revised NextGenerationEU plan, after reforms and commitments made by the new government led by Péter Magyar.
The announcement marks a major change in the relationship between the European Commission and Budapest, after years in which billions of euros intended for Hungary were blocked due to concerns related to corruption, the rule of law, conflicts of interest, and state capture risks.
In short
Ursula von der Leyen announced that 10 billion euros can be unlocked for Hungary through the revised NextGenerationEU plan.
The European Commission can also unlock 4.2 billion euros from cohesion funds related to the conditionality mechanism.
Another 2.2 billion euros from cohesion funds can be unlocked as a result of progress on fundamental rights, especially academic freedom.
Hungary has decided to join the European Public Prosecutor's Office and has committed to strengthening the Integrity Authority and revising public procurement legislation.
Hungarian students are expected to return to the Erasmus program starting with the next academic year.
Von der Leyen stated that the Magyar government and the European Commission have agreed on a "robust architecture" to address corruption and rule of law issues. Among the mentioned measures is Hungary's accession to the European Public Prosecutor's Office, the institution responsible for investigating and prosecuting fraud affecting the European Union budget.
The Commission President stated that Budapest has also accepted the strengthening of the Integrity Authority, so that it can more effectively detect and combat corruption and conflicts of interest. The Hungarian government is also revising public procurement legislation to reduce fraud and protect taxpayers' money.
Another change targets public interest foundations, structures that have taken over significant parts of the Hungarian economy and university system in recent years and have been criticized at the European level for risks of conflicts of interest and institutional capture. Von der Leyen said that these structures will be gradually eliminated.
"These are strong signals that Hungary is turning the page," said Ursula von der Leyen.
On the investment component, the Commission and the Hungarian government have agreed on a list of projects for the revised NextGenerationEU plan. Von der Leyen mentioned investments in sectors such as energy, housing, transport, and small and medium-sized enterprises.
The unlocking of the 10 billion euros remains conditional on the adoption of reforms and the implementation of investments. The Commission President framed the announcement as a decision related to the fulfillment of these steps, not as an unconditional immediate payment.
The Commission also announced progress regarding cohesion funds. Von der Leyen stated that, based on progress on the so-called "super milestones," cohesion funds related to the conditionality mechanism amounting to 4.2 billion euros can be unlocked.
A second component concerns fundamental rights. According to the Commission President, Hungary has made progress in protecting fundamental rights, especially in the area of academic freedom. The gradual elimination of public interest foundations and the adoption of legislation regarding conflicts of interest and integrity rules are expected to allow the unlocking of another 2.2 billion euros from cohesion funds.
Von der Leyen, however, stated that, regarding the child protection law, additional steps are needed. The law has been one of the major conflict themes between Budapest and European institutions in recent years, due to its impact on fundamental rights and non-discrimination.
An important element for young people is Hungary's return to the Erasmus program. Von der Leyen stated that Hungarian students could once again be part of the Erasmus community starting with the next academic year.
"Erasmus is one of the great symbols of the European Union. Entire generations have been shaped by Erasmus, through friendships, families, freedom," said the Commission President.
The statement marks an important political moment for the new Hungarian government and its relationship with European institutions. Von der Leyen stated that investor confidence is returning and that "confidence is being rebuilt," but linked the continuation of the process to maintaining the pace of reforms.
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