The Commission considers that reforms concerning public procurement, the fight against corruption and conflicts of interest justify lifting the restrictions adopted in 2022. The proposal concerns suspended cohesion commitments and universities managed by public-interest foundations; the decision rests with the Council of the EU.
The European Commission proposes unlocking €4.2 billion in cohesion funds for Hungary and restoring access to Erasmus+ and Horizon Europe for universities managed by public-interest foundations. The Commission considers that the reforms adopted by Budapest have remedied the rule-of-law breaches that threatened the EU budget. However, lifting the restrictions depends on approval by the Council of the European Union.
In brief
1. The €4.2 billion consists of suspended cohesion commitments, which the Commission proposes to restore. The announcement does not constitute a payment, and lifting the measures requires approval by the EU Council.
2. Students and researchers at the universities managed by the public-interest foundations concerned would regain full access to Erasmus+ and Horizon Europe. The restriction concerns funding for these entities and does not constitute a general ban on all Hungarian universities.
3. The Commission cites the strengthening of the Integrity Authority, asset declarations, procurement transparency and the expansion of judicial review. Its assessment includes the measures notified in September and their implementation.
4. According to the Commission, the Council has one month from the presentation of the proposal to decide. The dossier concerns the two budget-protection measures adopted in 2022, without automatically closing other European procedures.
The proposal presented in Brussels concerns the two protection measures adopted in December 2022. The first suspended 55% of budgetary commitments for three cohesion programmes for the 2021–2027 period, covering the environment and energy efficiency, transport and territorial development. The €4.2 billion would become available again as commitments for funding; the announcement does not represent the transfer of this amount to Hungary.
The second measure prohibited the assumption of new legal commitments with the public-interest foundations concerned and the entities managed by them, for funds managed directly or indirectly by the Commission. This resulted in restrictions for the respective universities under Erasmus+ and Horizon Europe. If the proposal is approved, their students and researchers could once again benefit from full access to these programmes. The 2022 ban concerned the category of entities defined in the decision and did not exclude all Hungarian universities.
The change in the assessment is based on the measures notified by Hungary on 9 September 2026 and their implementation, according to the Commission. The Integrity Authority has been granted stronger powers and access to the data necessary for its activities, while Hungary has established a comprehensive asset-declaration system. The Commission also mentions the strengthening of controls over European funds and increased transparency in public procurement and public expenditure.
These interventions address problems that motivated the suspension of funding. In its 2022 assessment, the Council described procurement procedures with a single bidder, the concentration of contracts among certain companies and insufficient safeguards against conflicts of interest. Another shortcoming concerned the possibility of challenging in court decisions not to investigate or prosecute alleged acts of corruption. The Commission now states that Hungary has expanded judicial review of decisions by investigative and prosecutorial authorities.
Regarding the public-interest foundations, the Commission considers that transparency and protection against conflicts of interest have been increased, with a view to their dissolution. The communiqué does not specify the timetable for dissolution. The proposal to lift the restrictions is based on an assessment of the remedies already adopted and implemented, without presenting dissolution as a fait accompli.
The Commission additionally cites Hungary’s accession to the European Public Prosecutor’s Office and the new rules on beneficial owners and public procurement. According to the European Public Prosecutor’s Office, Hungary became a participating state on 2 August 2026. The start of operational activities is a separate stage, scheduled for the twentieth day after the appointment of Hungary’s European prosecutor.
Commissioner for Budget, Anti-Fraud and Public Administration Piotr Serafin attributes the change to the reforms of the government led by Péter Magyar. “The Commission will always protect EU funds against corruption and misuse. This policy will not change,” he stated in the communiqué. The Commission concludes that the conditions for maintaining the measures under the Conditionality Regulation are no longer met.
The assessment concerns budget protection in the case opened in 2022, not the closure of all European procedures concerning Hungary. According to the Commission, the Council has one month from the presentation of the proposal to decide on lifting the measures. Until that decision, the unlocking of the funds and the restoration of universities’ access remain proposals.
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