The European Commission proposes unlocking €4.2 billion for Hungary

On Wednesday, September 23, the European Commission proposed unlocking €4.2 billion in cohesion funds allocated to Hungary, after Budapest’s new government adopted measures to strengthen the rule of law and protect the European Union’s financial interests.

The sum represents part of the €16.4 billion in recovery and cohesion funds frozen by the EU. The Commission announced in May that the money would be released gradually, as the Hungarian authorities implemented the reforms agreed with the European institutions.

European Commission President Ursula von der Leyen said that Hungary had taken “important steps” in the areas of the rule of law and protecting the European budget.

In the same decision, the Commission announced the reopening of access for Hungarian students and researchers to the Erasmus+ and Horizon Europe programmes.

The release of the funds is not yet final. The proposal must be formally approved by all member states within the Council of the European Union, including Romania. The decision marks a shift from the period when Brussels kept the funds suspended over concerns about the rule of law and the management of European money.