The European Commission has proposed releasing €4.2 billion in frozen cohesion funds to Hungary, marking a significant development in the ongoing discussions about the country’s access to European Union financial resources. This move also suggests restoring Hungarian students’ and researchers’ full participation in the Erasmus+ and Horizon Europe programmes.
The decision to propose unlocking these funds comes after Hungary reportedly made efforts to address rule-of-law concerns that have affected its EU budget allocations. These efforts included implementing reforms related to public procurement, anti-corruption measures, conflicts of interest, and enhancing the effectiveness of prosecutorial action. These actions were necessary conditions set by the EU to ensure that its financial resources are used appropriately and transparently by member states.
The proposal is not yet finalized. It requires approval from the Council of the European Union, which has one month to make a decision. Until the Council provides its approval, the existing funding restrictions will remain in place. The proposed €4.2 billion is just a portion of the EU funds still restricted for Hungary; additional cohesion funding remains blocked under separate conditions, and Hungary’s access to recovery funds is undergoing separate evaluation.
The situation highlights the complex relationship between Hungary and the European Union, particularly concerning governance and rule-of-law standards. The European Commission’s steps indicate a cautious optimism about Hungary’s reforms, but the final decision rests with the Council’s evaluation of these changes.