EU Unfreezes €16.4 Billion for Hungary as Magyar Government Marks 'End of the Orbán Era'

A landmark deal in Brussels

European Commission President Ursula von der Leyen and Hungarian Prime Minister Péter Magyar announced the unblocking of €16.4 billion in EU funds during a joint press conference in Brussels on Friday. The package had been frozen for years due to democratic backsliding and corruption concerns under former Prime Minister Viktor Orbán. Von der Leyen said the agreement was reached after teams worked 'day and night' to find common ground on concrete projects in energy, housing, transport, and support for small businesses.

Only a few weeks have passed, but we can already feel a strong wind of change blowing across Hungary.

Breakdown of the funds

The total sum of €16.4 billion is structured in three main tranches. The largest portion is €10 billion from the NextGenerationEU recovery fund, consisting of €6.5 billion in direct grants and €3.5 billion in loans. A further €4.2 billion comes from cohesion funds previously frozen under the rule-of-law conditionality mechanism. The remaining €2.2 billion is tied to reforms addressing deficiencies in academic freedom and fundamental rights.

It is 13% of the Hungarian annual budget, just to give an idea of the magnitude.

Conditions and reforms

Access to the money is not unconditional. The €10 billion recovery fund disbursement requires Budapest to meet agreed reforms before the end of August. The Hungarian government is expected to submit its revised recovery plan next week, with Brussels aiming to approve it in July. Von der Leyen stressed that a 'solid and secure framework' has been established to ensure Hungary addresses corruption and rule-of-law issues.

We have agreed on a robust framework to ensure that Hungary addresses issues related to corruption and the rule of law.

A new chapter after Orbán

Magyar's victory in the April 12 elections ended Viktor Orbán's 16-year tenure and was met with relief in Brussels. Orbán, a nationalist close to Vladimir Putin and Donald Trump, had repeatedly blocked EU initiatives, including support for Ukraine. The new conservative government has made recovering frozen EU funds a top priority. Magyar noted that his administration achieved in 'three or four weeks' what Orbán's government 'could not or did not want to achieve.'

If every time I come here I get this much money, I risk coming more often.

Economic stakes

European funds are critical for reviving Hungary's economy. The new government inherited a growing budget deficit that the Commission projects could reach 6.2% of GDP in 2026. Magyar pledged to use the money to rebuild Hungary, relaunch the economy, restore public services, and strengthen the competitiveness of Hungarian companies and small and medium-sized enterprises. The anti-corruption measures taken by his government were a key condition for unlocking the funds, which had been blocked under various procedures related to LGTB+ rights, asylum seekers, and judicial independence.