EU Commission proposes unlocking €4.2B for Hungary following rule-of-law reforms

The European Commission proposed on Wednesday, 23 September 2026, to unlock 4.2 billion euros in regional cohesion funds for Hungary. The executive body also recommended restoring full access to the Erasmus+ student mobility and Horizon Europe research programs for Hungarian universities and researchers. The recommendation follows an assessment of governance and anti-corruption measures enacted by the administration of Prime Minister Péter Magyar, who took office in May 2026. The 27 EU member states in the Council of the European Union have a one-month window to review and formally approve the Commission's proposal. European Commission President Ursula von der Leyen presented the decision as recognition of substantive legal adjustments in Budapest.

“Hungary has taken important steps to strengthen the rule of law and protect the Union's financial interests.”

Anti-corruption measures and institutional changes

Brussels based its assessment on a series of structural reforms executed over the four months following Magyar's election. Budapest reinforced the operational powers and data access of its Integrity Authority, introduced a comprehensive asset declaration system for public officials, and strengthened audit controls over the expenditure of EU funds. The Hungarian government also expanded judicial oversight over decisions made by investigative and law enforcement authorities, increased public procurement transparency, and established new rules identifying ultimate beneficial owners. In addition, Hungary joined the European Public Prosecutor's Office, a step that EU officials noted went beyond the baseline requirements originally requested by Brussels.

“With the important steps taken by the government of Prime Minister Peter Magyar to safeguard EU taxpayers' money, billions of euros can now flow again.”

Breakdown of the frozen allocations

The 4.2 billion euros in cohesion funding represents approximately 55% of Hungary's allocation under the 2021–2027 Cohesion Policy envelope, covering transport projects, municipal development, and environmental protection. The initial freeze was imposed in late 2022 under the EU budget conditionality mechanism, which originally locked over 6.3 billion euros during the administration of former Prime Minister Viktor Orbán. Because cohesion funds must be claimed within fixed multi-year budget cycles, Hungary permanently forfeited 2.1 billion euros due to previous non-compliance, with another 1.0 billion euros facing expiration at the end of 2026. The proposed release is part of a broader 16.4 billion euro funding package discussed between Magyar and von der Leyen in late May 2026.

Recovery fund (grants and loans)10

Cohesion funds proposed to unblock4.2

Academic freedom conditioned funds2.2

Recovery fund (grants and loans)

10 €B

Cohesion funds proposed to unblock

4.2 €B

Academic freedom conditioned funds

2.2 €B

Data from the article text

Timeline for recovery funds and final approval

Beyond the cohesion allocations, the broader financial package includes 10.0 billion euros from the post-pandemic recovery fund, comprising 6.5 billion euros in direct grants and 3.5 billion euros in loans, alongside 2.2 billion euros tied to academic freedom benchmarks. Release of the recovery funds requires fulfilling 27 specific super milestones that incorporate the 17 core anti-corruption conditions. The European Commission has until late November 2026 to complete its formal audit of all 27 milestones before issuing a determination on the recovery package. If member states endorse the current cohesion proposal within the one-month statutory deadline, cash disbursements and university access programs will resume in the final quarter of 2026.