European Commission proposes unlocking 4.2 billion euros in frozen funds for Hungary

Commission proposal and academic restoration

The European Commission proposed on Wednesday to release 4.2 billion euros in cohesion funds to Hungary. The recommendation follows governance changes instituted by the administration of Prime Minister Peter Magyar, who assumed office earlier in 2026 after the Tisza party won the April elections. In addition to releasing the funding, the executive proposed readmitting Hungarian researchers and students to the Erasmus+ exchange network and the Horizon Europe research program. European Union member states had excluded around 20 Hungarian universities from those programs in 2022 due to concerns regarding academic freedom and governance trusts. Commission President Ursula von der Leyen announced the decision following an evaluation of Budapest's compliance.

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

Anti-corruption reforms and timeline

Budapest formally notified Brussels of its corrective package on 9 September 2026. The executive noted that the new measures addressed deficiencies in public procurement, boosted transparency, and established a comprehensive asset declaration registry. Hungarian authorities also strengthened the powers of the national anti-graft watchdog, aligned with beneficial ownership standards, and joined the European Public Prosecutor's Office. At the end of August, the government resolved governance arrangements surrounding public interest trusts, known as KEKVA, which the previous administration under Viktor Orban had used to oversee universities. The Council of the European Union now has one month to vote on whether to adopt the proposal.

Remaining envelope and recovery funds

The proposed 4.2 billion euros forms part of a broader 16.4 billion euro funding package that Brussels agreed conditionally to unlock in May. Hungary had been required to meet 27 core targets and more than 100 secondary milestones to access the suspended accounts. Piotr Serafin, the European commissioner for budget, anti-fraud and public administration, stated that the steps taken to safeguard funds enabled the resumption of payments.

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.

Beyond the initial cohesion tranche, Hungary has submitted a request to withdraw 10 billion euros from the European recovery fund, an application that remains under assessment by the Commission. Another 2 billion euros in cohesion funds stays blocked over remaining concerns regarding Hungary's asylum system, child protection legislation, and academic regulations. Budapest has committed to addressing those remaining areas before the end of the year.

Domestic prosecution dispute

The funding announcement coincides with domestic legal friction between Hungarian prosecutors and the prime minister. On Tuesday, Hungary's Prosecutor General requested that parliament lift Magyar's parliamentary immunity, alongside separate requests concerning two former ministers from Orban's administration. The case against Magyar stems from an alleged incident in 2024, in which he was accused of taking a mobile phone from a person recording him at a nightclub and throwing the device into the Danube River. The European Parliament had declined to waive his immunity during his tenure as an MEP last year. Magyar released a video statement requesting that parliament approve the suspension of his immunity, stating that the charges represent a coordinated attempt to derail his political mandate.