For several years, a large share of the European Union funds earmarked for Hungary was frozen over concerns about corruption, judicial independence and academic freedom. Since the 2026 change of government, that is starting to change.
Background
At the end of 2022, EU member states froze about €6.3 billion for Hungary under the EU’s “conditionality mechanism,” which links EU payments to rule-of-law standards. Because the required reforms were not made, a first tranche of just over €1 billion expired at the end of 2024.
The 2026 agreement
In May 2026, Prime Minister Péter Magyar and European Commission President Ursula von der Leyen agreed a path to releasing up to €16.4 billion, conditional on Hungary meeting rule-of-law milestones by the end of August.
In September 2026 the Commission announced that Hungary had met the conditions for €4.2 billion in cohesion funds and restored Hungarian universities’ access to the Erasmus+ and Horizon Europe programs. In October, the EU ended the anti-corruption funding restrictions, freeing the €4.2 billion.
What is still pending
About €2 billion in cohesion funding remains frozen pending action on asylum, child-protection legislation and academic freedom. The government has said it intends to address these by the end of 2026. Hungary has also applied for some €10 billion from the EU’s post-pandemic recovery fund, which the Commission is assessing.
The Article 7 procedure opened by the European Parliament in 2018, which can in principle lead to suspending a member state’s voting rights, is still formally open.
Sources
- Al Jazeera: EU to release billions in frozen funds for Hungary amid Magyar reforms (May 29, 2026)
- Euronews: Von der Leyen says Hungary “strengthened rule of law”, unlocks €4.2bn (Sept 23, 2026)
- Euronews: EU ends anti-corruption funding curbs on Hungary, freeing €4.2bn (Oct 13, 2026)
- Centre for European Reform: Freezing EU funds, an effective tool to enforce the rule of law?