The European Commission has proposed that the EU Council lift restrictive measures against Hungary and unblock €4.2 billion from cohesion policy funds. The move follows rule-of-law reforms carried out by the country’s new government.
The Commission concluded that Budapest has addressed previously identified shortcomings that posed a risk to the EU budget. These concerned the public procurement system, the anti-corruption framework, conflicts of interest and the effectiveness of prosecutorial oversight. Hungary has also joined the European Public Prosecutor’s Office (EPPO) and strengthened transparency in the use of EU funds.
“Hungary has taken important steps to strengthen the rule of law and protect the Union’s financial interests. Today we are proposing to unlock €4.2 billion and reopen the doors of Erasmus+ and Horizon Europe to Hungarian students and researchers,” European Commission President Ursula von der Leyen said.
The funds were frozen at the end of 2022 under the rule-of-law conditionality mechanism. At the time, the EU Council suspended 55% of commitments under three cohesion programmes (originally about €6.3 billion) because of systemic problems under Viktor Orbán’s government. Part of that amount has since been lost, leaving €4.2 billion unblocked.
The Commission’s proposal would also lift restrictions on universities run by public-interest asset management foundations. Their students and researchers would again be able to take part in Erasmus+ and Horizon Europe.
The final decision rests with the EU Council. Member states have one month to consider the proposal. If approved, the funds would become available under the 2021–2027 budget.
This is part of a broader package. In May 2026, von der Leyen and Prime Minister Péter Magyar, who came to power after the April elections, agreed that a total of €16.4 billion in frozen recovery and cohesion funds could be unblocked if reforms were implemented. Assessment of a request for about €10 billion from the recovery fund is still under way. A further €2 billion in cohesion funding remains blocked over issues including academic freedom, the asylum system and child protection.
Unblocking €4.2 billion would mark an important step in normalising relations between Budapest and Brussels after Hungary’s change of government.
