The European Commission announced on Friday that it will lift restrictions on €16.4 billion in EU support for Hungary after reforms put forward by the country’s new government, European Commission President Ursula von der Leyen said following talks with Hungarian Prime Minister Peter Magyar.
Von der Leyen provided a breakdown of the package after the meeting in Brussels: €10 billion from the Next Generation EU recovery fund will be unfrozen or scheduled to be unfrozen, €4.2 billion in cohesion conditionality funds will be released, and an additional €2.2 billion tied to academic freedom measures will be made available as those reforms are completed.
"I can confirm that it is €10 billion that have been unfrozen or will be unfrozen from Next Generation EU, then the €4.2 billion from the cohesion conditionality and 2.2 billion for the academic freedom, which makes it €16.4 billion," von der Leyen said.
Commission officials expect the funds to support a recovery in Hungary's economy, which has shown little growth over the past three years. The new government inherits a budget situation that the Commission projects could see a deficit of up to 6.2% of GDP in 2026, a shortfall driven in part by significant pre-election spending by former Prime Minister Viktor Orban, who was defeated in last month’s election.
Von der Leyen emphasized the scale of the disbursement while commending the work that led to its approval. "That is quite a sum, but ...the Hungarian people deserve it. Again, many, many thanks for the outstanding work that has been done," she said.
The released funds comprise a mix of recovery-specific financing and cohesion resources, with an element explicitly linked to measures on academic freedom. Officials indicated that a portion of the package will follow once remaining reform conditions are satisfied.
Bringing these resources into circulation aims to provide fiscal space for the new government to address economic stagnation and to begin implementation of approved programs. The Commission’s projection of a widened budget deficit highlights the fiscal constraints facing Budapest even as EU financial support is restored.
Summary
The European Commission will unfreeze €16.4 billion in EU recovery and cohesion funds for Hungary after reforms from the country’s new government, including €10 billion from the Next Generation EU fund, €4.2 billion in cohesion funding and €2.2 billion tied to academic freedom measures, European Commission President Ursula von der Leyen said after meeting Prime Minister Peter Magyar.