The European Commission has proposed releasing €4.2 billion in frozen cohesion funds to Hungary, signaling a potential thaw in relations following Hungary’s efforts to address rule-of-law concerns. If approved, this move would also restore Hungarian students and researchers’ full access to the Erasmus+ and Horizon Europe programs.
Hungary has reportedly made strides in implementing reforms related to public procurement, anti-corruption measures, conflicts of interest, and the effectiveness of prosecutorial action. These steps were crucial in addressing the European Union’s budgetary concerns that led to the funds being frozen in 2022.
The proposal is now in the hands of the Council of the European Union, which has one month to decide whether to lift the restrictions. Until then, the current funding restrictions remain in place. The decision will be closely watched, as it could set a precedent for other EU countries facing similar issues.
However, it’s important to note that the €4.2 billion represents only a portion of the EU funds still restricted for Hungary. Additional cohesion funding remains blocked due to separate conditions, and the country’s access to EU recovery funds is being evaluated through a different process.
This development highlights the ongoing negotiations between the European Union and Hungary to resolve financial and legal disputes. The outcome could impact Hungary’s financial landscape and its role within the broader EU framework.