The European Commission has proposed the release of €4.2 billion in previously frozen cohesion funds to Hungary, along with restoring full access for Hungarian students and researchers to the Erasmus+ and Horizon Europe programs. This decision comes after Hungary implemented reforms aimed at addressing the European Union’s concerns regarding rule-of-law issues, which were impacting the EU budget. These reforms include changes to public procurement processes, anti-corruption measures, management of conflicts of interest, and the effectiveness of prosecutorial actions.
The proposal is not yet finalized and requires approval from the Council of the European Union. The Council has a one-month timeframe to decide whether to lift the measures imposed on Hungary in 2022. Until such approval is granted, the funding restrictions will remain in effect.
While the proposed release of €4.2 billion marks a significant development, it represents only a portion of the EU funds that remain restricted for Hungary. Additional cohesion funding continues to be blocked under different conditions, and Hungary’s access to recovery funds is under separate evaluation.
This initiative by the European Commission signifies a positive step towards resolving financial and legal disputes between the EU and Hungary, contingent on the latter’s commitment to upholding EU standards and regulations. The ongoing assessment and potential unlocking of funds highlight the EU’s broader efforts to ensure compliance with its legal and financial frameworks across member states.