EU Commission seeks to release Hungary’s frozen funds
Péter Magyar has made freeing up the money a key priority since replacing Viktor Orbán as Hungary’s PM after a seismic election victory in May.
On Wednesday, the European Commission announced plans to release €4.2 billion in cohesion funding to Hungary, which had been frozen in 2022 due to rule-of-law violations during the tenure of former Prime Minister Viktor Orbán's government. Cohesion funding is an EU initiative intended to support economic, social, and territorial reforms in less affluent member countries, with Hungary, Poland, Italy, and Romania being the primary beneficiaries.
However, the EU had previously withheld 55% of this funding in 2022, citing corruption and public procurement issues within Orbán's administration that threatened the EU's financial interests.
In a press release, the EU executive branch stated that it had determined Hungary had addressed the rule-of-law breaches and was safeguarding the Union's financial interests, prompting the proposal to unblock the funds. Commission President Ursula von der Leyen affirmed these actions on X, emphasizing that Hungary had taken significant steps to strengthen the rule of law and protect the Union's financial interests.
Péter Magyar, who succeeded Orbán as prime minister in May following a significant electoral win, underscored the importance of unlocking these funds, stating that it was a key campaign promise. Since his appointment, Budapest has made substantial progress in addressing public procurement concerns, corruption, and conflicts of interest, including amending over a hundred pieces of legislation.
This progress was highlighted by the government website, which cited anti-corruption reforms and Hungary's recent membership in the European Public Prosecutor’s Office (EPPO).
The Commission's proposal to release the frozen funds is anticipated to be approved by the Council, with Justice Commissioner Michael McGrath expressing that this move is a positive development for both Hungary and the European Union. McGrath stated that the Commission would maintain a constructive engagement with Hungarian authorities and closely monitor the situation, emphasizing the importance of sustaining the positive developments achieved thus far.
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