Von der Leyen says Hungary 'strengthened rule of law', unlocks €4.2bn in EU funding

On August 31st, 2023, European Commission President Ursula von der Leyen announced that Hungary had successfully strengthened its rule of law, leading to the unfreezing of €4.2 billion in cohesion funding. This decision also paves the way for Hungary to rejoin the Erasmus+ student exchange programme and Horizon Europe research funding initiative.

In 2022, the EU had previously suspended €6.3 billion in cohesion funding to Hungary due to issues with its anti-corruption framework, conflicts of interest, and irregularities in public procurement. Prime Minister Péter Magyar, who came into power in April, had pledged to unlock EU funds that had been suspended during Viktor Orbán's 16-year rule.

Von der Leyen highlighted Hungary's progress in strengthening the rule of law and protecting the Union's financial interests. The European Commission President declared that Hungary will now fully benefit from the opportunities the Union offers. The move to unlock the funds was contingent on Hungary meeting 27 key rule-of-law milestones and over 100 others.

Hungary confirmed in late August that it had met all the conditions. In addition to the €4.2 billion released, Hungary is also requesting the release of €10 billion in recovery funds, whose fate remains under review by the Commission. Meanwhile, €2 billion in cohesion funding remains blocked, pending resolutions to concerns about Hungary's asylum system, child protection law, and academic freedom. The Prime Minister has assured that these issues will be addressed by the end of the year.