Hungary's Prime Minister Peter Magyar has reached an agreement with the European Commission to unblock almost all frozen €16.4bn in euro funds, which had remained unavailable under the previous government due to problems with the rule of law. The agreement opens the door to the full use of the money, which amounts to about 13% of Hungary's state budget.
- Hungary gained access to €16.4 billion of frozen euro funds.
- Premier Peter Magyar signed an agreement with the European Commission.
- The previous freeze was extended due to the rule of law.
- Hungary must meet the conditions for the full unblocking of funds.
Agreement between Hungary and the European Commission
Peter Magyar signs an agreement with the President of the European Commission Ursula von der Leyen unlocking almost all of the recovery and cohesion funds earmarked for Hungary. The total amount of funds that have become available is €16.4 billion, which is approximately 13% of the country's budget, which underscores the scale of financial support.
Reasons for freezing funds
Funding was suspended during the administration Viktor Orban due to concerns about adherence to the rule of law and corruption. The suspension of funds lasted for several years, which significantly affected the country's economic prospects.
European Commission's reaction and conditions for unblocking
Ursula von der Leyen noted the speed of the formation of a new government and the implementation of reforms that have helped to move the frozen payments forward. To date, the EU has already disbursed €10 billion from the Pandemic Recovery Fund and €6.4 billion under the Cohesion Funds. At the same time, Hungary has to fulfil the so-called super-stages - a set of conditions necessary for the final disbursement of all funds.
Political context and significance for Hungary
The victory of Peter Magyar in the April elections marked the end of Orban's 16-year rule. The agreement with the EU indicates a change of course and the new government's readiness to cooperate with Brussels. The unblocking of funds opens up opportunities to implement large-scale development projects and stabilise the economy.
Next steps and prospects
Despite the unblocking of a significant portion of the funds, Hungary remains subject to conditions that guarantee transparency and compliance with European standards. Fulfilling these requirements is a key factor for further funding and strengthening relations with the European Union.
