The key facts

  • The EU Council cancelled the conditionality mechanism for Hungary, unfreezing €4.2 billion and restoring access to Erasmus+ and Horizon Europe.
  • The mechanism had been in place since 2022 under Viktor Orbán; after Tisza's victory, Péter Magyar agreed with Ursula von der Leyen to unlock €16.4 billion in exchange for reforms.
  • Hungary is also seeking €10 billion from the recovery fund and €2.2 billion tied to academic freedoms; the European Commission is assessing compliance with the conditions.

EU Council cancels conditionality mechanism

The EU Council terminated the budgetary conditionality mechanism applied to Hungary to reduce corruption risks. The decision unfreezes €4.2 billion in European funding and allows the country to once again participate in the Erasmus+ student exchange programme and the Horizon Europe research initiative.

Origin of the restrictions

The mechanism was introduced in 2022 under the government of former Prime Minister Viktor Orbán. It made Budapest's access to EU funds dependent on compliance with the rule of law and led to the suspension of a significant portion of European funding.

Change of power and agreement with Brussels

After the convincing election victory of the centre-right Tisza party led by Péter Magyar, the new government adopted a series of anti-corruption and transparency measures to unlock the funds. Magyar agreed with European Commission President Ursula von der Leyen on unlocking a total of €16.4 billion in exchange for reforms and investment plans. 'Today a new chapter begins. For Hungary and for Europe,' von der Leyen wrote on social media.

Further payments in question

In addition to the €4.2 billion now unfrozen, Hungary has applied for €10 billion from the post-pandemic recovery fund, while the release of another €2.2 billion is tied to improvements in the area of academic freedoms. At the end of August, Hungary declared that all conditions had been met; the European Commission is currently assessing whether the requirements have been fulfilled. According to Euronews, with a positive assessment Budapest may gain access to these funds by the end of the year after approval in the autumn.