The European Union seems ready to lift the veto adopted in 2022 to disburse €4.2 billion in Cohesion funding to Hungary, after Péter Magyar‘s new government worked to address the concerns that led to the freeze.
In order to unblock the funds, the European Commission proposed that the Council lift the protective measures put in place in 2022, after then Prime Minister Viktor Orbán continued to erode the rule of law in the country.
In particular, laws made by Orbán’s government were considered in breach of EU Treaties in several areas, including conflict of interest, corruption, legal protections, public interest trusts and public procurements. The measures froze potential funds for Hungary and also limited Hungarians’ access to the Erasmus+ and Horizon Europe programmes.
According to European Commission President Ursula von der Leyen, “Hungary has taken important steps to strengthen the rule of law and protect the Union’s financial interests,” and therefore deserves access back to “once again fully benefit from the opportunities our Union creates.”
Magyar, who won a landslide election in Spring to end almost two decades of Orbán’s tight rule over the country, promised reforms to dismantle the illiberal policies that sent Budapest on a collision course with Brussels.
At the beginning of September, Hungary sent a list of remedies it had implemented, and the Commission assessed them positively. The Magyar government reinforced new transparency rules across the board and addressed conflict-of-interest issues. It also tightened controls over EU funding to lower potential corruption issues. The European Public Prosecutor’s Office (EPPO) also opened in July, showcasing Budapest’s commitment to fighting corruption.
These reforms helped the Commission to green-light the unblocking of funds. “With the important steps taken by the government of Prime Minister Péter Magyar to safeguard EU taxpayers’ money, billions of euros can now flow again,” said Piotr Serafin, Commissioner for Budget. The European Council now has one month to ratify the Commission’s proposal.
