The Council of the EU has terminated the conditionality mechanism imposed on Hungary to address corruption risks, unlocking €4.2 billion in funding. The decision also enables Hungary to rejoin the Erasmus+ student exchange programme and the Horizon Europe research initiative. Introduced in 2022 during Viktor Orbán's premiership, the mechanism tied access to EU funds to respect for the rule of law and led to the suspension of substantial financial support.
Once Péter Magyar's centre-right Tisza Party won by a wide margin, the incoming government adopted anti-corruption and transparency measures aimed at securing the release of frozen funds. Magyar subsequently reached an agreement with European Commission President Ursula von der Leyen covering €16.4 billion in exchange for reforms and investment plans. Those funds had been withheld over corruption and rule-of-law concerns under Orbán. Welcoming the latest decision on social media, von der Leyen described it as the beginning of a new chapter for Hungary and Europe.
The €4.2 billion released through the Council's decision forms part of that wider agreement. Hungary is also applying for €10 billion from the EU's post-pandemic recovery funds, while a further €2.2 billion depends on progress in academic freedom. Hungary reported in late August that it had satisfied all the requirements for accessing the funds. The Commission is currently assessing whether those requirements have been met. If its evaluation is positive, approval in the autumn could allow Budapest to access the additional money before the end of the year.
