The Council of the EU has terminated the conditionality mechanism applied to Hungary over corruption risks, unlocking €4.2 billion and permitting the country to rejoin the Erasmus+ student exchange program and the Horizon Europe research initiative. Introduced in 2022 under former Prime Minister Viktor Orbán, the mechanism tied access to EU funding to respect for the rule of law. Its introduction resulted in the suspension of substantial funding for Hungary.
Following the landslide election victory of the center-right Tisza Party, led by Péter Magyar, the new government adopted anti-corruption and transparency measures aimed at restoring access to the frozen funds. Magyar reached an agreement with European Commission President Ursula von der Leyen linking the release of €16.4 billion to reforms and investment plans. That funding had been withheld because of rule-of-law and corruption concerns during Orbán's government. Von der Leyen welcomed the decision as the beginning of a new chapter for Hungary and Europe.
Beyond the €4.2 billion released through the latest decision, Hungary is seeking €10 billion from the EU's post-pandemic recovery funds, while a separate €2.2 billion tranche depends on progress in academic freedom. In late August, Hungary said it had fulfilled all the conditions for accessing the funds. The European Commission is currently assessing whether those requirements have been satisfied. A favorable evaluation, followed by approval in the fall, could give Hungary access to the remaining money by the end of the year.
