The European Commission has proposed releasing €4.2 billion in previously frozen cohesion funds to Hungary, a move that could also restore the country’s full access to the Erasmus+ and Horizon Europe programs for its students and researchers. This proposal comes after Hungary implemented reforms to address the European Union’s concerns regarding rule-of-law issues, which had affected the EU budget.
The European Commission highlighted that Hungary has undertaken measures to improve public procurement, anti-corruption efforts, manage conflicts of interest, and enhance the effectiveness of prosecutorial actions. These steps were pivotal in prompting the Commission’s proposal to lift the funding restrictions.
However, the proposal is not yet finalized. It requires approval from the Council of the European Union, which has a month to decide on whether to lift the measures initially imposed in 2022. Until the Council gives its consent, the funding restrictions will remain in effect.
It is important to note that the €4.2 billion represents only a portion of the EU funds still restricted for Hungary. Other cohesion funds remain blocked under separate conditions, and the country’s access to recovery funds is undergoing a separate assessment process.
The outcome of the Council’s decision will significantly impact Hungary’s financial relationship with the EU and its ability to participate fully in key educational and research programs. This proposal marks a critical step in Hungary’s efforts to align with EU rule-of-law standards and regain access to essential funds.