EU Releases €16.4B to Hungary After New PM's Immediate Reforms

The EU unfreezes €16.4 billion in funds for Hungary after leadership change and reforms.

On May 29, 2026, the European Commission announced the release of €16.4 billion (about $19 billion) in funds previously frozen for Hungary. This included €10 billion from the COVID-19 recovery plan and €6.3 billion in cohesion funds.

Péter Magyar took office as Hungary’s Prime Minister on May 9, ending Viktor Orbán’s 16-year tenure. The new government quickly began work on restoring democratic standards and ensuring judicial independence, media freedom, and anti-corruption efforts—key conditions set by the EU for unlocking funds, as outlined in the EU rule of law framework.

European Commission President Ursula von der Leyen noted Hungary’s progress, saying reforms "are clear and concrete, showing commitment to EU values." Hungary's PM Magyar said, "Three weeks allowed us to achieve what was not done in years." The government focused on quickly meeting EU criteria.

The Hungarian government also applied to join the European Public Prosecutor’s Office, enhancing cooperation on transparency and accountability. Furthermore, Hungary will regain participation in EU programs including Erasmus, signaling stronger EU integration.

To address past governance concerns, the new administration set up six investigative committees to review controversies during Orbán’s term, including possible mismanagement at the Hungarian National Bank, meeting EU demands for oversight.

The Commission had agreed to closely monitor Hungary’s progress after talks in April, viewing these changes as a positive step toward stronger compliance. With the funding release, Hungary’s budget rose about 13%, directed at economic recovery, public services, and support for local businesses and SMEs.