EU states back release of 4.2 billion euros for Hungary

EU member states have backed European Commission plans to release 4.2 billion euros in funding for Hungary, which had been frozen over corruption concerns under former Prime Minister Viktor Orban, LRT reported.

European affairs ministers approved the move at a meeting in Luxembourg on Tuesday. “A new chapter begins today. For Hungary and Europe,” European Commission President Ursula von der Leyen said.

The Commission said Hungary had introduced reforms since Peter Magyar became prime minister in May, addressing public procurement, anti-corruption measures and other issues. “Over the past few months, the new government has made significant progress in restoring the rule of law and reversing some decisions made by the previous government,” European Commissioner for Justice Michael McGrath said. “Respect for the rule of law is a prerequisite for receiving EU funds.”

The 4.2 billion euros will support Hungary’s less economically developed regions. It is part of about 20 billion euros in funding frozen under Orban’s government. In May, the Commission said it was ready to release a total of 16.4 billion euros if reforms were successfully implemented. Besides the 4.2 billion euros, 10 billion euros is earmarked from the EU’s post-COVID-19 recovery fund. Hungary has also pledged reforms on academic freedom, which could unlock a further 2.2 billion euros.