The European Union officially ended its conditionality mechanism against Hungary on Tuesday, 13 October, releasing €4.2 billion in previously frozen EU funds and restoring access to the Erasmus+ and Horizon Europe programmes for Hungarian students and researchers.
EU member states unanimously approved the decision at a meeting in Luxembourg, accepting the European Commission’s assessment that Hungary had addressed the problems that led to the suspension of funding in December 2022.
The EU originally froze €6.3 billion under former Prime Minister Viktor Orbán over concerns about corruption, public spending and the misuse of European funds. However, Hungary has since permanently lost approximately €2.1 billion after missing spending deadlines, leaving €4.2 billion available for release.
Ursula von der Leyen on X (formerly Twitter): “I warmly welcome @EUCouncil decision to adopt our proposal.A new chapter starts today. For Hungary and for Europe. https://t.co/1DzONuY259 / X”
I warmly welcome @EUCouncil decision to adopt our proposal.A new chapter starts today. For Hungary and for Europe. https://t.co/1DzONuY259
The decision also removes restrictions that prevented several Hungarian universities from participating fully in Erasmus+ student exchanges and Horizon Europe research programmes. The restrictions particularly affected institutions transferred to foundations under the Orbán government, which Brussels criticized over concerns about political influence and conflicts of interest.
The decision follows a series of reforms introduced by Magyar’s government after taking office in May. These included strengthening Hungary’s anti-corruption authorities, tightening rules on public contracts and politicians’ asset declarations, and introducing stronger oversight of how European money is spent.
The government also joined the European Public Prosecutor’s Office and began dismantling the university foundations established under Orbán, which had been a major source of disagreement with Brussels. Following these changes, the European Commission concluded in September that Hungary had taken sufficient steps to address its concerns and recommended lifting the restrictions.
That does not mean that all frozen EU funding has been released. Approximately €3.5 billion in other EU development funds remains blocked over separate concerns involving academic freedom, child protection legislation, asylum rules and LGBT policies.
Another €10 billion in post-pandemic recovery funding (RRF) is awaiting final payment approval, despite the EU having approved Hungary’s revised recovery plan in July. Altogether, approximately €13.5 billion remains subject to separate EU decisions.
European Commission President Ursula von der Leyen welcomed Tuesday’s agreement, declaring that a ‘new chapter’ was beginning for both Hungary and Europe.
Tisza MEP Viktor Weisz also praised the decision, arguing that the government’s reforms had demonstrated how Hungary could regain access to European opportunities. He stressed that Hungarian students should not pay the price for political disagreements and described Erasmus+ as an important educational opportunity.
Prime Minister Péter Magyar has previously described the agreement with Brussels as a historic achievement, insisting that the only concession required to recover Hungary’s frozen EU funds was ending corruption under the Orbán government. Following the May negotiations, he pledged to bring home ‘every eurocent’ of the money owed to Hungary.
Former governing party Fidesz, however, condemned what it called a ‘Brussels–Tisza pact’, accusing the EU of previously withholding funds to weaken Orbán and now releasing them to support his successors. The party further alleged that the agreement would come at the cost of Hungary’s political and economic independence.
Balázs Orbán, a Fidesz MEP and former political director to Viktor Orbán, went further, describing the agreement as a ‘colonial payoff’. In a post on X, he claimed that the EU’s conditions were helping to establish a ‘liberal authoritarian regime’, pointing to the government’s retroactive eight-year limit on prime ministers, which prevents Viktor Orbán from returning to the post, and alleging that foreign companies were benefiting from public contracts.
Despite Tuesday’s breakthrough, Hungary’s wider disputes with Brussels are not entirely resolved. The EU’s separate rule-of-law procedure, launched in 2018 and potentially carrying more serious political consequences, remains open, with no decision yet taken on its termination.
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