The European Commission has put forth a proposal to release €4.2 billion in frozen cohesion funds to Hungary, contingent on the country’s efforts to address rule-of-law concerns. This proposal also aims to restore full access for Hungarian students and researchers to the Erasmus+ and Horizon Europe programs, which had been previously restricted.
This move comes as the Commission acknowledges Hungary’s steps towards reforming public procurement processes, implementing anti-corruption measures, addressing conflicts of interest, and enhancing the effectiveness of prosecutorial actions. These reforms are crucial for ensuring that the EU budget is not compromised by rule-of-law issues.
Before the funds can be released, the proposal must receive approval from the Council of the European Union. The Council has one month to deliberate and decide on lifting the restrictions imposed on Hungary in 2022. Until a decision is reached, the restrictions on funding will remain in effect.
The €4.2 billion represents only a portion of the EU funds that have been frozen for Hungary. Additional cohesion funding is still blocked under separate conditions, and Hungary’s access to EU recovery funds is undergoing a separate review process.