Hungary secures release of 16.4 billion euros in EU funds after agreement with Brussels
Brussels, May 29
Hungarian Prime Minister Peter Magyar announced on Friday that Hungary had reached a political agreement with the European Union on the release of 16.4 billion euros in previously frozen European Union funds.
The agreement was reached following talks with European Commission President Ursula von der Leyen in Brussels and would unlock approximately 6,000 billion forints in EU resources, equivalent to about 13 percent of Hungary's gross domestic product, Magyar said.
The package consists of 10 billion euros that can be unlocked under Hungary's revised Recovery and Resilience Plan, subject to the implementation of agreed reforms and investments, as well as 4.2 billion euros in cohesion funds released after progress on governance-related conditions and a further 2.2 billion euros linked to reforms in higher education and academic freedom, according to von der Leyen, Xinhua News Agency reported.
The funding will support projects in energy, transport, housing, digitalisation and small and medium-sized enterprises. Magyar said the resources would also be available for electricity grid upgrades, railway modernisation, rental housing projects, healthcare and education development, while several billion euros could be claimed for projects already completed or under implementation.
Speaking after the meeting, Magyar described the outcome as a "historic day" for Hungary. "We are taking home the thousands of billions of forints in European Union support that belong to the Hungarian people," he said.
Von der Leyen said the agreement followed weeks of intensive cooperation between the European Commission and Hungary's new government on reforms aimed at strengthening anti-corruption safeguards and the rule of law.
"We agreed on a robust architecture to ensure that Hungary addresses corruption and rule-of-law concerns," she said, adding that Hungary had decided to join the European Public Prosecutor's Office (EPPO), strengthen its Integrity Authority, revise public procurement rules and gradually phase out public-interest trusts that had raised concerns about conflicts of interest and state capture.
According to von der Leyen, the reforms enabled the Commission to unlock funding previously frozen under various EU mechanisms. She said the two sides had agreed on "very concrete projects" supporting key sectors including energy, housing, transport and small and medium-sized enterprises.
Von der Leyen also announced that Hungarian students would again be able to participate in the Erasmus exchange program from the next academic year, following progress on issues related to academic freedom and governance in higher education institutions.
Further details of the agreement are expected to be released in the coming days.
— IANS
Reader Comments
Finally! Hungary got its money back after playing nice with Brussels. It's like how sometimes we have to follow certain rules to get funds from the central government. But 16.4 billion euros is a lot - hope they use it for genuine development and not just line pockets. The mention of anti-corruption safeguards gives me some hope. 👍
This is a classic case of 'carrot and stick' diplomacy by the EU. Hungary had to join the European Public Prosecutor's Office and tighten procurement rules to get this money. Reminds me of how international lenders like IMF impose conditions on developing countries. But here's my respectful criticism: why should a sovereign nation be forced to change its internal policies just to access funds it's entitled to? Seems like a power play by Brussels.
As an Indian watching European politics, I find this fascinating. Hungary's Prime Minister calls it a 'historic day' - such drama! But 16.4 billion euros for a country of 10 million people is indeed huge. The focus on energy, railways, housing, and SMEs sounds like something our own government should prioritize more. And Erasmus program reopening is great for Hungarian students - global exposure is priceless. 🇪🇺
I appreciate that the EU actually withholds funds until governance reforms are implemented. In India, we often see funds released without proper accountability, leading to waste. Hungary's decision to join the European Public Prosecutor's Office shows they're serious about fighting corruption. But I'm skeptical - will these reforms really stick, or is it just a show to get the money? Only time will tell.
R Ramesh W