Brussels, 23 September, (Brussels Morning Newspaper) – The European Commission has proposed releasing €4.2 billion in suspended EU funds for Hungary after concluding that Prime Minister Péter Magyar’s government has addressed rule-of-law shortcomings affecting the EU budget. The proposal, announced on Wednesday, requires approval from EU member states before the funding restrictions can be lifted.
Commission proposes lifting Hungary funding restrictions
The €4.2 billion consists of cohesion policy commitments suspended under the EU’s Conditionality Regulation. The restrictions date from 2022, when Brussels acted over concerns including corruption safeguards, conflicts of interest and irregularities in public procurement.
Hungary notified the Commission on 9 September 2026 of measures taken to address the outstanding concerns. Following its assessment, the Commission said Budapest had remedied previously identified weaknesses involving public procurement, the anti-corruption framework, conflicts of interest and the effectiveness of prosecutorial action.
The reforms include stronger powers for Hungary’s Integrity Authority and changes to asset declarations and procurement safeguards. The proposal is part of a wider process involving €16.4 billion in frozen Hungarian recovery and cohesion funding that Brussels said in May could be unlocked as reforms were implemented.
Von der Leyen welcomes Hungary’s reforms
European Commission President Ursula von der Leyen welcomed the latest changes in a statement issued on Wednesday.
“Hungary has taken important steps to strengthen the rule of law and protect the Union’s financial interests.”
She also confirmed the scale and wider impact of the proposal:
“Today, we are proposing to unlock €4.2 billion and reopen the doors of Erasmus+ and Horizon Europe to Hungarian students and researchers.”
Von der Leyen said the development showed that reforms were delivering results.
Erasmus+ and Horizon Europe access could be restored
The proposal goes beyond cohesion funding. If approved by the Council, restrictions affecting Hungarian universities maintained by public-interest trusts would also be removed, restoring access to Erasmus+ and Horizon Europe for their students and researchers.
EU Budget, Anti-Fraud and Public Administration Commissioner Piotr Serafin said on Wednesday that the government’s changes could now allow European money to resume flowing.
“With the important steps taken by the government of Prime Minister Peter Magyar to safeguard EU taxpayers’ money, billions of euros can now flow again.”
Serafin’s statement provides a second current official reaction to the Commission’s 23 September announcement.
Funding was frozen under previous government
The funding dispute developed during Viktor Orbán’s government. In 2022, the EU suspended €6.3 billion in cohesion funding under its conditionality mechanism amid concerns about Hungary’s anti-corruption framework, conflicts of interest and public procurement.
Magyar took office after winning Hungary’s April 2026 election and made restoring access to frozen European funding a major objective of his government.
Separate funding remains subject to other EU conditions. The Commission is still assessing Hungary’s request concerning €10 billion in recovery funding, while around €2 billion in cohesion funding remains blocked over separate issues.
EU Council must approve €4.2bn release
The Commission’s announcement does not mean the money has already been transferred to Hungary. It is a formal proposal to the Council to lift the protective measures adopted in 2022.
The Council has one month from the Commission proposal to decide whether to approve the change. If adopted, €4.2 billion in suspended commitments would be reinstated and affected universities would regain access to Erasmus+ and Horizon Europe.
The Council’s decision will therefore determine the next step for the EU funds for Hungary and the restoration of the education and research programmes.
