Europe

EU releases EUR 16.4 billion funds to Hungary: details of interventions

Brussels and Budapest reach an understanding that includes progress on corruption, rule of law and academic freedom, releasing funds for strategic projects in energy, transport and SMEs

29 May 2026aggiornato alle 15:40

Ursula von der Leyen, presidente Commissione europea IMAGOECONOMICA

3' min read

Translated by AI

Versione italiana

Key points

Details of the planned works in Hungary

3' min read

Translated by AI

Versione italiana

The agreement reached between Budapest and Brussels on the release of frozen European funds amounts to approximatelyEUR 16.4 billion.

This was announced by Hungarian Prime Minister Peter Magyar at a press conference with European Commission President Ursula von der Leyen. "These European funds will help boost the economy. We have agreed on all the necessary steps to enable their release," Magyar indicated.

Von der Leyen pointed out that in addition to the EUR 10 billion released - 'provided that reforms are adopted and investments are made' - 'progress' had also been made to release EUR 4.2 billion related to cohesion funds.

Von der Leyen also specified that the EU 'will not take shortcuts', but clearly signals that progress has been made on the reforms that Brussels expected from Hungary.

The EU leader argues that 'structural reforms to combat corruption and state capture' dating back to the Orban era are necessary, as they would 'unlock billions of euros of funding, frozen in recent years'.

According to von der Leyen, the new Hungarian government and the Commission 'immediately set to work within a solid structure to ensure that Hungary addresses the issues of corruption and the rule of law.

Budapest will "phase out public interest trusts, and adopt legislation to address concerns about conflicts of interest and integrity rules. This is a great and long-awaited step forward for academic freedom. This will therefore unlock an additional EUR 2.2 billion in cohesion funds for Hungary regarding academic freedom."

As far as theErasmus programme is concerned, "it is crucial that Hungarian young people can also benefit from this wonderful experience. So, already from the next academic year, good news: Hungarian students will also be able to join the Erasmus community," says von der Leyen.

The leader of the EU executive says that the respective teams 'worked hard day and night to find common ground and agree on a list of investments for the EU Next Generation Plan and we have now agreed on very concrete projects that will support key sectors such as, for example,energy, housing, but also transport and small and medium-sized enterprises, to name but a few. We have agreed on a safe and solid landing zone, which is then conditional on the reforms that are adopted and the investments that are made

The deadlines for Hungary and the EU

"The most difficult step is that Hungary will then have to complete all the reforms and investments agreed" in the new 10 billion recovery and resilience plan "by 31 August".

"Hungary then has one month to submit proof that it has completed these reforms and investments, so by the end of September, and the Commission has until the end of 20 November, to verify everything and make the disbursement by the end of the year."

This was reported by an EU official. "First of all, a review of the recovery and resilience plan is needed. The current one clearly needs to be replaced.

It is a huge task, because in the existing plan there are 67 reforms and 47 investments, so all this has to be reviewed. We now have a safe landing zone.

We expect that Hungary will formally submit the revision, probably in the course of the next week,' the EU fonet told Ansa.

"The revision has to be approved by the Commission and then ratified by the Council, in the Ecofin in July. The presentation of the revision is expected to take place next week,' the source points out.

The details of the planned works in Hungary

Once the reforms agreed with Brussels are completed, the package that could start first concerns the Recovery Fund and is worth EUR 10 billion: EUR 6.5 billion in grants and EUR 3.5 billion in loans.

Within them:
-2.6 billion are earmarked for projects already in the Hungarian NRP and feasible by the end of August;
-as well as 1.1 billion for investments initially planned through other channels but compatible with the Recovery rules.

Among the novelties are:
- 1.5 billion to strengthen the country's energy network;
- 2 billion to recapitalise the public development bank Mfb, which is to support new investments in the Hungarian economy.

On the loan front:
- the largest slice - 1.8 billion - will go to the renewal of trains for suburban and regional lines;
- another 500 million will be used to enter the European satellite programme Iris2;
- a further 500 million will finance Hungarian participation in the future European artificial intelligence gigafactories.

The second chapter of the agreement concerns the cohesion funds: Brussels acknowledges 'progress' that could pave the way for the release of another 4.2 billion euro.

The third and last dossier is worth EUR 2.2 billion and is the most political. Resources remain tied to further progress on the rule of law, in particular on the issue of academic freedom and university autonomy.