The European Commission has taken a significant step by proposing to release €4.2 billion in frozen cohesion funds to Hungary. This proposal also includes reinstating full access for Hungarian students and researchers to the Erasmus+ and Horizon Europe programs. This development comes after Hungary reportedly made progress in addressing various rule-of-law concerns that were impacting the EU budget. These concerns included issues related to public procurement, anti-corruption measures, conflicts of interest, and the effectiveness of prosecutorial action.
However, the proposal is not yet finalized. It requires approval from the Council of the European Union, which has a month to make a decision on whether to lift the financial restrictions imposed in 2022. Until the Council gives its approval, the current funding restrictions will remain in place.
While the release of €4.2 billion is a positive move for Hungary, it represents only a portion of the EU funds that are still restricted. Other cohesion funds remain blocked due to separate conditions, and Hungary’s access to recovery funds is undergoing a separate assessment process. Therefore, while progress is being made, Hungary still faces challenges in securing full EU financial support.