The European Union has unlocked €16.4 billion (GHS 217 billion) in funding for Hungary. This decision follows the recent election of Prime Minister Péter Magyar. European Commission President Ursula von der Leyen announced the move, describing it as a "wind of change" in Hungary.
This substantial amount of money is a significant boost for Hungary's new leader. Magyar took office less than three weeks ago. His party won a landslide victory, unseating Viktor Orbán. Von der Leyen stated that the funding is contingent on Magyar's government enacting "long-overdue reforms." Magyar called the agreement a "historic breakthrough." He hopes these funds will help revive Hungary's struggling economy.
The funds were previously frozen by the EU. This occurred due to concerns about declining democracy and corruption allegations. These issues were prominent under Orbán's Fidesz-led government. Magyar's Tisza party made regaining access to this EU funding a key promise. The €16.4 billion represents about 13% of Hungary's total annual budget. This highlights the economic importance of the deal.
President von der Leyen praised Magyar's team. She said they have rebuilt trust with the EU. This trust allows for further cooperation. The bulk of the funding, €10 billion, comes from a Covid-19 recovery fund. Hungary must meet "super-milestones" by an August deadline. These milestones include anti-corruption and rule-of-law reforms. Hungary is also rejoining the European Public Prosecutor's Office. It is also updating laws on public procurement. Measures against "public interest trusts" are also underway.
An additional €6.4 billion will be released from EU cohesion funds. These funds aim to improve the economic and social infrastructure of the 27-member bloc. Magyar stated that negotiations with the EU began only weeks ago. He described the agreement as "really, really important for the Hungarian people." He previously accused Viktor Orbán of misleading the public about why EU funds were blocked. Magyar argued that corruption was rampant in Hungary.
Magyar believes that accepting anti-corruption measures and rules against cronyism was key. He said these steps were enough for a political agreement on the funds. He also mentioned that students will rejoin the Erasmus exchange program. This program allows students to study in other EU countries. The EU had suspended funding for over 20 Hungarian universities in December 2022. They were put under political control via public interest trusts.
The unlocked money will support sectors like health, transport, and education. Hungary plans to spend €1.5 billion on its electricity grid. This includes developing solar panels and wind farms. Another €2 billion will fund new intercity trains. Magyar's Tisza party now holds a two-thirds majority. This allows them to reform the constitution. A recent constitutional amendment limits future prime ministers to a maximum of eight years. This bars Orbán from returning to power.