EU Approves Billion-Euro Aid Package for Hungary Under New Government]
The European Union indicated Friday that it is prepared to release billions of euros in previously frozen funds to Hungary, marking a significant improvement in relations following the electoral defeat of Prime Minister Viktor Orban and the installation of a new administration.
Brussels would disburse approximately €16.4 billion ($19.1 billion) of over €19 billion in withheld aid, funds that were suspended to pressure Mr. Orban’s government into implementing anti-corruption and rule-of-law reforms. The longstanding resistance formed a central element of Mr. Orban’s re-election campaign, which he framed as defiance against EU economic pressure.
While specific timelines for the fund release remain under negotiation, European Commission President Ursula von der Leyen expressed optimism during her meeting with Hungary’s newly appointed Prime Minister Peter Magyar in Brussels.
“A new era is beginning for Hungary now,” Ms. von der Leyen told Mr. Magyar, adding that substantial progress had been achieved rapidly and that market confidence was improving.
Mr. Magyar outlined plans to allocate the recovered funds toward protecting academic freedoms, developing renewable energy infrastructure, upgrading public transportation, and supporting small and medium enterprises in adopting advanced technologies.
The new prime minister directly criticized Mr. Orban’s failure to negotiate EU anti-corruption guidelines, noting that the €16.4 billion package would cover roughly 13 percent of Hungary’s annual budget.
“The previous government could have done it,” Mr. Magyar stated, emphasizing that compliance required only a commitment to fighting corruption rather than ideological resistance.
A senior European Commission official confirmed that actual payments would depend on Hungary completing agreed-upon reforms and investments, with initial disbursements expected by year-end.
Both Mr. Magyar and Ms. von der Leyen emphasized that the aid agreement does not condition Hungary’s participation in EU membership discussions with Ukraine, a separate issue on which Mr. Orban had also maintained an opposition stance.
