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Restrictions on participation in Erasmus+ and Horizon Europe have also been lifted.
The decision releases more than HUF 1.5 tln in funding following measures to address concerns over corruption, transparency and the management of public money, according to a statement published on the government’s website.
A December 2022 Council decision partially suspended funding for three cohesion policy operational programs, initially freezing EUR 6.3 bln. Under EU budget rules, roughly EUR 1 bln of that allocation was lost annually, the statement said.
By 2026, EUR 4.2 bln remained available. This funding formed part of an agreement in principle reached in May between Hungary’s prime minister and the European Commission president.
According to the government, both the Commission and the Council concluded that Hungary had taken significant steps in recent months to address the rule-of-law concerns, allowing the procedure to be closed.
To regain access to the funding, the government committed to anti-corruption and transparency measures and amended more than 100 pieces of legislation.
The changes introduced stricter oversight of public spending and EU funds, expanded the Integrity Authority’s powers and established new conflict-of-interest rules. The government also said it had made the asset declaration system and private equity funds more transparent.
Hungary has also begun dismantling its system of public-interest asset management foundations performing public duties, known by the Hungarian acronym KEKVA.
Foundations without higher education responsibilities were dissolved on August 31. Those operating universities are scheduled to be dissolved on August 31, 2027, to ensure continuity in higher education.
The government has also decided that Hungary will join the European Public Prosecutor’s Office. Although joining was not a condition for unlocking the funding, the government said the Commission’s proposal recognized the decision as evidence of Hungary’s commitment to fighting corruption.
The Council’s 2022 decision also barred new EU funding commitments involving the public-interest foundations and institutions they maintained, restricting their participation in Erasmus+ and Horizon Europe.
The latest decision lifts that restriction, according to the government. Participation in the programs could resume in the spring once the necessary cooperation agreements have been signed.
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