The European Commission has proposed unfreezing €4.2 billion in cohesion funding for Hungary after finding progress on agreed rule‑of‑law milestones. The move would allow Hungary to rejoin Erasmus+ and Horizon Europe, but other sums remain blocked over academic freedom, LGBTIQ+ and asylum concerns. Hungary seeks further access to roughly €10 billion in recovery funds, and final approval of the €4.2 billion release depends on a likely Council vote on 13 October.
EU Proposes Unfreezing €4.2bn for Hungary After Rule‑of‑Law Progress — Erasmus+ and Horizon Europe Access Restored
Von der Leyen says Hungary 'strengthened rule of law', unlocks €4.2bn in EU funding
The European Commission has proposed releasing €4.2 billion in previously frozen cohesion funding for Hungary after concluding that Budapest has made meaningful progress on rule‑of‑law conditions. The proposal would also clear the way for Hungarian students and researchers to rejoin the Erasmus+ mobility scheme and the Horizon Europe research programme.
In 2022 the EU activated its conditionality mechanism and suspended €6.3 billion in cohesion payments to Hungary, citing weaknesses in anti‑corruption safeguards, conflicts of interest and systemic irregularities in public procurement. Under a May agreement between European Commission President Ursula von der Leyen and Hungarian Prime Minister Péter Magyar, up to €16.4 billion could be released provided Hungary met a set of rule‑of‑law milestones.
"Hungary has taken important steps to strengthen the rule of law and protect the Union's financial interests," von der Leyen said. "Today, we are proposing to unlock €4.2 billion and reopen the doors of Erasmus+ and Horizon Europe to Hungarian students and researchers."
Under the von der Leyen–Magyar arrangement, Budapest agreed to deliver 27 so‑called "super milestones" plus more than 100 additional conditions. In late August the Hungarian government said it had met those requirements, including addressing issues around public interest trusts (KEKVA) — legal vehicles the previous administration used to place public institutions, such as universities, under its control.
Not all funds have been cleared. A further €2.2 billion in cohesion money remains blocked over concerns about academic freedom. Additional items in the cohesion envelope are frozen for specific reasons: €500 million linked to Hungary's "child protection" law that Brussels regards as discriminatory against LGBTIQ+ people, €31 million tied to asylum‑related restrictions, and €800 million withheld over thematic enabling conditions related to social inclusion and poverty.
Hungary is also seeking access to about €10 billion in EU recovery funds; the Commission's assessment of that request is ongoing. If Budapest satisfies the remaining conditions, it could ultimately unlock up to €17.31 billion in EU support. Prime Minister Péter Magyar has pledged to address the LGBTIQ+ and asylum law concerns by the end of the year.
The Commission's proposal to release the current €4.2 billion still requires a positive decision by the Council. EU sources say approval is likely: the General Affairs Council could hold a qualified‑majority vote on the matter on 13 October, which could also mark Hungary's return to Erasmus+ and Horizon Europe participation.
What This Means
If the Council approves the Commission's proposal, Hungarian universities, researchers and students would regain full access to major EU programmes, while continued monitoring will determine whether further frozen funds are released as Budapest implements the outstanding reforms.
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