EU moves to restore funds for Hungary

On 23 September 2026 the European Commission proposed to unlock €4.2 billion in suspended cohesion funding for Hungary. The funds had been affected by measures adopted in 2022 under the EU’s rule-of-law conditionality mechanism. The new proposal would reopen these cohesion commitments, subject to approval by member states in the Council of the European Union.

The move follows a formal assessment process within the Commission. Officials examined whether Hungary had sufficiently addressed concerns that had prompted the protective measures affecting EU budget payments.

Hungary notified a set of remedial measures on 9 September 2026. The Commission reviewed these steps and concluded that earlier weaknesses had been addressed. The evaluation covered several areas central to the protection of the EU budget.

Specifically, the Commission found that shortcomings in Hungary’s public procurement system had been remedied. It also cited improvements to the anti-corruption framework, the management of conflicts of interest and the effectiveness of prosecutorial action. On this basis, it judged that the conditions for maintaining the previously adopted measures were no longer met for the affected funds.

Beyond cohesion funding, the proposal would restore full Hungarian participation in key EU programmes for education and research. Access to the Erasmus+ student-exchange scheme would be reopened for Hungarian participants. Researchers and institutions in Hungary would also regain access to the Horizon Europe research and innovation programme.

The Commission’s plans include removing restrictions affecting universities maintained by public-interest asset management foundations. These universities had been subject to limits on their participation in certain EU-funded programmes. Lifting these constraints would allow students and researchers at these institutions to take part in the restored EU schemes on the same basis as peers elsewhere in the Union.

The Commission’s proposal is not self-executing and requires approval by the Council of the European Union. Member states have one month from the submission of the proposal to decide whether to lift the conditionality measures adopted in 2022. A Council decision in favour would formally unlock the €4.2 billion and restore Hungary’s access to the specified programmes.

Until the Council reaches a decision, the 2022 measures remain in place. The outcome will determine whether Hungary can again fully benefit from the identified cohesion funding and from participation in Erasmus+ and Horizon Europe. The process underscores the link between EU budget protection and adherence to agreed rule-of-law standards.