The European Commission will release €16.4 billion in previously frozen EU recovery and cohesion funds for Hungary following reforms by the new government, Commission President Ursula von der Leyen announced Friday.
Von der Leyen made the announcement after meeting with Hungarian Prime Minister Peter Magyar. The released funds include €10 billion from the Next Generation EU recovery fund, €4.2 billion in cohesion funds, and an additional €2.2 billion to be released as reforms are completed.
"I can confirm that it is €10 billion that have been unfrozen from Next Generation EU, then the €4.2 billion from the cohesion conditionality and €2.2 billion for academic freedom, which makes it €16.4 billion," von der Leyen said.
The EU funds are expected to help revive the Hungarian economy, which has stagnated for three years. The new government faces a budget deficit that the Commission projects could reach 6.2% of GDP in 2026, following substantial pre-election spending by former Prime Minister Viktor Orban.
"That is quite a sum, but the Hungarian people deserve it. Many thanks for the outstanding work," von der Leyen said.
