EU Signals Funds Release Pending Hungarian Reforms

Following Peter Magyar’s victory in Hungary’s elections, the European Commission has begun efforts to restore relations and unblock frozen EU funds. In Brussels, there is an expectation that the new government will improve relations with Ukraine and lift blockages on key decisions, including a loan to Kyiv and sanctions against Russia, the Financial Times reported.

Magyar has been given a strong mandate, which EU officials say raises expectations for swift reforms. These are expected to focus in particular on the judiciary, the fight against corruption and the functioning of public institutions. Hungary must meet 27 conditions for the release of about €35bn in funds, including strengthening the rule of law and changing legislation.

The requirements also cover academic freedom and the treatment of asylum seekers. Budapest is currently paying daily fines of €1m, which have already accumulated to almost €900m, for failing to comply with a Court of Justice of the European Union ruling on asylum policy.

At the same time, the Commission is preparing the technical steps needed to disburse financial assistance to Ukraine so it can be approved as soon as the new government takes office. A settlement of the dispute over asylum policy, which is costing Hungary heavy fines, is also expected.

Magyar has declared his interest in restoring democratic principles, strengthening control mechanisms and involving the country in the European Public Prosecutor’s Office. However, the EU has warned that the process of releasing funds will not be immediate and will depend on concrete steps taken by the new government.

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