EU officials arrived in Budapest on 17 April to hold negotiations just weeks before Magyar Péter’s new government takes office. The talks signal an effort on both sides to revive Hungary’s strained relations with the European Union.
Paula Pinho, Chief Spokesperson for the European Commission, wrote on X that the meetings were an opportunity to “unlock EU funds for Hungary that are frozen over corruption and rule of law concerns.”
Why are Hungary’s EU Funds Frozen?
The European Union has blocked approximately €17 billion in funding for Hungary since 2022. These frozen funds are set to expire at the end of August; to secure them, Hungary must meet several conditions, including implementing anti-corruption measures, reforming the judiciary, and restoring press freedom.
“Without EU money, the Hungarian economy cannot be restarted. EU funds are not a charity, but a compensation for the money paid by Hungarians to the EU and for the work our country has done for Europe,” wrote Magyar Péter in his Facebook post.
Unblocking Hungary’s frozen EU funds and repeated criticisms of corruption under the Orbán administration were at the centre of Magyar Péter’s election campaigns.
Unblocked Funds, will anything change?
“The EU funds will be desperately needed so that Tisza can deliver at least on some of their promises,” Péter Krekó, director of the Political Capital think tank, told the Guardian. The EU too likely has it in their interest to unblock the frozen funds to Hungary, given the relentless anti-EU smear campaigns Hungarians have been exposed under Orbán's administration.
Closer relations with the EU might potentially see an increase in foreign investment for Hungary. This could mean greater job opportunities with EU companies and perhaps a more predictable forint (HUF). Yet, unblocking EU funds means the money is available, deploying the funds is entirely different.
Securing frozen EU funds is only half of the equation for Magyar Péter’s incoming government. Closer relations with the EU will be met with Orbán's legacy, whose 16 years in office have restructured the very administrative bodies necessary to deploy these funds at scale.
Hungary–EU Relations
Magyar Péter celebrated his party's two-thirds supermajority on the eve of election night; five days later, EU officials were in Budapest preparing for negotiations.
Whether the unblocked funds will immediately change anything for everyday individuals is unlikely. Nevertheless, Magyar Péter’s campaign focus on Hungary’s frozen EU funds means he will have no choice but to face the administrative challenges of inheriting a government shaped by more than a decade of continuous Orbán rule.