Negotiators from Hungary and the European Commission have engaged in intensive discussions to secure the release of frozen EU funds, marking a pivotal moment in relations following the end of Viktor Orbán’s 16-year rule. Péter Magyar, who won April’s general election, has sought to unlock approximately €17 billion in funding that was withheld by Brussels due to concerns over corruption and the rule of law during the previous administration. Ahead of a critical end-of-August deadline, members of Magyar’s government held talks with Commission officials to secure €10.4 billion from the EU’s post-pandemic Recovery Fund.

Hungarian Prime Minister Magyar expressed optimism in a Facebook video, stating that an agreement was "very close," despite some outstanding issues. He met with European Commission President Ursula von der Leyen to resolve these final points. Progress had already been made on conditions related to the governance of public-interest foundations and extending the mandate of Hungary’s Integrity Authority, its anti-corruption body. Magyar also requested flexibility from the Commission on issues involving constitutional questions.

During the negotiations, the Commission urged Hungary to prioritize the €6.5 billion in non-refundable grants from the recovery package over the €3.9 billion loan component. Hungary had already received €919 million in advance payments. Beyond the Recovery Fund, Magyar aimed to unblock significant cohesion funds. Meeting existing Recovery Fund conditions could release €4.3 billion, while an additional €2.5 billion was contingent on more politically sensitive reforms, including changes to anti-LGBTIQ+ legislation, asylum rules, and the restoration of academic freedom.

Initially, it was considered that by forgoing the recovery loan and the politically sensitive cohesion funding, Hungary could secure around €11 billion of the total €17 billion. However, Magyar stated his intention to fight for "every penny." Discussions also included whether Hungary could replace earlier reform commitments on taxation and pensions with alternative measures, necessitating a revised national recovery plan.

Beyond the financial negotiations, other critical issues were on the agenda, including Ukraine’s EU accession talks and the EU’s push for member states to reduce dependence on Russian oil and gas. While Magyar asserted that the fund negotiations were "not connected in any way with the issue of Ukraine, the war or gender issues," European Commission spokeswoman Paula Pinho acknowledged that both leaders were free to raise any issues. Under Orbán, Hungary had blocked Ukraine’s accession talks, and Magyar’s government indicated it would lift its veto if Ukraine restored the educational and language rights of the Hungarian minority. Hungary also opposes ending Russian energy imports, seeking to continue them until 2035.

On Friday, Prime Minister Péter Magyar successfully sealed an agreement with President Ursula von der Leyen, securing the unblocking of nearly all recovery and cohesion funds. This deal allows Hungary to access the full €16.4 billion that had been frozen under the previous administration. Von der Leyen praised Magyar for forming a government "in record time" and swiftly advancing "long-overdue reforms." The agreement includes the release of €10 billion from the Recovery and Resilience Facility, €4.2 billion in cohesion funds, and a further €2.2 billion from a separate tranche of cohesion funding. Magyar proudly noted that "three weeks was enough to do what Viktor Orbán could not achieve in three years," affirming that they "fought for the full amount." While this marks a significant breakthrough, Hungary must still meet a set of "super-milestones" for the complete release of these funds.