On April 14, 2026, European Union officials convened in Budapest to discuss crucial issues with the team of Péter Magyar, the recent election winner, including a significant loan for Ukraine and the release of approximately 17 billion euros (around $20 billion) in funds that had been withheld from Hungary during the administration of former Prime Minister Viktor Orbán. Magyar’s administration is expected to take office in May, prompting the EU to expedite discussions to facilitate collaboration with the impending government.
European Commission spokesperson Paula Pinho highlighted the urgency of the situation, indicating that these "preliminary talks" are intended to ensure timely action can be taken once the new government is established. The EU had previously frozen funding due to concerns over corruption and democratic regression under Orbán's 16-year leadership. However, both the EU and Hungary's incoming leaders share the goal of quickly unlocking these funds to address Hungary's struggling economy.
European Commission President Ursula von der Leyen emphasized the need for swift reforms in Hungary's policies to unblock EU funds. In her message on social media, she underscored the importance of restoring the rule of law, realigning with shared European values, and implementing reforms to access European investments. This call comes amidst von der Leyen's own contentious history with Orbán during the campaign.
Péter Magyar, whose party Tisza secured a super-majority in parliament, has committed to prioritizing changes in areas like judicial independence, media freedom, and anti-corruption measures. During his inaugural press conference following his notable victory on April 12, he acknowledged Hungary's financial difficulties, stating that it is vital for the new government to "bring home the money that is hers." Additionally, he pledged to adhere to an agreement made in December regarding a comprehensive 90-billion-euro loan for Ukraine, contrasting with Orbán's earlier veto of the legislation, which had frustrated EU officials.
The funds in question comprise 10 billion euros allocated for COVID recovery and an additional 6.3 billion euros designated for cohesion funds aimed at strengthening struggling EU economies. With a looming expiration deadline for the COVID funds in August, both Brussels and Budapest are keen on unlocking these resources first.
Hungary has faced growing criticism for straying from democratic norms, leading to the suspension of EU funds in 2022. The European Commission had long accused Orbán of undermining democratic institutions and curtailing media freedom. While Orbán dismissed these allegations as infringements on Hungary’s sovereignty, a year later, the Commission acknowledged that the government had made sufficient reforms to qualify for the release of approximately 10.2 billion euros (around $12.1 billion).
Experts assert that Magyar can rapidly implement reforms necessary to access these funds. Zsolt Darvas, a fellow at the Brussels-based think tank Bruegel, remarked that legislative changes could occur swiftly if the Tisza party demonstrates the political will to enact them. Key measures would involve altering the appointment and authority of judges.
Despite impending deadlines, Darvas noted that Hungary can mitigate potential setbacks by following precedents set by other countries, such as Poland and Portugal, where funds were placed in a national development bank for future allocation. Though the new government might not resolve Hungary's economic crisis solely through these funds, compliance with EU directives will signal stability to investors and foster a more favorable economic climate.
Furthermore, Hungary stands to gain substantial financial support if it participates in the EU’s 150 billion-euro Security Action for Europe (SAFE) initiative aimed at enhancing European defense readiness, particularly in light of the declining U.S. role in European security. Hungary is eligible for up to 16 billion euros through this program, and when combined with other financial inflows, these funds could represent approximately 15% of Hungary's GDP, as analyzed by Jeremy Cliffe from the European Council on Foreign Relations.
