EU and Hungary open talks on reforms to release €17bn in frozen funds

Hungary's incoming government is entering talks with European Union leaders aimed at releasing €17 billion in frozen funding, while advancing reforms to address long-standing rule of law concerns.

The meeting between top EU officials and Hungary's incoming leadership in Brussels on Wednesday is a bid to unlock billions of euros in frozen funding – and there are growing signs a breakthrough could come quickly.

The talks will bring together European Commission President Ursula von der Leyen and Hungary's incoming prime minister Peter Magyar, following a decisive election earlier this month that has reshaped Hungary's political landscape.

Around €17 billion in EU funds is at stake, previously blocked over rule of law concerns under the outgoing administration of Viktor Orban.

The discussions are expected to focus on concrete legal and institutional changes Budapest must deliver to secure the release of the money.

EU rushes to unlock billions for Hungary as Magyar prepares for power

August deadline

A significant portion of the frozen funding – including €11 billion from the EU's post-pandemic Recovery Fund – must be accessed by mid-August or be lost entirely.

That urgency has added momentum to negotiations, with both sides having already held two preparatory meetings since Magyar's landslide victory on 12 April.

His Tisza party secured a two-thirds parliamentary majority, giving him the power to amend Hungary's constitution – a factor EU officials believe could accelerate reforms.

“This engagement is about making swift, tangible progress,” said Commission spokesman Olof Gill, emphasising a structured approach aimed at ensuring Hungarians benefit from the funds as soon as possible.

The European Commission has made clear that the funding is intended to support citizens directly.

Europe welcomes Magyar victory as Orban concedes defeat in Hungary's elections

Beyond financial issues, Wednesday's talks could open the door to a broader reset in relations.

Discussions could include Hungary's potential return to the Erasmus student exchange programme, from which it has been excluded since early 2023 over concerns about academic freedom.

There is also the possibility of movement on Hungary's previous veto of EU reimbursements for military equipment supplied to Ukraine – an issue that has strained unity among EU member states since Russia's 2022 invasion of the country.

(with newswires)