European Commission Prepares to Release €10 Billion in Recovery Funds to Hungary

The European Commission is completing its evaluation to unlock nearly €10 billion from the post-pandemic Recovery and Resilience Facility for Hungary. An official familiar with the file indicated that the executive body has identified no major obstacles, clearing the way for Budapest to receive all or nearly all of the requested funds.

The anticipated approval follows an agreement reached in May between Commission President Ursula von der Leyen and Hungarian Prime Minister Péter Magyar, who assumed office after an election victory in April. Magyar campaigned on a pledge to secure frozen European Union funds that were held back during former Prime Minister Viktor Orbán's sixteen years in office.

To satisfy the European Union's requirements ahead of an end-of-November authorization deadline, the Hungarian parliament amended more than 100 laws over the summer. The legislative package addressed 27 primary conditions set by Brussels, which concentrated on reinforcing judicial independence and enhancing anti-corruption frameworks.

Under the revised national recovery plan submitted in late August, Hungary allocated €3.6 billion—more than a third of the overall package—toward capital injections into state institutions. This capital is directed to the Hungarian Development Bank and a newly formed, state-owned railway firm known as the Rolling Stock Company. The broader recovery plan also assigns resources to upgrade Hungary's national energy grid, renovate rail infrastructure, and expand public rental housing.

The allocation forms part of a larger €16.4 billion pool of withheld funds. In September, the Commission approved the release of €4.2 billion in cohesion funding following earlier statutory reforms. However, an additional €2.2 billion remains blocked over unresolved conditions regarding academic freedom and LGBTI+ rights, for which Hungarian authorities have not yet submitted compliance documentation. Following the Commission's formal recommendation, the decision must be ratified by EU member states before payments can proceed.

Written by Martina Kirchner martina.kirchner@alpineweekly.com