European Commission President Ursula von der Leyen has announced a sweeping agreement with Hungary’s new government led by Prime Minister Péter Magyar, including the release of more than €16 billion in previously frozen EU funds, Hungary’s decision to join the European Public Prosecutor’s Office (EPPO), the restoration of Hungarian participation in the Erasmus programme, and a broad package of anti-corruption and rule-of-law reforms.

Speaking at a joint press conference with Magyar on Friday, 29 May, von der Leyen described the deal as a ‘historic agreement’ marking the beginning of ‘a new Hungarian era’ after years of tense relations between Brussels and Budapest under former prime minister Viktor Orbán.

The Commission president emphasized that the European Union and the Hungarian government had already established an intensive joint working structure focused on restoring the rule of law, fighting corruption, and unlocking billions of euros in frozen EU funds.

Von der Leyen confirmed that Hungary had decided to join the European Public Prosecutor’s Office (EPPO), a long-disputed issue during the Orbán era, in order to strengthen oversight over the use of EU funds. She also announced reforms aimed at strengthening Hungary’s Integrity Authority, tightening public procurement rules, and gradually dismantling the controversial public-interest asset management foundations established under the previous government.

‘These are very clear signs that Hungary has said goodbye to a previous era,’ von der Leyen declared.

‘A major symbolic breakthrough announced during the speech concerned Hungary’s return to the Erasmus programme’

The European Commission president also announced that Brussels would release €10 billion from previously frozen EU funds following progress in negotiations and reforms.

In addition, she revealed that €4.2 billion in cohesion funds tied to the EU’s conditionality mechanism would also be unlocked due to progress on the so-called ‘super milestones’ related to rule-of-law concerns.

Von der Leyen further stated that reforms connected to university governance and integrity safeguards would allow another €2.2 billion in cohesion funding to be released in the future.

A major symbolic breakthrough announced during the speech concerned Hungary’s return to the Erasmus programme. The Commission president confirmed that Hungarian students would once again be able to participate in Erasmus exchanges from the next academic year onward.

At the same time, von der Leyen noted that some issues remained unresolved, particularly regarding Hungary’s child protection legislation, where she said ‘further steps are needed’, though she added that discussions were moving ‘in the right direction’.

The Commission president also linked the rapid agreement to improving investor sentiment toward Hungary.

‘The markets are already signalling this back to us: investor confidence has returned, and trust in Hungary has returned once again,’ she said.

Von der Leyen concluded by personally thanking Péter Magyar and his ministers for what she described as an unprecedented pace of negotiations. According to her, talks with Brussels began only five weeks ago, while the government itself was officially formed just three weeks earlier. Despite this, the sides managed to conclude what she repeatedly called a ‘historic agreement’.

Hungary Faces Tight Deadline

After von der Leyen’s remarks, Péter Magyar thanked the Commission president and her staff for reaching what he also described as a historic agreement in just five weeks, while also praising his own ministers for their ‘intense pace of work’.

The prime minister recalled that one of the central promises of his election campaign had been to bring home the frozen EU funds. According to Magyar, the previous government had ‘continuously lied’ about the reasons behind Brussels freezing the money, claiming it was linked to Hungary’s positions on the war in Ukraine, migration and LGBTQ issues.

‘What they never admitted was that the freezing of the funds was primarily caused by the unbelievable level of corruption,’ Magyar said.

He stated that Hungary and the European Commission had now reached an understanding under which, if Budapest implemented the necessary anti-corruption and transparency reforms, the money would begin flowing again. According to Magyar, the government adopted the required measures and managed to conclude negotiations within three to four weeks.

Magyar added that the government would fundamentally reform Hungary’s asset declaration system by introducing criminal penalties for false declarations. Under the planned legislation, intentionally providing false financial information could become punishable by up to two years in prison.

‘From now on, the possibility for those in power to transfer public assets to their oligarchs will cease,’ the prime minister declared.

‘From now on, the possibility for those in power to transfer public assets to their oligarchs will cease’ 

According to Magyar, the overall package would provide Hungary with access to €16.4 billion, equivalent to approximately HUF 6,000 billion, or around 13 per cent of Hungary’s annual budget.

The prime minister outlined several major investment priorities for the incoming funds. According to the government, €4.4 billion from cohesion funding will be directed towards transport, healthcare, social development, and support for small and medium-sized enterprises. Another €2.2 billion will be allocated to education, research, and development.

Magyar also announced plans for €1.5 billion in investments into Hungary’s electricity grid, alongside renewed support for wind and solar energy projects and new energy storage capacity. The government also intends to use EU funds to purchase new railway and HÉV suburban train carriages worth €2 billion, while launching a new public and rental housing programme.

At the same time, both sides acknowledged that significant procedural steps still remain before all funds can arrive in Hungary. The government must still fulfil the EU’s 27 so-called ‘super milestones’ and more than 350 additional milestones inherited from previous agreements with the European Commission.

Budapest must also submit a revised recovery plan to the Commission, which will then require approval by EU finance ministers in the Council of the European Union.

The timeline is particularly tight because the conditions for accessing recovery funds must be fulfilled by 31 August, a deadline inherited from the previous government. Payment requests can then be submitted until the end of September, while the funds themselves must arrive by 31 December. According to current estimates, Hungary is attempting to preserve access to €10.4 billion from the recovery facility, consisting of €6.5 billion in grants and €3.9 billion in preferential loans.

Watch the full press conference below:

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