European Union countries have backed plans by the European Commission to unblock €4.2 billion ($4.7 billion) in EU funding for Budapest which were frozen over corruption allegations under former prime minister Viktor Orbán.
“A new chapter starts today. For Hungary and for Europe,” said European Commission President Ursula von der Leyen on Tuesday, after EU ministers in charge of European affairs gave their green light at a meeting in Luxembourg.
With reforms implemented since Prime Minister Péter Magyar took office in May, Budapest has addressed shortcomings in areas such as public procurement and the fight against corruption, according to the commission.
“Over the past few months, the new government has made significant progress in restoring the rule of law and reversing some of the previous government’s decisions. Respect for the rule of law is essential for accessing EU funds,” said EU Justice Commissioner Michael McGrath.
The unfrozen funds are part of the roughly €20 billion frozen under Orbán and are meant to support economically disadvantaged regions in Hungary.
In May, the commission said it was prepared to release a total of €16.4 billion pending the successful implementation of reforms.
In addition to the €4.2 billion previously frozen over corruption allegations, a further €10 billion is to come from the EU’s COVID-19 recovery fund. Hungary has also pledged reforms in the area of academic freedom, which could bring Budapest a further €2.2 billion.