Hails Hungary's 'wind of change' and unlocks €16.4bn for new PM Magyar

The EU's executive arm unlocked 16.4 billion euros in funding for Hungary's new prime minister, signaling a decisive shift in Brussels' approach to the country. European Commission President Ursula von der Leyen told Péter Magyar that the money would be released subject to reforms aimed at anti-corruption measures and the strengthening of the rule of law. Magyar, in office fewer than three weeks after a landslide victory over Viktor Orbán, called the deal historic and said it would unlock growth in Hungary's flagging economy. The package combines 10 billion euros from the Covid-19 recovery fund with 6.4 billion euros from cohesion funds, and the funds are tied to milestones.

Von der Leyen highlighted reforms such as joining the European Public Prosecutor's Office and revising public procurement rules. Magyar said talks began only weeks ago and that the agreement, reached in Brussels, would support health, transport and education projects. The funding amounts to about 13% of Hungary's annual budget and is aimed at developing the electricity grid, intercity trains, and other infrastructure. Opposition to Orbán's government has argued that corruption and democratic backsliding caused funds to be frozen, while Magyar contends that anti-corruption safeguards were the real condition for unlocking them.