Hungary's progress in reforms under its new government will allow the European Commission to unlock 16.4 billion euro of previously frozen EU recovery and cohesion funds for the country, European Commission head Ursula von der Leyen said on Friday (May 29).

Von der Leyen told reporters after meeting Hungary's Prime Minister Peter Magyar that the EU would unlock 10 billion euro ($11.6 billion) from the recovery fund, called Next Generation EU, and 4.2 billion euro in cohesion funds, with a further 2.2 billion euro as the reforms are completed.

The EU money is crucial to kick-start the Hungarian economy that has practically stagnated for 3 years.

The new government inherited a swelling budget deficit that according to the Commission might reach 6.2% of GDP in 2026 after heavy pre-election spending by former Prime Minister Viktor Orban, ousted in an election last month.

Magyar said the release of a total of 16.4 billion euros in suspended European Union funds will help kickstart Hungary's economy, calling the agreement reached on Friday with Brussels a "historic breakthrough."

Hungary's central bank left its base rate steady at 6.25% on May 26, as expected, after a rise in global energy prices and domestic fiscal risks, but noted a significant improvement in the inflation outlook amid strong gains in the forint. The forint has been boosted by hopes the EU funds would be unlocked.

Magyar said the deal on the EU money showed his government's anti-corruption measures were paying off -- fighting corruption, rampant under Victor Orban's government, was one of the key conditions for the EU to unfreeze the money.

DESCRIPCIÓN DE IMÁGENES

SHOWS: BRUSSELS, BELGIUM (MAY 29, 2026) (EUROPEAN UNION - Access all)

1. (PART MUTE) VARIOUS OF HUNGARIAN PRIME MINISTER PETER MAGYAR AND EU COMMISSION PRESIDENT URSULA VON DER LEYEN ARRIVING FOR NEWS CONFERENCE

2. (SOUNDBITE) (English) EU COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING:

"I'm very happy to announce today that we can unlock 10 billion euros for Hungary."

3. NEWS CONFERENCE ONGOING

4. (SOUNDBITE) (English) EU COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING:

"With the progress on the super milestones, we have also been able to unlock the conditionality related to cohesion funds worth 4.2 billion euros."

5. NEWS CONFERENCE ONGOING

6. (SOUNDBITE) (English) EU COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING:

"We have also made great progress on the protection of fundamental rights in Hungary, notably on academic freedom. Hungary will gradually phase out the Public Interest Trust, the PITS, and pass legislation to address concerns about conflict of interest and integrity rules. This is a big step forward, long-awaited; the academic freedom, and therefore this will unlock another 2.2 billion euros of cohesion funds for Hungary."

7. NEWS CONFERENCE ONGOING

8. (SOUNDBITE) (English) HUNGARIAN PRIME MINISTER, PETER MAGYAR, SAYING:

"You know, we just started the negotiations five weeks ago and now we are here. Just after three weeks, the new Hungarian government was formed and we have achieved already a historic breakthrough, an agreement really, really important for the Hungarian people, for my beloved country, Hungary. Many thanks. We are very grateful and we are ready to continue cooperating together in the interest of the Hungarian people and all the European citizens."

9. NEWS CONFERENCE ONGOING

10. (SOUNDBITE) (English) EU COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING:

"Your government is moving with speed and determination to deliver on the promises you have made to the Hungarian people. To kick-start the economic recovery, to fight corruption, and to restore the rule of law. And in a very short time, we already have concrete progress to share."

11. JOURNALIST ASKING QUESTION

12. (SOUNDBITE) (English) EU COMMISSION PRESIDENT, URSULA VON DER LEYEN, SAYING:

"These are strong signals that Hungary is turning the page. In only a few weeks, you have driven forward long overdue reforms, reforms for the benefit of Hungary and reforms for the benefit of the European Union."

13. NEWS CONFERENCE ONGOING

14. (SOUNDBITE) (Hungarian) HUNGARIAN PRIME MINISTER, PETER MAGYAR, SAYING:

“We have reached an agreement with madam president, we have reached an agreement with the European Commission on all the issues mentioned there, which make it possible for the Hungarian people to gain access to the funds to which they are entitled.”

15. JOURNALIST ASKING QUESTION

16. (SOUNDBITE) (Hungarian) HUNGARIAN PRIME MINISTER, PETER MAGYAR, SAYING:

“On April 12, as madam president also mentioned, the Hungarian people gave an unprecedented political mandate to the new Hungarian government, the Tisza government. They also gave a mandate, among other things, to bring this money home and finally restart the Hungarian economy — an economy that has been unable to grow for years, for four years, an economy where Europe’s highest inflation was recorded, and where every day we are struggling to prevent public services from collapsing.”

17. VON DER LEYEN, MAGYAR SHAKING HANDS