EU sets conditions to unlock €35 billion for Hungary, FT reports
Photo: Péter Magyar (Getty Images)
European Commission officials said they have begun talks with Tisza Party leader Péter Magyar following his election victory in Hungary, the Financial Times reports.
The European Commission has launched urgent consultations with Magyar after his decisive win.
In Brussels, officials hope the new leader will begin restoring relations with Ukraine and launch reforms needed to unlock around €35 billion in EU funds.
Expectations from Budapest
EU officials said the election result exceeded expectations but also raised the bar for the incoming government.
"He (Magyar — ed.) has a full-fledged mandate to change things... and we are engaging with him from day one. The mindset is: let’s double down on him. If they deliver, we deliver," a senior EU official said.
Key conditions for cooperation
EU diplomats say important signals would include unblocking €90 billion in aid to Ukraine and lifting Hungary’s veto on a new package of sanctions against Russia.
These steps are seen as confirmation of Budapest’s willingness to restore relations with the European Union.
Frozen funds and EU demands
Around €35 billion allocated for Hungary remains frozen due to disputes with Brussels and the previous government’s refusal to carry out reforms.
Of this, nearly €18 billion is blocked over rule-of-law violations and corruption risks, while more than €17 billion is in the form of concessional loans.
To access the funds, Hungary must meet 27 conditions, including anti-corruption measures and revising decisions that the EU considers to be in breach of its rules.
Pressure and next steps
The European Commission also expects a resolution to a dispute related to Hungary’s failure to comply with European court rulings on asylum.
This conflict has already resulted in fines totaling nearly €900 million.
"There’s a lot of leverage on our side. The pressure is on him (Magyar — ed.), and I think he wants to deliver quickly," an EU official said.
Magyar plans his first foreign visits to Warsaw and Vienna and has not ruled out traveling to Brussels before his inauguration to discuss financial issues.
At the same time, the EU is taking into account risks associated with the transition period, during which the current government could influence future reforms.
It is worth recalling that Tisza Party leader and Hungarian election winner Péter Magyar has said Ukraine cannot be admitted to the European Union under a fast-track procedure.
At the same time, he has suggested he would not block the allocation of €90 billion in aid to Ukraine.
