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Hungary's Rule of Law Progress Opens Door to €17 Billion in Frozen EU Funds

Hungary's Rule of Law Progress Opens Door to €17 Billion in Frozen EU Funds
Politics · 2026
Photo · Pierre Lefevre for European Pulse
By Pierre Lefevre Politics Correspondent May 28, 2026 3 min read

Hungary is making tangible progress on restoring the rule of law, according to the European Union's justice commissioner, Michael McGrath, who described the country's trajectory as 'clear and steadfast.' The remarks, made during an interview with Euronews, signal a potential thaw in relations between Budapest and Brussels after years of tension under former Prime Minister Viktor Orbán.

McGrath confirmed he will travel to Budapest next week to meet Justice Minister Márta Görög, aiming to 'agree on the reforms and look at the progress that they intend to make over the months ahead.' He emphasized that Hungary's government has so far demonstrated a credible commitment to addressing long-standing concerns over judicial independence, corruption, and democratic checks and balances.

The commissioner's positive assessment comes just days before a high-stakes meeting in Brussels between Hungary's new Prime Minister Peter Magyar and European Commission President Ursula von der Leyen. The central agenda item: unlocking €17 billion in EU funds that were frozen due to rule-of-law deficiencies and corruption risks under the previous administration.

Budapest now faces an end-of-August deadline to fulfill all remaining conditions tied to the funds. If met, the first tranches could be disbursed before the end of the year, providing a significant economic boost to a country that has seen its access to EU financing severely curtailed.

From Orbán to Magyar: A Shift in Governance

Dismantling the legacy of 16 years of increasingly authoritarian rule under Viktor Orbán's Fidesz party is no small task. Hungary has been subject to multiple EU rule-of-law procedures, including the Article 7 process launched by the European Parliament in 2018 over concerns about judicial independence, corruption, freedom of expression, academic freedom, and minority rights.

The situation changed dramatically after Magyar's sweeping victory in April's parliamentary elections. His Tisza Party ran on a platform explicitly targeting state capture and corruption, pledging to restore checks and balances and strengthen the independence of the courts, the prosecutor's office, and constitutional institutions.

Among the key promises in the party's manifesto is the creation of a new anti-corruption body—the National Asset Recovery and Protection Office—alongside reforms to public procurement rules. These measures are seen as essential to convincing Brussels that Hungary is serious about addressing the systemic issues that led to the funding freeze.

McGrath's visit to Budapest and the upcoming meeting between Magyar and von der Leyen are part of a broader effort to reset relations between Hungary and the EU. The Commission has made clear that it will maintain a zero-tolerance approach to corruption across all member states, as outlined in McGrath's earlier statements on enforcement.

However, challenges remain. Magyar has already pushed back against some EU demands, particularly regarding pension and tax policies, as reported in recent negotiations. The balancing act between satisfying Brussels and maintaining domestic political support will test the new government's resolve.

The outcome of these talks could have broader implications for the EU's relationship with other member states facing similar rule-of-law concerns. If Hungary successfully navigates the reform process, it may set a precedent for how the bloc handles funding conditionality in the future.

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