European Union member states meeting in Brussels formally brought the conditionality procedure against Hungary to a close on Tuesday, unlocking 4.2 billion euros in frozen cohesion funds and restoring full participation in student mobility and research programs, portfolio.hu reported.
The General Affairs Council Decision and the Unfrozen Funds
The vote by the General Affairs Council gives the final green light required to lift the financial restrictions originally imposed in late 2022 under the rule-of-law conditionality regulation. That initial 2022 decision froze approximately 6.3 billion euros in cohesion commitments due to identified shortcomings in public procurement, anti-corruption measures, and conflict-of-interest regulations. Over the intervening years, missed deadlines under the n+2 rule reduced the immediately recoverable pool to 4.2 billion euros, roughly 1,500 billion forints.
The European Commission evaluated these changes within two weeks, concluding that the adjustments—which included expanding the powers of the Integrity Authority, tightening asset declaration rules, and restructuring public interest asset-managing foundations—met EU demands. Ursula von der Leyen, President of the European Commission, welcomed the Council’s decision on social media, declaring that a new chapter is beginning for both Hungary and Europe.
Restoring Erasmus+ and Horizon Europe Access for Universities
Tuesday’s Council decision directly impacts higher education by dismantling the barriers that kept model-changed universities excluded from key European programs. The 2022 restrictions had banned new legal commitments with trusts and institutions operating under the altered framework, shutting students and researchers out of Erasmus+ and Horizon Europe. With the conditionality mechanism concluded, Hungarian university students, educators, and researchers regain full access to these academic exchanges and collaborative grants.
Hungary’s Permanent Representation to the European Union announced the milestone on social media, noting that András Bíró-Nagy represented the country at the Council meeting. While the Fidesz party criticized the development in a statement to MTI as the strengthening of what it termed a “Brussels-Tisza pact,” representatives from across the political spectrum acknowledged the practical relief the decision brings to younger generations.
Payments Depend on Submitted Invoices for Developmental Projects
The release of funds does not happen in a single lump sum; payments depend on submitted invoices for developmental projects under the 2021–2027 cohesion budget.
Parallel Status of the Article 7 Procedure
The closure of the financial conditionality file leaves the broader Article 7 procedure active. Ministers reviewed the ongoing rule-of-law proceedings initiated by the European Parliament in September 2018. While that mechanism carries the theoretical penalty of suspending voting rights, it requires unanimous agreement among all other member states, a high political threshold that has kept the sanction phase inactive. Michael McGrath emphasized during a press briefing that the latest Council decision demonstrates Hungary’s return to the European path, though discussions regarding the 2018 parliamentary initiative continue without a finalized termination date.
