Overview
- The European Commission confirmed Hungary has lost entitlement to over €1 billion that had been earmarked in 2023 for programs supporting structurally weak regions.
- The funds had been frozen pending reforms the government was required to implement by the end of 2025 under the EU’s rule‑of‑law conditionality mechanism.
- Commission findings cite systemic issues including flawed public procurement, weak anti‑corruption controls, conflicts of interest, and concerns over prosecutorial conduct.
- Under the mechanism, frozen allocations expire at the end of the second year after they were planned unless the Council lifts the suspension, and a similar tranche lapsed at the end of 2024.
- Roughly €17 billion in total remains blocked for Hungary across various instruments, including about €6.3 billion under the rule‑of‑law scheme, as MEPs Moritz Körner and Daniel Freund publicly backed the enforcement.