Hungary's new Prime Minister, Péter Magyar, has successfully negotiated a significant political agreement with the European Commission, leading to the unlocking of €16.4 billion in EU funds. This agreement comes after a period of tension between Hungary and the EU, primarily under the previous administration of Viktor Orbán, which had seen many funds frozen due to concerns over rule of law and governance issues.

European Commission President Ursula von der Leyen praised Magyar for forming a government in record time and advancing necessary reforms. The deal includes €10 billion from the Recovery and Resilience Facility and an additional €6.4 billion from cohesion funds, aimed at enhancing Hungary's economic and social infrastructure. Praising Magyar for forming a government "in record time" and advancing what she described as “long-overdue reforms” within just a few weeks, von der Leyen said €10bn would be released from the bloc’s post-pandemic Recovery and Resilience

As part of the agreement, Hungary is required to implement several reforms that align with EU standards. These include joining the European Public Prosecutor's Office, strengthening the Integrity Authority, and revising public procurement laws. Such measures are seen as essential to restoring trust and cooperation between Hungary and the EU.

The Hungarian government is also expected to phase out public-interest foundations that have been criticized for lacking transparency. These reforms are part of a broader strategy to address the issues that led to the freezing of funds and to ensure compliance with EU regulations. Measures include joining the European Public Prosecutor's Office, strengthening the Integrity Authority, revising public procurement rules, and phasing out public-interest foundations.

The unlocking of these funds is a significant step for Hungary, as it seeks to rebuild its relationship with the EU after years of strained ties. Magyar's government has expressed a commitment to addressing the legacy of the previous administration, which had often clashed with EU authorities over various issues, including migration and rule of law.

With the new funding, Hungary aims to bolster its economic recovery and enhance its infrastructure, which had suffered during the previous government's tenure. The swift action taken by Magyar's administration is seen as a positive signal to both domestic and international observers regarding Hungary's future direction. Magyar's administration has committed to long-overdue reforms within weeks of taking office.