BUDAPEST, Hungary (AP) 鈥� European Union officials are meeting Friday in Budapest with members of Hungarian election winner P茅ter Magyar’s team about pressing issues including a massive loan for Ukraine as well as unlocking about 17 billion euros ($20 billion) of aid for Hungary withheld during the reign of outgoing Prime Minister Viktor Orb谩n.
Magyar will take power in May, but the EU is hoping to jump-start talks to fast-track cooperation with the new government, said European Commission spokesperson Paula Pinho in Brussels on Thursday.
鈥淭he clock is ticking for a number of topics,” said Pinho. The 鈥減reliminary talks鈥� in Budapest before Magyar takes office are to “make sure that once the government is in place action can be taken, if appropriate, and that we do not waste any time.鈥�
The EU froze the billions in funding to Hungary over concerns of corruption and democratic backsliding during Orb谩n’s 16-year rule. But both the EU and Hungary’s incoming leaders have prioritized releasing them as soon as possible to give a much-needed injection of cash into Hungary’s ailing economy.
European Commission President Ursula von der Leyen wrote on X on Tuesday that 鈥渢here is swift work to be done to restore, realign and reform鈥� Hungary’s policies in order to unblock the funds.
“Restore the rule of law. Realign with our shared European values. And reform, to unlock the opportunities offered by European investments,鈥� said the EU executive, who herself was often vilified by Orb谩n during his campaign.
Magyar, whose party Tisza won a super-majority in parliament which will enable deep and quick reforms, has said his government will prioritize policies affecting judicial independence, academic and media freedom and anti-corruption in order to get access to the money.
In his first public press conference after winning in a landslide on April 12, Magyar said Monday that Hungary 鈥渋s in a very difficult financial situation,鈥� and that his new government’s task will be 鈥渢o bring home the money that is hers.鈥�
He added that, unlike Orb谩n, he would stick to a deal struck in December to provide Ukraine with a much-needed 90-billion-euro loan. Orb谩n had vetoed the bill after initially agreeing to it, enraging EU officials and counterparts across the 27-nation bloc.
Unlocking funds will require economic and government reform
The funds are split between 10 billion euros of COVID recovery funds and 6.3 billion euros in the cohesion funds designed to lift up struggling economics within the EU.
Brussels and Budapest are rushing to first unlock the COVID funds because they are set to expire in August.
Hungary, a major net recipient of EU funds, had come under increasing criticism for veering away from democratic norms. The Commission had for more than a decade accused Orb谩n of dismantling democratic institutions, taking control of the media and infringing on minority rights. Orb谩n rejected the accusations and denounced them as interference in Hungary鈥檚 sovereignty.
The Commission to Budapest in 2022 over what it said was democratic backsliding by Hungary鈥檚 right-wing populist government and failures to tackle corruption and ensure judicial independence. A year later, the Commission found that the government had carried out sufficient reforms to have .
Magyar can move almost instantly to reform Hungary enough to unlock the funds, said Zsolt Darvas, a fellow at the Brussels-based think tank Bruegel.
鈥淎ll the legislative work can be done in a single day if there is a will from the Tisza party to do it,鈥� he said. 鈥淭hat’s relatively straight forward and not technically difficult.鈥�
That would involve changing how judges are selected and what power they have.
And Magyar can overcome any setbacks because of the August deadline for the COVID funds by following the example of Poland and Portugal where some of the funds were put in a national development bank for later dispersal, he said.
But Darvas said that out of the 16 billion euros, Hungary has already lost about 2 billion euros because the funds were suspend for two years 鈥� and Hungary has been paying 1 million euros a day since June 13, 2024, on top of a 200 million-euro fine over Orb谩n’s refusal to align Hungary’s asylum processing claims with EU standards.
Again, Darvas said, Hungary could follow Poland’s path by staying mostly closed to migration but still respecting EU law and thus ending those fines.
Hungary’s economic crisis won’t be solved alone by these funds, Darvas said, but by complying with EU regulations, the new government will signal that the country is a stable place for investments.
More money is available for the defense industry
Hungary could also receive mass sums of money if it joins the EU鈥檚 150 billion-euro Security Action for Europe initiative, or SAFE, which is designed to boost Europe鈥檚 defense readiness at a time when the U.S. has been diminishing its role in the continent鈥檚 security.
So far, 18 of the EU’s 27 nations have received low-interest defense loans, and Hungary is eligible for 16 billion euros through the program. With the other two tranches of cash, these funds would roughly equal 15% of Hungary’s GDP, according to an analysis by Jeremy Cliffe at the European Council on Foreign Relations.
___
McNeil reported from Brussels.
Copyright © 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.
