Hungary Signs €16.4B EU Funds Deal — Largest Post-Orbán Unlock

PM Péter Magyar and European Commission President Ursula von der Leyen signed a comprehensive agreement on May 29 releasing €16.4 billion in previously frozen EU funds: €10 billion from the Recovery and Resilience Facility (RRF) and €6.4 billion in cohesion funds. The deal caps a five-week Brussels negotiation campaign that began with Magyar's first Brussels visit on April 29. Hungary must meet 27 EC-defined 'super-milestones' by August 31, 2026, covering EPPO membership (already applied for May 9), strengthening the Integrity Authority, revising public procurement rules, and implementing judicial independence reforms. First disbursements are expected in Q4 2026 if milestones are met. Moody's had already upgraded Hungary's credit outlook on May 24 in anticipation of the deal. The agreement represents the most significant EU-Hungary engagement since the conditionality mechanism froze funds in 2022 and marks a definitive break from the Orbán era's confrontational Brussels posture.