The European Commission has approved the release of €545 million in cohesion funds to Hungary, a decision that has triggered unease and vocal criticism among members of the European Parliament (MEPs). While the funds were originally frozen over concerns about corruption and the erosion of democratic norms under Prime Minister Viktor Orbán’s government, Brussels has now opted to unlock part of the money after what it described as “measurable progress.”
The move underscores the EU’s difficult balancing act: ensuring Hungary complies with democratic standards while avoiding a deeper rift with a member state whose cooperation is vital in areas ranging from Ukraine support to EU budget negotiations.
Why the Funds Were Frozen
Hungary has been under intense scrutiny for years over rule-of-law violations, misuse of EU funds, and systemic corruption. The Orbán government has been accused of consolidating power, undermining judicial independence, and enriching political allies through public procurement and subsidies.
In 2022, the EU withheld billions in cohesion and recovery funds, making Hungary the first country to face financial penalties under the EU’s new rule-of-law conditionality mechanism. At the time, Brussels demanded reforms to strengthen judicial independence, transparency, and anti-corruption safeguards.
Why Now?
The Commission now argues that Hungary has taken “tangible steps” to address some of these concerns, particularly in reforming judicial procedures. The release of the €545 million—part of a much larger €22 billion cohesion funding package—comes as Hungary continues to negotiate access to additional funds still under suspension.
Commission officials insist that the decision is not a political concession but the result of a technical review of reforms. “This disbursement reflects compliance with specific benchmarks. The process is rule-based, not political,” a spokesperson said.
MEPs Push Back
Many lawmakers in the European Parliament strongly disagree. Critics warn that releasing funds too soon risks rewarding Orbán without genuine systemic change.
Several MEPs expressed concern that Orbán’s government is simply implementing superficial reforms to unlock funds while continuing to weaken democratic checks and balances. “This is a dangerous precedent,” said one Green MEP. “By releasing money now, the Commission signals that partial compliance is enough, even if fundamental issues remain unresolved.”
There are also fears that the decision reflects realpolitik pressures, with Hungary’s veto power on EU foreign policy—including military aid for Ukraine—looming large. Some critics suggest Brussels may be softening its stance to keep Orbán aligned on broader EU priorities.
Hungary’s Response
Budapest has hailed the decision as proof that Brussels recognizes its reforms. Hungarian officials argue that the EU has been unfairly targeting the country for its conservative policies and resistance to deeper integration.
Orbán’s government said the release of funds would support infrastructure development, education, and job creation, while reinforcing Hungary’s role as an active EU member state.
The Bigger Picture
The €545 million release is just a fraction of the funds still locked. Around €20 billion in EU money remains frozenpending further reforms, particularly related to Hungary’s anti-corruption framework and protection of academic freedoms.
For Brussels, the risk is twofold:
- Too much leniency could embolden Orbán and undermine the credibility of EU rule-of-law conditionality.
- Too much pressure could push Hungary closer to obstruction in critical EU votes or toward illiberal alliances outside the bloc.
This delicate balance reflects the EU’s broader challenge of maintaining unity while enforcing democratic standardswithin its own borders.
What Comes Next
The European Parliament is expected to hold debates and possibly pass resolutions in the coming weeks, pressing the Commission to justify its decision. Some MEPs are already calling for tighter oversight to ensure the funds are not misused.
Meanwhile, Hungary will continue to push for the release of additional funds, leveraging its position on key EU policies. As one diplomat put it: “Orbán knows exactly how much leverage he has—and Brussels knows it too.”
