Key Takeaways
- The European Commission proposed lifting 2022 Conditionality Regulation measures against Hungary.
- The decision would unlock €4.2 billion in Cohesion funding and restore Erasmus+ and Horizon Europe access.
- The proposal has been submitted to the Council of the European Union for final review and approval.
According to a European Commission press release published on 23 September 2026, the European Commission has formally proposed to the Council to lift the protective budgetary measures adopted against Hungary in 2022 under the Conditionality Regulation. The executive body stated that Budapest has successfully addressed the identified rule of law breaches that previously posed a risk to the Union budget. Subject to Council approval, this decision paves the way to unlock approximately €4.2 billion in Cohesion funding for the member state. This development marks a significant turning point in the often-tense relations between Brussels and Budapest over governance standards and the protection of the EU's financial interests. The Conditionality Regulation mechanism, designed to safeguard taxpayer funds from systemic rule of law deficiencies, has been a cornerstone of recent EU enforcement policy. Restoring full access to flagship transnational programmes like Erasmus+ and Horizon Europe also reintegrates Hungarian students, researchers, and academic institutions fully into the broader European single market for knowledge and innovation. For citizens, businesses, and policymakers, the move signals a potential easing of institutional friction, though it will likely spark renewed debate among member states regarding the strictness of rule of law enforcement. The proposal now moves to the Council of the European Union, where ministers will review the Commission's assessment and take a formal decision on lifting the budgetary restrictions in the upcoming legislative cycle.
Source: European Commission. Read the original report ↗
Frequently Asked Questions
What funding is being unlocked for Hungary?
The European Commission has proposed unlocking approximately €4.2 billion in Cohesion funding and restoring full access to Erasmus+ and Horizon Europe.
What happens next in the decision-making process?
The Commission's proposal has been sent to the Council of the European Union, which will review the assessment and decide whether to formally lift the protective measures.