Economy April 29, 2026 01:41 PM

Incoming Hungarian PM Says He Will Sign Deal to Unlock About €10 Billion in EU Recovery Aid

Peter Magyar reports productive talks in Brussels and signals a political agreement by end of May to release suspended post-pandemic funds

By Hana Yamamoto
Incoming Hungarian PM Says He Will Sign Deal to Unlock About €10 Billion in EU Recovery Aid

Peter Magyar, Hungary’s incoming prime minister, said he will sign a political agreement at the end of May intended to free roughly €10 billion in European Union recovery money. Magyar described discussions with European Commission President Ursula von der Leyen as "extremely productive and successful," and von der Leyen said the commission stands ready to help Hungary meet the conditions required to release the funds. The aid had been frozen amid rule-of-law and corruption concerns under outgoing Prime Minister Viktor Orban.

Key Points

  • Incoming PM Peter Magyar says he will sign a political deal at the end of May to unlock about €10 billion in EU recovery funds - impacts public finances and EU-Hungary relations.
  • European Commission President Ursula von der Leyen said the commission is prepared to assist Hungary in meeting required conditions; teams from both sides will continue working closely - relevant to diplomatic and regulatory coordination.
  • The EU had suspended more than $20 billion in payouts to Hungary over rule-of-law and corruption concerns during Viktor Orban’s 16 years in office; a commission team visited Budapest shortly after the vote - affecting governance scrutiny and conditionality.

Hungary’s incoming prime minister, Peter Magyar, said he expects to formalize a political agreement at the end of May that would pave the way for the release of about €10 billion ($11.7 billion) from the European Union’s post-pandemic recovery programme.

Writing on social media after his first trip to Brussels since winning a decisive election victory, Magyar described his talks with European Commission President Ursula von der Leyen as "extremely productive and successful." He added: "The EU is not imposing any conditions that go against our country’s interests. The funds will arrive soon."

Von der Leyen, in a separate message on X, said she had a "very good exchange" with Magyar and that the commission was ready to support him in meeting the conditions necessary to unlock the funds. "Our teams will continue to work closely together," she said.


Officials involved in the discussions, speaking anonymously, told reporters there is political will on both sides to reach an agreement, and a commission team visited Budapest within days of the vote - a signal of Brussels’ readiness to assist Hungary’s incoming government even before Magyar is sworn in early next month.

The recovery funds at stake come from the EU’s post-pandemic programme and must be claimed before the scheme expires at the end of August if they are to be drawn down. Hungary has been barred from receiving more than $20 billion in payouts since Brussels suspended those disbursements over rule-of-law and corruption concerns during the 16-year tenure of outgoing Prime Minister Viktor Orban.

Magyar has pledged to restore Hungary’s standing within the EU, and his engagements in Brussels included a scheduled meeting later on Wednesday with European Council President Antonio Costa, according to the timeline of his visit.


This reporting reflects statements by the incoming prime minister, comments by the European Commission president, and information provided by officials involved in the talks. It focuses on the diplomatic and procedural steps underway to resolve the impasse over suspended EU recovery payments and on the timing Magyar has set for formalizing a political deal.

Risks

  • The recovery funds must be claimed before the EU programme expires at the end of August if they are to be drawn down - timing risk for budgetary planning and public investment projects.
  • Disbursements remain contingent on meeting conditions set by the commission related to rule-of-law and governance; failure to satisfy those conditions would keep funds suspended - risk for fiscal support and broader EU relations.
  • While officials say there is political will on both sides, negotiations are ongoing and not finalized until the expected end-May agreement is signed - political uncertainty for markets and government planning.

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