The EU said Friday it would unlock more than 16 billion euros ($19 billion) for Hungary, in a big win for new leader Peter Magyar, provided the country stays on track with a major reform push.
EU chief Ursula von der Leyen announced the bloc was ready to release the badly needed money frozen under the divisive rule of former prime minister Viktor Orban and which Magyar made a political priority.
"We can already feel a strong wind of change across Hungary," von der Leyen told a press conference, after talks with Magyar in Brussels.
"In only a few weeks, you have driven forward long overdue reforms," she told the conservative leader.
The announcement marks a political victory for Magyar, who defeated longtime nationalist leader Orban in an election in April, running on an anti-corruption ticket, with securing the EU money as a key electoral pledge.
The EU froze around 18 billion euros ($21 billion) in funds earmarked for Budapest because of democratic backsliding, graft concerns and the treatment of LGBTQ issues under Orban's rule.
"We fought for every euro cent", Magyar said, celebrating what he described as a "historic day".
The money -- which Magyar said adds up to about 13 percent of Hungary's budget -- could help his government revive the country's flagging economy.
It would also generate goodwill as Brussels seeks to push ahead with files previously blocked by Budapest, such as membership talks with Ukraine -- although von der Leyen said there was "absolutely no link between the two".
- 'Subject to reforms' -
The bulk of the frozen funds -- just over 10 billion euros of the total -- are from the EU's Covid recovery fund, and Hungary had until the end of August to present a new plan to secure them.
Their release was "subject to the reforms that are being adopted" and the implementation of a series of investments that have been agreed on, von der Leyen said.
She cited a revision of public procurement laws and a decision to join the anti-graft European Public Prosecutors Office as changes going in the right direction.
EU officials said if all steps are completed in time, Budapest could expect the first disbursement before the end of the year.
Another six million euros is tied to other reforms, including changes aimed at restoring academic freedom and reversing a slew of laws passed under Orban that have restricted LGBTQ rights.
The first related payments could arrive next year, the officials said. Hungary is in the meantime expected to continue paying fines it was handed by EU courts for failing to comply with the bloc's laws.
"We'll bring these funds home to help Hungarians, to help kickstart the economy, to restore public services," Magyar said.
"If this much money is available, then I'd be happy to come to Brussels more often," Magyar quipped at the Brussels press conference.
While in power, Orban, a self-described "thorn" in the EU's side who maintained close ties to Moscow, kept the Constitutional Court, Public Prosecutor's Office and Court of Audit on a tight leash and appointed allies to run them.
Magyar, whose party holds a large majority in parliament, has begun initial reforms -- with his camp voting Wednesday to drop Orban's plan to withdraw from the International Criminal Court (ICC).
And in another significant step, Hungarian police said Friday they would not ban next month's Pride parade in Budapest -- a reversal from last year when the LGBTQ event was barred under Orban.
In a similar scenario, the EU had unlocked billions of euros for Poland in 2024 as soon as the government of pro-European Prime Minister Donald Tusk offered assurances that change was afoot.
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