EU Proposes Release of Funds to Hungary Amid Political Shift, Faces German Criticism

The European Commission has proposed releasing €4.2 billion in cohesion funds previously withheld from Hungary, aiming to restore Budapest's participation in EU education and research programs such as Erasmus+ and Horizon Europe, from which Hungary has been excluded since 2022. This move follows Hungary’s political change in April when Péter Magyar replaced Viktor Orbán as Prime Minister, ending Orbán's 16-year tenure.

In May, the Commission had outlined plans to gradually unlock €16.4 billion of EU funds blocked due to concerns over Hungary's rule of law under Orbán. Significant steps taken by Hungary since include a legislative package to reverse Orbán-era judicial reforms and joining the European Public Prosecutor's Office in July. European Justice Commissioner Michael McGrath praised Hungary's progress, stating, “Where progress is made and commitments are kept, such progress should be recognized.” The Commission’s proposal now requires approval by the EU Council, representing member states.

However, the shift has also sparked criticism within Germany. Tobias Teich, AfD Bundestag member and European Union Affairs Committee participant, sharply criticized Berlin and Brussels for their previous stringent approach to Hungary during Orbán's administration. He noted a prolonged diplomatic freeze, including no visits from the German Foreign Minister to Hungary for nearly seven years, describing this as an ideologically motivated political pressure rather than a neutral or democratic stance. Teich contended the sudden warmth after the government change exposed hypocrisy and serves as a warning to other countries aspiring to EU membership about the political conditionality applied by Brussels and Berlin.

Teich further expressed concern over increased EU interference in member states' national politics, citing interventions in Romania’s TikTok-related issues during elections. He urged the German government to adopt genuine cooperation with governments irrespective of political differences, arguing that linking EU funding and partnerships to political alignment undermines democratic integrity.

The proposals to ease restrictions on Hungary mark a significant turning point in EU-Hungary relations, balancing progress on justice reforms and political shifts against critical voices challenging the EU's previous approach.