The European Commission is sending a delegation to Budapest next week to help Hungary unlock billions in EU funding, according to the Commission. 4 billion in recovery funds, the Commission said. If Hungary fails to secure the funds by August, the money will be forfeited, the Commission warned.
The Commission is exploring using Hungary's investment bank Exim Bank to channel the funding, according to Commission sources. Brussels worries that using Exim Bank will lead to loss of oversight, which is seen as imperative due to rule of law concerns, the sources said. The Commission is focusing primarily on the grant component of the package, viewing the loan tranche as significantly more difficult to secure, according to Commission officials.
One possible solution is persuading the Commission to accept existing initiatives under the recovery programme, a Commission source said. Recovering frozen EU cash was a central campaign pledge of Péter Magyar's Tisza Party, which won a landslide election last month, according to Euronews. Péter Magyar is expected in Brussels on 25 May for high-level talks, Euronews reported.
Adrienn Laczó, a former judge, described the Hungarian judicial system as politically controlled, with promotions based on loyalty to the government rather than competence, and sensitive cases assigned to judges considered reliable by the authorities. Human Rights Watch reported that Hungary has been governed under a state of emergency since 2020, allowing rule by decree with minimal parliamentary oversight. A February 2026 decree ordered courts to dismiss municipalities' lawsuits against a state tax, an intervention in ongoing legal proceedings, Human Rights Watch said.
Human Rights Watch urges the new government to end rule by decree, dismantle the Sovereignty Protection Office, and implement reforms required by the European Commission. About 200 billion SEK in EU funds are frozen due to rule of law deficiencies, according to SVT. Hungary could receive its first recovery payments in late autumn after submitting a formal payment request, a Commission source said.