The European Union has agreed to release more than €16 billion to Hungary that had been frozen under the rule of Viktor Orbán, according to The Guardian. European Commission President Ursula von der Leyen described the move as a response to the “winds of change” in the country since last month's election of Prime Minister Péter Magyar.
Magyar, who succeeded Orbán, called the decision a “historic breakthrough” for his administration. The thaw in relations comes as Hungarian police announced a policy U-turn, allowing next month’s Pride parade in Budapest to proceed after authorities sought to block the event under the previous government.
The frozen funds had been withheld due to concerns over democratic backsliding and rule-of-law issues. Their release signals a shift in Brussels' stance toward Budapest under the new leadership.
Critics warn the move may be premature, arguing that deep-seated governance problems in Hungary have not been fully addressed. Human rights groups also expressed concern that the Pride parade decision, while positive, does not guarantee broader protections for LGBTQ+ rights.
The bloc will monitor Budapest’s compliance with EU norms, as Magyar’s government faces pressure to deliver tangible reforms. The funding injection could bolster Hungary’s economy but risks emboldening elements of the old guard still in power.