EU hails Hungary's 'wind of change' and unlocks €16.4bn for new PM Magyar

The EU has agreed to unlock €16.4bn for Hungary after its new prime minister, Péter Magyar, committed to long-overdue anti-corruption and rule-of-law reforms. The release — €10bn from the Covid recovery fund and €6.4bn from cohesion funds — is conditional on milestones such as joining the European Public Prosecutor’s Office and revising public-procurement and trust laws. Magyar says the funding equals about 13% of Hungary’s budget and will finance health, transport, education and energy projects (including €1.5bn for the electricity grid and €2bn for intercity trains). The decision reduces political tail risk, should help revive Hungary’s investment outlook and public infrastructure spending, and is likely positive for Hungarian asset markets and investor confidence in the region.