EU and Magyar agreed to work together for release of EU cash after weekend talks

Key Points:

• The European Commission has agreed to cooperate with Hungary's incoming Tisza Party government to release frozen EU funds, following informal talks in Budapest aimed at unlocking billions in recovery funds before an end-of-August deadline.
• The Commission has blocked €17bn of the €27bn earmarked for Hungary over concerns about corruption and rule-of-law deficiencies, with an additional €17bn sought for defense modernization; the immediate priority is securing €10.4bn from the Recovery and Resilience Facility (RRF).
• Hungary's new government, led by Péter Magyar, has pledged a four-step plan focusing on combating corruption, restoring judicial independence, and safeguarding press and academic freedom to meet EU requirements and unblock funds.
• Talks excluded members of the outgoing Orbán government and emphasized that Ukraine-related disputes, such as Hungary's veto on EU loans to Ukraine, will not affect the financial negotiations with the EU.
• Discussions between the Commission and Hungary's future government will continue until the new administration takes office in May, with hopes that political will in Budapest will enable swift parliamentary amendments to meet EU conditions.