EU Ties €35B Hungary Funds to Reforms, Kyiv Support as Magyar Seeks Reset

Brussels is linking the release of frozen funds to reforms and Hungary’s stance on Ukraine, as incoming Prime Minister Péter Magyar moves to rebuild ties with the EU. Make us preferred on Google Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Peter Magyar, election winner and leader of the pro-European conservative TISZA party, delivers a press conference at the HUNGEXPO Congress and Exhibition Center in Budapest, Hungary, on April 13, 2026, one day after Hungarian general elections. (Photo by Attila KISBENEDEK / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google The European Union is tying the release of up to €35 billion ($41 billion) in frozen funds for Hungary to sweeping reforms and a shift in Budapest’s stance on Ukraine, as incoming Prime Minister Peter Magyar seeks to reset relations with Brussels, according to reports published Tuesday. Magyar, who won Sunday’s election and is expected to take office in May, has already begun outreach to European Commission President Ursula von der Leyen, signaling a willingness to meet EU demands in exchange for unlocking funding withheld during Viktor Orbán’s rule. Follow our coverage of the war on the @Kyivpost_official . Brussels has linked the unfreezing of funds to 27 conditions, including judicial reforms, anti-corruption measures, and restoring democratic checks and balances, the Financial Times (FT) reported . Nearly €18 billion ($21 billion) remains frozen over rule-of-law concerns, while more than €17 billion ($20 billion) in defense loans are also blocked. Hungary is additionally facing a €1 million-per-day ($1.2 million) fine over its refusal to comply with EU asylum rulings. European Commission officials said engagement with Magyar had begun “immediately” after his election victory. “If they deliver, we deliver,” one EU official told FT, indicating Brussels expects rapid progress. Among the key political demands are Hungary lifting its veto on a €90 billion ($106 billion) EU loan to Kyiv and backing a new package of sanctions on Russia, diplomats told the publication. Other Topics of Interest Businesses Back Ukraine's Customs Reform, Though Challenges Remain Businesses report fewer bribery complaints and greater transparency, even as clearance times rise and smuggling estimates climb. Kyiv, sanctions central to talks According to Politico , the EU sees Hungary’s position on Ukraine as central to rebuilding trust, particularly after years of obstruction under Orbán. Magyar has signaled he may not block the €90 billion loan to Kyiv, saying Hungary should remain “coherent” with commitments made at a European Council meeting in December. However, he has taken a more cautious stance on Ukraine’s EU accession, opposing a fast-track process while suggesting support for countries that meet membership criteria. EU officials and diplomats expressed confidence that compromises could be reached despite Hungary’s historically strong anti-Ukrainian sentiment. For Magyar, unlocking EU funds is a top priority, with Politico reporting that his government risks losing a significant portion of funding if required reforms are not implemented by August. “I can say that it is extremely important to bring [the money] home, and as quickly as possible,” Magyar said Monday. He has pledged to introduce anti-corruption reforms, strengthen judicial independence, and join the European Public Prosecutor’s Office. Magyar’s two-thirds parliamentary majority is expected to allow him to pass reforms quickly, avoiding obstacles faced by Poland’s Donald Tusk, whose efforts were blocked by the country’s president. Despite optimism, EU officials remain cautious about releasing funds too early. Brussels is wary of repeating its approach with Poland, where funds were unfrozen before reforms were fully implemented, only for political obstacles to delay changes. “There’s no immediate action planned … [and] a long list of things that the new government will need to do,” one official told FT. Hungary also remains under Article 7 proceedings, which could lead to the suspension of its voting rights over rule-of-law concerns, with a hearing scheduled for late May. Magyar has indicated a broader shift in Hungary’s foreign policy, including distancing from Moscow while maintaining some economic ties, such as Russian oil imports. He has also pledged to restore media independence and dismantle elements of what EU officials describe as Orbán’s “illiberal” system. Von der Leyen struck an optimistic tone, saying the EU would work with the new government to achieve “swift and overdue progress” for Hungary. Yuliia Zavadska is a news writer at Kyiv Post. She has experience in breaking news coverage, fact-checking, and digital journalism, with a focus on fast, accurate reporting and clear storytelling. Before joining Kyiv Post, she worked as a news feed editor for several leading Ukrainian media outlets.