On Wednesday, September 23, the European Commission proposed to release 4.2 billion euros in funding to Hungary, recognizing the efforts of the new government led by Prime Minister Peter Magyar to mend the damage to the rule of law under the previous administration of Viktor Orban. Commission President Ursula von der Leyen highlighted that Hungary has taken significant steps to strengthen its legal framework and announced the proposal to fully reopen access to the Erasmus and Horizon Europe programs for Hungarian students and researchers. This proposal, however, requires approval from all European Union member states. Relations between Hungary and the European Union had grown strained during the final years of Viktor Orban’s leadership. In December 2022, the EU decided to suspend 6.3 billion euros in cohesion funds—money intended to support development and reduce economic disparities among member states—due to concerns about Hungary’s adherence to the rule of law. The European Commission had pointed out issues such as corruption, conflicts of interest, problems with public procurement, and the misuse of European funds. Additional funds were also blocked due to disputes over judicial independence, academic freedoms, and migration policies. Some of the suspended funds have since been permanently lost due to strict deadlines set by EU rules, leaving about 4.2 billion euros potentially available for release today. Peter Magyar, who took office after defeating Viktor Orban in April, has prioritized restoring relations with the European Union. In May, his government and the European Commission reached a political agreement that laid the groundwork for the gradual release of billions of euros in European funds. Since then, Budapest has implemented a series of anti-corruption measures, including strengthening the powers of the Integrity Authority, tightening asset declaration rules for public officials, and improving systems to detect conflicts of interest and misuse of European funds. In early September, the Hungarian government formally informed Brussels that it had met the rule of law requirements, setting the stage for the Commission’s proposal on Wednesday. Despite this development, the release of the 4.2 billion euros does not fully resolve the financial tensions between Hungary and the European Union. Over 2 billion euros in cohesion funds remain blocked due to ongoing disputes related to Hungary’s asylum system, child protection laws, and certain issues concerning academic freedoms. The resolution of these remaining conflicts will likely require further negotiations and cooperation between Budapest and Brussels.