European Union to Release 16 Billion Euros to Hungary After a Change of Government

Brussels will unfreeze funds it had withheld over rule-of-law concerns as Budapest's new leadership pledges anti-corruption reforms.

The European Union is set to release 16 billion euros in funds it had withheld from Hungary, as Budapest moves to enact anti-corruption and rule-of-law measures, The New York Times reported. The money had been frozen during years of confrontation between Brussels and the previous government of Viktor Orban.

The shift follows a change in government. The new prime minister, Peter Magyar, promised reforms during a visit to Brussels, and the head of the European Commission, Ursula von der Leyen, announced the release of the frozen assistance, Deutsche Welle reported.

The decision shows how the European Union uses access to its budget as leverage over member states. For Hungary, an economy that has struggled with high borrowing costs and a weak currency, the inflow of long-delayed funds could ease fiscal pressure, on the condition that the promised reforms are carried through.