Hungary is close to reaching a political agreement with the European Commission on securing the release of EU funds, incoming Prime Minister Peter Magyar announced on his Facebook page on April 29.

Magyar said he held "highly constructive talks" with European Commission President Ursula von der Leyen, adding that both sides agreed on a political framework under which a deal could be finalised to release EU funds at the end of next month.

Magyar said he would travel to Brussels in the week of May 25 to sign the agreement. He added that the European Commission made no requests for the release of the funds that would go against Hungary's interests. The funds would help restart economic growth and support key development projects in the country, he added.

"A very good exchange with Peter Magyar in Brussels today," the EC chief said, adding that "the European Commission will support your work to address these issues and realign with shared European values."

Magyar, who is still officially an MEP after winning a seat in the June 2024 EP elections, also met with European Council President Antonio Costa.

"There is important work to be done this year, on the Multiannual Financial Framework, on Ukraine, and on competitiveness," Costa added.

According to Politico, the future finance minister Andras Karman, Istvan Kapitany, nominated for economy minister, and Anita Orban, designated for foreign minister, held talks on April 25 with a high-level European Commission delegation, including Cabinet Chief Bjorn Seibert, to prepare the ground for the April 25 meeting.

Relations between Budapest and Brussels have been strained for several years and deteriorated significantly by late 2022. The European Union subsequently suspended a substantial portion of Hungary's cohesion and post-pandemic recovery funding, citing concerns about weaknesses in public procurement systems, elevated corruption risks, shortcomings in judicial independence, and broader rule-of-law deficiencies.

The funding freeze reflects ongoing disputes between Hungary and EU institutions over governance standards and has become a central point of friction in bilateral relations, with implications for both investment inflows and medium-term economic growth.

Magyar made the incoming government's top priority to reach a deal with the EU and unlock funds vital to kick-start Hungary's stalled economy, with estimates indicating they could boost annual GDP growth by 1-1.5pp, according to the left-leaning daily Nepszava.

Magyar, who is due to be inaugurated in early May, is expected to present a new national recovery plan to replace a stalled 2021 proposal. Hungary's new leader intends to prioritise reforms that can be completed quickly, whilst postponing more complex constitutional changes for later consultation.

The new government is racing against time to submit its plans before the August 2026 deadline to secure the release of €10bn in RRF funds, including grants and loans.

Hungary remains the only EU member state yet to access RRF funds, which require meeting 27 so-called "super milestones". The Orban government has fully met 17 conditions, and made partial progress on nine, though these steps were often incomplete or insufficient, according to Hungarian media.

The 27 criteria focus primarily on strengthening anti-corruption safeguards, ensuring judicial independence, and improving transparency in the use of EU funds. A significant portion builds on earlier commitments by the Hungarian government to tighten public procurement rules, reduce the risk of conflicts of interest, and enhance cooperation with EU anti-fraud bodies.

Hungary's new leader made it clear he would pursue anti-corruption measures, judicial reforms, and steps to strengthen media and academic freedoms in order to meet EU requirements. These measures are expected to be pushed through quickly, given Tisza's supermajority.

After Tisza's landslide election victory on April 12, the European Commission signalled that informal discussions had begun to speed up the formal approval process. Any revised recovery plan would also require approval by EU member states in the Council, which may accelerate procedures due to time constraints. Officials indicated that the August deadline for meeting the requirements to tap RRF funds will not be extended.

Magyar is also pursuing a wider reset in relations with Brussels, which would include ending daily fines related to a migration dispute, securing EU approval for Hungary's request for multi-billion-euro loans under the SAFE programme, and restoring Hungarian universities' access to Erasmus after they were excluded over concerns about academic freedom.