Hungary’s government will submit anti-corruption legislation to parliament next week to help release billions of euros in suspended European Union funding, Transport and Investment Minister David Vitezy said on Friday. The package is designed to strengthen the Integrity Authority, improve transparency in public asset declarations, and help Budapest meet rule-of-law conditions tied to recovery and cohesion money.
As reported by Reuters, through David Vitezy, Hungary says the legislation could unlock up to 10 billion euros from the EU’s pandemic recovery fund, while also freeing additional cohesion and higher-education money. The government says the reforms are intended to avoid losing funds ahead of an end-August deadline and to support transport, renewable energy, small business, rental housing and rail projects.
Government plans reform push
Hungary’s administration is preparing to table the legislation in parliament next week, according to Reuters’ Budapest report, which quoted Transport and Investment Minister David Vitezy. He described the bill as a “comprehensive anti-corruption” measure that would improve transparency in Hungarian public life and satisfy the rule-of-law criteria demanded by Brussels.
Vitezy told reporters that the reform package is being framed as a necessary step to bring EU money “home”, reflecting the government’s argument that it is now meeting the conditions imposed by the bloc. The timing matters because Hungary faces a deadline at the end of August to secure at least part of the recovery cash before the EU’s current funding window closes.
EU money at stake
Reuters reported that the reforms are tied first and foremost to up to 10 billion euros from the EU’s pandemic recovery fund. That money is expected to support transport, renewable energy, small business assistance and rental housing construction, according to Vitezy.
The same reporting said Hungary could also benefit from additional EU resources beyond the recovery fund, including 4.2 billion euros of cohesion money for railways and transport infrastructure and 2.2 billion euros previously suspended over concerns about academic freedom for higher education spending. Reuters also said Hungary would be able to offset 2.6 billion euros in investments previously financed from its own resources with EU support, which would give the government more room in its budget after heavy pre-election spending under former prime minister Viktor Orban.
Anti-corruption measures
Reuters said the proposed legislation would strengthen the powers of Hungary’s Integrity Authority, the anti-graft watchdog tasked with oversight of corruption risks. The plan also includes greater transparency in asset declarations filed by public officials, with omissions punishable by up to two years in prison, according to Vitezy.
The reporting added that the government plans to inject around 3.5 billion euros of EU recovery funds into the state development bank MFB so projects can continue without losing financing before the cut-off date. Reuters noted that this move is meant to keep the cash flowing while the legislative process runs through parliament.
Political and economic background
The EU froze large parts of Hungary’s funding in response to rule-of-law concerns, democratic backsliding and corruption allegations associated with the Orbán era, as Reuters and the BBC both reported in related coverage. The BBC reported last week that the European Commission had agreed to release 16.4 billion euros in total, subject to reforms and compliance with long-standing conditions.
That broader package includes recovery money and cohesion funds, and it came after Brussels linked disbursement to what it called “super-milestones” on anti-corruption and judicial standards, according to the BBC. Reuters’ earlier reporting also showed that Hungary was racing to meet an August 31 eligibility deadline for 10.4 billion euros from the recovery fund, underscoring the urgency behind the government’s current push.
What happens next
The immediate next step is the submission of the bill to parliament, where Hungary’s governing side will need to demonstrate that the reforms are real, enforceable and sufficiently strong to satisfy EU requirements. If passed and implemented as planned, the measures could open the way for a substantial inflow of funds into sectors ranging from transport to higher education.
For now, the government is presenting the bill as both an anti-corruption initiative and a fiscal necessity, while Brussels is likely to judge it by whether the rule-of-law benchmarks are actually met in practice. The political stakes are high because the decision affects not just one tranche of money, but Hungary’s broader standing in the EU funding system.
