On April 17, 2026, EU officials convened in Budapest to engage with the team of Péter Magyar, the incoming Prime Minister, about critical financial issues facing Hungary. The talks are primarily focused on unblocking about €17 billion ($20 billion) in EU funds that have been frozen due to concerns over corruption and democratic backsliding during the tenure of the former Prime Minister Viktor Orbán.

The European Commission has emphasized the urgency of these discussions as Hungary grapples with a deepening economic crisis. Paula Pinho, a spokesperson for the EU, stated that “the clock is ticking” and that preliminary negotiations aim to ensure rapid action once Magyar's government is established.

Both Magyar and the EU are keen to release these funds, which include €10 billion tied to COVID recovery and €6.3 billion to support struggling economies within the region. The EU previously suspended these funds as a response to Orbán's government allegedly undermining democratic institutions.

In his first public appearance after winning the election, Magyar described Hungary's fiscal situation as dire. He has pledged to prioritize reforms related to judicial independence and anti-corruption measures in order to secure access to these funds. Additionally, he has indicated a commitment to uphold a previously reached agreement to provide Ukraine with a €90 billion loan—an agreement that Orbán had vetoed.

As Hungary approaches the August deadline for unlocking the COVID recovery funds, analysts believe that the next government needs to act swiftly to implement necessary reforms. Magyar’s party, Tisza, holds a super-majority and has the potential to enact legislative changes quickly, signaling a willingness to restore ties with the EU after years of tension under Orbán's administration.

EU Commission President Ursula von der Leyen stated that there is significant work ahead to "restore, realign, and reform" Hungary's policies in alignment with EU values to unlock the potential investment opportunities. Both the EU and the new Hungarian leadership have acknowledged the critical nature of these negotiations, hoping for a collaborative approach moving forward.