EU lifts Hungary funding restrictions, reopening Erasmus+ access for affected universities

Hungary has regained access to €4.2 billion in European Union funding following a decision to lift restrictions linked to concerns over corruption and conflicts of interest.

The move also clears the way for affected Hungarian universities to enter new funding agreements under the Erasmus+ student exchange programme and Horizon Europe research programme.

The restrictions were imposed in 2022 under the EU’s rule-of-law conditionality mechanism, which allows the bloc to protect its budget when breaches of the rule of law threaten the proper use of European funds.

The decision followed reforms introduced by the Hungarian government and an assessment by the European Commission. Budget Commissioner Piotr Serafin described the development as an important milestone, saying it reflected positive changes in recent months.

The Commission had proposed lifting the restrictions in September, but the proposal required approval from EU member states.

Why the EU restricted funding to Hungary

In December 2022, the Council of the European Union suspended budgetary commitments worth approximately €6.3 billion under three programmes over concerns about public procurement, corruption and the protection of the EU budget.

The measures also affected universities operating through public-interest trusts. Under the restrictions, these institutions could not enter into new funding agreements under certain EU programmes, limiting opportunities for student exchanges and research collaboration.

Hungary subsequently introduced measures addressing public procurement, asset declarations, prosecutorial oversight and transparency in public spending. The reforms also included changes intended to strengthen the powers and access to information of the country’s Integrity Authority.

Other measures concerned conflicts of interest involving public-interest foundations, competition in public contracts and the disclosure of information about organisations receiving public support.

What the decision means for Hungarian universities

Lifting the restrictions would allow affected universities to pursue new agreements under Erasmus+ and Horizon Europe. Erasmus+ supports education, training and student mobility, while Horizon Europe funds research and innovation.

The impact is specific to institutions covered by the restrictions. It does not mean that every Hungarian university had been excluded from all European funding programmes.

The decision also concerns funding restrictions under the EU budget protection mechanism. It should not be confused with Hungary’s separate recovery and resilience funding, which is subject to its own requirements and reform targets.

Hungary still faces separate EU conditions

The lifting of one set of restrictions does not automatically release all European funding allocated to Hungary. Payments under its recovery plan remain linked to the fulfilment of agreed reforms and investment milestones.

The EU’s broader scrutiny of Hungary’s rule-of-law record also continues separately. The latest decision, as described in the report, addresses the restrictions imposed to protect the EU budget rather than ending all disputes between Budapest and Brussels.

For universities and researchers affected by the measures, the key change is the potential resumption of new funding agreements. The extent to which institutions can benefit will depend on the scope of the decision and the conditions applicable to individual programmes.