Hungary is set to forfeit €1.04 billion ($1.07 billion) from €6.3 billion in European Union funds frozen over rule-of-law concerns, according to a report by the Financial Times.
The funds, part of a broader €19 billion package of withheld post-pandemic recovery and other EU financial support, must be allocated by the end of 2024, or they will expire.
The situation reflects ongoing tensions between Brussels and Budapest over Hungary's adherence to EU standards.
In June 2023, the EU's highest court fined Hungary €200 million and imposed a €1 million daily penalty for non-compliance with earlier rulings regarding migration policies.
The European Commission announced in December 2023 that it was prepared to release €10.2 billion, roughly one-third of the frozen funds, following clarifications provided by Hungary about its rule-of-law commitments.
However, the remaining funds are likely to remain inaccessible until Hungary's next parliamentary elections in spring 2026.
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