HUNGARY MOVES CLOSER TO UNLOCKING EU FUNDS
By Laszlo Enyedi • June 27, 2026
The implementation of Hungary's EU reform package marks a decisive step towards restoring access to frozen European funding and redefining the country's governance framework.
Legislation implementing key reforms required by the European Union is entering into force, marking one of the most significant legislative milestones of the new Hungarian government.
The legislation (Act XVIII of 2026) is intended to fulfil the conditions set by the European Commission for the release of approximately €16.4 billion in suspended EU funds.
The package focuses on improving transparency and public accountability through three principal reforms: strengthening the Integrity Authority, tightening asset declaration rules for public officials, and introducing stricter oversight of private equity funds.
The politically most important element of the reform is the abolition of Hungary's public interest asset management foundations, widely known by their Hungarian acronym KEKVA.
WHY THIS MATTERS
If the European Commission determines that Hungary has met the required rule-of-law conditions, the country will regain access to EU funding. The inflow of these resources would strengthen public finances, support investment, improve economic confidence, and represent a major foreign policy and economic success for the new government.
Beyond the economic implications, the legislation also carries significant political consequences. By abolishing the KEKVA foundation system and introducing stricter governance rules, the government is dismantling one of the institutional structures most closely associated with the previous Fidesz administration. This reduces the influence that these foundations exercised over parts of Hungary's educational, cultural, and public asset landscape.