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On 13 October 2026, the Council of the European Union adopted Implementing Decision (EU) 2026/2324, lifting the budget protection measures imposed on Hungary in 2022 under the EU's rule-of-law conditionality mechanism. Published in the Official Journal on 21 October 2026, the decision repeals the previous measures, affecting approximately EUR 4.2bln in cohesion funding. It also removes restrictions on new legal commitments involving public interest trusts and entities maintained by them. However, other EU funding conditions remain applicable.
The original measures, adopted under Implementing Decision (EU) 2022/2506, included the suspension of 55 % of budgetary commitments under three cohesion policy programmes and restrictions on EU-funded commitments involving public interest trusts. The Council's decision follows Hungary's adoption of legislative and other remedial measures addressing concerns related to public procurement, conflicts of interest and anti-corruption safeguards.
The repeal removes the specific budget protection measures introduced in 2022. It also paves the way for restoring access to EU research and education programmes, including Horizon Europe and Erasmus+, for eligible Hungarian universities maintained by public interest trusts.
The decision may facilitate the implementation of EU-funded projects and create new opportunities for public authorities, businesses and research institutions. It is particularly relevant to cohesion-funded infrastructure and regional development projects, as well as research and higher education cooperation. Nevertheless, the lifting of these measures does not automatically release all EU funding allocated to Hungary, as separate conditions and restrictions may still apply.
Hungarian public authorities, beneficiaries of cohesion funding, public procurement bodies, universities maintained by public interest trusts, research institutions and businesses involved in EU-funded projects may be affected. Contractors and organisations relying on EU co-financing should monitor the applicable funding conditions and the implementation of the Council's decision.
Gábor
Pázsitka
Office Managing Partner
hungary