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28 October 2026
newsletter
hungary

EU Council lifts rule-of-law conditionality measures against Hungary

On 13 October 2026, the Council of the European Union adopted a decision lifting the rule-of-law conditionality measures previously imposed on Hungary. Published in the Official Journal on 21 October 2026, the decision repeals the 2022 measures, which included the suspension of 55 % of budgetary commitments under three cohesion policy programmes and restrictions on new legal commitments with public interest trusts and entities maintained by them.

What happened

The Council adopted Implementing Decision (EU) 2026/2324, lifting the measures introduced in 2022 under the EU's rule-of-law conditionality mechanism. These measures had been imposed in response to concerns regarding rule-of-law breaches, particularly in public procurement and the protection of the EU budget. The new decision removes the specific restrictions imposed under the 2022 decision. However, it does not automatically lift all other conditions or restrictions applicable to EU funding for Hungary.

Why it matters

The decision may facilitate the implementation of affected EU-funded programmes and change the conditions applicable to public procurement and funding arrangements involving public interest trusts. Nevertheless, the lifting of these measures does not in itself guarantee the release of all EU funds allocated to Hungary.

Who is affected

Hungarian public authorities managing EU-funded programmes, public procurement bodies, potential beneficiaries of cohesion policy funding, public interest trusts and entities maintained by them may be affected. Businesses and other organisations participating in EU-funded projects may also be impacted by changes to funding and contracting arrangements.

Authors: Bernadett Dobra, Emese Borbély 

Gábor
Pázsitka

Office Managing Partner

hungary