Erasmus return within reach? Hungary’s new government could swiftly unlock EU funds and end long-running dispute

Hungary’s incoming government led by Péter Magyar could bring a swift resolution to one of the country’s most persistent disputes with the European Commission, potentially restoring access to Erasmus and Horizon programmes within weeks.

According to Portfolio’s analysis, the long-standing conflict over the governance of foundation-run universities — widely referred to as the “Erasmus issue” — may be among the easiest EU disputes to resolve. With clear expectations already outlined by Brussels since 2023, a decisive regulatory change could deliver fast progress, even within days.

The change in government in early May may therefore mark a turning point not only for Hungarian students but also for EU funding negotiations.

What is behind the Erasmus dispute?

The conflict dates back to reforms launched between 2019 and 2021, when the Hungarian government transferred many universities into foundations known as public interest asset management trusts.

While the official aim was to create more flexible, autonomous institutions, concerns soon emerged at EU level. The European Commission argued that the governance model posed serious risks related to conflicts of interest and the transparent use of public funds.

In particular, criticism focused on:

• The presence of active or former government officials on university boards
• Long or effectively unlimited mandates for board members
• Weak oversight and insufficient asset declaration rules

As a result, the EU suspended participation of affected institutions in both the Erasmus+ exchange programme and the Horizon research framework, impacting tens of thousands of Hungarian students and researchers.

Why the issue remains unresolved

Despite partial legislative changes in autumn 2024, Brussels deemed Hungary’s reforms insufficient. The measures failed to address the problem at a systemic level and did not fully align with EU expectations.

Key sticking points include:

• Board mandates still considered too long (six years instead of the preferred four)
• A cooling-off period of only one year for former politicians, instead of the expected two
• Oversight mechanisms that operate mainly after funds are awarded, rather than preventing conflicts in advance
• Limited transparency in the selection of board members

The outgoing government of Viktor Orbán also challenged the EU decision in court, arguing that it violated university autonomy. The case is still ongoing.

New government promises swift solution

The Tisza Party has made restoring international academic ties a central priority. Péter Magyar previously stated that the Erasmus issue could be resolved “in a minute”, signalling strong political intent to comply with EU requirements, according to Eduline.

The party’s programme commits to:

• Reinstating Hungarian universities in Erasmus+ and Horizon programmes
• Strengthening international academic cooperation
• Supporting research institutions with professional project management and funding assistance

Foreign affairs lead Anita Orbán also emphasised that restoring Erasmus access would be among the first measures, noting that Hungarian students have been at a disadvantage compared to peers in countries like Austria and Poland.

Also in the plans: Unlocking billions in EU funds

Resolving the Erasmus dispute could have consequences far beyond higher education.

The governance concerns surrounding university foundations are closely linked to broader rule-of-law conditions tied to EU funding. As long as these issues remain unresolved, access to key financial instruments — including the EU’s Recovery and Resilience Facility — remains uncertain.

A comprehensive reform addressing conflicts of interest and transparency could therefore:

• Restore Erasmus and Horizon participation
• Improve trust between Hungary and EU institutions
• Accelerate negotiations on frozen EU funds

A window of opportunity

Recent signals from Ursula von der Leyen suggest Brussels is open to renewed cooperation with Hungary’s new leadership.

With EU expectations clearly defined and political willingness expressed on both sides, the Erasmus dispute could become the first major breakthrough in rebuilding Hungary’s relationship with the European Union.

For Hungarian students and researchers, this may finally mean a return to international programmes and an end to years of isolation from key academic opportunities.

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