There are “good prospects” for the release of frozen European Union funds to Hungary, according to Valdis Dombrovskis, who said the new Hungarian government represents a significant political shift after years of disputes between Brussels and the administration of Viktor Orbán. Meanwhile, Prime Minister Péter Magyar said negotiations with the European Commission are progressing well.
In a lengthy interview with Portfolio, the European Commission’s Executive Vice-President for the Economy stressed that although the outlook is improving, it remains unclear how much of the blocked funding Hungary will ultimately be able to access before key deadlines expire.
“The prospects for unlocking the funds are good,” Dombrovskis said, although he added that he did not want to speculate about the final amount Hungary may succeed in drawing down.
The comments come as the new Hungarian government, led by Péter Magyar, intensifies negotiations with Brussels to secure billions of euros in frozen EU resources that previous disputes over rule-of-law concerns had put at risk.
Billions of euros at stake
Dombrovskis underlined that “very significant amounts” are still involved, particularly when considering both the Recovery and Resilience Facility and cohesion policy funds.
However, he acknowledged that Hungary has already permanently lost part of the money after missing earlier deadlines at the end of 2024 and 2025, reportedly amounting to roughly EUR 2 billion combined.
According to earlier reports, Hungary may still be able to salvage around 80–85 percent of the available recovery funding, although implementation deadlines remain extremely tight. Brussels has reportedly advised Budapest to prioritise non-refundable grants over loan components due to the limited time remaining for implementation.
Dombrovskis noted that the European Commission has made similar recommendations to other member states facing time pressure and implementation difficulties.
“The deadlines are extremely tight, and implementation is not easy even for countries that did not face blockages on this scale,” he said.
New Hungarian government pushes for rapid agreement
Speaking in Vienna after meeting Austrian President Alexander Van der Bellen, Prime Minister Péter Magyar said negotiations with the European Commission are progressing well.
According to the Hungarian prime minister, senior European Commission officials have been in Budapest since the beginning of the week, and he has personally exchanged letters with Ursula von der Leyen regarding the frozen funds.
Magyar said discussions are now focusing on which projects can realistically be completed within the remaining timeframe and approved by Brussels.
He sharply criticised the previous government, arguing that it had several years to secure and utilise the EU funding for transport, healthcare, and energy-efficiency investments but failed to do so.
“We will work every day throughout the summer if necessary to bring home as much EU funding as possible for Hungarian companies and Hungarian people,” Magyar stated.
Magyar’s summary video of his visit to Vienna:
Euro adoption returns to the political agenda
One of the strongest signals welcomed by Brussels is the new Hungarian government’s renewed commitment to preparing Hungary for eventual euro adoption.
Dombrovskis described this as an important strategic shift.
“It means that the introduction of the euro is once again being treated in Hungary as a serious strategic issue, not something that can be postponed indefinitely,” he said.
The European Commission vice-president stressed that joining the eurozone is a commitment undertaken by all EU member states upon accession, although there is no fixed deadline for adoption.
Hungary faces additional challenges compared with countries that recently adopted the euro because the Hungarian forint operates under a floating exchange-rate regime. Before joining the eurozone, Hungary would need to spend at least two years in the ERM II exchange-rate mechanism.
Dombrovskis also warned that credibility would depend not on political rhetoric but on concrete reforms, fiscal discipline, and sustainable economic policymaking.
Brussels, he added, is fully prepared to support Hungary on this path.
Budget deficit remains a major obstacle
Alongside eurozone ambitions, Hungary is also under pressure to reduce its excessive budget deficit.
Dombrovskis said Hungary should theoretically correct its excessive deficit already this year, although current forecasts suggest that goal is unlikely to be achieved.
As a result, the European Commission plans to hold further consultations with Hungarian authorities in the coming weeks and months regarding possible corrections to the country’s fiscal trajectory.
According to Brussels, restoring sound public finances will be one of the central requirements not only for ending the excessive deficit procedure but also for building credibility toward eventual euro adoption.
Relations with Europe “drifted away” under Orbán
Dombrovskis also reflected on his long personal acquaintance with Viktor Orbán, saying the two leaders first met as prime ministers in 2010.
While describing their relationship as longstanding, the Latvian politician said he had witnessed Orbán gradually move away from what he called a “more European approach” on many issues over the years.
“That became visible over time and obviously shaped the broader relationship as well,” Dombrovskis said.
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Magyar prepares intensive European diplomacy
The Hungarian prime minister also outlined an ambitious diplomatic schedule for the coming weeks.
Magyar said the Polish prime minister could be the first foreign leader to visit Budapest during his premiership, followed later by the Austrian chancellor. He also plans to host a summit of the Visegrád Four leaders in Budapest at the end of June.
In addition, Magyar confirmed upcoming bilateral meetings in Brussels with the Belgian prime minister, followed by visits to Paris and Berlin ahead of the next European Council summit.
Separately, the prime minister announced that a joint Hungarian-Austrian commission investigating asbestos contamination in western Hungary will begin work on Monday.
What’s next? PM Péter Magyar in Vienna: Corruption to zero, becoming productive EU member again, fighting asbestos contamination
