Norway seeks quick agreement with new Hungarian leadership on unsettled funds

Norway is aiming to reach an agreement with Hungary’s incoming government by summer 2026 on the distribution of EEA grants worth around EUR 254 million (approximately HUF 92 billion). The funding, covering the 2021–2028 period, could mark a significant reset in relations after years of stalled negotiations.

According to officials from Norway’s Ministry of Foreign Affairs, talks have been ongoing since spring 2025 and are expected to continue with Hungary’s new administration. The agreement could ultimately be signed by the country’s next prime minister, signalling a fresh political chapter.

Focus on democracy and fundamental rights

Norway, alongside Iceland and Liechtenstein, provides EEA funding to reduce economic and social disparities across Europe. However, Oslo has made clear that it wants the funds to support projects that strengthen democratic institutions, the rule of law, human rights, equality, and civil liberties, reports Norwegian outlet Panorama Nyheter.

Norwegian State Secretary Astrid Bergmål emphasised that these core principles are currently “under pressure” in Hungary, making the funding “more necessary than ever”. A portion of the funds has already been earmarked for civil society organisations, managed by independent foundations supporting areas such as social inclusion, regional development, and environmental initiatives.

Past disputes halted billions in funding

Hungary did not receive any EEA funding during the previous cycle after negotiations broke down in 2021. The dispute centred on who should oversee the allocation of grants to civil society groups. The Hungarian government at the time insisted on state control, while donor countries demanded independent management.

This disagreement ultimately led Hungary to forgo around HUF 75 billion (EUR 207.4 million) in support, as no compromise was reached. Earlier tensions had also included accusations from Budapest that Norway was backing politically biased organisations, while Oslo criticised pressure on NGOs.

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Signs of progress amid renewed talks

This time, negotiations appear more constructive. Reports suggest that Hungary has accepted key elements of the donor countries’ framework, including independent oversight of civil funding.

As a result, part of the programme has already been launched. If a full agreement is reached, the funds could provide a substantial boost to Hungary’s development efforts while also reinforcing ties with Norway and its partners.

Featured image: Péter Magyar/Facebook