Hungary’s government has filed anti-corruption legislation aimed at unlocking billions of euros in EU funds that have been frozen since 2022. The move represents a sharp pivot from the country’s previous posture under former Prime Minister Viktor Orbán, whose administration saw roughly €18-19 billion in EU funding put on ice over rule-of-law concerns.

Prime Minister Péter Magyar announced on June 5 that the bill would be submitted to parliament between June 8 and 14. If Hungary checks all the boxes, it could access up to €16.4 billion.

What’s in the bill, and what’s at stake

The proposed legislation focuses on transparency around asset declarations and introduces penalties for omissions.

The immediate prize is nearly €10 billion from the EU’s pandemic recovery fund. That money is earmarked for transport infrastructure, renewable energy, small business support, and housing projects.

But the legislation is only one piece of a larger puzzle. Hungary needs to satisfy 27 so-called “super-milestones” set by the European Commission. Among the most significant requirements: joining the European Public Prosecutor’s Office, known as EPPO, and strengthening judicial processes across the country.

The deadline to comply with all 27 conditions is August 31, 2026. Miss it, and Hungary risks losing access to these funds permanently.

The backstory: from Orbán’s freeze-out to Magyar’s thaw

The freeze on EU funds dates back to December 2022, when the European Commission invoked its conditionality mechanism against Hungary for the first time, citing systemic issues including poorly managed public procurement and conflicts of interest.

A political agreement reached on May 29, 2026, between Magyar and European Commission President Ursula von der Leyen laid the groundwork for the current legislative push. Péter Magyar’s Tisza party had achieved a decisive victory in the April 2026 elections, pledging to restore relations with the EU and prioritize the recovery of the frozen funds.

Joining EPPO is perhaps the most symbolically significant requirement. The European Public Prosecutor’s Office investigates fraud against the EU budget, and Hungary’s refusal to participate under Orbán was widely seen as a signal that Budapest had something to hide.

What this means for investors and markets

If Hungary meets its reform commitments, the €16.4 billion injection of funds into transport, renewable energy, and housing could create significant investment opportunities across multiple sectors.

The renewable energy allocation is worth watching closely. Hungary has lagged behind its EU peers in green energy investment, partly because of the funding freeze.

But the risks are real and specific. The August 31 deadline creates a binary outcome. Either Hungary complies and the money flows, or it doesn’t and the funds are permanently lost. There’s no partial credit on super-milestones.