The aid package was conditional on Hungary implementing reforms to bring the country into compliance with EU standards by the end of 2024. Budapest failed to meet the requirements, a European Commission spokesperson said.

Hungary is set to permanently lose access to just over €1bn in EU funds on January 1, as disputes between Budapest and Brussels hamper the country’s capacity to drag itself out of recession — and undermine Prime Minister Viktor Orbán’s bid for re-election in 2026.

The European Union (EU) has officially decided to withdraw €1 billion from Hungary. This marks the first time the EU has permanently taken funds away from a member country because it did not follow the EU’s rule-of-law standards.