EU hails Hungary's 'wind of change' and unlocks €16.4bn for new PM Magyar

Here is the latest breaking news from around the world: EU hails Hungary's 'wind of change' and unlocks €16. 4bn for new PM Magyar21 minutes ago Share Save Add as preferred on GooglePaul KirbyEurope digital editorGetty ImagesPéter Magyar was praised by Ursula von der Leyen for sending "strong messages" to the worldEuropean Commission President Ursula von der Leyen has told Hungary's new prime minister that billions of euros in EU funding are to be unlocked subject to his government pushing through a raft of "long-overdue reforms". The decision is a significant boost for Péter Magyar, who has been in office for less than three weeks after a landslide election victory over Viktor Orbán.

He described his EU deal as a "historic breakthrough", while von der Leyen said "we can already feel a strong wind of change across Hungary". The Commission president said a total of €16. 2bn) would be released to Budapest.

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Magyar hopes the cash will help kickstart Hungary's flagging economy. The funding was frozen by the EU because of democratic backsliding and corruption allegations under Orbán's Fidesz-led government. Magyar had made unlocking the billions a key platform for his two-year-old Tisza party in the run-up to last month's elections.

Von der Leyen praised his team for rebuilding trust with the EU, which she said gave confidence for the next steps to come. "We will take no shortcuts, we will address all issues," she insisted. The bulk of the money - €10bn - comes from a Covid-19 recovery fund that Magyar's team has been in a race to unlock before an August deadline.

The Commission had made the sum conditional on a series of "super-milestones" including anti-corruption and rule-of-law reforms. Von der Leyen said there were already "strong signals that Hungary is turning the page". Among them, she said Hungary was joining the European Public Prosecutor's Office, revising laws on public procurement and targeting so-called public interest trusts.

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Under Orbán public institutions such as hospitals and universities were turned into trusts run by government loyalists. 4bn is being unlocked from EU cohesion funds aimed at bolstering the 27-member bloc's economic and social infrastructure. I will serve - not rule over Hungary, says new PMOrbán's era was over in a flash and Hungary's next PM is a man in a hurryWho is Péter Magyar, the former Orbán ally heading for power in Hungary?

Orbán steps down from Hungarian parliament after landslide defeatMagyar said talks with the EU had begun only a few weeks ago and already an agreement had been reached that was "really, really important for the Hungarian people". He said the EU funding amounted to 13% of the total Hungarian budget. Even two days ago there was no certainty that a deal could be struck.

Magyar has prioritised improving relations with the EU, while his predecessor accused him ahead of the 12 April election of being a puppet of both Brussels and Ukraine's Volodymyr Zelensky.

The development has drawn wide international attention, with diplomatic circles watching closely.