Three EEA states unlock grant funding for Hungary after government change
Tuesday 27th October 2026 on 13:01 in
Iceland
Iceland, Liechtenstein and Norway have agreed with Hungary’s new government to resume cooperation through the EEA Grants, ending a years-long deadlock under former prime minister Viktor Orbán, mbl.is reports. The agreement opens preparations for grant allocations, and Norway says the funding will support reforms by Prime Minister Péter Magyar’s government aimed at restoring democracy.
Martin Eyjólfsson, permanent secretary at Iceland’s Ministry for Foreign Affairs, signed the agreement on Iceland’s behalf on Monday. It covers the 2021–2028 programme period.
The deadlock centred on who would administer grants to non-governmental organisations. In July 2021, the three donor countries said planned projects in Hungary would not proceed because they had failed to agree on an independent administrator. The agreement made an independent administrator a condition for approving the programme, and payments were frozen when the deadline passed. That condition has now been met.
A total of 212 million euros is allocated to Hungary. Three programmes involving Iceland and the other EEA donor countries will receive a combined 112 million euros. They cover green transition, culture and inclusion, and the empowerment of Roma people.
Norway is also prioritising further projects, including support for democratic institutions, the rule of law, good governance and media freedom. Norwegian Foreign Minister Espen Barth Eide said the agreement marked a new chapter in relations between the countries and would support reforms by Magyar’s government.
The agreement follows a change of government in Hungary. Magyar’s Tisza party defeated Orbán’s Fidesz in April’s parliamentary election, ending Orbán’s 16 consecutive years in power.
The EEA Grants aim to reduce social and economic disparities in Europe and strengthen cooperation between the donor countries and 15 recipient countries. An independent civil society fund in Hungary, led by the Ökotárs Foundation and operating independently of the Hungarian government, has been active since summer 2025.
The European Union had also frozen 16 billion euros intended for Hungary over concerns including corruption risks, weaknesses in public procurement, conflicts of interest and breaches of the rule of law. Since the new government took office, the EU has reopened access to a large part of the funding, citing reforms by the new administration.