Hungary was officially denied a billion euros from the European Union's funds, which were frozen due to corruption, the EU announced.
Brussels launched proceedings against Hungary in 2022 to try to block payments over alleged irregularities in public procurement and a lack of oversight and transparency.
Budapest has implemented reforms that have allowed some funds to be released, but a total of 19 billion euros are still frozen.
Under the EU's terms of conditions, the "first tranche of suspended commitments of 1.04 billion euros" is due to expire at the end of 2024 without lifting the suspension, the commission said late on Tuesday.
This means that Hungary has lost that funding.
In July 2024, the European Commission concluded in a report that Hungary does not meet EU democratic standards, particularly with regard to corruption, political financing, conflicts of interest and media independence.
Since September 2018, Hungary has been the target of the Article 7 procedure, which imposes sanctions on member states for "serious violations" of the rule of law and could theoretically lead to the suspension of the country's right to vote in the EU Council.
