The money has been frozen due to the EU's dissatisfaction with corruption and with Hungary's adherence to the principles of the rule of law.
However, since former opposition leader Magyar took over as prime minister from Viktor Orbán after the parliamentary elections in April, a solution has been negotiated.
A breakthrough has now been reached, following a meeting between Commission President Ursula von der Leyen and Magyar on Friday.
"Subject to the reforms that are being adopted and implemented, I am very happy to be able to tell you today that we can unlock ten billion euros for Hungary," von der Leyen said afterwards.
16 billion
The sum rises to just over 16 billion – over 170 billion Swedish kronor – when the commission then adds two more frozen billion-euro packages.
The bulk of the frozen money is Hungary's share of the EU's large recovery fund to kick-start the economy after the coronavirus pandemic. The smaller parts are partly money from EU regional aid, and partly money that was frozen due to the previous government's crackdown on academic freedom.
The payments are dependent on reforms promised by Magyar, which are widely expected to be approved by the Hungarian parliament, where his party now has its own majority.
All reforms in the package must be implemented, however, von der Leyen emphasizes.
Everything must be completed by August 31st to prevent the corona support from expiring. The actual payments will then probably be delayed until the end of the year.
Opening for Ukraine?
Prime Minister Magyar is happy.
"This is very, very important for the Hungarian people and my beloved country," Magyar said in Brussels.
The announcements likely also mean an opening for Ukraine's hopes of starting the membership negotiations with the EU that Hungary has long blocked.
Magyar continues to refer to Hungarian demands on Ukraine regarding the handling of the Hungarian minority, but at the same time expresses hope for a quick solution and a meeting with Ukrainian President Volodymyr Zelenskyy.
