Norway signed a €254.1m deal to resume financial cooperation with Hungary, suspended since 2014 under Viktor Orban.
OSLO: Norway said Monday it would resume financial cooperation with Hungary to support democratic reforms undertaken by the government of Prime Minister Peter Magyar, suspended for years under his predecessor Viktor Orban.
The wealthy Scandinavian country halted financial aid to Budapest in 2014 when Hungary’s government was led by nationalist Viktor Orban, citing violations of the agreements governing the management of the funds.
On Monday in Budapest, Norwegian Foreign Minister Espen Barth Eide signed a new agreement with Hungarian Finance Minister Andras Karman providing for a package of 254.1 million euros ($285 million).
“The agreement opens a new chapter in relations between our two countries,” Eide said in a statement.
“The funding will benefit the people of Hungary and support the Magyar government’s reforms to restore democracy,” he added.
Cooperation will focus in particular on strengthening democratic institutions, the rule of law and good governance, as well as media freedom and information integrity.
Although it is not a member of the European Union, Norway takes part in the European Economic Area (EEA) and, in that capacity, contributes together with Iceland and Liechtenstein to financial mechanisms aimed at reducing economic and social disparities across the continent.
Oslo alone provides around 97 percent of the EEA funds which could be paid to Budapest by April 2031.
Following Magyar’s victory in parliamentary elections in April, the European Commission also proposed in September to release 4.2 billion euros for Hungary.
Those funds had been frozen as part of various procedures launched against Orban’s policies, notably concerning the rights of LGBT+ people and asylum seekers, as well as conflicts of interest.