Hungary's reform progress under its new government will allow the European Commission to unlock previously frozen EU recovery and cohesion funds worth €16.4 billion (roughly $19.1 billion), Commission President Ursula von der Leyen said in Brussels on Friday. 

She was speaking to reporters after talks with Hungary's new Prime Minister Peter Magyar, who defeated his predecessor Viktor Orban in elections last month.

Under Orban's leadership, Budapest and Brussels had frequently clashed — both over domestic Hungarian issues and foreign policy matters like support for Ukraine amid Russia's invasion. Various funds designed to help one of the EU's poorer member states had been frozen for years as a result.

What did Magyar and von der Leyen say about the funds? 

Von der Leyen broke down the sources of the assistance at the press conference in Brussels. 

"I can confirm that it is €10 billion that have been unfrozen or will be unfrozen from Next Generation EU [the bloc's recovery fund], then the €4.2 billion in cohesion funds, with a further €2.2 billion as the reforms are completed," she said. 

"That is quite a sum, but ...the Hungarian people deserve it. Again, many, many thanks for the ‌outstanding work that has been done," the German politician said as she stood alongside Magyar.

The new prime minister called the agreement reached on Friday a "historic breakthrough," saying that he had agreed on all the steps allowing for the release and that Hungary would be able to pass the necessary laws. 

"We will bring this money home, as we promised, to rebuild Hungary, to jump-start the economy, to restore and ​develop public services, and to ⁠strengthen the competitiveness of Hungarian companies and small and medium-sized enterprise," Magyar told reporters.

What shape is Hungary's economy in? 

Hungary's economy has been more or less stagnant for the last three years, logging only minimal growth. 

That's despite a swelling budget deficit that this year could reach 6.2% of GDP — well past EU targets — after heavy pre-election spending by former Prime Minister Orban. Central bank base interest rates are at 6.25%, far higher than the ECB's 2%.

The national currency, the forint, has rebounded since Magyar's election, in part on the anticipation of renewed EU recovery funding. 

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Edited by: Wesley Dockery