The European Commission on Wednesday proposed unlocking some €4.2 billion ($4.8 billion) in frozen funds to be paid out to Hungary.

The cash had been blocked over allegations of corruption tied to Hungary's former government, led by Viktor Orban and his Fidesz party.

"Hungary has taken important steps to strengthen the rule of law and protect the [European] Union's financial interests," European Commission President Ursula von der Leyen said in a statement.

A Commission press release said reforms implemented after Hungary elected Peter Magyar prime minister had addressed "shortcomings in areas such as public procurement, the anti-corruption framework, risks of conflicts of interest and the effectiveness of prosecutorial action."

Orban, a feverent critic of the EU, was often at odds with the bloc over accusations that he and his cronies had undermined rule of law and democracy in the country and that he had engaged in self-dealing and corruption — all charges that he vehemently denied.

The Commission said that steps taken by the new Magyar government to rectify prior problems should result in funds being partially unfrozen and the country once again being allowed to participate in European academic exchange and research programs.

In May, the Commission said it was prepared to unfreeze a total of €16.4 billion in earmarked funds should Budapest make good on its promises to implement all proposed reforms.

EU member states must now approve the Commission's plan.

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Edited by: Sean Sinico