The agreement would unlock approximately 6,000 billion forints (19.79 billion dollars) in EU resources, equivalent to about 13 percent of Hungary's gross domestic product, Magyar said.

BRUSSELS, May 29 (Xinhua) -- Hungarian Prime Minister Peter Magyar announced on Friday that Hungary had reached a political agreement with the European Union on the release of 16.4 billion euros (19.1 billion U.S. dollars) in previously frozen EU funds.

The agreement was reached following talks with European Commission President Ursula von der Leyen in Brussels and would unlock approximately 6,000 billion forints (19.79 billion dollars) in EU resources, equivalent to about 13 percent of Hungary's gross domestic product, Magyar said.

The package consists of 10 billion euros (11.67 billion dollars) that can be unlocked under Hungary's revised Recovery and Resilience Plan, subject to the implementation of agreed reforms and investments, as well as 4.2 billion euros (4.9 billion dollars) in cohesion funds released after progress on governance-related conditions and a further 2.2 billion euros (2.57 billion dollars) linked to reforms in higher education and academic freedom, according to von der Leyen.

The funding will support projects in energy, transport, housing, digitalization and small and medium-sized enterprises. Magyar said the resources would also be available for electricity grid upgrades, railway modernization, rental housing projects, healthcare and education development, while several billion euros could be claimed for projects already completed or under implementation.

Speaking after the meeting, Magyar described the outcome as a "historic day" for Hungary. "We are taking home the thousands of billions of forints in European Union support that belong to the Hungarian people," he said.

Von der Leyen said the agreement followed weeks of intensive cooperation between the European Commission and Hungary's new government on reforms aimed at strengthening anti-corruption safeguards and the rule of law.

"We agreed on a robust architecture to ensure that Hungary addresses corruption and rule-of-law concerns," she said, adding that Hungary had decided to join the European Public Prosecutor's Office (EPPO), strengthen its Integrity Authority, revise public procurement rules and gradually phase out public-interest trusts that had raised concerns about conflicts of interest and state capture.

According to von der Leyen, the reforms enabled the Commission to unlock funding previously frozen under various EU mechanisms. She said the two sides had agreed on "very concrete projects" to support key sectors, including energy, housing, transport, and small and medium-sized enterprises.

Von der Leyen also announced that Hungarian students would again be able to participate in the Erasmus exchange program from the next academic year, following progress on issues related to academic freedom and governance in higher education institutions.

Further details of the agreement are expected to be released in the coming days.