Norway resumed financial aid to Hungary on Monday after resolving a long-standing dispute over fund management, signing a €254.1 million agreement in Budapest.

The deal, inked by Norwegian Foreign Minister Espen Barth Eide and Hungarian Finance Minister András Karmán, restores access to European Economic Area and Norway Grants funding. The funds will support democratic institutions, rule of law, good governance, media freedom, and information integrity, Eide said in a statement. Norway provides about 97% of the EEA Grants allocated to Hungary through 2031.

The dispute began in 2014 when Norway suspended payments under then-Prime Minister Viktor Orbán, citing violations of agreements governing fund management. Budapest had unilaterally transferred control of the funds to a state-owned company, which Oslo deemed a breach. Further attempts to restart funding in 2021 failed after Orbán’s government rejected an independent operator for civil society grants and faced accusations of harassing NGOs.

Eide said the change in Hungary’s government under Prime Minister Péter Magyar enabled the new agreement. “The return of Hungary to basic European values and principles is important not only for Hungarians but for Europe,” he told Reuters. The funds will also target anti-corruption measures, energy transition, and local development, with Hungary set to receive the fourth-largest allocation after Poland, Romania, and Bulgaria.

Hungary’s previous government forfeited €214.6 million in EEA Grants due to the standoff. Karmán stated that transparent rules and accountable institutions would ensure no funds are misused, adding that the new pact covers healthcare, culture, green transition, and Roma integration. Hungary will contribute 12 billion forints in co-financing to demonstrate its commitment to responsible fund use.