- Despite the recently taken anti-corruption measures, Hungary has to fear that billions of euros in EU payments will be suspended.
- The EU Commission recommends only releasing the money once the government of Prime Minister Viktor Orban has fully implemented promises to uphold the rule of law.
- It is about 7.5 billion euros from the community budget and 5.8 billion euros in Corona aid.
In concrete terms, this means that if the reforms are not implemented in Hungary, the next payment from the EU will be blocked – and all subsequent ones as well. In short: no money will flow until the important reforms have been implemented. However, whether the EU will actually freeze the money will not be decided until December.
The EU Commission’s recommendation to freeze funds from the Community budget could be accepted by an EU Council of Ministers in the next few weeks. However, a qualified majority would be necessary – that is, at least 15 of the 27 EU countries would have to agree and together make up at least 65 percent of the total population of the EU.
With regard to the Corona aid, the EU Commission proposes to formally confirm the Hungarian plan for the use of the funds. However, payments should only be made if the country meets a catalog of requirements. This includes those formulated in the rule of law process.
Similar procedure as in Poland
The rule of law mechanism in the EU is designed to ensure that all member countries fight corruption and protect civil rights. If they don’t, funds can be cut – which the EU Commission now wants to do in the case of Hungary.
The Commission acted similarly in the case of Poland, whose plan was already adopted in the middle of the year. The further developments are eagerly awaited, above all because Hungary has considerable means at its disposal to exert pressure on the EU. For example, the government in Budapest could block all decisions that require unanimity in the EU. This applies, for example, to sanctions against Russia or decisions to support Ukraine in the war against the neighboring country.