by Jan Strupczewski
BRUSSELS (Reuters) – The European Commission on Wednesday approved Hungary’s economic recovery plan in the wake of the COVID-19 pandemic while warning it would pay none of the 5.8 billion euros Budapest is entitled to until the government of Viktor Orban has fully implemented the expected reforms in terms of respect for the rule of law.
The EU executive also confirmed its request to member states to freeze an additional 7.5 billion euros earmarked for Hungary over the next few years under EU cohesion policy.
“Today we give our positive assessment of Hungary’s comprehensive recovery programme. With regard to the rule of law, Hungary is committed to significant reforms. Only when these reforms are fully implemented implementation will unlock access to the EU recovery fund,” said European Commission Vice-President Valdis Dombrovskis.
The reforms demanded by Brussels relate in particular to the independence of the judiciary and they are grouped together in what the Commission describes as 27 “super-milestones”.
“This means that no disbursement under (the European Recovery Fund) is possible until Hungary has fully and correctly implemented these 27 super-milestones,” the EU executive said, insisting that partial compliance with these measures would not lead to partial release of funds.
The freezing of the additional 7.5 billion euros from the cohesion policy marks the first use by the European Commission of its new prerogatives on the preservation of the EU budget in the face of the risks of misuse of European funds.
The European Council of Twenty-Seven Member States now has until December 19 to decide on this freezing of cohesion policy funds, the decision being taken by qualified majority.
The release of funds will become possible when the Commission considers that Hungary has addressed its concerns regarding the fight against corruption and the independence of the judiciary.
If Hungary has already taken initiatives, they are insufficient, declared the European Commissioner for the Budget, Johannes Hahn, during a press conference. The European executive has therefore maintained its recommendation made in September to suspend the disbursement of these 7.5 billion euros, which represent 65% of the European funding intended for Hungary within the framework of the cohesion policy over the next few years.
(Report Jan Strupczewski, French version Bertrand Boucey, edited by Kate Entringer)