The European Commission announced on Wednesday the release of approximately €10 billion from the European Union’s funds to Hungary, on the eve of a summit where Hungarian Prime Minister Viktor Orban had threatened to derail it.
The announcement has sparked strong reactions in the European Parliament, where some members are concerned about the possibility of the Commission “succumbing” to the Hungarian nationalist leader’s “blackmail,” according to the French Press Agency (AFP).
However, the Commission stated that the funds’ disbursement resulted from reforms undertaken by Budapest in response to a series of conditions aimed at improving the independence of Hungary’s judicial system.
Overall, the European Union still freezes approximately €21 billion in European funds allocated to Hungary under various measures due to violations of the rule of law.
Orban threatened to obstruct key decisions concerning Ukraine listed on the European summit’s agenda for Thursday and Friday.
These decisions include commencing accession negotiations with Kyiv and approving €50 billion in European aid to Ukraine in the form of grants and loans.
Orban, the only leader in the EU who maintains close ties with the Kremlin following Russia’s invasion of Ukraine, calls for a “strategic discussion” among the EU’s 27 member states about the future of relations with Kyiv.
Ursula von der Leyen, the President of the European Commission, emphasized the need to continue supporting Kyiv.
Daniel Freund, a German member of the European Parliament from the Green Party, commented upon the funds’ release, stating that Von der Leyen is paying the largest bribe in the history of the EU to Orban.
The international transparency organization expressed its “strong opposition” to this decision, considering it sends a signal that the destruction of democratic society can pass without punishment if superficial reforms are undertaken.
In December 2022, the European Union froze around €21.7 billion from the Cohesion Fund allocated to Hungary for the period from 2021 to 2027, pending Budapest’s completion of a series of reforms.
Hungary implemented some changes, meeting Brussels’ demands related to the judiciary, and these changes came into effect in June.
They primarily aim to restore the authority and independence of the National Council of the Judiciary, amend the Supreme Court’s functioning, and limit the government’s ability to refer cases to the Constitutional Court.
On Tuesday evening, the Hungarian Parliament voted on the latest legislative amendment expected by Brussels, related to the referral of European law to Hungarian courts, according to the results of the parliamentary vote reported by the French Press Agency (AFP).
The Commission stated that the remaining funds allocated to Hungary are still frozen due to concerns about a law against homosexuals, attacks on academic freedom and asylum rights, public procurement conditions, and conflicts of interest.
In a separate move, the European Union also suspended Hungary’s recovery plan, which has a total value of €10.4 billion (€6.5 billion in grants and €3.9 billion in loans), also conditional on progress in the rule of law.