EU Commission freezes Hungary’s €13bn aid

Web Desk

30th Nov, 2022. 08:54 pm
Share
- Listen
- Font size
  - Small
  - Medium
  - Large
- Dark Mode
- Save
- Print

Articles

The EU advises delaying €13.3 billion (£11.5 billion) in budget and Covid recovery funding that Hungary desperately needs.
The Commission says no payout will be possible until Budapest has “fully and correctly implemented” all 27 judicial reform milestones.
Rights organizations have also charged his Fidesz government with undermining freedom of the press, academia, and the LGBT community.

The EU executive has suggested withholding billions of euros in financing for Hungary since Viktor Orban’s administration has been unable to implement significant changes.

The European Commission advises delaying budget and Covid recovery funding totaling €13.3 billion (£11.5 billion) of EU funds.

The government of Hungary has long been charged with regressing in terms of democracy.

But with the economy struggling and prices skyrocketing, it desperately needs the money.

On Wednesday, the Commission announced that it had chosen to support Hungary’s Covid recovery plan. However, the Commission added that no payout would be possible until Budapest had “fully and correctly implemented” all 27 judicial reform milestones as well as the actions outlined in the country’s recovery plan.

The Orban administration might take some solace in the fact that its recovery plan was approved, but the EU’s plan has suffered a significant setback.

The minister in charge of the discussions, Tibor Navracsics, told reporters in Budapest on the eve of the announcement that his government had met all the requirements. In particular, it had established a team to combat corruption and a new integrity authority.

Any lag in the unfreezing of money, according to Mr. Navracsics, is the result of pressure from left- and liberal-leaning organizations in the European Parliament.

Also Read

EU commissioner exchanges views with FC, FIA officers near Afghan border

During her visit, Ylva Johansson was briefed on fight against terrorism, organised...

The parliament issued a warning last week about the possibility of the Hungarian government misusing EU funding. A report accusing Viktor Orban of establishing a “electoral despotism” was recently authorized by the body.

“I’m afraid the European Commission will be exposed to that political pressure,” said the Hungarian minister. “And that, of course, is not good for us. But the European Commission must base on its evaluation on facts.”

Hungary’s leaders have been repeatedly accused of democratic backsliding and “state capture” since Mr Orban’s Fidesz party returned to power in 2010.

A new constitution enacted in 2011 changed the electoral process to strengthen the party’s hold on power and transformed the Constitutional Court into a completely ineffectual institution.

Since then, pressure on judges has grown, diminishing their independence, and a number of significant media outlets have either shut down or been bought over by pro-government businesspeople.

Additionally concentrated into “friendly” hands were banks, companies, and a portion of the retail industry.

The €4-5 billion that Hungary receives annually from the European Union frequently finds its way to commercial groups associated with the ruling party, including the prime minister’s relatives. Mr. Orban, meanwhile, did not miss a chance to criticize “Brussels”.

Rights organizations have also charged his Fidesz government with undermining freedom of the press, academia, and the LGBT community.

The present decision to halt funding for Budapest can be linked to the EU’s renewed willingness to tie funding to openness and adherence to the rule of law, as well as to a rising European dissatisfaction with Mr. Orban’s confrontational political approach.

The recommendation to suggest blocking the budget payment, according to EU Justice Commissioner Didier Reynders, was a significant step toward bolstering judicial independence.

Although the funds the Commission wants to set aside are related to reforms that have stagnated, the Hungarian government has also enraged its European allies over how it has handled the conflict in Ukraine.

Hungary’s foreign minister, Peter Szijjarto, refused to let his Ukrainian counterpart attend a Nato conference in Brussels on Tuesday, citing restrictions on the rights of the Hungarian minority in Ukraine.

Budapest has been slow to support Kyiv from the EU.

The Commission set down certain requirements that had to be satisfied before the money was paid in its recommendations on Wednesday.

“Hungary has unfortunately not implemented the remedial measures,” said EU Budget Commissioner Johannes Hahn.

Although it had moved in the right direction, important weakness remained and Budapest was still far away from where it had to be, he added.

EU finance ministers and the heads of the EU’s 27 member states will make a final decision next month.

EU Commission freezes Hungary’s €13bn aid

Web Desk

Articles