Despite the recent anti-corruption measures, Hungary fears that billions of euros in EU payments will be suspended. After an examination, experts from the EU Commission came to the conclusion that the measures taken by the government in Budapest against the possible misuse of EU funds were not sufficient to end the procedure initiated to freeze funds, the German press learned agency on Wednesday in Brussels. It should therefore be proposed to the other Member States to withhold around 7.5 billion euros from the Community budget, as originally planned.
According to plans, a corresponding recommendation will be made by EU Commission President Ursula von der Leyen and the 26 other Commission members next week. It could then be adopted at a meeting of EU finance ministers in early December. However, a qualified majority would be necessary – that means at least 15 of the 27 EU states would have to agree and these would have to together make up at least 65 percent of the total population of the EU.
Does it also affect the Corona aid?
Things are also looking bleak for Hungary with regard to the hoped-for payment of billions in corona aid from the EU. The EU Commission wants to make a positive recommendation on the Hungarian plan for the use of funds. However, payments should only be made if the country meets 27 requirements. This includes those formulated in the rule of law process. Hungary wants to receive 5.8 billion euros in grants from the EU’s so-called recovery and resilience facility.
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.
Because of corruption and other violations of the rule of law in Hungary, the EU Commission proposed in September to initially cut payments to the country of around 7.5 billion euros from the EU budget. Hungary then pledged remedial action to stop the process. Among other things, the establishment of a new Office for Integrity was decided, which should uncover and prevent the misuse of EU funds. As recently as Friday, Hungarian Justice Minister Judit Varga said at an EU ministerial meeting in Brussels that Hungary was fully meeting all of its commitments to release the funds.
