The tug of war between Hungary and the European Commission continues. On Sunday, September 18th, the executive branch of the European Union proposed to the member states to suspend the payment of part of the European funds to Hungary, as a punishment for not effectively fighting against corruption. Hungary responded by announcing a package of reforms designed to comply with Brussels’ expectations.
Viktor Orbán has been under threat for many months. In 2018 the Parliament requested the activation of Article 7 of the European treaties, which provides for the conditionality of EU aid with respect to a number of criteria, notably on corruption and the rule of law. In April 2022, the procedure was officially launched, to the applause of anti-Orbán MEPs in Parliament.
Then, this past Thursday, September 15th, a report by MEPs concluded that Hungary could no longer be considered a democracy, but a “hybrid electoral autocracy,” and pressured the Commission to go further in its demands on Hungary. The Commission heard the message and on Sunday, September 18th, it called for the suspension of €7.5 billion in aid to Hungary if the country does not comply with its recommendations on fighting corruption. According to the French newspaper Le Monde, this amount represents 20% of the aid Hungary is supposed to receive over the period 2021-2027. At the same time, Hungary has not received the funds to which the country is entitled under the post-COVID recovery plan. Here too, efforts are required in terms of rule of law.
The European executive is defending itself from accusations that it has acted merely out of ideological concern. According to the Spanish newspaper El Mundo, Hungary’s shortcomings would jeopardise the European Union’s finances. The priority would therefore be to protect European taxpayers’ money.
For the time being, the European Union is still extending a hand and giving Hungary some time. The country does not seem to be overly disturbed by the Commission’s decision. The Commission has given Hungary until November 19th to implement measures to ‘remedy the situation’ and allow Brussels to reassess its decision. The prime minister’s entourage is communicating on the prospect of an agreement, which is bound to happen in the coming months.
For the time being, Hungary can count on the support of Poland, which is also under close surveillance by Brussels. Prime Minister Mateusz Morawiecki announced on Sunday, September 18th that Poland would oppose any move to deprive Hungary of its EU funds. Morawiecki recalled that Hungary had submitted an agreement to the European authorities, which he said would be successful. The mayor of Budapest, Gergely Karácsony, a political opponent of Viktor Orbán, urged the European Union not to accept the agreement put forward by Orbán, on the grounds that it would not solve the basic problems. “If there is no agreement between the EU and Hungary, we will try to convince European decision-makers to find a way for these funds not to be lost but directly transferred to municipalities and NGOs,” he explained in a press conference in Budapest on Wednesday, September 21st.
Regardless of the two-month deadline, the Commission’s opinion is subject to the final validation of the European Council.
