MEPs, rule of law experts call on the Commission to cut all EU funds to Hungary

MEPs from across the main political parties called on the Commission to suspend all EU funds to Hungary. [European Parliament]

**This article has been updated with comments from officials of the Hungarian government

MEPs and lawyers urged the European Commission on Wednesday (6 July) to stop transferring EU funds to Hungary due to the country’s systemic violations of the rule of law.

The Commission should freeze 100% of all payments according to a new legal analysis conducted by rule of law experts and commissioned by Green MEP Daniel Freund.

“Only 100% suspensions, reductions, interruptions, and recoveries will sufficiently protect the EU’s financial interests,” the report reads, adding that “this measure is proportional and appropriate.” 

John Morijn, one of the co-authors of the study and rule of law expert, told EURACTIV a partial suspension of funds would not be enough against the “fundamental, frequent or widespread” breaches to the rule of law in Hungary, given the mismanagement of EU funds, the changing legal environment and the lack of an independent judiciary in the country.

In the context of the current situation, “it is irresponsible to spend EU money there,” Morijn said. He added that suspending the funds would also benefit Hungarian citizens by putting pressure on Orbán’s government and avoiding funds ending up in the wrong hands.

If the Commission decides not to suspend all EU funds, it “would need to justify why it is not following the law,” Morijn said, adding that “the law has been ignored for long.”

MEPs from across the main political parties supported the study’s findings, urging the EU executive to block all funds to Hungary.

“The rule of law in Hungary won’t be fixed with half-hearted actions. The legal text is clear: a full suspension of all EU transfers to the Orbán’s government is imperative,” MEP Freund told EURACTIV.

“There is little to no wiggle room for the EU Commission,” he said. “We call on Ursula von der Leyen to make full use of all tools available and to freeze all funding for the Orbán regime.”

The rule of law mechanism

The Commission launched the procedure linking the disbursement of EU funds to the respect for the rule of law against Hungary in April due to concerns over the persistent misuse of EU funds in the country.

Hungary: Commission officially launches procedure linking bloc funds to rule of law

The European Commission has started the procedure against Hungary because of long-standing concerns over persistent misuse of EU funds in the country, the institution announced on Wednesday (27 April).

After Hungary submitted its response last week, the Commission has to present its measures by mid-August.

“The biggest question is how much money will the Commission suggest to freeze,” Freund said, adding that the EU executive should freeze 100% of funds to Budapest, amounting to around €6 billion per year.

MEP Petri Sarvamaa of the EPP said, “in this kind of systemic situation that we have in Hungary, […] there is actually no other choice for the Commission than to go for 100%.”

Sarvamaa also said the “Commission was not up to the job” in the past because it considered other aspects besides the rule of law situation.

Avoiding political blackmail

EU lawmakers stressed that the study is not a political assessment but a legal one.

“The conditionality mechanism is a mechanism to protect our budget, and that is what we are doing,” said Moritz Korner of Renew, dismissing Fidesz’s accusation of the tool being a political instrument.

Officials from the Hungarian government said the “European Union funding is also our money, and its spending cannot be influenced by blackmail and unclear procedures that are based on unfounded accusations.”

“We will not accept anyone subjecting us to any kind of political blackmail or pressuring,” they added.

Meanwhile, MEPs call on the Commission to reject any blackmail from Budapest due to the ongoing crisis on the Eastern border.

“We all know that Putin’s invasion of Ukraine has altered a lot of political considerations,” Freund said.

However, “this still doesn’t mean that the rule of law, particularly in Poland, but also in Hungary, should be neglected in these difficult times,” he added.

[Edited by Nathalie Weatherald]

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