Information
The European Commission has announced that Hungary will lose €1 billion ($1.03 billion) in European Union aid due to persistent rule of law breaches. This decision stems from Hungary’s failure to address EU concerns over corruption, conflicts of interest, and transparency in public procurement. The EU began “conditionality” proceedings against Hungary in 2022, which allowed for the freezing of funds until adequate reforms were implemented. Although Hungary had agreed to some changes that led to partial unblocking of funds, the European Commission found that key reforms to meet EU democratic standards—particularly regarding corruption and media independence—were insufficient. The withheld €1 billion represents a tranche of funds that would have expired by the end of 2024 without proper resolution.
Prime Minister Viktor Orban, who has been in power since 2010, has consolidated his influence while some of his allies amassed significant wealth. His government’s actions have repeatedly clashed with EU values, leading to Hungary being sanctioned under a 2018 procedure for serious rule-of-law violations. Despite Orban’s pledge to fight for the funds, the EU’s July report reaffirmed concerns about Hungary’s governance, particularly regarding political financing, conflicts of interest, and press freedoms. Orban’s close ties with leaders like Donald Trump and Vladimir Putin further underline the complex dynamics between Hungary and the EU. The decision to revoke the funds is part of broader efforts to uphold EU standards and safeguard its financial interests.
Source: AFP, dpa
So what
This is a huge blow to Orbans leadership, as he had promised Hungarians that the EU would eventually give them the funding. However, it is highly likely that Hungarian language media (almost entirely owned by Orban supporters) will publish articles to blame the EU. Sadly, it is the Hungarian people who lose out here as those funds could have been used to update critical infrastructure such as hospitals.
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