frozen EU funds in HUNGARY
The Hungarian government led by Orbán has
subdued courts, media, NGOs, and
academia, and violated refugees, LGBTIQ
rights during more than a
decade in power, all the while using EU's
money to cement his power and sustain his
cronies.
By 2022, the EU Member States had enough and Hungary became the first country against which the European Union activated the Conditionality Regulation -alongside other programme-specific conditionality rules. In total more than 27.8 billion EUR, representing XX of Hungary's GDP, have been temporarily withheld.
It has since become evident that the suspension of EU funding is the bloc's most potent instrument for compelling governmental policy adjustments. Notable advancements have been made. The remaining funds can be quickly unfrozen if Hungary would agree to repeal laws violating human rights and to adopt long-overdue anti-corruption reforms.
Here is everything you need to know
What's
HAPPENED?
12 December 2022
Over 27.8 billion EUR are frozen under three different conditionality regimes
EU institutions deemed that corruption and breaches of the rule of law in Hungary are so serious that they threaten the correct implementation of the EU budget. Funds were frozen under two other regimes (EUR 22 billion in cohesion funds and EUR 9.5 billion of the recovery and resilience facility) over similar concerns.
14 March 2024
European Parliament takes legal action against the European Commission after the €10 billion release
The European Parliament considers the Hungarian reforms the Commission cites as reasons for the release of the funds to be insufficient. The EP believes that the Commission simply gave in to Hungary's blackmailing tactics and is making a manifest error of assessment.
16 December 2024
Hungary loses €1.04bn for good for the first time since the 2022 fund freeze
In December 2024, Hungary got €1.04bn decommitted as it had not adopted the necessary anti-corruption reforms. Decommitments under the Conditionality Regulation follow the n+2 rule, so Hungary lost the 2022 allocations for the 3 cohesion funds suspended under this regime.
16 February 2022
CJEU endorses the Regulation
The CJEU clears the Regulation as compatible with EU law and rejects Hungary and Poland’s actions for annulment initiated in March 2021.
27 April 2022
Commission activates mechanism against Hungary
The EC sends a letter informing the Hungarian authorities of the activation of the mechanism
13 December 2023
Commission releases €10 billion in funds to Hungary
The Commission claims that Hungary had made the necessary reforms related to the independence of the judiciary, which entitles it to access €10bn of cohesion funds. The decision came one day before the European Council voted on the start of accession talks and giving aid to Ukraine, two files that Hungary had threatened to veto.
20 October 2024
RECLAIM sues the Commission over the shadyness of the €10billion release
RECLAIM launched an information request to the European Commission on the exchanges with Hungary prior to the release of €10bn. The Commission did not disclose the documents, and we brought it before the Court of Justice to ensure accountability and transparency.
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