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?
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 euros in funds to Hungary
The Commission claims that Hungary has fulfilled the conditions related to the independence of the judiciary, which entitles it to access (some of the frozen) 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 openly said it would veto.
12 December 2024
December deadline for Hungary to rectify the situation and unfreeze the money
22 December 2024 marks the 2 year period within which Hungary can still solve the rule of law problems that led to the decision to freeze EUR 6.3 billion - and avoid losing that money for good.
12 December 2022
Over 27.8 billion EUR are frozen under three differ 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 controversial release of about €10 billion.
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.
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