Hungary Loses Out On About $1 Billion In EU Aid
Hungary is set to lose out on €1.04 billion ($1.08 billion) in aid from the European Union after failing to meet rule-of-law standards, according to a European Commission spokesperson cited by the German news agency DPA on Dec. 31.
The funding was contingent on Hungary implementing key reforms by the end of 2024 to align with EU requirements. These reforms included tightening laws to prevent conflicts of interest and enhancing anti-corruption measures.
Budapest fell short of meeting the necessary requirements, resulting in the loss of funding, the European Commission confirmed. This marked the EU’s first-ever move to penalize a member state in this way.
Back in 2022, the EU launched a “conditionality” procedure against Hungary, aiming to withhold funds due to alleged breaches of public procurement rules. The bloc accused Hungary’s government of failing to ensure “control and transparency.”
EU assessments concluded that Budapest was disregarding key EU standards and fundamental values. Although Hungary pledged to implement reforms to regain access to some funds, a staggering €19 billion ($20 billion) remained frozen.
In July, the European Commission declared that Hungary still fell short of EU democratic benchmarks, particularly in areas like political financing, conflicts of interest, and media independence.
Under EU aid regulations, the “first tranche of suspended obligations,” amounting to €1.04 billion ($1.08 billion), is set to expire at the end of 2024 if the suspension is not lifted.
Hungary, broadly seen as the most Kremlin-proximate EU member, has repeatedly obstructed aid for Ukraine on account that it “prolongs” and “escalates” the ongoing war.
Hungarian Prime Minister Viktor Orban also told EU leaders he plans to wait until U.S. President-elect Donald Trump takes office before deciding on an extension of the bloc’s sanctions against Russia, Bloomberg reported on Dec. 19, citing undisclosed sources.