Brussels gives green light to Hungary recovery plan

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The disbursement of European funds will be subject to 27 major rule of law reforms. If they are not implemented, the country will not receive the payments

The intensive work of the European Commission with the Hungarian authorities has borne fruit. This Wednesday, Brussels approved the recovery plan for Hungary, for which the country will receive 5,800 million euros. However, the disbursements will be the subject of a series of “essential” reforms in the areas of the rule of law and the independence of the judiciary. “If they are not met, there will be no payments,” European Commission Vice-President Valdis Dombrovskis summed up. Similarly, the European Union (EU) through its conditionality mechanism will block another 7,500 million that the country should receive from European funds.

The favorable advice from Brussels is the first step for Hungary to access next-generation recovery funds. However, the decision will need the green light from the Twenty-Seven at the next meeting of Economy and Finance Ministers on December 6. The reforms and investments agreed with Brussels “will have a positive impact on Hungary and its economy”, Dombrovskis stressed. They mainly focus on the independence of the judiciary, which is currently quite limited in the country, an aspect about which the European Union has repeatedly warned.

Justice Commissioner Didier Reynders stressed that these are “tangible and ambitious reforms that Hungary had never committed to before”. Brussels has requested the creation of a body to guarantee the independence of the judges, to supervise their work and to give them a high degree of legal capacity. It also confirms the need to ensure the independence of the Hungarian Supreme Court and the possibility for judges to have recourse to European justice if necessary. The European Commission points out that the agreement is “clear”, with binding objectives and linked to a specific time frame. “We will remain very vigilant,” promises Reynders.

But the approval of the Hungarian recovery plan does not end the battle between Viktor Orbán’s government and the Community Executive. Brussels is keeping 7,500 million of the country’s European cohesion funds frozen through its conditionality mechanism. The Commission stopped the disbursement of these funds when it came to the conclusion that violations of the rule of law in Hungary jeopardize the proper use of these funds. The country had until Nov. 19 to comply with the 17 “corrective measures” demanded by Brussels and “has failed to comply,” budget commissioner Johannes Hahn said.

However, he stressed that Hungary is “moving in the right direction”. “Significant risks remain, but we are ready to recommend lifting these interim measures as soon as the country meets its commitments,” Hahn said. If so, Brussels will give its approval, which must be approved by the Twenty-Seven by a qualified majority.

Source: La Verdad

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