Possible violations – EU commission wants Hungary to cut EU funds

The move was previously announced by EU Budget Commissioner Johannes Hahn. Hahn said in an interview with “Tiroler Tageszeitung” that the European Commission would take action in Hungary and set the mechanism in motion – on suspicion of corruption and problems with public procurement. This could lead to a reduction in EU funds for Hungary.

Reduction of EU subsidies
In February, the European Court of Justice dismissed complaints from Hungary and Poland against the rule of law mechanism. This paved the way for the European Commission to initiate the rule of law mechanism, which could ultimately lead to cuts in EU funding.

Currently no problems with Poland
According to the newspaper, Hahn currently sees no application in Poland because of problems within the judicial system. Hahn also stressed the division between Poland’s solidarity with Ukrainian refugees and the rule of law conflict. “The achievements of Poland in particular in taking in Ukrainian refugees should be recognized without reservation, but that does not mean that it is given carte blanche under the rule of law.”

Fines still to be paid
Poland does not receive the full amount of the EU budget allocated to it, because it has not complied with judgments of the European Court of Justice. Specifically, according to the ECJ ruling, Poland should have closed a lignite mine on the border with the Czech Republic, but it did not. The fines incurred will be deducted from the Polish EU funds. Although Warsaw has now reached an agreement with Prague, Hahn says the fines incurred so far have yet to be paid.

The EU commission has also blocked funds from the Corona reconstruction fund “Next Generation EU” for Poland and Hungary – also over doubts about the use of the rule of law.

Members of Parliament from Austria applaud the move
Austrian MEPs welcomed the move by the European Commission and called for bold action against Hungary in the rule of law conflict. “In days like these, the EU needs to show more than ever that it is a legal and valuable community,” said Othmar Karas (ÖVP), First Vice-President of the EU Parliament. “Where people are denied constitutional structures, they must be restored and made good as soon as possible,” demanded his colleague in the delegation, Lukas Mandl.

The earlier delay in the Article 7 rule of law procedure and the rule of law mechanism is outrageous, said NEOS member Claudia Gamon, who accused the EU of being too conciliatory. The war in Ukraine also revealed that Hungarian Prime Minister Viktor Orban was “almost a vassal of Putin in Europe”.

Fear of further abuse
The head of the Green delegation, Monika Vana, warned that under no circumstances should the admission of refugees be used to disregard the rule of law. According to the clear judgment of the ECJ, this step has long been necessary. After Orban’s election victory, there are fears of further misuse of EU funds in Hungary, SPÖ member Bettina Vollath said. The EU commission had “looked way too long” and was “definitely responsible for the situation”.

European Commission makes mistakes
Hungarian Chancellor Gergely Gulyas reacted negatively to the opening of the procedure. The EU commission is making a “mistake,” Chancellor Gergely Gulyas told state news agency MTI on Tuesday. The ruling party Fidesz experienced “unprecedented support” in Sunday’s parliamentary elections. “Precisely for this reason, the committee must accept the basic rules of democracy and not serve the needs of the Hungarian left, which was defeated in the elections.”

Orban’s national-conservative Fidesz party won parliamentary elections on Sunday by a surprisingly large margin. Orban is about to start his fourth term. The EU has been at odds with Orban on many issues for years. In the dispute over democracy standards, for example, it has already frozen assets for Hungary.