Hungary will not receive 1.04 billion euros ($1.08 billion) in aid from the European Union due to violations of the rule of law, the German news agency DPA reported on Dec. 31, citing a European Commission spokesperson.
The aid package was conditional on Hungary implementing reforms to bring the country into compliance with EU standards by the end of 2024. These included changes to laws on preventing conflicts of interest and fighting corruption.
Budapest failed to meet the requirements, and thus lost funding, according to the European Commission. This was the EU's first such action against a bloc member.
In 2022, the EU initiated a "conditionality" procedure against Hungary, seeking to block payments due to alleged violations of public procurement rules. EU accused the Hungarian government of "lack of control and transparency."
According to EU assessments, Budapest was found to be neglecting the bloc's standards and fundamental values. Hungary agreed to implement reforms to unblock some funds, but 19 billion euros ($20 billion) remained frozen.
In July, the European Commission said that Hungary did not meet EU democratic standards, particularly those regarding political financing, conflicts of interest, and media independence.
According to the EU regulation on aid conditions, the "first tranche of suspended obligations" of 1.04 billion euros ($1.08 billion) would expire at the end of 2024 without lifting the suspension.
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.
Kateryna Hodunova
(Updated: )
