In a significant development, the European Commission is gearing up to greenlight a decision next month that could unblock a substantial €10 billion in cohesion funds for Hungary. This financial boost, long withheld due to persistent rule-of-law concerns, follows Hungary’s approval in early May of a reform aimed at fortifying judicial independence and reducing political influence over the courts. These strides align with the “super milestones” outlined by the Commission last year, establishing critical policy and legislative goals for Hungary.
Super Milestones: Hungary’s Path to Unlock €21.7 Billion
Hungary faces the challenge of meeting a total of 27 “super milestones” and four “horizontal enabling conditions” to access €21.7 billion in frozen cohesion funds and its €10.4 billion recovery and resilience plan. The judicial overhaul, passed in May, is deemed satisfactory by EU officials, potentially unlocking €10 billion, with finer details yet to be ironed out. An additional €500 million may also be in play, though the final amount remains undetermined. The EU emphasizes the need for vigilant monitoring to gauge the real-world impact of these reforms.
Commission’s Decision Looms: Expected Before December 15
EU officials, speaking on condition of anonymity, reveal that the European Commission is poised to make the decisive move on the €10 billion decision, circumventing the need for member states’ approval. This pivotal step, anticipated before December 15, signifies a year-long journey since the initial resolution to halt payments. However, a significant portion of cohesion funds, €11.7 billion to be exact, including the frozen €6.3 billion under the “conditionality mechanism,” remains blocked due to concerns related to public procurement and conflict of interests.
Obstacles Remain: Hungary Yet to Access Thematic Funds
While progress is made on the cohesion funds front, Hungary faces roadblocks in accessing thematic funds, such as €2 billion earmarked for academic freedom and €600 million for LGBTQ+ rights protection. An EU official notes that Hungary has not implemented necessary arrangements, indicating a considerable gap before tapping into this financial reserve. Meanwhile, there’s no imminent decision expected on the €10.4-billion recovery plan, except for the release of €920 million over the next 12 months to initiate energy projects.
Political Tensions: Orbán’s Veto Threats and EU Leaders’ Summit
This unfolding financial landscape unfolds against the backdrop of heightened political tensions. Hungarian Prime Minister Viktor Orbán, known for wielding his veto power extensively, has labeled the year-long deadlock as “financial blackmail.” As the Commission’s decision approaches, EU leaders are scheduled to convene in Brussels on December 14 and 15 to discuss opening accession talks with Ukraine and providing additional aid to the war-torn nation. Orbán’s threats to veto these discussions add a layer of complexity to an already charged atmosphere.
SOURCE: Ref Image from Science Business
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