EU Commission Unfreezes €10 Billion
In a significant development, the European Commission has approved the release of €10 billion in cohesion funds for Hungary, nearly a year after the funds were frozen due to concerns over the country’s rule-of-law issues. The decision allows the Hungarian government to seek reimbursement for up to €10.2 billion, supporting various development projects within the country.
Political Landscape Intensifies
This decision unfolds amid heightened political tensions, with Hungarian Prime Minister Viktor Orbán intensifying his opposition campaign. Orbán aims to block accession negotiations with Ukraine, impede a €50-billion special fund for Ukraine’s budget, and halt further military aid provisions. These crucial matters will be discussed during an upcoming two-day summit of EU leaders, requiring unanimous agreement to proceed.
Speculations on Political Bargaining
The simultaneous release of frozen funds and Orbán’s strong opposition has sparked speculation about potential political bargaining between Hungary and Brussels. Despite denials from the European Commission, the prime minister’s political director hinted at a possible quid-pro-quo in a recent interview, suggesting a connection between Hungary’s EU funding and Ukraine’s financing.
Commission Denies Political Influence
The European Commission refutes any political motivations and asserts that the decision to unfreeze funds is solely a procedural response to Hungary’s judicial reform implemented in May. The reform aimed to enhance judicial independence and reduce political interference, meeting the conditions set by the EU to unlock the frozen funds.
Concerns Raised by International Organizations and EU Parliament
However, concerns have been raised by Amnesty International and the Hungarian Helsinki Committee, suggesting that the judicial reform falls short of addressing the issues highlighted by Brussels. In a joint letter, leaders of the European Parliament’s main groups expressed skepticism and urged the Commission to wait until the National Judicial Council elections conclude on January 10 before providing a positive assessment.
Remaining Challenges for Hungary
While the approved reform addresses judiciary-related milestones, Hungary still needs to fulfill 27 “super milestones” and four “horizontal enabling conditions.” The EU funds unlocked are part of the cohesion funds, with €11.7 billion still withheld due to concerns over public procurement and conflicts of interest. Additionally, Hungary remains unable to access €10.4 billion from its COVID-19 recovery and resilience plan, including grants and low-interest loans.
In summary, the release of funds adds a new dimension to the ongoing political challenges between Hungary and the EU, raising questions about the intersection of financial decisions and political negotiations.
SOURCE: Ref Image from POLITICO.eu
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