THE EU Commission is set to trigger a mechanism which would cut funding to Hungary for eroding the bloc’s standards, Ursula von der Leyen has said.
It comes just two days after Hungarian Prime Minister Victor Orban won a fourth consecutive term in an election.
The Commission President said her team informed Hungary of the decision on Tuesday after reviewing responses from Budapest over rule-of-law worries.
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The bloc had previously written to Hungary and Poland stating that issues with the independence of the judiciary, ineffective prosecution of corruption and deficiencies in public procurement could pose risks to the EU’s financial interests.
Speaking to the European Parliament, von der Leyen (below) said: “We’ve carefully assessed the result of these questions.
“Our conclusion is we have to move on [to] the next step.”
Hungary is the first country to face proceedings under the new powers - which give the EU the authority to cut millions in EU payouts to countries determined to be in breach of the rules and putting the bloc’s budget at risk.
There are likely still months of deliberation, bureaucratic red tape and political debate ahead before it’s known if Hungary will lose out on EU cash.
Once the Commission progresses the mechanism, there will be back-and-forth between the bloc and Budapest before the Council of the EU, made up of representatives from each country, will decide on whether to slash funding.
It would require 55% of EU countries to back the move, representing at least 65% of the bloc’s population.
Since coming to power in 2010, Orban’s administration introduced a new constitution and changed the electoral system, while the ruling Fidesz party extended its influence to cover the judiciary, state media and education system.
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The move placed Orban loyalists at the head of many key institutions, ranging from the media oversight body to the chief prosecutor's office.
Meanwhile, high-level corruption has also run rampant in the country, with Orban’s friends and family becoming some of the wealthiest individuals in Hungary.
Politico reports that this is in part thanks to EU-funded public procurement projects.
This has led to experts and political opponents declaring Hungary is now no longer a fully-fledged democracy, while the ruling government continues to deny any problems with democracy.
They have also rejected the new mechanism as a politically motivated tool.
The new powers were introduced at the end of 2020, but due to a political agreement between EU leaders, the Commission held off on using them until Hungary and Poland challenged their legality in the Court of Justice.
The ECJ gave the legal green light in February, with the bloc holding off on moving until Hungary’s election was over.
Orban’s right-wing Fidesz party won 135 of 199 seats with almost 99% of the votes counted, preliminary results show. The opposition alliance, led by Peter Marki-Zay, won 56 seats.
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