The EU’s legal adviser says billions of dollars in funding for Hungary were wrongly released

Budapest, Hungary — The Advocate General of the European Union’s top court on Thursday urged the court to overturn the European Commission’s 2023 decision to release billions of dollars in funding to Hungary that had been held up over rule of law and corruption concerns.

European Commission in 2022 I hung up the money To Budapest over what it described as democratic backsliding by Hungary’s right-wing populist government and the failure to tackle corruption and ensure the independence of the judiciary. A year later, the committee found that the government had implemented sufficient reforms About 10.2 billion euros ($12.1 billion) were issued..

But in a non-binding opinion on Thursday, Advocate General Tamara Gabetta urged the European Court of Justice to overturn the decision that released the frozen funds, arguing that Hungary had not implemented the required judicial reforms by the time they were released.

Although these opinions are not legally binding, they are often followed by a court.

Hungary, a major recipient of EU funds, has come under increasing criticism for deviating from democratic norms. The committee accused the Hungarian Prime Minister more than a decade ago Viktor Orbán Dismantling democratic institutions, controlling the media, and violating the rights of minorities. Orban, who has been in power since 2010, rejects these accusations and denounced them as interference in Hungary’s sovereignty.

When it suspended funds to Hungary, the Commission was concerned about, among other things, public procurement – ​​state purchases of goods and services or for the implementation of projects using EU funds. The European Union fears that such contracts will allow Orban’s government to direct EU funding to the companies of politically influential people.

The disputed case over the release of Commission funds in 2024 was brought by the European Parliament, which said the Commission made errors in determining that Hungary was eligible to receive funding.

In her opinion, Gabetta wrote that the Commission “incorrectly applied the requirements imposed on Hungary when, without any explanation, it allowed the budget to be disbursed before the required legislative reforms entered into force or were implemented.”

Billions in additional EU funding remain frozen for Hungary, a budget deficit that has contributed to years of economic stagnation. Orban, an advocate of greater power for national governments among the EU’s 27 member states, accused the bloc of interfering in his country’s internal affairs and using the distribution of funds as a means of coercion.

The authoritarian leader faces what will likely be the biggest challenge of his 16 years in power during elections in April, as his centre-right rival, Peter Magyar, and his TISA party, have achieved significant leads in most opinion polls.

The Hungarian promised this Restoring democratic institutions in Hungary And seek to establish a more positive relationship with the European Union, and quickly repatriate the frozen funds.