The European Commission (EC) – the executive arm of the European Union (EU) – on November 23 approved an advance of 900 million euros (nearly 1 billion USD) in a frozen funding package for Hungary despite Budapest's tough rhetoric against Brussels .
Hungarian Prime Minister Viktor Orban – a frequent critic of EU leaders and still in a dispute with the Commission over billions of euros in funds earmarked for Hungary – has in recent days threatened to block further EU aid to Ukraine until his country’s money is paid back.
The money approved by the Commission on 23 November is not related to the reform issue. It comes from the REPowerEU programme, which aims to help member states recover from the energy crisis that followed Russia’s military campaign in Ukraine last year and reduce their dependence on fossil fuels from Russia.
A total of €10.4 billion under Hungary's Covid-19 recovery programme, including the REPowerEU programme, in the form of loans and grants, along with around €22 billion in regular EU structural funds, have been frozen since last December over concerns that Budapest is failing to comply with human rights protections and undermining judicial independence.
The EC stressed that Hungary must achieve rule of law reforms for the bulk of the money to be released. “The Commission will allow regular disbursements based on the satisfactory completion of reforms aimed at ensuring the protection of the Union’s financial interests and strengthening judicial independence, translated into 27 super milestones,” the EU executive said in a statement.
Hungarian Prime Minister Viktor Orbán speaks at the 90th anniversary celebration of the prestigious Swiss conservative weekly Weltwoche, in Zürich, Switzerland, November 22, 2023. Photo: Hungary Today
The proposal to disburse funds to Hungary comes as EU countries prepare for tough negotiations to replenish the EU budget, including a 50 billion euro financial assistance program for Ukraine over the next four years to help the Eastern European country cover the costs of its protracted war with Russia.
Mr Orban has threatened to veto the extra budget for Kiev, as well as EU arms shipments to Ukraine and the opening of membership talks with the eastern European country, unless Hungary is given back what he says is due to his country.
The Hungarian leader has repeatedly delayed sanctions against Russia over the war in Ukraine, saying the EU was “shooting itself in the foot” and advocating a quick ceasefire between the two sides.
Tibor Navracsics, Hungary’s regional development minister in charge of negotiations with the EC, said the release of the €900 million was the result of a breakthrough. “The negotiations have yielded results: the first tranche of EU funding is underway,” Navracsics said on Facebook on November 23.
The decision to grant Hungary an advance payment still needs to be approved by other EU member states, and could come up for discussion as early as December 8 at talks between the finance ministers of the 27 member states.
EU leaders will also meet at a summit in Brussels on December 14-15 to discuss opening formal talks on Ukraine's accession to the bloc.
EU officials told Reuters last month that the bloc was considering releasing aid to Hungary to win Budapest’s support for Ukraine. More recently, however, sources involved in preparations for next month’s EU leaders summit expressed skepticism that the move would sway the Hungarian leader .
Minh Duc (According to FT, AP, Reuters)
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