Europa Posted on 2025-07-09 11:11:00

Hungary, 18 billion euros "paralyzed" by the EU - Funds remain frozen due to problems in the rule of law

From Kristi Ceta

Hungary, 18 billion euros "paralyzed" by the EU - Funds remain frozen

The European Union has denied Hungary 18 billion euros in funding due to rule of law problems. Tensions between Brussels and Budapest continue to rise due to political and financial disagreements.

Hungary is nowhere near releasing 18 billion euros in cohesion and recovery funds, which Brussels has frozen due to ongoing concerns about democratic regression.

The Rule of Law Report, published by the European Commission, highlighted that Hungary has made "no progress" on seven out of eight recommendations made last year, such as reforms to lobbying rules, the fight against high-level corruption and the independence of public media.

“I would like the situation to be different and I would like those funds to be made available to the people of Hungary, who are very pro-EU, but this requires respect for the rule of law,” the bloc’s official sources underlined.

The EU also noted “environmental deterioration” and “legal uncertainty” for civil society organizations in Hungary, citing a draft law on the transparency of foreign-funded NGOs, which was postponed after objections.

The currently frozen assets consist of around €8.4 billion in cohesion funds and €9.5 billion in COVID-19 recovery funds. The distributions are subject to the fulfilment of conditions requiring legislative changes. Some of these conditions coincide with the recommendations made in the annual report.

Hungary had previously released 10.2 billion euros after adopting a reform aimed at strengthening judicial independence and reducing political interference in the courts. The Commission's decision to release 10.2 billion euros ahead of a key summit sparked controversy and was challenged by a lawsuit from the European Parliament.

The financial clash has escalated years-long tensions between Brussels and Budapest, with Prime Minister Viktor Orbán accusing the Commission of "financial blackmail" and interference in internal affairs.

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