Viktor Orban Photo: Martyn Wheatley / Keystone Press Agency / Global Look Press
The European Commission has officially announced that Hungary has lost €1.04 billion in European funds due to systematic violations of the rule of law. This is the first case of such a sanction mechanism in the history of the European Union, AFP reports.
Financial blockade
In 2022, Brussels initiated a conditionality procedure, freezing a significant portion of funding for Hungary. The reason was serious concerns about corruption, lack of transparency in public procurement, conflicts of interest and restrictions on media freedom.
Despite the reforms that have been implemented to unblock some of the funds, Budapest still does not have access to €19 billion. The first tranche of frozen funds of €1.04 billion was automatically cancelled at the end of 2024.
Orban’s reaction
Hungarian Prime Minister Viktor Orban called the decision unfair and said he would continue to “fight for Hungarians’ money”. In December, he stressed that Brussels is “constantly looking for excuses to deprive Hungary of its funds” and threatened to block the upcoming multi-annual EU budget.
Political tensions
Amid the country’s financial crisis, the opposition has called for early parliamentary elections. The leader of the opposition party, Peter Magyar, who is gaining popularity among voters, said in his New Year’s address:
“Time is running out. Let’s postpone the elections to avoid another lost year. Let’s bring home the billions that the European Union owes us.”
Parliamentary elections are currently scheduled for spring 2026, but the opposition’s call could change the political landscape in the country.
Brussels’ assessment
In a July report, the European Commission stressed that Hungary does not meet the standards of democratic governance set for EU member states. Budapest has received clear recommendations to remedy the situation, but their implementation remains questionable.
This situation is widening the rift between Hungary and Brussels, threatening the stability of the European budget and future cooperation.
