The European Union executive on Sunday proposed suspending 7.5 billion euros in funding to Hungary as it awaited potential “game-changing” anti-corruption reforms from Budapest.
The European Union and Hungary have been at odds for months, with Brussels suspecting the government of nationalist Prime Minister Viktor Orban of undermining the rule of law and using EU funds to enrich its cronies.
European Commission Budget Commissioner Johannes Hahn told a news conference on Sunday that the EU executive had proposed “suspending commitments for cohesion programs and cohesion policy for an estimated €7.5 billion”.
On Saturday, the Hungarian government said MPs would vote next week on a series of laws aimed at defusing the conflict.
The measures are said to include the establishment of independent anti-corruption watchdogs to monitor the use of EU funds and steps to make the legislative process more transparent.
Hahn said he is “very confident that … we will see significant reforms in Hungary that will indeed be a game changer”.
He said Hungary had committed to “fully informing the Commission of the implementation of measures” by November 19 to address their concerns.
– Orban’s ‘last chance’? –
The Orban government has struck a softer tone than usual on the issue, and Justice Minister Judit Varga reacted to the commission’s proposal by acknowledging that “we still have a lot to do” to end the dispute, while she insisted that “we are moving in the right direction”.
“We are committed to ensuring that the Hungarian people receive the resources to which they are entitled!” Varga commented on her Facebook page on Sunday.
Tibor Navracsics, the Hungarian minister in charge of negotiations with the EU, told reporters on Sunday he was confident that “we can complete these negotiations and sign the relevant agreements before the end of the year” to allow the funds to be released.
But German MEP Daniel Freund told AFP that while the freeze on funds is welcome for Hungary, he fears the measures proposed by Hungary would not be enough to “stop Orban and his cronies from stealing EU funds”.
“These are good measures and they should be adopted, but they are not enough to stop corruption, let alone make Hungary a functioning democracy,” he said.
French MEP Valerie Hayer tweeted that this was Viktor Orban’s “last chance”.
“The time for discussions is over,” she said.
The EU Council will make the final decision on the proposal.
Gergely Gulyas, Orban’s chief of staff, told reporters on Saturday that MPs would vote within days on measures aimed at addressing concerns about bribery and a lack of transparency in government procurement.
The conciliatory move from Budapest comes as the Hungarian economy faces mounting pressure from a weakening local currency and rapidly rising inflation. Both have set new records this year.
On Thursday, the European Parliament declared in a symbolic vote that Hungary was no longer a “full democracy”, infuriating Budapest.
