The European Commission may follow MEPs’ demands by confirming on Wednesday 30 November its proposal to suspend the payment of €7.5 billion in EU funds to Hungary due to violations of the Rule of law.
On 18 September, the Commission presented budget protection measures against Hungary under the conditionality Regulation, namely the suspension of 65% of commitments for three cohesion policy programmes, amounting to €7.5 billion (see EUROPE 13068/13).
Several media outlets claim on Thursday 24 November that the Commission’s assessment would show that the 17 measures promised by Hungary are insufficient to ensure the protection of the Union’s financial interests against violations of the Rule of law in the country.
The Commission is expected to give its verdict on 30 November. EU Finance Ministers could decide by a qualified majority of Member States on Tuesday 6 December, if they have enough time to assess the measures on the table. On Thursday, sources were talking about the possibility of having to convene an extraordinary Ecofin Council to discuss measures against Hungary, as Budapest is blocking the minimum taxation of multinationals and macrofinancial assistance to Ukraine until its post-Covid-19 recovery plan has been approved. These are both dossiers for which the European Finance Ministers are responsible.
The EU Council has until 19 December to decide and the matter could, in theory, be referred to the European Council, which will meet on 15 and 16 December 2022, in accordance with the provisions of the ‘Rule of law conditionality’ Regulation.
The Commission could recommend that the EU Council adopt Hungary’s recovery plan by the end of 2022. The latter would not be able to benefit from the financial assistance until the prior measures included in the plan to combat the violation of the Rule of law are fully implemented, as the Polish authorities are currently doing with their own rescue plan.
The European Parliament adopted (416 votes in favour, 124 against and 33 abstentions) on Thursday 24 November a joint resolution by the EPP, S&D, Renew Europe, Greens/EFA and The Left Groups supporting the measures proposed by the Commission in response to the violation of the Rule of law in Hungary.
Parliament welcomes the decision to trigger the mechanism provided for in the conditionality Regulation with respect to Hungary. It believes that the 17 measures negotiated by the Commission and the Hungarian government are not sufficient to remove the current systemic risk to the Union’s financial interests.
The Council of the EU is invited to adopt the measures proposed by the Commission on 18 September and to lift the measures adopted “only after it has become aware of indications that the conditions for adopting the measures are no longer met”.
MEPs deplore the fact that the Hungarian authorities continue to “abuse” the EU’s unanimity rule to block key decisions in order to put pressure on the Commission and the EU Council to release EU funds. Such a situation only “delays the €18 billion aid package to Ukraine and the adoption of a global minimum corporate tax rate”, they lament (see other news).
Finally, Parliament reiterates its request to the Commission not to issue a positive assessment of Hungary’s recovery plan until Hungary “fully complies with all recommendations in the area of the Rule of law and implements all relevant judgments of the EU Court of Justice and the European Court of Human Rights”. (Original version in French by Lionel Changeur)