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MOTION FOR A RESOLUTION (2024/2512(RSP))

On the situation in Hungary and frozen EU funds

B-9-2024-0086

on behalf of the PPE Group · Rapporteur: Isabel WiselerLima, Petri Sarvamaa, Monika Hohlmeier, Jeroen Lenaers

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A resolution on the situation in Hungary and frozen EU funds. It condemns the Hungarian Government's systematic undermining of EU values, regrets the Council's failure to progress under Article 7(1) TEU, and criticises the blocking of the MFF revision and Ukraine aid. It welcomes the Commission's confirmation that the risk to the EU budget is unchanged, but regrets the decision that the Charter enabling condition on judicial independence was fulfilled, allowing Hungary to claim up to EUR 10.2 billion. It calls for no RRF payments until milestones are met, for equal access to EU funding, and for the release conditions to be treated as a single package. It questions Hungary's ability to hold the Council presidency credibly, calls for action against the 'national sovereignty protection' package, and instructs its Legal Affairs Committee to review the legality of the unfreezing decision before the Court of Justice.

Key points

  1. Reiterates previous findings on the rule of law in Hungary and condemns the Hungarian Government's systematic efforts to undermine Article 2 TEU values, including the 'national sovereignty protection' package.
  2. Regrets the Council's failure to make progress in Article 7(1) TEU procedures and calls on the European Council and member states to determine whether Hungary has committed serious and persistent breaches under Article 7(2) TEU.
  3. Condemns the Hungarian Prime Minister for blocking the MFF revision and Ukraine aid, calls for urgent reinforcement of the MFF, and asks the European Council to agree at the extraordinary summit on 1 February 2024.
  4. Welcomes the Commission's confirmation that the risk to the EU budget remains unchanged and calls on the Commission to ensure final recipients are not deprived of EU funds.
  5. Regrets the Commission decision that the Charter enabling condition on judicial independence was fulfilled, enabling claims of up to EUR 10.2 billion, and calls on the Commission to re-assess and refrain from disbursing funds until legislation is implemented and effective.
  6. Calls on the Commission to ensure no RRF payments until milestones and targets are met and sustainable, and to conduct a new assessment of judicial independence.
  7. Underlines that Hungarian authorities must guarantee equal access to EU funding and independent judicial oversight, and condemns discriminatory practices and politically motivated business practices.
  8. Questions whether the Hungarian Government can credibly fulfil the Council presidency in 2024, asks the Council to mitigate risks, and calls for reform of Council decision-making to end abuse of the veto.
  9. Stresses that measures for the release of EU funding must be treated as a single integral package, with no payments if deficiencies persist, and remains committed to ensuring funds reach the Hungarian population.
  10. Calls on the Commission to use all tools to address the risk of breach by Hungary, including financial measures, expedited infringement procedures, interim measures before the Court of Justice, and action on non-implementation of judgments.
  11. Instructs its Committee on Legal Affairs to review the legality of Decision C(2023) 9014 before the Court of Justice, and recalls Parliament's options if the Commission releases funding without criteria being met.

Who is affected

  • Hungary: its government is condemned for undermining EU values and blocking EU decisions; its authorities must meet conditions for EU funds.
  • Hungarian citizens and vulnerable groups: the resolution aims to ensure EU funds reach them and notes deterioration for women, LGBTIQ+ persons, Roma, migrants, asylum seekers and refugees.
  • The Commission: called on to re-assess the judicial independence decision, refrain from disbursing funds, and use all tools against breaches.
  • The Council and European Council: urged to progress Article 7 procedures, agree on MFF revision, and mitigate risks of the Hungarian presidency.
  • Ukraine: the resolution calls for funding for Ukraine to be included in the MFF revision.

Figures and deadlines

  • over EUR 32 billion in Common Provisions Regulation and NextGenerationEU funds allocated to Hungary in the current MFF
  • suspension of 55% of budgetary commitments under three operational cohesion policy programmes
  • up to around EUR 10.2 billion from European Structural and Investment Funds that Hungary may start claiming
  • extraordinary summit on 1 February 2024
  • unfreezing of EUR 10.2 billion

Legal basis: Articles 2, 4(3) and 7(1) of the Treaty on European Union