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MOTION FOR A RESOLUTION (2024/2683(RSP))

On ongoing hearings under Article 7(1) TEU regarding Hungary to strengthen the rule of law and its budgetary implications

B-9-2024-0223

on behalf of the PPE Group · Rapporteur: Isabel WiselerLima, Petri Sarvamaa

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Parliament's resolution on the Article 7(1) TEU hearings regarding Hungary sets out what it finds and demands on the rule of law and EU funds. It condemns the Protection of National Sovereignty Act and the Sovereignty Protection Office, and calls for the act's repeal. It deplores the Council's lack of progress in the Article 7(1) TEU procedure and calls for regular hearings, published minutes and conclusions, and for Parliament to take part in the procedure. It calls on the Commission and member states to start the Article 7(2) TEU procedure and on the European Council to determine whether Hungary has committed serious and persistent breaches of EU values if there is no progress before the end of the Belgian Presidency. It asks the Commission to use all tools, including the Rule of Law Conditionality Regulation, and to withhold EU funds until legislation is implemented, measures work in practice and judgments are executed. It lists persisting deficiencies in the judiciary, anti-corruption, media, the constitutional and electoral system, civil society, protection of EU financial interests, the single market and fundamental rights.

Key points

  1. Parliament states that respect for Article 2 TEU values has substantially deteriorated in Hungary since Article 7(1) TEU was triggered and regrets the lack of decisive action by the Commission and the Council.
  2. It condemns the Protection of National Sovereignty Act and the creation of the Sovereignty Protection Office, welcomes the Commission's infringement procedure and calls on the Hungarian Government to repeal the act immediately.
  3. It deplores the Council's inability to make progress in the Article 7(1) TEU procedure and calls for regular hearings, concrete recommendations with deadlines, and published minutes and conclusions after each hearing.
  4. It insists Parliament should be able to present its reasoned proposal, attend Article 7 TEU hearings and be promptly and fully informed at every stage.
  5. It calls on the Commission and member states to initiate the Article 7(2) TEU procedure and on the European Council to determine whether Hungary has committed serious and persistent breaches of EU values if there is no progress before the end of the Belgian Presidency.
  6. It reiterates concern that the Hungarian Government cannot credibly fulfil the Council presidency in 2024 given its non-compliance with EU law and Article 2 TEU values.
  7. It calls on the Commission to use expedited infringement procedures, interim measures before the CJEU and actions on non-implementation of judgments, and welcomes the prolongation of measures under the Rule of Law Conditionality Regulation.
  8. It reiterates concerns about the decision that the Charter's horizontal enabling condition was fulfilled on judicial independence, enabling reimbursement claims of up to EUR 10.2 billion, and calls on the Commission to reassess and refrain from disbursing funds until conditions are met.
  9. It insists that measures for releasing EU funding under the CPR, RRF and Rule of Law Conditionality Regulation be assessed as an integral package, with no payments while deficiencies persist in any area.
  10. It says the Integrity Authority's mere establishment is insufficient, calls for it to be granted further implementable powers, and calls on Hungary to join the EPPO as a matter of urgency.
  11. It calls on the Commission to assess single market compliance in rule of law evaluations, to examine laws on strategic sectors, and to follow up on complaints by targeted companies.
  12. It deplores Hungary's veto preventing aid to Ukraine, condemns its policy towards Russia, and calls for EU funds to reach final recipients, including via local authorities and civil society.

Who is affected

  • Hungary: the resolution calls for repeal of the Sovereignty Protection Act, further powers for the Integrity Authority and joining the EPPO.
  • The Council: called to hold regular Article 7(1) TEU hearings, publish minutes and conclusions, and address the Hungarian presidency issue.
  • The Commission: called to use all tools, reassess funding decisions, withhold disbursements and support independent civil society.
  • Companies in strategic sectors: the resolution cites discriminatory practices and abuse of power against them.
  • Civil society, journalists and academia: the resolution condemns discriminatory practices and calls for support and protection.

Figures and deadlines

  • EUR 0.9 billion in pre-financing granted to Hungary under REPowerEU.
  • Reimbursement claims of up to EUR 10.2 billion enabled by the decision on the Charter's horizontal enabling condition.
  • The Protection of National Sovereignty Act came into force on 23 December 2023.
  • The Commission opened an infringement procedure against Hungary on 7 February 2024.
  • Parliament's application to review Decision C(2023) 9014 was lodged on 25 March 2024.

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