Situation in Hungary and frozen EU funds
TA-9-2024-0053 · P9_TA(2024)0053 · PE756.771
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Parliament's resolution on the situation in Hungary and frozen EU funds condemns the Hungarian Government's systematic efforts to undermine EU values and the further erosion of democracy, the rule of law and fundamental rights.¶ It regrets the Council's failure to make progress in the 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.¶ It condemns the Hungarian Prime Minister for blocking the multiannual financial framework revision and Ukraine aid, and calls for an urgent reinforcement of the MFF, including funding for Ukraine.¶ It welcomes the Commission's confirmation that the risk to the EU budget remains unchanged, but regrets the Commission's decision that the horizontal enabling condition on the Charter was fulfilled for judicial independence, allowing Hungary to claim up to EUR 10,2 billion.¶¶ It calls for no payments under the Recovery and Resilience Facility until milestones and targets are met, and insists that all required measures be treated as a single package.¶¶ It instructs its Committee on Legal Affairs to review the legality of the Commission decision unfreezing EUR 10,2 billion before the Court of Justice.¶
Key points
- Reiterates previous findings and condemns the Hungarian Government's deliberate, continuous and systematic efforts to undermine Article 2 TEU values, and is concerned about further erosion of democracy, rule of law and fundamental rights.¶
- Strongly regrets the Council's failure to make meaningful 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.¶
- Strongly condemns the Hungarian Prime Minister for blocking the MFF revision and Ukraine aid, and calls on the European Council to urgently agree on an MFF reinforcement at the extraordinary summit on 1 February 2024.¶
- Welcomes the Commission communication of 13 December 2023 confirming the risk to the EU budget remains unchanged, and calls on the Commission to ensure final recipients are not deprived of EU funds.¶
- Regrets the Commission decision that the horizontal enabling condition on the Charter was fulfilled for judicial independence, enabling Hungary to claim up to EUR 10,2 billion, and calls on the Commission to re-assess and refrain from disbursing funds until legislation is fully implemented.¶
- Reiterates calls on the Commission to ensure no payments under the Recovery and Resilience Facility are made until milestones and targets are satisfactorily met and proven sustainable.¶
- Underlines that Hungarian authorities must guarantee equal access to EU funding and independent judicial oversight, and condemns systemic discriminatory practices and politically motivated business practices.¶
- Questions whether the Hungarian Government can credibly fulfil the Council presidency in 2024, asks the Council to mitigate risks, and calls for reform of the Council's decision-making to end abuse of the veto.¶
- Stresses that measures required for the release of EU funding must be treated as a single, integral package, with no payments if deficiencies persist in any area.¶
- Calls on the Commission to make full use of tools to address the clear risk of a serious breach by Hungary, including financial measures, expedited infringement procedures and interim measures before the Court of Justice.¶
- Instructs its Committee on Legal Affairs to review the legality of Decision C(2023)9014 before the Court of Justice, and recalls Parliament's ability to use legal and political measures if funding is released without criteria being met.¶
Who is affected
- Hungary: the resolution condemns its government's actions and calls for no EU funds until conditions are met.¶¶¶
- Hungarian population: Parliament remains committed to ensuring EU funds reach them once conditions are fulfilled.¶
- Commission: called on to re-assess the decision on judicial independence and refrain from disbursing funds.¶
- Council and European Council: urged to make progress on Article 7 procedures and agree on MFF revision.¶¶
- 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¶
- 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¶
- up to EUR 10,2 billion in reimbursement claims¶
- extraordinary summit on 1 February 2024¶
Legal basis: Articles 2, 4(3) and 7(1) of the Treaty on European Union¶