Ongoing hearings under Article 7(1) TEU regarding Hungary to strengthen Rule of Law and its budgetary implications
TA-9-2024-0367 · P9_TA(2024)0367 · PE760.687
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Parliament's resolution reviews the Article 7(1) TEU hearings on Hungary and finds that respect for Article 2 TEU values has substantially deteriorated since the procedure was triggered.¶¶ It lists persisting deficiencies in the judiciary, anti-corruption, media freedom, the constitutional and electoral system, civil society, EU funds and the single market, and condemns the Protection of National Sovereignty Act and the Sovereignty Protection Office.¶¶¶ It calls on the Council to hold regular hearings, publish minutes and issue recommendations with deadlines, and on the Commission and member states to move to Article 7(2) TEU if there is no progress before the end of the Belgian Presidency.¶ It asks the Commission to use the Rule of Law Conditionality Regulation, freeze funds until legislation is implemented and judgments executed, and revoke the decision on the Charter enabling condition.¶¶ It demands that EU funding conditions be assessed as one package, that the Integrity Authority get more powers, and that single market compliance be part of rule of law assessments.¶¶¶ It calls for support to independent civil society and for negotiations on an EU mechanism on democracy, the rule of law and fundamental rights.¶¶
Key points
- Parliament says the Hungarian Government is responsible for a persistent systemic and deliberate breach of democracy, the rule of law and fundamental rights, and that the situation has deteriorated since Article 7(1) TEU was triggered.¶¶
- It condemns the Protection of National Sovereignty Act and the Sovereignty Protection Office, welcomes the Commission's infringement procedure, and calls on Hungary to repeal the act and on the Commission to seek its suspension by the CJEU.¶
- It deplores the Council's lack of progress in the Article 7(1) TEU procedure and asks for regular hearings, concrete recommendations with deadlines, and published minutes and conclusions.¶
- It insists Parliament be able to present its reasoned proposal, attend Article 7 TEU hearings and be fully informed, and calls for Article 7(2) TEU to be initiated if there is no progress before the end of the Belgian Presidency.
- It questions the Hungarian Government's ability to credibly hold the Council presidency in 2024 and regrets that no solution has been found.¶
- It calls on the Commission to use expedited infringement procedures, interim measures and non-implementation actions, and welcomes the prolongation of measures under the Rule of Law Conditionality Regulation.¶
- It criticises the decision that the Charter enabling condition was fulfilled on judicial independence, which allowed reimbursement claims of up to EUR 10.2 billion, and calls for the decision to be revoked and funds frozen until legislation is implemented and judgments executed.¶
- It says the measures for releasing EU funds under the Common Provisions Regulation, the Recovery and Resilience Facility Regulation and the Conditionality Regulation must be assessed as one package, with no payments while deficiencies persist.¶
- It takes note of the Integrity Authority but says its mere creation is not enough and insists it be given further implementable powers, database access, investigative powers and mandatory recommendations.¶
- It calls on the Commission to include single market compliance in rule of law assessments, examine laws on strategic sectors, and follow up on complaints by targeted companies.¶
- It deplores Hungary's use of its veto to block aid to Ukraine and condemns the Hungarian Government's policy towards Russia.¶
- It calls for EU funds to reach final recipients, for distribution via local and regional authorities and civil society if the government does not cooperate, and for support to independent civil society and an EU civil society strategy.¶¶
Who is affected
- Hungary: must repeal the Protection of National Sovereignty Act, implement legislation and judgments, and join the European Public Prosecutor's Office.¶¶
- The Council: asked to hold regular hearings, publish minutes and conclusions, and consider Article 7(2) TEU.¶
- The Commission: asked to use the Conditionality Regulation, freeze funds, revoke its decision and support civil society.¶¶¶
- Companies in strategic sectors: the resolution says they face discriminatory practices and abuse of power.¶¶
- Civil society, journalists and academia: the resolution says they face smear campaigns, restrictions and surveillance.¶¶¶
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 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 lodged its application to review Decision C(2023) 9014 before the CJEU on 25 March 2024.¶
Legal basis: Articles 2, 4(3) and 7(1) of the Treaty on European Union.¶