€10 billion in frozen EU funds allocated to Hungary amidst Orbáns threats – Dodo Finance

Title: European Commission Releases €10 Billion in Cohesion Funds for Hungary, Signaling Positive Development

In a significant move, the European Commission has announced the release of €10 billion in cohesion funds for Hungary, marking the end of a year-long freeze due to concerns over rule-of-law issues. This decision comes after the government provided “sufficient guarantees” regarding the independence of the judiciary in Hungary, according to the European Commissioner for Justice, Didier Reynders.

The released funds will be utilized to finance various development projects across Hungary. The government will have the opportunity to submit reimbursement requests totaling up to €10.2 billion, aiming to stimulate growth and progress within the country.

Notably, this decision by the European Commission comes at a time of heightened political tension in Hungary. Prime Minister Viktor Orbán has been a vocal opponent of opening accession negotiations with Ukraine, blocking a special fund for the country, and suspending military aid. These contentious issues will be discussed at an upcoming European Union (EU) summit, where unanimity will be required to move forward.

The release of funds, coupled with Orbán’s opposition campaign, has ignited speculation about a potential trade-off by the European Commission. However, despite such rumors, the Commission has vehemently denied any such arrangement.

Critics of Hungary’s judicial reform, including Amnesty International and the Hungarian Helsinki Committee, argue that it fails to address the shortcomings highlighted by Brussels. Furthermore, the European Parliament’s main groups have expressed skepticism and called for the Commission to wait until after the National Judicial Council elections before issuing a positive assessment.

It’s important to note that this release of funds only covers a portion of Hungary’s frozen cohesion funds. Currently, the country still has over €11.5 billion frozen, with concerns related to public procurement, conflicts of interest, and corruption. Additionally, Hungary’s non-compliance with the necessary conditions has also led to the inability to access its COVID-19 recovery and resilience plan, worth €10.4 billion.

Orbán’s political director advocates for Hungary to receive the entire sum of over €30 billion, which includes the recently unfrozen €10 billion. However, it remains to be seen how these ongoing negotiations and discussions will unfold in the coming months.

As Hungary embarks on utilizing the released funds for development projects, it is hoped that this positive development will contribute to the growth and prosperity of the nation. The European Commission’s decision underscores the importance of upholding the rule of law while fostering cohesion and progress within EU member states.