Not unique: the European Commission freezes 7.5 billion euros in subsidies to Hungary

This is the first time that the Commission has used a new rule of law mechanism linked to the EU budget. EU Member States must approve the Commission’s proposal. A qualified majority is sufficient for this, which means that the sanction cannot be stopped by Poland, which in the past has often overthrown Hungary.

“Finally bite instead of bark”

“This step is unique. Thanks to the new rule of law test, which has been introduced since 2021, the European Commission can finally bite the bullet instead of just barking at countries that do not respect the rules of democracy and the rule of law,” says political journalist Fons Lambie.

“That was a very important point for the Netherlands. Because for years the Netherlands and many other member states have been frustrated that, for example, Poland and Hungary are violating the state of law and democracy, but meanwhile take full advantage of European subsidies.”

Democratic rules

The EU believes, among other things, that democratic rules in the countries are lacking. For example, Poland affects the independence of judges and journalists and in Hungary the European Commission finds that there is a conflict of interest and corruption.

Frustrations about Hungary have been high for years, for example when the country introduced an anti-gay law. In June 2021, Rutte said Hungary had better leave:

European Commissioner Johannes Hahn is proposing to give Hungary three months to comply with the 17 legislative measures that the Commission is proposing in Budapest in order to have a chance to win billions.

Anti-Corruption Unit

These include the establishment of an anti-corruption unit and an independent integrity body, stricter legislation on the criminalization of corruption and fraud. There should also be regulations on disclosure of Hungarian companies, organizations and individuals who receive EU grants.

Whether action is finally taken is up to the European member states. In recent years, Hungary has always managed to escape possible sanctions thanks to the necessary unanimity. For example, Poland and Hungary held their hands above their heads. This new mechanism is governed by a qualified majority, which means that a minimum of 15 Member States must agree.