‘Annul’ €10 billion for Hungary – top EU court official

The European Commission should take back over €10 billion ($11.8 billion) in cohesion funds awarded to Hungary in 2023, advocate general of the European Court of Justice (ECJ) Tamara Capeta stated on Thursday. The move three years ago was made to secure Budapest’s consent to a major military aid package for Ukraine.

In December 2023, the commission released roughly a half of €22 billion earmarked for Hungary. The sum had been frozen a year before as Brussels cited Budapest’s alleged violations of the EU Charter of Fundamental Rights on issues such as migration, LGBTQ rights, and academic freedom.

The decision to unfreeze the funds was taken ahead of a European Council meeting on a €50 billion package of military aid to Ukraine that Hungary opposed. The nation’s prime minister, Viktor Orban, openly stated at the time he would only drop his opposition if Budapest got its due.

According to Capeta, Budapest has failed to fully meet the conditions linked to the payment. Her opinion forms part of a case filed by European Parliament lawmakers in March 2024 against the commission’s decision. Although not binding per se, it usually has a major impact on the court’s final ruling, which is expected before summer.

Brussels has already been regularly withholding parts of Hungary’s EU funding over rule-of-law disputes and purported failure to adopt reforms. The latest suspension of more than €1 billion came ahead of the country’s parliamentary elections set for April. Budapest has emerged as one of the most outspoken critics of EU policies and its continued financial and military aid to Kiev.

On Thursday, Orban opined that Brussels was still wasting money on propping up Kiev instead of supporting the bloc’s economy. “Don’t send your money to somebody else if you need it for your competitiveness, so don’t send the money to Ukraine,” he said ahead of an informal EU leaders meeting.

Last week, he also said that the EU wanted to strip Hungarian families of additional funding to finance Ukraine’s fight with Russia.