EU urged to “defend democracy” and suspend funds to Hungary

Martin Banks

Belgium, (Brussels Morning Newspaper) EU finance ministers are due to hold an exchange of views in Brussels on Tuesday on a proposal to suspend billions in funding for Hungary.

Finance ministers will decide whether to uphold the European Commission’s recommendations regarding Hungary. Speaking ahead of the meeting MEPs from across the political divide were united in calling for a halt to funding.

The EPP issued a statement saying, “they should confirm the freezing of funds until remedial measures over the rule of law are fully in place.”

Petri Sarvamaa, the EPP group spokesman on Budgetary Control, added, “We must increase pressure for fundamental reforms for democracy and rule of law.

“The Hungarian Government had a lot of time to implement the requested measures but it did not do enough. The Commission came to the same conclusion as we in the European Parliament did. Now, the onus is on the EU Member States to finally confirm the same. If EU citizens’ money cannot be protected against irregularities, then it cannot be disbursed”, said Sarvamaa.

The Left grouping in the European Parliament, at the other end of the political spectrum, agrees and issued its own statement which reads, “We must increase pressure for fundamental reforms for democracy and rule of law.

“Orban’s relentless attacks on working people, women, and minorities have been going on for years. Finally, the EU is reacting. We welcome the decision to trigger the Conditionality Regulation. We call on the Council to follow the EU Commission’s recommendation to withhold EU funds totaling €13.3 billion.”

It adds, “Prime Minister Orban publicly nurtures dreams of re-establishing a Greater Hungary at the expense of his neighbors and he blocks aid money for Ukraine. Orban opposes the redistribution of refugees, has blocked an oil embargo against Russia, and opposes a minimum tax for corporations. In Hungary, his system relies on corruption, lack of independence of the judiciary, suppression of civil society, and limited freedom of the media.

“Therefore, the Commission has to take immediate action under the Conditionality Regulation as regards other breaches of the rule of law, particularly those relating to the independence of the judiciary. We call on Hungarian authorities to solve issues related to attacks against media freedom and journalists, women’s rights, LGBTIQ people’s rights, migrants, minorities, freedom of association, and assembly. The Commission should ensure that the final recipients or beneficiaries of EU funds are not deprived of these funds in the event that measures are applied under the Rule of Law Conditionality Mechanism.”

The statement concludes, “We call on the Commission to find ways to distribute EU funds via local governments and NGOs if the government concerned does not cooperate regarding deficiencies in the rule of law.”

Iratxe García, leader of the S&D Group, noted, “The European Commission got our message, not just the S&D’s, but the strong message of unity sent by the European Parliament last week in Strasbourg: that a functioning rule of law is a precondition to receiving any EU funds. The rule of law is not negotiable!

“Now it is the time for EU member states to also act with responsibility when they meet in the Council: to protect taxpayers’ money and not allow the release of these funds until real reforms are in place. Otherwise, the EU would be failing Hungarians in the first place.”

Further comment comes from Terry Reintke, Greens/EFA Group leader, who said, “To defend rule of law is the basis of the work of the Commission as guardian of the EU treaties. It is welcome that the Commission is standing firm on the activation of the rule of law conditionality. Now it’s up to the Council to stand up for European values and ensure that the mechanism stays in place for Hungary. The Council must not succumb to Orban’s attempts at holding vital measures hostage in exchange for EU funds.

“This is not just about Hungary. If the EU is unable to uphold basic democratic standards and the rule of law in one member state, then it will no longer be a club of democracies. The Council must stand firm on the rule of law next week and support the ongoing rule of law process for Hungary.”

Separately, EU finance ministers will again try to reach a deal on the issue of transposing the global deal on a 15% minimum effective tax rate for multinationals into European legislation.
The Hungarian government has been blocking it for months.

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Brussels Morning is a daily online newspaper based in Belgium. BM publishes unique and independent coverage on international and European affairs. With a Europe-wide perspective, BM covers policies and politics of the EU, significant Member State developments, and looks at the international agenda with a European perspective.
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Martin Banks is an experienced British-born journalist who has been covering the EU beat (and much else besides) in Brussels since 2001. Previously, he had worked for many years in regional journalism in the UK and freelanced for national titles. He has a keen interest in foreign affairs and has closely followed the workings of the European Parliament and MEPs in particular for some years.