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The European Commission has strengthened the rule of law with Hungary by adhering to future EU funds to democratic values under the proposed ages financial framework (MFF), the seven-year budget proposal announced this week.
Under the new framework, Member States must support the core values of the EU, including the EU treaty charter and principles surrounded by Article 2. The move introduces the form of “smart conditions,” committee chair Ursula von der Leyen announced Wednesday.
“The national regional partnership plan focuses on the rule of law and fundamental rights on investment terms and reform,” von der Reyen said. “EU money is used responsibly, with strong safeguards, clear conditions and appropriate incentives, in order to benefit our citizens.”
The Regional Partnership Plan (NRP), the largest source of funding under the new budget, includes allocations to agriculture and cohesion policies. Eligibility for funding is determined in part by the European Commission’s Annual Legislation Report.
If adopted, this measure could lead to a complete suspension of the EU fund to Hungary. The country is already facing a European Union’s 18 billion euro freeze due to concerns over systemic corruption and democratic backslides. Under the current budget framework, Hungary has access to just 10 billion euros of these funds.
Critics of German Green MEP Daniel Freund and Hungarian Prime Minister Victor Orban welcomed the proposal with caution.
“This is a small step in the right direction,” Freund said. “As this plan goes on, things could improve, but please remember that it must be ratified unanimously by the European Parliament and member states, including Hungary. There is still a long battle.”
Freund also expressed concern over some of the proposals, particularly the transition to a performance-based funding model similar to that used in the Covid-19 Recovery Fund.
“There, surveillance and accountability were much less,” he warned.
Hungary is currently the only EU country covered by the regulations mechanism of the EU conditions and is a tool that allows for the termination of funds in the event of a systematic violation of EU values. Budapest strongly opposed the adoption of the mechanism in 2020.
Hungarian pro-government MEPCsaba Dömötör criticised the committee’s approach and called it politically motivated.
“Withholding only serves left-wing liberal governments,” Dömötör told Euronows. “If they can cause economic damage, it will benefit the left power during elections. This is all political threats.”
Prime Minister Orban also condemned the proposed budget, calling it the “Krayn budget,” and accused the committee of prioritizing Ukraine over European citizens. He urged the committee to withdraw the plan, claiming it was too weak and weak to negotiate seriously.
