In April, the European Commission initiated disciplinary proceedings with Hungary under the so-called conditionality mechanism, which conditions the payment of money from EU funds on compliance with the principles of the rule of law. Ultimately, Hungary could lose part of the money allocated to it from the budget for the years 2021 to 2027. This mechanism is separate from other procedures that the EU is conducting with Hungary.
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On Friday, the commission said it had instructed Budget Commissioner Johannes Hahn to inform Budapest of the measures the EU executive intends to propose to EU governments if Hungary’s remedies are insufficient.
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The commission believes that EU money is not safe in Hungary due to alleged corruption, which can manifest itself in the fact that only one bidder, usually linked to the ruling party Fidezs, bids for contracts for projects financed by EU funds. The EU executive is also concerned about the independence of the Hungarian judiciary, media and non-governmental organizations.
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Hungarian Prime Minister Viktor Orbán has in the past dismissed EU and US concerns about corruption in Hungary as odd, but Hungarian officials have signaled in recent weeks that Budapest is willing to discuss its concerns with the commission.
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This week, Hungary proposed that it would reduce the number of single-bidder public tenders to 15 percent. It further offered to allow courts to authorize prosecutors to prosecute cases even if prosecutors decided otherwise. The legislative process should also be more transparent.
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Up to 21 billion euros are at stake, which are intended for Hungary in the current budget period.
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