EU funds frozen: Federal government welcomes punishment against Hungary

Status: 13.12.2022 12:40 p.m

The EU wants to freeze payments of 6.3 billion euros to Hungary because of the lack of the rule of law and because there are concerns that money is being embezzled. German politicians welcome this, but had hoped for a higher penalty.

The German government welcomes the decision to freeze EU billions in payments to Hungary. Minister of State for Europe Anna Lührmann said on the sidelines of an EU meeting in Brussels that one would have liked more funds to be withheld – as originally proposed by the EU Commission. But the current sum is also a step forward and a historic signal, according to the Green politician.

“This is a very important sign of strengthening the rule of law in Europe,” said Lührmann.

FDP MP: EU is not a self-service shop

SPD parliamentary group leader Achim Post said the decision shows that the new EU mechanism for protecting the community budget has teeth. “Orban didn’t get through with his attempts at political blackmail.”

“The cosiness with the enemies of the rule of law is over,” emphasized the FDP MEP Moritz Körner. The EU is not a self-service shop – but a legal community that knows how to defend itself.

Green MEP Daniel Freund also described the decision as “historic”. The penalties for Orban’s systematic dismantling of democracy may come late and are small – but the fact that there is finally a majority in the Council against Orban is “a bright spark of hope for Europe’s values”.

1.2 billion euros less than proposed

A large majority of the EU countries had agreed on Monday evening to freeze billions in payments from the European Community budget earmarked for Hungary.

Due to concerns that EU funds are being misappropriated in the country due to insufficient fight against corruption, 6.3 billion euros are to be blocked for the time being. The current Czech EU Council Presidency provided information on the agreement, which is unprecedented in the history of the EU, on the night after a meeting of the permanent representatives of the member states in Brussels.

The sum is around 1.2 billion euros lower than proposed by the EU Commission and desired by countries like Germany. However, the agreement is still considered a great success as Hungary is now under pressure to undertake further reforms to improve the rule of law.

The sum was reduced because several EU countries wanted to acknowledge that the right-wing government of Prime Minister Viktor Orban had already made efforts in this direction in recent weeks.

A qualified majority is required for the final approval of the proposal – that means at least 15 of the 27 EU states must agree and together make up at least 65 percent of the total population of the EU. This requirement has been met following the agreement reached in the Permanent Representatives Committee and is now to be formalized in a written procedure before the EU summit on Thursday.

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