Status: 09/24/2022 1:37 p.m
Hungary has been accused of misuse of EU funds for years. After the EU Commission threatened to cut funds, the government now wants to give in with an “integrity authority”.
Under pressure from the EU, Hungary’s right-wing government has presented a second package of laws intended to prevent the misuse of EU funds. At its core, it involves the establishment of an “Integrity Authority”. Fraud, conflicts of interest, corruption and other irregularities in the use of EU funds should thus be better prevented.
The legislative proposals have been published on the website of the Hungarian Parliament. A week ago, the government presented a first draft law on this subject. It provides for an incompatibility regulation for members of the board of trustees of public foundations and improved administrative assistance for the EU corruption investigation authority Olaf.
Response to announced billion cut
On September 18, the EU Commission proposed cutting payments of around 7.5 billion euros from the EU budget to Hungary. It was in response to allegations that the country has been levied for years over alleged misuse of EU funds and violations of the rule of law. At the same time, the EU Commission gave the Hungarian government two months to rectify the abuses and thus get out of the rule of law procedure with impunity.
President of the new authority will be appointed by Orban
According to the draft, the new “integrity authority” should function independently of the government. However, President Viktor Orban appoints its president and his two deputies at the suggestion of the head of the Hungarian Court of Auditors. The three people will receive a six-year mandate. An internationally advertised commission of experts, which is to advise and monitor the authority, is said to have a say in filling these top positions.
Obligation to report to the European Public Prosecutor’s Office
The new authority should be obliged to report cases of fraud and corruption to the European Public Prosecutor’s Office (EUPO). Hungary strictly refuses to become part of the EUPO, which has been in operation since 2021 and to which 22 EU countries have belonged so far. Participation means that the EPPO may order investigations in the countries concerned.