European Commission Begins Disciplining Hungary for Breaching the Law

On April 5, the European Union's highest ranking body, the European Commission, initiated a new procedure that would strip Hungary of billions of dollars in funds to discipline Hungary for violating the rule of law and democratic backsliding. The announcement from the European Commission's President Ursula von der Leyen comes two days after Hungarian illiberal and nationalist Prime Minister Viktor Orban won landslide elections over the weekend to ensure a fourth consecutive term of premiership. 

Hungary is the first EU member state to face the new measure, which gives the European Commision the power to withdraw EU funds from nations that are determined to be breaching the rule of law. The new power given to the union was ratified and agreed upon by all 27 member states at the end of 2020, with the intention to prevent funds from being used by nations democratically backsliding. Many of the richer member nations introduced this measure to safeguard their money from being used by countries undermining the rule of law and democracy.  

The decision to follow through with this mechanism is a shift in EU policy, hinting towards the bloc's increasing willingness to combat corruption and democratic backsliding. Although the procedure to strip these funds has begun, it is still a long process until a conclusion on the matter is decided. A long discourse between Budapest and the EU is to occur and eventually the Council of the EU, made of representatives of each member state, must decide whether Hungary will lose their funding. In order for these cuts to happen, 55 percent of EU nations representing at least 65 percent of the political organization's population must be in favor.

The procedure of subtracting funds from Hungary further heightens the tensions between the nation and the European Union, increasing the inevitability of a larger clash between the two. The danger of Hungary losing EU funds is immense and the recent landslide election win has invigorated Viktor Orban. His government is set to break with the EU line and maintain close relations with Russia who has been at odds with the EU and NATO. Hungary is currently a member of both.  

Hungary has also rejected EU sanctions on Russian gas and oil claiming that joining in on them would negatively affect the Hungarian economy, which has already slowed due to the impacts of the Russian invasion of their northeastern neighbor. On April 6, Orban announced in a press conference that they would pay for the gas and oil in rubles if Russia asks for it; this act is in opposition to the European Commission, which had previously declared that payments coming for gas contracts should only be paid in euros or dollars.  

In addition, Orban and his ultranationalist Fidesz political party will have 135 of the 191 seat parliament, giving him a chokehold on the legislature. According to Reuters, this will only embolden Orban to envelop the nation in his conservative and nationalist policies by further pushing out foriegn companies in industries that are not primarily Hungarian-owned, such as retail. Critics of Orban and Fidesz also claim that the election victory will encourage Orban as he tramples democracy, media rights, and the livelihood of the LGBTQ+ community.  

The struggle against democratic backsliding and corruption in Hungary is far from over and most likely won't be deterred by the withdrawal of EU funds. In a speech after announcing his victory in the elections, Viktor Orban remains steadfast against his opposition abroad, stating that “[Hungary has] never had so many opponents… Brussels bureaucrats... the international mainstream media, and the Ukrainian president.” He added that his “huge victory” could not only be seen “from the moon, but certainly from Brussels,” rubbing his victory in the face of the dismayed administration of the European Union, and highlighting that the tension between the two will not end anytime soon.

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