Hungary in a dispute with the EU: Why Orban is threatened with billions in losses

For more than ten years, the European Union has been complaining about massive violations of the rule of law in Hungary.

Hungary in a dispute with the EU: Why Orban is threatened with billions in losses

For more than ten years, the European Union has been complaining about massive violations of the rule of law in Hungary. Prime Minister Orban is now to be held accountable for this. An overview of the most important issues.

Whether it's the rule of law or sanctions against Russia, Hungarian Prime Minister Viktor Orban has repeatedly taken on the European Union. "Orban is destroying the Hungarian rule of law, Putin courts, has EU funds paid out to friends," criticized the FDP MEP Moritz Körner recently. The rule of law cannot be achieved with Hungarian Prime Minister Orban. His Green colleague Daniel Freund said: "It is high time that Viktor Orban finally got the acknowledgment from Brussels for his authoritarian course."

Therefore, Hungary is now threatened with massive financial consequences: According to the will of the European Parliament, the EU states are to freeze several billion euros due to deficiencies in the rule of law in Hungary. The EU Parliament announced that the measures proposed by Hungary for a better rule of law are not sufficient to address existing systematic risks. A majority of MPs had previously approved a corresponding resolution. A recommendation from the EU Commission is expected next week as to whether the country will be canceled billions in aid for the first time. An overview of the most important issues:

rule of law and corruption

The toughest conflict in Brussels with Hungary is about 7.5 billion euros in funding. Next week, the EU Commission could recommend that the member states cancel the funds promised for the budget period up to 2027 without replacement. The EU finance ministers could theoretically decide this before Christmas. It is unclear whether a qualified majority of at least 15 states, which comprise 65 percent of the European population, will come together.

The Commission accuses Hungary of corruption, conflicts of interest and massive problems with public procurement and party funding. The Commission therefore initiated proceedings against Budapest in April, shortly after Orban's re-election. To do this, it used the so-called rule of law mechanism for the first time. Commitments made by Budapest in 17 areas do not appear to be enough for Brussels.

Dispute over Corona aid funds

In the rule of law, Brussels is also holding back funds from the Corona Aid Fund of around 5.8 billion euros requested by Budapest. Orban needs the billions because he promised his supporters the money during the election campaign. Without a decision, 70 percent of the funds expire at the end of the year.

Ally of Putin in the EU

EU critics accuse Orban of being an ally of Russian President Vladimir Putin in Europe. Hungary is the only EU country to have increased gas supplies from Russia since the start of the Ukraine war. Orban visited Putin in Moscow in early February, just three weeks before the Russian invasion of Ukraine. In addition, Orban repeatedly attracts attention with statements critical of Ukraine.

Unpopular Russia sanctions

Orban has repeatedly criticized the EU sanctions against Russia, most recently as a "step towards war". It is true that he has never vetoed the punitive measures in Brussels. But he put the brakes on and obtained exemptions for Hungary, for example with the EU's oil embargo against Russia.

"Blackmail" with Ukraine aid

Hungary is also blocking EU aid for Ukraine of up to 18 billion euros for the coming year. EU Budget Commissioner Johannes Hahn therefore accuses Orban of "political blackmail".

Blockade of Sweden and Finland joining NATO

In addition to Turkey, Hungary has not yet ratified the accession protocols of the two northern countries to the military alliance. Officially, Budapest refers to its overburdened parliament. But there is a suspicion that Orban does not want to alienate Putin.

EU lawsuits over minority rights and media freedom

In July, the EU Commission announced two lawsuits against Hungary before the European Court of Justice (ECJ). On the one hand, they are directed against a Hungarian law that bans "advertising" for homosexuality or transsexuality. The second case concerns the withdrawal of the broadcasting license for the independent Hungarian broadcaster Klubradio. Because of the discrimination against minorities and the restricted freedom of expression, Orban has been in the EU's sights for years.

Minimum tax is stuck

Hungary is also blocking the EU resolution for a 15 percent minimum tax for international corporations. Germany, France and other countries therefore want to proceed in a small circle if necessary.