A coalition of Members of the European Parliament (MEPs) has formally requested the European Commission to freeze EU funding for Hungary immediately, citing concerns over the government's backsliding on rule of law under Prime Minister Viktor Orbán. The letter, sent to European Commissioner for Budget Piotr Serafin and Commissioner for Democracy and Justice Michael McGrath, was signed by 26 MEPs from five different political groups.
The signatories expressed deep concern regarding recent developments in Hungary and urged the Commission to exert pressure on Orbán’s government to cease violations of EU values and laws. They called for the suspension of all EU funding, emphasizing that this action aligns with the EU's financial interests. Currently, the Commission is withholding €18 billion from Hungary due to allegations of "widespread corruption" and serious breaches of the rule of law.
The MEPs noted that since the December 2022 decisions, Hungary has failed to make meaningful progress toward meeting the stipulated conditions, experiencing further regressions instead. Key issues highlighted include government interference in the Hungarian Integrity Authority, undermining judicial independence, the banning of the Pride march in Budapest, and the adoption of the controversial "Defence of Sovereignty law."
The "Defence of Sovereignty law," enacted in 2023, allows for investigations into the use of foreign funds to influence voters and is seen as a mechanism for targeting government critics. In addition, the Hungarian parliament is currently debating a draft law that would require foreign-funded media and NGOs to register and face potential fines.
The MEPs referenced the EU's Rule of Law Conditionality Mechanism, which permits funding cuts in response to such violations. They argued that the extensive nature of recent governmental actions indicates that all EU funding to Hungary is significantly at risk, making a freeze on funds a proportionate response.
The letter includes notable MEPs such as Monika Hohlmeier and Daniel Freund, who have been vocal on rule of law issues. In the wake of these developments, tens of thousands protested in Budapest against the draft transparency law, which critics claim serves to silence dissent.
Commissioner McGrath assured that the Commission is ready to defend the fundamental values and rights of the EU, including through the potential use of the Rule of Law Conditionality Mechanism to enact financial cuts.
Members of Hungary's ruling Fidesz party have argued that maintaining sovereignty and limiting foreign interference in Hungarian politics is essential. MEP Csaba Dömötör accused Brussels of financing leftist activists to intervene in Hungary's political landscape.
As the situation evolves, the proposed transparency law, part of Orbán's "spring cleaning" initiative, is expected to be approved by the Hungarian parliament in the coming weeks, further complicating the EU's relationship with Hungary.