Hungary must bolster judiciary to recover billions from EU

FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium June 17, 2022. REUTERS/Yves Herman/File Photo

BUDAPEST: Hungary must bolster the independence of its judiciary “very soon” to stand a realistic chance of getting any of the €15.4bil (RM73.2bil) envisaged for Budapest from the European Union’s (EU) Covid recovery stimulus, a senior EU official says.

Hungary can receive some €5.8bil (US$6.20bil or RM27.5bil) in free grants and a further €9.6bil (RM46bil) in cheap loans from the EU, but the bloc has suspended any payments until Budapest implements reforms to improve judicial independence and tackle corruption.

“They will have to adopt laws, which will strengthen the position of the judges, which will strengthen the anti-corruption actions,” Vera Jourova, a deputy head of the European Commission, said after a Hungarian delegation held talks at the Brussels-based EU executive.

Jourova, who is responsible for upholding democratic standards in the 27-nation union, added that improving public procurement in Hungary was another requirement.

“These are very concrete things, which the Hungarian government has promised to correct or install very soon. Time works against them,” she said in comments cleared for publication last Friday.

Hungary and Poland are the EU’s only member states lagging behind in getting the funds, amid long-standing criticism from the Commission that their nationalist, populist governments are damaging democracy and the rule of law.

Last year, Brussels suspended the recovery funds for Budapest and proposed freezing another €7.5bil (RM36bil) that Hungary would normally receive from the EU budget as part of funds transferred to poorer member states in the bloc.

European taxpayers don’t want their money to go to places where there is no respect for rule of law, where life is very difficult for the lesbian, gay, bisexual, and transgender people or other minorities, according to Jourova.

During his 12 years in power, Hungarian Prime Minister Viktor Orban has had many bitter run-ins with Brussels over the rights of gays and migrants, as well as his tightening of state controls over non-governmental organisations, academics, the courts and media.But under pressure from a double-digit inflation at home, he has sought to strike a deal with Brussels on the money, while also wrangling with the EU on subjects including support for Ukraine and punishing Russia for invading its neighbour.

In his state of the nation speech on Saturday, Orban said EU sanctions against Russia were an example of wrong policies pushed by the Commission.

“Instead of help, we only get new and more new sanctions from Brussels.

“The Brussels bureaucracy, with a deliberate ill will, did not give Hungary and Poland the share from the European recovery programme that we are entitled to,” he said.

“We did not get the money in 2022, in the most difficult year, that member states took out as a joint loan, and we Hungarians will have to repay our due share of that. They are nitpicking about the state of rule of law in Hungary.” — Reuters

Follow us on our official WhatsApp channel for breaking news alerts and key updates!


Next In Business News

Waz Lian founder Tan Sri Ta Kin Yan passes away at 72
Oil posts weekly gain on solid 2024 demand outlook
Prabowo aims to raise Indonesia debt-to-GDP ratio toward 50%
Laundry Care ventures into linen rental business
Oriental Kopi files for Bursa IPO
BHIC wins RM1bil govt job
MI Technovation prepares for chip recovery
Local furniture export outlook hinges on US housing market
Luxury labels slash prices to attract wary shoppers
Delay in rate cuts but bonds rally

Others Also Read