EU Funds Unblocked: Hungary Reforms and Upcoming Ukraine Decisions

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The European Commission lifted the halt this Wednesday, just before a pivotal EU summit that will shape the bloc’s trajectory. About 10.2 billion euros in support funds previously blocked for Ukraine were released. The funds had been held for a year, with Hungary cited as a reason for the initial delay due to concerns over its governance. Brussels indicated that it had received guarantees and that the government led by Viktor Orbán had addressed the commission’s fiscal and rule-of-law expectations. The package aligns with the司法改革 implemented on Tuesday, which Brussels says closes the gaps that affected judicial independence.

Officials explained that extensive discussions with Hungarian counterparts helped ensure the reform meets the agreed standards. A statement from the Justice Commissioner confirmed the outcome, noting that sufficient guarantees have been provided to strengthen judicial independence in Hungary. The commissioner added a warning that any relapse would trigger prompt action.

Budapest’s reforms focus on granting the National Judicial Council more autonomy, curbing undue influence, and promoting a more transparent and objective court administration. The government has also restructured the Supreme Court to limit political sway and has altered the Constitutional Court’s role in reviewing final judicial decisions upon request by public authorities. Additionally, the government moved to restrict the Supreme Court from reviewing certain cases that courts might escalate to the EU Court of Justice.

24 hours before the summit

The timing of the decision coincides with the European Council’s upcoming deliberations on whether to open accession talks with Ukraine and whether to approve new funding for Kyiv. Orbán’s party has publicly opposed both moves, tying them to concerns about corruption and the ongoing war in the region. Brussels, however, maintains that the decisions are technically grounded and contingent on Budapest meeting the established criteria for the disbursement of funds.

In its formal statement, the European Commission signaled that the remaining funds earmarked for Hungary, totaling approximately 21 billion euros, would remain blocked until outstanding issues are resolved. Core concerns relate to Hungary’s adherence to the EU Charter of Fundamental Rights, notably around protections for academic freedom and asylum rights. Officials emphasized that the conditional activation of funds will not proceed until these issues are satisfactorily addressed.

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