Deadline Expired: Has Hungary Met All Conditions for EU Billions?
August 31 marked the deadline for EU member states to fulfill the conditions required for the disbursement of COVID-19 recovery funds. Member states now have until the end of September to submit evidence and demonstrate that they meet the prerequisites for the outstanding payments. The Commission will then have two months to review the submissions. The final disbursements must be completed by December 31 at the latest. Any funds tied to unmet conditions as of yesterday’s deadline will be permanently forfeited. To date, approximately €440 billion of the total €648 billion in recovery funds have been disbursed.
The situation in Hungary is particularly critical. The disbursement of all recovery funds to the country was contingent on fulfilling 27 rule-of-law and anti-corruption conditions. Under Viktor Orbán, these were either inadequately implemented or ignored entirely. The new government, led by Péter Magyar, took office in May of this year, leaving it just four months to push through the outstanding reforms. Yesterday afternoon, the Hungarian government declared that, from its perspective, all conditions had been met on time.
Among the most significant reforms is Hungary’s planned accession to the European Public Prosecutor’s Office (EPPO). The accession process has already been initiated, and EPPO is expected to begin its investigative work in Hungary in the first half of 2027. It will also have the authority to retroactively prosecute crimes dating back to June 1, 2021. Another key reform is the abolition of the so-called “Public Interest Trusts.” Under Orbán’s government, these foundations were used to remove numerous universities and significant public assets from direct state control, placing them under the management of politically affiliated individuals.
Daniel Freund, Coordinator of the Greens in the Budgetary Control Committee:
“For years, Orbán hollowed out the rule of law. Yet, it seems the new Hungarian government has managed to turn things around in record time. Magyar and his team have pushed through a whole series of reforms in just a few months. But now we need to carefully assess whether this is the kind of progress we actually needed. Political will and new laws alone aren’t enough. Together with colleagues from other political groups, I’ll be taking a close look to see if the rule of law has truly been restored – and that includes holding discussions on the ground in Hungary.”