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Funding Decision Likely This Week

HUNGARY
  • Late on Friday, the European Commission reiterated their view that Hungary’s legislative changes and the implementation of measures has fallen short of requirements needed to unlock frozen cohesion funds.
  • The Commission statement does not mark the end of the funding saga, with the European Council still to make the final decision at the EUCO leaders’ summit on December 15th, where a qualified majority is required to make a decision (55% of member states representing 65% of EU population).
  • Media speculation remains that member states, including France and Germany, are seeking to push back on the idea of EUR7.5bn being withheld from Orban's gov't due to rule of law violations, and instead are advocating for a smaller amount.
  • EU Ambassadors are to meet in Brussels, and will likely discuss funding issues – raising headline risk during the Monday session.
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