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Gov't Reaches Agreement w/EU On Rule Of Law, Could Face MS Pushback

HUNGARY

Earlier today, Reuters reported comments from an unnamed EU official saying that Hungary had taken a 'significant step' towards securing billions of euros in COVID-19 recovery funding by agreeing to Brussels' conditions regarding judicial independence and the rule of law. However, this could face pushback from some EU member states.

  • Reuters reports that the gov't of PM Viktor Orban had, "agreed to cease the powers of Hungary's Supreme Court to interfere with the right of Hungarian judges to consult the European Court of Justice, among other steps."
  • There remains a significant potential obstacle to gaining the Recovery and Resilience Funding in the form of getting member states on board. In order to unlock the frozen funds Hungary must get approval from the EU and a majority of member states by year-end or risk 70% of the grants being withheld permanently.
  • Hungary's blocking of EUR18bn in EU financial aid to Ukraine has caused outrage in certain member states. German Foreign Minister Annalena Baerbock said Hungary must not 'play poker' with the security of Ukraine in an effort to gain leverage on the rule of law issue.
  • Parties in German coalition gov't have sought to pressure Chancellor Olaf Scholz to 'thoroughly scrutinise' Budapest's plans on ensuring judicial independence to ensure they are " serious about addressing longstanding concerns over democratic backsliding" according to Politico.

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