Parliament Leaders Agrees To Sue Commission Over Unfrozen Hungary Funds

The leaders of the political groups within the European Parliament have agreed to move forward with a case at the European Court of Justice against the European Commission for the unfreezing of EUR10bn in EU funds for Hungary as it sought to reverse Budapest's veto on aid for Ukraine. Parliament President Roberta Metsola has confirmed that following the decision by the Conference of Presidents, the case will be referred to the ECJ by 25 March.

• We previously highlighted the vote in the Parliament's Legal Affairs committee that brought the decision to Metsola and the Conference of Presidents (see 1002GMT, 12 March bullet). EU Observer: "The move this week comes amid suspicion that the commission agreed to unfreeze the funds for political reasons rather than the required judicial independence linked to fundamental rights."
• The centre-right European People's Party (EPP) backed the referral, arguing that the Commission decision to unfreeze Hungary's funds was taken collectively by commissioners from all the main political groups, not just by Commission President Ursula von der Leyen (who hails from the EPP and is seeking a second term).
• While the issue is likely to prove too esoteric to have an impact on the 6-9 June EP elections, it could have ramifications for the post-election scramble for senior EU positions. VdL secured election as Commission President in 2019 with a majority in the Parliament of just nine votes. A contentious legal challenge against the Commission at the time of 'horse trading' between political blocs could impact VdL's ability to win re-election.