VdL: Rule Of Law Proceedings Against Hungary Can Start, Risks EU Funds

Speaking to the plenary session of the European Parliament, European Commission President Ursula von der Leyen confirms that the the Commission has triggered the rule of law conditionality mechanismagainst the Hungarian gov't, saying that "[EU Budget] Commissioner Hahn has today spoken to the Hungarian authorities and informed them that we will now send the letter of formal notification to start the conditionality mechanism."

• With the triggering of the rule of law conditionality mechanism the EU now begins the process of determining whether structural and cohesion funding to Hungary will be cut as a result of the gov'ts lack of progress in tackling graft, and rule of law violations.
• The loss of EU funding would be a major fiscal blow to the newly re-elected gov't of Hungarian PM Viktor Orban. Behind Poland, Hungary is the second-largest net recipient of EU structural and cohesion funding.