Last Thursday, the European Parliament officially invoked a procedure in accordance with Article 7(2) of the Treaty on European Union (TEU). The Parliament has requested that the European Council ascertain whether Hungary has persistently violated EU values outlined in Article 2 of the TEU, particularly in regards to respect for fundamental rights, the rule of law, and democracy.
The Parliament’s resolution serves as a protest against the European Commission’s recent decision to unfreeze €10.2 billion of the EU budget allocated to Hungary. Previously, the Commission had decided to withhold these funds under the Conditionality Regulation, which links the provision of EU funding to compliance with the rule of law. Nevertheless, approximately €21 billion remain suspended, as Hungary continues to breach various aspects of the rule of law, including academic and press freedom, asylum rights, and child-protection law.
Hungary’s Prime Minister, Vikor Orbán, maintains close ties with Moscow and has shown reluctance to assist Ukraine, sparking concern among EU members. The European Commission’s decision to unfreeze the funds is seen less as a reward and more as a concession to secure Hungary’s cooperation on pressing issues. This was met with pushback from the Parliament, threatening to use its legal and political measures if the money is released prematurely.
If the European Council upholds the Parliament’s finding of a serious and persistent violation of the rule of law by Hungary, the country’s voting rights in the Council could be suspended. The Council, the forum where national ministers discuss thematic issues, previously rejected a similar request by the Parliament in 2018, showing reluctance to publicly rebuke each other due to potential future dependencies.
Another concerning development is that Hungary is slated to hold the European Council’s rotating presidency from July to December. Many worry that this could potentially stall the EU’s plans to invite new Member States like Ukraine, advance environmentally friendly policies, or reinforce fundamental rights and rule of law enforcement. European Council President Charles Michel’s decision to run for European Parliamentary elections creates additional uncertainty over who will succeed him when he steps down later this year.
While current procedures do not provide a clear solution for this situation, the likely alternative would be for the Hungarian presidency to temporarily fill the presidential role until the end of the term. If Orbán takes charge of the European Council presidency, he would also represent the EU internationally, increasing the urgency of the current Belgian presidency to advance EU agendas before the end of June.
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