Brussels sticks to its guns on cutting Orbán’s cash

 

Brussels sticks to its guns on cutting Orbán’s cash

 

EU countries wanted an updated recommendation before making a final call on the funding spat over rule-of-law concerns.

France and Germany have been pressing the EU Commission to assess whether Hungary had made progress on rule-of-law reforms |

 

BY LILI BAYER AND CORY BENNETT

DECEMBER 9, 2022 6:12 PM CET

https://www.politico.eu/article/european-commission-call-suspend-e7-5-billion-hungary-funds-rule-of-law/

 

The battle lines are now set in the showdown over Hungary’s access to EU funds.

 

The European Commission, the EU’s executive, on Friday said it would not alter a recommendation to suspend €‎7.5 billion from Hungary’s regular EU payouts on concerns over democratic backsliding in the country.

 

The decision came after France and Germany pressed the Commission to assess whether Hungary had made progress on rule-of-law reforms since last month, when the Commission first issued its proposal. The two countries’ request came ahead of a pending decision EU countries must make in December on whether to actually suspend the funds.

 

In a document released Friday, the Commission provided a detailed chart signifying there has been “no change in the Commission’s assessment” on nearly all of the concerns outlined in its earlier analysis.

 

Hungary did submit new information to the Commission, EU Budget Commissioner Johannes Hahn wrote in the letter, but these details “largely correspond to those already available to the Commission.” Hahn added that while some positive steps have been made, “weaknesses and risks” persist.

 

Many assumed France and Germany were asking for the updated review partly in the hopes the Commission would decrease the amount of funds it recommends withholding from Hungary. Budapest is blocking several key issues — including critical Ukrainian aid and a minimum corporate tax rate — and some have speculated the country might lift its vetoes if the EU eased up on the €‎7.5 billion figure.

 

France and Germany also indicated they wanted the fresher review to ensure any final funding suspension is legally sound. Separately, some big EU capitals are wary of deepening divisions within the bloc at a time when war is raging on the Continent.

 

Now the controversial debate moves over to the Council of the EU, which represents EU countries. Officials have until December 19 to decide whether to approve, revise, reject — or even completely ignore — the Commission’s recommendation. That means the €‎7.5 billion could still be reduced — or granted in the end.