In a last-minute decision on Tuesday evening, the European Commission announced unfreezing 10.2 billion euros from the cohesion funds to Hungary.
This move followed Budapest’s publication of the final part of the adopted judicial reform—a critical condition for allocating the funds.
The decision comes just ahead of an EU summit, where Hungarian Prime Minister Viktor Orban had previously threatened to wield his right to veto decisions related to financial, economic, and military aid to Ukraine and initiate membership talks with Kyiv in the EU.
While this move addresses some financial concerns, three programs for Hungary, totalling 6.3 billion euros, remain blocked.
However, Budapest is now able to submit invoices for completed projects, unlocking up to 10.2 billion euros, having fulfilled the requirements to ensure the independence of the judiciary.
Despite this development, payments under the recovery plan continue to be restricted. Consequently, a significant portion of the allocated funds, totalling 21 billion euros, still need to be made available to Hungary.
These funds were subject to a new procedure implemented by Brussels, linking access to European funding with adherence to the rule of law.
Last year, Hungary committed to executing 17 reforms to enhance control over the spending of Euro funds, refining public procurement legislation, and implementing anti-corruption measures.
The release of funds on Wednesday was contingent on Budapest fulfilling these commitments, culminating in the recent publication of legislative changes in the Hungarian Official Gazette.
Balázs Orbán, the chief political adviser to Prime Minister Viktor Orban, stated to Bloomberg that the threat of vetoing financial aid to Ukraine would be withdrawn following the European Commission’s decision to unfreeze the cohesion funding.
However, Hungary maintains its objection to the commencement of negotiations regarding Ukraine’s EU membership.
The issue of Ukraine’s potential EU membership remains a “red line” for Hungary, according to the prime minister’s adviser.
In an interview with the Hungarian electronic publication “Mandiner,” Orban characterized the start of negotiations with Kyiv as “absurd, ridiculous, and frivolous.”
While acknowledging the EU’s readiness, Orban emphasized that Kyiv should only be offered a strategic partnership, not full membership.
The developments underscore the delicate balance between financial considerations, judicial reforms, and geopolitical stances within the EU.
The unfreezing of funds may provide temporary relief. Still, the broader issues surrounding Hungary’s objections to Ukraine’s EU aspirations continue to linger, setting the stage for ongoing diplomatic and political negotiations within the European bloc.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members