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The European Court of Justice should annul the European Commission’s 2023 decision to disburse €10.2 billion to Hungary, according to an opinion released this week.
Advocate General Tamara Ćapeta concluded that Hungary did not fulfil all required milestones to qualify for the funds. While such opinions are not legally binding, court rulings typically align with them.
Most EU funds for Hungary were initially frozen due to concerns over systemic corruption and rule of law violations. But a year later, the Commission proposed unfreezing the €10.2 billion after concluding that Hungary had delivered on justice reform requirements.
The European Parliament criticised the Commission’s decision, and launched a court case challenging it in 2024.
In her opinion, Ćapeta argues that Hungary should have met all previously established milestones before receiving the funds.
Suspicions of backroom deal
The Commission’s decision came just days before a crucial December 2023 EU summit, where Hungarian Prime Minister Viktor Orbán threatened to veto a €50 billion aid package for Ukraine and block the start of EU accession talks with Kyiv.
During the summit, Orbán left the room for a coffee break, allowing the other 26 EU leaders to approve the accession talks.
And at an extraordinary summit in February 2024, Hungary lifted its veto on the €50 billion Ukraine support package.
Some MEPs suspected the EU struck a deal with Hungary, trading unfrozen funds for a Orbán’s withdrawal of his veto. The European Commission has denied any such agreement was made.
The opinion comes just two months ahead of Hungary’s contested parliamentary elections in April. If the Court rules that the payment was in breach of the rules, the Commission may ask Hungary to repay funds or deduct the amount from future payments.
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