What's Happening?
The advocate general for the European Union's highest court has recommended annulling a 2023 decision by the European Commission to release billions in funding to Hungary. The funds had been suspended due to concerns over rule-of-law and corruption. The Commission initially
withheld the funds over democratic backsliding and corruption issues but later released them, citing sufficient reforms by Hungary. However, the legal adviser argues that Hungary had not implemented the required judicial reforms at the time of the release. This opinion, while non-binding, is often followed by the court.
Why It's Important?
The decision to potentially annul the release of funds to Hungary highlights ongoing tensions between the EU and Hungary over democratic standards and governance. Hungary, a major recipient of EU funds, faces criticism for its government's actions under Prime Minister Viktor Orbán, including media control and minority rights infringements. The outcome of this legal challenge could impact Hungary's economy, which relies heavily on EU funding, and influence its political landscape, especially with upcoming elections.
What's Next?
The European Court of Justice will consider the advocate general's opinion in its final ruling. If the court annuls the decision, Hungary may face further financial constraints, affecting its budget and economic stability. The ruling could also influence Hungary's political dynamics, as opposition parties may leverage the situation to challenge Orbán's government. The EU may continue to scrutinize Hungary's compliance with democratic norms and consider additional measures to ensure adherence.
