The EU is reviewing Hungary’s eligibility for much-needed aid
BRUSSELS, Dec. 9 (Reuters) – The European Union’s governing body will decide again on Friday whether Hungary’s 26 other member states can provide Budapest with multimillion-euro aid. .
Viktor Orbán, Hungary’s nationalist prime minister, is facing one of the biggest challenges of his 12-year rule, as domestic inflation rose to 26 percent this month, the cost of public debt increased, and the economy grew. A steep decline is expected next year.
The stake was 13.3 billion euros ($14.1 billion), earmarked from European Union coffers, but held back by concerns over corruption and poor judicial independence.
The European Commission is expected to present its position to the current EU presidency, the Czech Republic, in a letter later on Friday, he told two officials.
Justice Minister Judit Varga said this week that since the committee completed its last assessment in November, parliament has passed additional laws to address corruption concerns.
According to sources, EU countries can take advantage of Hungary’s latest legislative changes to conditionally accept Budapest’s 5.8 billion euro national economic recovery plan and reduce the value of other frozen funds from 7.5 billion dollars.
“If the assessment is clear that the Hungarians did more significant things in these 20 days… it leads to a more moderate assessment in terms of the freezing of funds,” said a Czech government source.
That debate cannot take place until Monday, and the decision on Hungary depends on whether Budapest moves forward with two decisions blocked by Orbán – an 18 billion euro joint EU loan to Ukraine and the proposed global corporate tax floor.
Compromise?
According to international watchdogs, Orbán has long been distributing funds to his EU allies to keep him in power. According to Orbán, Hungary is no more corrupt than others.
The self-proclaimed “liberal” crusader has fought several bitter battles with the EU over media and academic freedoms, the treatment of migrants and LGBT rights. He maintained close ties with Moscow and repeatedly suspended EU sanctions against Russia over the war in Ukraine.
With the Hungarian forint falling 11% against the euro this year, however, Orbán tried to agree with the commission to create an anti-graft body that would help free up much-needed EU funds.
Citing corruption risks, the committee previously recommended that 7.5 billion euros, or 65 percent of the development resources, be allocated to Hungary from the EU budget by the end of 2027.
The Commission withheld 5.8 billion euros for Hungary from the coronavirus epidemic from other sources.
The year-end deadline adds to the pressure as both sides seek concessions.
Consultancy firm Eurasia Group expects a deal this year, but warned that the risks are growing “as Brussels and EU capitals want to present … Orphan Black will not be blackmailed”. (1 dollar = 0.9463 euros)
(This story was corrected in paragraphs 8 and 9 to say billion, not million)
Reporting by Gabriela Pacinska, additional reporting by John Lopatka, editing by Gareth Jones
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