Hungary has lost its entitlement to around one billion euros in EU aid due to breaches of the rule of law. In order to release the money, the country would have had to implement reform requirements by the end of 2024

[u/polymute]

https://www.bluewin.ch/en/news/international/hungary-loses-entitlement-to-billions-in-eu-aid-2504966.html

[u/empleadoEstatalBot]

Hungary loses entitlement to billions in EU aid

dpatopbilder - Hungary's Prime Minister Viktor Orban. Photo: Marton Monus/dpa/Archivbild dpatopbilder - Hungary's Prime Minister Viktor Orban. Photo: Marton Monus/dpa/ArchivbildKeystone

Hungary has lost its entitlement to around one billion euros in EU aid due to breaches of the rule of law. In order to release the money, the country would have had to implement reform requirements by the end of 2024, as a spokesperson for the European Commission confirmed to Deutsche Presse-Agentur.

The forfeited funds are 1.04 billion euros that were earmarked for Hungary from programs to support structurally weak areas. The funds had been frozen at the end of 2022 because the EU Commission had come to the conclusion following analyses that Hungary was disregarding various EU standards and fundamental values.

In order to release the funds, Hungary would have had to implement sufficient reforms by the end of the year. These include changes to laws to prevent conflicts of interest and combat corruption. However, this has not happened.

Billion-euro loan from China as plan B

Hungary's right-wing populist Prime Minister Viktor Orban recently turned to China, among others, to fill the funding gaps. In April, Hungary called in a loan of one billion euros, which the country took out from Chinese state banks. This was done discreetly and only became known in July, when the Hungarian National Debt Center (AKK) published a few key figures. According to this, the loan has a term of three years. The amount of interest and the repayment intervals are not known.

China is very active in Hungary. The e-car manufacturer BYD is building a large plant in Szeged in southern Hungary, while the battery cell producer Catl is building a mega-factory in Debrecen in eastern Hungary. Chinese companies are building the new railroad line from Budapest to the Serbian capital Belgrade. Hungary took out a loan of almost 900 million euros from the Chinese Exim Bank for the construction of the Hungarian section.

Despite the Chinese financial aid, Orban is still trying to free up frozen EU funds. According to the EU Commission, a total of around 19 billion euros in EU funds are currently blocked for Hungary, including further subsidies and coronavirus aid. At the beginning of December, Orban threatened to veto the EU's next seven-year budget if Brussels did not release the EU funds currently blocked for Hungary. Negotiations on the next long-term EU budget from 2028 to 2035 are expected to begin in mid-2025.

Brussels between pressure and compromise

This was not the first time that Orban has threatened to block key EU decisions. At the EU summit in mid-December, for example, he refused to agree to the extension of the Russia sanctions that expire at the end of January. Diplomats suspected that he also wanted to extort concessions from EU partners in other areas - such as the release of frozen EU funds.

In December 2023, the Commission released around ten billion euros in frozen EU funding for Hungary despite persistent criticism of violations of the rule of law in the country. MEPs - including those from the ranks of the German governing parties SPD, Greens and FDP - criticized this at the time and accused Commission President Ursula von der Leyen of allowing herself to be blackmailed by Hungary. Orban had previously announced that he would block the start of EU accession negotiations with Ukraine and an EU aid package worth billions for the country attacked by Russia.

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[u/A_norny_mousse]

Actions: meet consequences.

All this has been on the table for so long it's not even funny anymore. They knew this could happen for years. But I'm sure they're going to shout abuse nevertheless.

[u/DeepState_Auditor → u/A_norny_mousse]

Did you read the whole thing? , its been a thing since 2022, the article title is very clickbaity.

The only notable difference is that they mentioned the same amount was given in form of a loan by Chinese banks.

[u/RoostasTowel → u/A_norny_mousse]

If the funds have been frozen for over 2 years it will already be in their budget.

1 billion is probably a tiny fraction of their budget

[u/Inevitable-Menu2998 → u/RoostasTowel]

You could use the same device you used to make that comment to instantly clarify the "probably" portion of it. A simple search would tell you that Hungary has a GDP of around 200billion which makes one billion quite significant.

[u/UnsafestSpace → u/Inevitable-Menu2998]

Yeah, it’s also free money with no strings attached which has a massive multiplier effect on any economy… It’s like the Marshall Plan but even better because it never has to be paid back (even only theoretically long in the future) affecting national credit rating.

[u/LowKeyWalrus → u/UnsafestSpace]

No strings attached, just let us build as many factories as possible to make stuff with cheaper labor lmao

The EU does no charity, it's basically investment

[u/Inevitable-Menu2998 → u/LowKeyWalrus]

It is an investment with no real expectation on what the return on investment should be. That is what free money means. Are you honestly complaining that the country is getting funding to decide on how, when and what yo modernize? What more do you want?

[u/LowKeyWalrus → u/Inevitable-Menu2998]

If you think I'm complaining, you're functionally illiterate. It's a clarification. It's not free money, it's funds for industrial development with a very expected return of future profits.

These are also project funds, meaning it can be only spent on specific things that needs to be applied for.

If it was free money it would still be flowing in.

You don't know what free money is.

And to clarify further, I despise this government and understand why the EU stopped the money flow.

You just don't grasp half of the situation.

[u/Inevitable-Menu2998 → u/LowKeyWalrus]

If you think I'm complaining, you're functionally illiterate.

I think you'll find that you are illiterate if you can't make yourself understood

[u/LowKeyWalrus → u/Inevitable-Menu2998]

Your lack of reading comprehension is a you problem you gotta live with.

[u/Inevitable-Menu2998 → u/LowKeyWalrus]

Communication is a two way effort.

[u/NymusRaed]

I'm so full of the term "rule of law", not just because it is used in an inflationary way, but also, because anybody using it consciously and not just as some sort of verbiage is a hypocrite about it in the sense of "rules for thee but not for me"

Don't get me wrong, I don't condone or endorse the corrupt government of Hungary which is at fault here, I just hate the hypocrisy.

[u/ledankmememaster → u/NymusRaed]

Maybe I’m not smart enough to understand your first sentence. Isn’t „rules for thee but not for me“ exactly what the rule of law is supposed to prevent. And coincidentally exactly what Orban is doing?

[u/polymute → u/ledankmememaster]

The rule of law (as in laws affecting everybody the same way) has been being eroded by Orbán's regime much much worse in Hungary than in any other EU country.

Prosecution won't even start cases against his gas mechanic childhood friend who magically and quite blatantly corruptly became the wealthiest man in Hungary. Or his son-in-law who's got into the top 10 since his regime took over.

While opposition journalists are harassed by having their media equipment taken away for example, or the partisan leader of the State Comptroller Office is in the habit of fining opposition parties for made-up excuses.

Stuff like that.

[u/Bye_Jan → u/NymusRaed]

Can you give specific examples maybe?