Resolution on the situation in Hungary and frozen EU funds

The European Parliament adopted by 345 votes to 104, with 29 abstentions, a resolution on the situation in Hungary and frozen EU funds.

The text adopted in plenary was tabled by the EPP, S&D, Renew, Greens/EFA and The Left groups.

Violation of EU Treaties

Parliament condemned the deliberate, continuous and systematic efforts of the Hungarian Government to undermine the founding values of the EU and is strongly concerned about the further erosion of democracy, as well as the deterioration of the rule of law and the fundamental rights situation in Hungary, in particular through the recently adopted so-called ‘national sovereignty protection’ package.

Parliament reiterated its call on the Council to address all new developments affecting the rule of law, democracy and fundamental rights.

The resolution further condemned the actions of the Prime Minister of Hungary, who decided to block the decision on the essential MFF revision, including the Ukraine aid package, in full disrespect and violation of the EU’s strategic interests. Parliament believes that such actions are in violation of the principle of sincere cooperation, as enshrined in the Treaties. It stated that in no way can the EU give in to blackmail and trade the strategic interests of the EU and its allies by renouncing its values.

Parliament forcefully reiterated its insistence on the need for an urgent and targeted reinforcement of the MFF, providing for citizens’ needs and delivering on political commitments already undertaken, including funding for Ukraine. The European Council is called on to urgently agree on such a position in the extraordinary summit on 1 February 2024.

Protecting EU funds

Parliament regretted the Commission’s decision to release up to EUR 10.2 billion of previously frozen funds, despite Hungary not fulfilling the demanded reforms for judicial independence and the Commission recently prolonging the application of Conditionality Regulation measures.

Discriminatory practices

The resolution condemned the reported systemic discriminatory practices against academia, journalists, political parties and civil society, as well as companies in certain sectors. In this regard, Members regretted the politically motivated business practices that give an unfair advantage to competitors, non-transparent and manipulated public procurement procedures, takeover bids by the government and entities with ties to the Prime Minister, and the use of EU funds to enrich political allies of the government in contradiction to EU competition and public procurement rules.

EU Presidency

Parliament questions if the Hungarian Government will be able to credibly fulfil this task in 2024, in view of its non-compliance with EU law and the values enshrined in Article 2 TEU, as well as the principle of sincere cooperation.

The resolution recalled that, in some cases, the President of the European Council could be replaced by the member of the European Council representing the Member State holding the six-monthly Presidency of the Council. The Council is asked to find proper solutions to mitigate these risks as soon as possible. Moreover, the President of the Council and the Member States are called on to start procedures immediately to reform the decision-making process in the Council, in order to end the abuse of the right of veto and the blackmail in the European Council and other European institutions.