The European Commission has unblocked €10 billion of EU funds earmarked for Budapest and frozen due to concerns about the rule of law in Hungary.
"After a thorough assessment and several exchanges of views with the Hungarian government, the Commission considers that Hungary has taken the measures it has committed to take...Hungary can start claiming payments of around €10.2 billion," the European Commission said in a statement.
This decision was approved by the European Commission after the Hungarian authorities agreed to legislative initiatives to strengthen the independence of the judicial system.
At the same time, the European Commission undertakes to monitor how Hungary implements the implemented measures in practice, and reserves the right to block the funds again if the conditions are not met.
Hungary can now apply for EU project funding and receive compensation.
The decision to give Hungary access to part of the funds allocated for it in EU funds was approved on the eve of the "Ukrainian" summit scheduled for December 14-15. On his agenda, in particular, is the allocation of macro-financial assistance to Ukraine — €50 billion for the next four years.
Why is this important?
On November 22, Hungarian Prime Minister Viktor Orbán wrote a letter to the head of the European Council, Charles Michel. In the appeal, the Hungarian head of state threatened to block all decisions regarding financing of Ukraine, the opening of negotiations on joining the EU or further sanctions against the Russian Federation if the EU leaders do not revise the strategy of supporting Kyiv.
The following day, the European Commission approved the payment of €900 million in advance payments within the framework of the previously frozen fund to support Hungaryʼs economy. Thus, the EU is trying to convince Hungary to unblock the aid package to Ukraine.
Earlier, the European Commission excluded Hungary from the economic stimulus program to overcome the consequences of the coronavirus pandemic due to signs of corruption and the Orbán governmentʼs departure from the principles of the rule of law. In response, Hungary effectively vetoed the EUʼs decision to provide Ukraine with €50 billion in economic aid until 2027.