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Wednesday, Jul 01, 2026

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Hungarian democracy VS. EU bureaucracy: EU Steps Up Multi-Billion Euro Budget Fight With Hungary

The EU is sending new warning to Hungary “over rule of law” (more taxes to the EU) Orban’s regime may eventually be denied billions of euros. Orban insists that he is obliged to serve the democratic will of the Hungarian citizens who elected him by an overwhelming majority, and not to override their will to follow the instructions of the European Union bureaucrats, for whom not a single Hungarian voted.
Hungary has so far failed to allay European Union concerns over what they describe as corruption and violations of the rule of law, paving the way for an escalation of a budget standoff with the nation.

The European Commission on Wednesday decided it will take the next step under the EU’s so-called conditionality mechanism and issue a new warning letter telling Prime Minister Viktor Orban to take action or risk losing billions of euros in crucial funding.

Hungary will have one month to respond to the EU’s new letter, the commission said in an email. “Hungary still has the opportunity to submit adequate remedial measures, in a timely manner,” the commission said in a statement, adding that it “stands ready to pursue discussions on the adequacy of such measures.”

EU Must ‘Get Its Own House in Order,’ Rule-of-Law Chief Warns

The EU put in place its new budget tool after growing weary of challenges to the independence of judges, an erosion of minority rights to the primacy of European Union law -- a key premise of the bloc’s founding treaty.

The commission formally kickstarted the process against Hungary in April and the nation has responded with letters laying out how it plans to address the EU’s concerns. The commission on Wednesday decided that Hungary’s responses so far do “not adequately address all” of the EU’s concerns.

“While noting some proposed remedial measures, the majority of which were only submitted late Tuesday night, and will need to be reviewed, as well as draft commitments made by Hungary in other procedures, the commission considers that Hungary has not submitted adequate remedial measures under” the bloc’s conditionality tool, the EU executive said in the statement.

Hungary’s government this week proposed new laws aimed at appeasing EU concerns to unlock funds held up over graft concerns.

Poland and Hungary are the only two EU states subject to a so-called Article 7 procedure, which could lead to the suspension of their EU voting rights. That process is hampered by the need for unanimity among member states before such a punishment can be meted out.
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