London Daily

Focus on the big picture.
Sunday, Aug 02, 2026

Hungary’s EU cash at risk after European Commission concludes reforms fell short

Hungary’s EU cash at risk after European Commission concludes reforms fell short

Brussels has been withholding billions in funds from Budapest as leverage as it tries to halt what it sees as democratic backsliding.
Hungary has failed to adopt promised rule-of-law reforms, the European Commission decided Wednesday, putting billions in EU cash in jeopardy for the country.

The determination comes as Brussels wrangles with Viktor Orbán’s government over the release of both €7.5 billion in regular EU payouts and €5.8 billion in pandemic recovery grants — money the EU has temporarily frozen over democratic backsliding concerns in Hungary.

While the Commission on Wednesday recommended approving Hungary’s plan to spend its recovery funds, it was clear that the country would not actually get the money until it implements 27 specific rule-of-law upgrades.

Meanwhile, the Commission also concluded that Hungary had fallen short in fulfilling a prior pledge to adopt 17 rule-of-law reforms that are needed to access the €7.5 billion in EU funds, which are being held up under a mechanism allowing the EU to freeze funds at risk of graft.

EU countries will decide whether to adopt, amend or reject the Commission’s judgment by December 19.

The move comes as something of a surprise. As recently as last week, it was expected that Brussels and Budapest would be able to come to an agreement on releasing the money. But the decision reached Wednesday appears to be a bit more nuanced — greenlighting a spending plan but not the money, chiding Hungary for not living up to its prior promises and essentially punting it to EU countries to make a final call.

Commission President Ursula von der Leyen met with key commissioners Wednesday to finalize this path forward. Their recommendation will need to be formalized next week by the entire College of Commissioners.

The Commission on Wednesday was particularly critical of Hungary’s new “integrity authority," questioning its power and independence, as well as Budapest’s progress on commitments regarding asset declaration rules and the ability to review a prosecutor’s decision on whether to pursue a case.

Brussels also set out a new slate of 27 reforms, or “super milestones,” that Hungary must enact to receive its €5.8 billion in pandemic recovery funds. Included in the 27 reforms are the prior 17 commitments the two sides agreed to in their talks over preserving the €7.5 billion. Other conditions include the fulfillment of Hungary's pledged judicial reforms, as well as adopting rules on auditing and reporting on EU funds.

After the Commission formally adopts its decisions next week, it will be up to the Council of the EU to support or reject them by a qualified majority — comprising 55 percent of countries and 65 percent of the EU’s population — which should happen at a finance ministers meeting.

The exact date of that meeting is still unclear, as the one originally scheduled for December 6 may be too soon to allow countries to go through national parliamentary procedures. Thus the Czech presidency of the Council may schedule another ministerial meeting later in December.

Approval of Hungary's plan and related cash is crucial to a number of top EU priorities, including an €18 billion aid package for Ukraine and a global deal on a minimum corporate tax rate, all of which Hungary has been blocking.
Newsletter

Related Articles

0:00
0:00
Close
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×