London Daily

Focus on the big picture.
Saturday, Dec 20, 2025

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
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
×