London Daily

Focus on the big picture.
Tuesday, Jul 14, 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
Beer Industry Warns UK Rules Could Limit Growth of Alcohol-Free Market
Home Office Faces Legal Challenges Over Asylum Seeker Accommodation Closures
UK Heatwaves Linked to More Than Two Thousand Seven Hundred Deaths as Climate Debate Intensifies
Home Secretary Faces Pressure Over Political Security After Ann Widdecombe Murder Investigation
United Kingdom Opens Trade Consultation With Indonesia, Philippines, United Arab Emirates and Uruguay
Robert Jenrick Joins Reform UK After Leaving Conservative Party Leadership Role
Counter-Terrorism Police Take Over Investigation into Murder of Former MP Ann Widdecombe
Andy Burnham Secures Strong Labour Backing in Race to Succeed Keir Starmer
Global Markets Slide as Middle East Conflict Escalation Sends Oil Prices Higher
UK Prime Minister Keir Starmer Offers Condolences Following Death of Qatar’s Father Amir
UK Regional Innovation Policy Focuses on Research Clusters Across Scotland, Wales, and Northern England
UK Corporate Transparency Rules Set to Become More Strict Under Modern Slavery Reform Plans
UK Civil Service Estate Strategy Shifts Government Activity Away From London
UK Strengthens National Security Powers Through New Threat Designations
Greater Manchester Police Conduct Drink and Drug Driving Operations After Football Events
UK Government Advances Darlington Economic Campus With Construction Milestone
UK Authorities Increase Football-Related Security Operations After Tournament Fixtures
UK Invests Fifty-One Million Pounds in National Cryogenics Facility and Regional Innovation Hubs
UK Moves Toward Tougher Modern Slavery Reporting Rules With Corporate Penalties
UK Government Reports Forty-Three Million Pounds in Savings From Office Estate Reform
UK Government Expands Civil Service Regional Strategy With Manchester and Darlington Campus Projects
UK Designates Iran’s Islamic Revolutionary Guard Corps as National Security Threat
United Kingdom Financial Markets Monitor Business Response to Economic Policy Changes
Scottish Renewable Energy Expansion Highlights Need for Faster Grid Development
Wales and Regions Strengthen Focus on Economic Development Through Tourism and Investment
Retail Industry Warns High Street Businesses Remain Under Pressure
Police Chiefs Highlight Growing Challenges Managing Protests and Public Order
Agriculture Leaders Seek Clarity on Post-Brexit Farming Support and Environmental Rules
Transport Unions Warn of Further Industrial Action Over Pay and Working Conditions
Welsh Tourism Sector Reports Strong Growth Driven by Domestic and International Visitors
National Infrastructure Review Gains Support as Leaders Seek Faster Project Delivery
Financial Markets Assess Impact of United Kingdom Corporate Tax Policy Changes
Northern Ireland Assembly Debates Cross-Border Trade and Infrastructure Cooperation Plans
Government Opens Consultations on Housing Reform and Planning System Changes
Scottish Government Faces Pressure to Accelerate Offshore Wind and Grid Expansion
National Energy System Operator Warns Grid Investment Is Needed for Future Electricity Demand Growth
United Kingdom Research Council Invests in Artificial Intelligence and Biotechnology Innovation Hubs
United Kingdom Expands Oversight of Skilled Worker Visa Sponsors Amid Migration Debate
Cross-Party MPs Call for National Infrastructure Strategy Review to Accelerate Economic Growth
Prime Minister Announces One Billion Pound NHS Funding Package Ahead of Winter Pressures
Bank of England Signals Cautious Approach to Interest Rates as Inflation Remains Above Forecasts
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
×