As of: 09/15/2022 8:43 p.m
The country has become a “hybrid system of electoral autocracy”: In a statement, the European Parliament denied Hungary the status of a democracy. Because of violations of the rule of law, Hungary is threatened with cuts in EU funds.
The European Parliament has agreed that Hungary is not a democracy. “Among experts” there is increasing agreement “that Hungary is no longer a democracy,” said a non-binding resolution approved by the majority of MPs in Strasbourg. Hungary has “become a hybrid system of electoral autocracy”.
MEPs criticized the European Union itself for not acting decisively enough. Parliament regrets “that the lack of decisive action by the EU has contributed to the collapse of democracy, the rule of law and fundamental rights in Hungary”. For months, the MEPs had asked the EU Commission in Brussels to do something about alleged violations of the rule of law in Hungary and possibly cut EU funds for the country.
Sharp criticism from Hungary
Sharp criticism of the EU Parliament’s decision came from Hungary. Foreign Minister Szijjarto said at a press conference in the Hungarian capital, Budapest: “I find it an insult to the people of Hungary when someone questions Hungary’s capacity for democracy.” “Some” politicians in Strasbourg and Brussels wanted to “humiliate” his country, Szijjarto added.
Cut in EU funds?
To cut Hungary’s funds – the EU Commission could decide on a corresponding proposal to the member states on Sunday, reports the dpa news agency, citing EU circles. It would be the first time that the Commission has proposed cutting EU funds because of violations of the rule of law. However, there is still the possibility of a compromise with Budapest. The European Parliament therefore fears that the money will ultimately flow to Hungary. Commission chief Ursula von der Leyen emphasized on Wednesday that she wanted to take decisive action against corruption. She also mentioned the rule of law mechanism, which is intended to prevent the misuse of money from the EU budget.
Rule of law mechanism triggered in April
So far, Hungary is the only country against which a procedure based on this mechanism is running. The EU Commission has long criticized widespread corruption in the country, which has been ruled by Prime Minister Viktor Orban for twelve years. A July report spoke of “an environment in which the risks of clientelism, favoritism and nepotism in senior public administration are not addressed”.
Another document from the authority primarily criticizes deficits in public procurement. There are “serious systemic irregularities, deficiencies and weaknesses in the public procurement procedures”.
Because the EU Commission sees the danger that EU money will be misused, it triggered the rule of law mechanism against Hungary in April. The proposal to cut money would be the next step in the process. The document by the EU Commission shows that it could propose to the EU states that they withhold up to 70 percent from several Structural Fund programs to support disadvantaged regions. According to calculations by the Green MEP Daniel Freund, that could be around seven billion euros. From EU circles it was said that the numbers could still change.
Measures to appease Brussels
In addition, the authority will decide on Sunday recommendations on how to remedy the grievances in Hungary, it said. If Hungary implements all the recommendations, the money might not be frozen in the first place.
The Hungarian government had recently shown some movement in the dispute with Brussels for the first time in a long time. In the past few weeks, she has held out the prospect of several measures intended to appease the EU Commission. Among other things, Budapest wants to create a new anti-corruption authority, significantly reduce the number of public tenders with just a single provider and end the parliamentary waving of often important laws in the 24-hour urgent procedure.
The responsible minister, Tibor Navracsics, said in a television interview on Wednesday evening that the draft law for the anti-corruption authority is to be introduced to parliament at the beginning of next week. The heads of this authority should therefore be appointed in the context of public tenders. The appointment commission will be made up of international, technically recognized experts, and the procedure will be carried out in coordination with Brussels. The mandate of the authority, its competences and rights remain unclear to the public. Hungarian anti-corruption activists warn that the Orban government could dupe the Brussels authorities.
The decision to freeze billions of euros for Hungary from the EU budget is ultimately made by the EU states. According to the recommendation of the EU Commission, you have up to three months to make the decision, which at least 15 countries with at least 65 percent of the EU population would have to agree to.