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Hungary's Government Votes on EU Cohesion Policy Amid Controversies Over Rule of Law

Hungary's Government Votes on EU Cohesion Policy Amid Controversies Over Rule of Law

Hungarian officials signal dissent on EU funding conditionality relating to rule of law, as the government fails to veto key EU documentation.
The Hungarian government has agreed to a key document concerning the future of the EU's cohesion policy, despite its inability to veto the text.

This document, titled 'Key Aspects of Cohesion: The Future of EU Cohesion Policy', will serve as a basis for the legal framework of the cohesion policy post-2027 and will guide discussions in the coming months.

Although Hungary's government did not prevent its passage, it publicly expressed its dissent in an official statement.

Tibor Navracsics, the Minister of Regional Development, voted in favor of the document but remarked that Article 8 was unacceptable for the Hungarian government.

He highlighted concerns over the linkage of EU funds to adherence to the Charter of Fundamental Rights and the rule of law.

Navracsics characterized this linkage as discriminatory and indicative of a double standard against Hungary under the rule of law proceedings initiated based on Article 7 of the Lisbon Treaty.

Article 8 states, 'The Council acknowledges the importance of ensuring the effective application and practical respect of EU values and the Charter of Fundamental Rights, as well as protecting the Union’s financial interests.' It emphasizes a clear connection between the respect for the rule of law and the Charter and access to EU financing, underscoring the importance of protecting the EU budget.

This link is significant in the context of ongoing budgetary proposals from the European Commission, which are tied to the rule of law procedures that have resulted from corruption concerns regarding the Hungarian government.

To date, Hungary has been blocked from accessing approximately €17 billion due to these proceedings.

The government was unable to block the document, as a qualified majority was adequate for its adoption.

The Orbán administration faced challenges in forming a blocking minority, with all other member states appearing to support the document’s contents.

A negative vote from Navracsics would have indicated a rejection of a document that advocates for restoring competitiveness, which the Hungarian government has publicly endorsed in the so-called Budapest Declaration.

The Orbán government expressed its dissent in a separate statement, emphasizing that the current system has not operated in alignment with principles of objectivity and non-discrimination.

They accused the system of functioning as a political tool to exert undue pressure on certain member states.

Hungary stated that its contribution to approving the conclusions is contingent upon the understanding that these conclusions should not be interpreted as a call for maintaining the current mechanisms, particularly regarding an increased or extended linkage between EU values and access to funds.

Prime Minister Viktor Orbán previously issued threats to veto the EU budget, which includes provisions linking access to EU funds to compliance with the rule of law.

Currently, Hungary has incurred penalties totaling 191 billion forints due to its non-compliance with a ruling from the Court of Justice of the European Union.

Reports indicate that the Hungarian government has lost approximately 520 billion forints in EU support over the course of several weeks due to its ongoing disputes with the EU.
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