EP calls for funds partially made available to Hungary to be frozen again over continued rule of law concerns

While there has been limited improvement in some areas, the situation "has remained alarming in most areas" and in some others it has deteriorated further, according to the resolution on the rule of law in Hungary, adopted by the European Parliament on Wednesday. The final text received 399 votes in favour, 117 against and 28 abstentions.

The draft was tabled on behalf of five political groups, including the centre-right European People's Party, which includes the smaller Hungarian governing party, KDNP. The text basically discusses the Article 7 procedure, which the EP has initiated against Hungary in 2018. It notes that although there have already been six hearings with the Hungarian government in the Council of EU ministers, the body still hasn't come up with any recommendations. In the current stage of the procedure, it could do so with a four-fifths majority, and in the second stage, a unanimous vote would make it possible to suspend certain EU rights. As it has previously done, the EP is calling for the second stage to be launched and calls on the Council to improve the situation by "issuing specific recommendations with deadlines for implementation".

According to the EP resolution, despite the judicial reform adopted last year, serious gaps remain in the area of the rule of law. As an example, it cites the "rules on the immovability of the current president of the Curia – Hungary's highest court" and the lack of substantive safeguards and guarantees for the independence of the body. It maintains that there is political interference "in the work of the prosecution services and individual prosecutors" and there is pressure placed on the members of the National Judicial Council.

The judicial requirements are particularly important because these were the ones that prompted the European Commission to freeze almost all of the €22 billion in EU catch-up funding. The Hungarian judicial reforms were adopted in December last year, so about half of the money, which is not blocked by other conditions, became available for drawdown. The stakes are further raised by the fact that the judicial reform constitutes just four of the 27 super-milestones which would all have to be met for Hungary to receive the €10.4 billion in regular payments from the recovery fund.

The decision to make part of the funds available led to the EP launching a lawsuit in March. In the resolution, the European Parliament

reiterates its call on the Commission to retract its decision, particularly in light of the national measures taken since its adoption and the leaked revelations by Hungary’s former minister of justice implying a lack of independence of the prosecution and political interference in criminal proceedings;

The EP resolution does not mention her name, but it is referring to Judit Varga. In an audio recording released by her ex-husband, the former Justice Minister said that she was part of a mafia government from which there was no way out, and that the "Rogán and his people" had "made suggestions to the prosecutors about what should be taken out of the documents of the Schadl-Völner case, but they did not comply with it all". The text of the resolution calls for a freezing of EU funds until all relevant legislation, EU and European Court of Human Rights decisions have been fully implemented (although the latter is not an EU body, all EU member states are members).

The resolution also lists dozens of other problems, including, but not only

• the possible use of the Sovereignty Protection Authority to launch investigations against NGOs and the media
• as well as the excessive influence of the government on the media and
• the lack of "adequate prerogatives and implementing powers" of the Integrity Authority (The head of the body which was set up in response to an EU requirement recently complained that the authority was unable to do the job it was set up to do, as it lacked the authority needed for functioning efficiently.)

The resolution specifically condemns the Sovereignty Protection Act because it considers it to be a fundamental violation of the standards of democracy, as well as of EU law. It welcomes the fact that the European Commission launched infringement proceedings over it in February and calls on the Hungarian government to "repeal the law without delay".

After last year's resolution, the EP has now reiterated its concerns about the Hungarian government's ability to credibly hold the Council presidency beginning in July. The document states that Hungary's six-month rotating presidency is problematic because it "comes at an extremely crucial time" when the new European Commission is being formed. The body reiterates its "preparedness to take measures" to "defend the credibility of the Union".

The text “deplores the fact that Hungary has abused its veto power in the Council, preventing essential aid from being granted to Ukraine, thus undermining strategic interests of the EU; condemns the Hungarian Government’s general policy towards Russia;”

The resolution "reiterates its call on the Commission to ensure that the final recipients or beneficiaries of EU funds are not deprived of these funds, as set out in the Rule of Law Conditionality Regulation;" and also calls on the Commission "to find ways to distribute EU funds via local and regional authorities and civil society if the government concerned does not cooperate regarding deficiencies in the implementation of the rule of law;”

The messaging started before the voting

Just prior to the meeting, Momentum's Anna Donáth – one of the presenters of the proposal – posted on Facebook that she had submitted three amendments to the EP resolution, which had been included in the final text:

• on freezing the payment of EU funds for Hungary again and on reopening the full investigation procedure against the Hungarian government;
• on suggesting that the European Commission should call on the EU Court of Justice to "suspend the applicability of the Hungarian Sovereignty Protection Act with immediate effect"; and
• suggesting that the body do more to persuade the Hungarian government to join the EU Public Prosecutor's office.

Tamás Menczer reacted by saying that "The dollar left has launched another attack against Hungary, they want to take the Hungarians' money from them". According to the statement issued by Fidesz's communications director via MTI, the left "wants the Hungarian people not to receive the EU funds Hungary is owed, they want the disbursement of the funds to be suspended, and they want teachers to lose their pay rise". This is completely against the interests of Hungary, it is an open attack on the country, and the EU funds are not "donations" but are due to Hungary, in accordance with previous agreements. "The pro-war dollar-funded left and their international allies are attacking us because we are sticking to our pro-peace stance, we are saying no to immigration and to LGBTQ propaganda. No matter how much pressure they put on us, we will defend Hungary's peace and security."

"It is certainly not in Hungary's interest for them to try to build their own clientele with EU money," Anna Donáth replied. "Hungary's interest is for EU funds to go directly to schools, to creating jobs, to NGOs," and for us to join the EPPO. "Those who certainly have no right to lecture others on the Hungarian interests are the members of the Orbán government, which represents Russian interests in the EU and is continuously embezzling Hungarian and European taxpayers' money," the MEP wrote.

István Ujhelyi, a former MSZP MEP who is now part of the self-founded Esély Közösség, held a vote on his social media page prior to the final vote about which button to press – despite the fact that due to the amendments, no one could be entirely sure in advance which text they would have to give their opinion on. "When it comes to the amendments, there will be some I can support and some I will vote against. But on the final document, I will definitely say yes", he promised on Facebook, because, according to the votes cast, "a large majority of you expect me to do so".

According to the EP's register, he did indeed do so, along with Katalin Cseh of Momentum and the DK MEPs, while KDNP's György Hölvényi and the Fidesz MEPs voted against the resolultion, and as for the other Hungarians, there were no votes registered from them.