The European Commission intends to release 4.2 billion euros of European Union funds to the Hungarian capital, Budapest, which was previously frozen due to corruption suspicions dating back to the period of former Prime Minister Viktor Orban.
The President of the European Commission, Ursula von der Leyen, explained in a statement issued on Wednesday that Hungary has taken fundamental steps to strengthen the rule of law and protect the financial interests of the European Union.
According to the press release, Budapest has succeeded in addressing deficiencies related to public procurement, the anti-corruption framework, and risks of conflicts of interest, in addition to raising the efficiency of public prosecution procedures, following the implementation of a series of reforms since the current Prime Minister, Peter Magyar, took office last May.
The reforms included expanding the powers of the Hungarian Integrity Commission and facilitating its access to data, introducing a comprehensive financial disclosure system, increasing transparency to reduce the risk of conflicts of interest in public interest funds, as well as strengthening judicial oversight of the decisions of investigative and prosecutorial authorities, public spending and EU funds.
The Commission also pointed out that Hungary’s accession to the European Public Prosecution Office, in addition to the adoption of new rules regarding beneficial ownership and public procurement, contributes to advancing efforts to combat corruption and prevent conflicts of interest.
In light of these developments, the European Commission considered, under its new proposal, that the conditions requiring the continued application of the measures in accordance with the conditionality regulation no longer exist, referring the decision to the Council of the European Union, which has one month to decide on lifting the measures that were imposed in 2022, in parallel with the need for the plans to obtain the approval of the European Union countries.
It is noteworthy that the Commission announced last May its readiness to release a total of 16.4 billion euros to Hungary, provided that it successfully completes the implementation of the required reforms.
