EP insists on rule of law in Hungary

Portfolio
The European Parliament's two finance committees have confirmed and supported a proposal to tie EU funding to upholding the rule of law at a joint session, Eurológus reported.

At Tuesday's meeting of the European Parliament’s Budget and Budget Control Committees, the resolution was voted through 38 to 8, indicating that the EP will not let the issue go and will represent its position in inter-institutional talks.

The European Commission published its draft budget for the 2021-2027 period in May, which included a proposal to make budget allocations conditional on member states’ respect for the rule of law. Under the proposal, EU transfers could be limited or even suspended should these principles be violated, preferably in a manner that would not harm the projects of beneficiaries (most likely through direct payments circumventing national governments).

The European Parliament then adopted this position and made its own statement this April in defence of the EU budget. This included a passage about cases when a "deficiency as regards the rule of law in a Member State affects or risks affecting the principles of sound financial management or the protection of the financial interests of the Union", in particular

the proper functioning of the authorities of that Member State implementing the Union budget, in particular in the context of public procurement or grant procedures.

It is worth noting that as the commission's replies to the EP committees' questions revealed, Hungary has accepted some HUF 700 bn worth of penalties, most of which had to do with the large grant package regarding supervision over the system of public procurements.

The debate about the rule of law will now continue in inter-institutional talks, with the EC and the EP having made their positions clear, while the Council of the EU, which comprises member states, has yet to reach to a consensus. The current Finnish presidency is pushing the issue and it will be put to leaders of member states at the upcoming EU summit in December, while Hungary has repeatedly indicated that it sees no need for such a regulation as there are already mechanisms in place to deal with the issue (such as the rule of law proceedings under Article 7, which have not led anywhere beyond a formal hearing in over a year).

The Council needs to adopt an unanimous stance on the rule of law, so if no agreement is reached and a member state uses a veto, the EU will not have a budget to implement.

This article is part of the work programme titled "The impacts of EU cohesion policy in Hungary - Present and Future" which is carried out by Net Média Zrt., the publisher of Portfolio.hu, between 1st April 2019 and 31st March 2020 with European Union financing. The views in this article solely reflect the opinions of the author. The European Commission as the funding entity does not take any responsibility for the use of information presented in this article.
 

More in EU funds

parlament országház budapest állampapír
August 30, 2024 15:52

EU fines Hungary over asylum rules, Budapest claims Brussels owes €2 billion for border protection

We'll not pay, you will pay! - says state secretary

eu-intézményi reform
August 06, 2024 09:44

Hungarian, Maltese EU commissioner nominees raise brows in Brussels

Position of Olivér Várhelyi and Micallef Glenn shaky

európai bizottság, európai unió, EU,
August 05, 2024 15:10

EU member states seen backing tariffs on Chinese EVs, Hungary could suffer too

EU trade chief expects endorsement of proposed tariffs in November

útlevél vízum utazás getty stock
August 05, 2024 09:55

Hungary border crisis mounts over relaxed visa scheme

European Parliament also urges sanctions

emmanuel macron és Charles Michel
August 02, 2024 11:00

Macron has almost shot the EU in the foot, raising alarm in Brussels

French president puts whole EU decision-making process in a difficult position

Magyarország-Európai-Bizottság-köztisztviselő-bizottság-von-der-leyen-elnökség-soros-elnökség
August 02, 2024 10:10

EU sets deadline for Hungary over relaxed visa rules for Russia, Belarus

Commissioner for Home Affairs gives Budapest two weeks to explain

LATEST NEWS

Detailed search