Published by Global Banking & Finance Review®
Posted on February 12, 2026
2 min readLast updated: February 12, 2026
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An EU Court adviser recommends annulling the resumption of EU payments to Hungary, citing unmet reform requirements. The European Parliament challenges the EU Commission's decision.
BRUSSELS, Feb 12 (Reuters) - The EU Court of Justice should annul the European Commission's decision in 2023 to lift a suspension on the payment of EU funds to Hungary, the court's adviser said on Thursday, noting that the required reforms by Budapest had not yet gone into effect.
The Commission in 2022 suspended the payment of funds to Hungary over concerns about corruption, threats to the rule of law and the undermining of democracy.
A year later, the Commission concluded Hungary had met its requirements and lifted the suspension, making the country eligible to receive around 10 billion euros ($11.9 billion) from various EU funds.
But the European Parliament brought the case to the EU Court of Justice, demanding the annulment of that decision, claiming that the Commission had committed "manifest errors" and had misused its powers.
The court's Advocate General Tamara Capeta sided with the parliament and said the Commission had permitted disbursements before the required reforms had entered into force and had failed to assess the reforms of Hungary's judicial system.
"The Commission may not disburse EU funds to a member state until the required legislative reforms are in force and are effectively being applied," she said.
The Commission had also failed to address developments that could undermine or offset the reforms, she added.
The adviser's opinion is not binding, but is often followed by the court.
($1 = 0.8415 euros)
(Reporting by Bart MeijerEditing by Peter Graff, Alexandra Hudson)
EU funding refers to financial support provided by the European Union to member states for various projects, including infrastructure, development, and social programs.
The rule of law is a principle that ensures all individuals and institutions are accountable to the law, which is fairly applied and enforced.
Corruption is the abuse of entrusted power for private gain, which can undermine trust in institutions and hinder economic development.
The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, and managing the EU's policies and budget.
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