Hungary Pushes EU Parliament to Drop Lawsuit Over €10.2 Billion Funds Release
Hungary's Request to the European Parliament and the Background of the Lawsuit
Hungarian Government's Appeal to Withdraw Lawsuit
BUDAPEST, June 18 (Reuters) - Hungarian Prime Minister Peter Magyar said on Thursday he would ask the European Parliament (EP) to withdraw its 2024 lawsuit against the European Commission over the release of European Union funds to Hungary.
Background: Lawsuit Over Unblocking of EU Funds
The EP sued the EU's executive in 2024 after it unblocked €10.2 billion ($11.71 billion) for Hungary in December 2023, a move made while it was seeking to persuade Budapest to lift its veto on €50 billion ($57.38 billion) in aid for Ukraine.
Accusations of Political Bargaining
Some members of the European Parliament accused the Commission of effectively offering funds in exchange for dropping the veto, which had frequently been used by former right-wing leader Viktor Orban on key EU decisions on Ukraine. Orban lost power in April.
Commission's Response
The Commission rejected the accusation, saying that the two decisions were not related.
Potential Impact of the Lawsuit on Hungary
"This lawsuit could have a major impact on Hungary's EU funds," Magyar said in a Facebook post from Brussels,where he attended the first EU summit since his inauguration in early May.
"I will ask the president (of the EP) to withdraw the lawsuit, or at least request the suspension of proceedings so that EU funds due to the Hungarian people are not jeopardised because of the decisions of the previous government," he said.
Political Changes and Their Effects on EU Funds
Magyar's Election Victory and Legislative Power
Magyar defeated Orban in an election in April and secured a constitutional majority in parliament that allows him to roll back or change legislation passed by Orban's Fidesz.
Unblocking Frozen EU Funds: A Key Campaign Promise
Unblocking the European Union funds that were frozen under Orban's government over rule-of-law concerns was a key campaign promise of Magyar's centre-right Tisza party.
European Commission's Stance on Reforms and Fund Release
The European Commission said last month that reforms under the new government would allow the release of €16.4 billion($18.82 billion) in previously frozen EU recovery and cohesion funds.
Economic Impact of EU Funds on Hungary
The EU money, which could start flowing in the fourth quarter if Hungary delivers on its reform pledges, is crucial to reviving the Hungarian economy after three years of stagnation.
Exchange Rate Information
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(Reporting by Anita Komuves and Gergely Szakacs, Editing by William Maclean)