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EU unfreezes Hungarian funding ahead of Ukraine summit

The EU allocated 10.2 billion euros in funding for Hungary on December 13, ahead of the summit to support Ukraine, which Hungarian Prime Minister Viktor Orbán threatened to disrupt.

The European Commission insisted that Hungary had taken steps to increase the independence of the judiciary, thereby fulfilling the requirements for accessing the frozen money. However, EU lawmakers accused the commission of succumbing to Hungary’s “blackmail.”

The leaders will meet in Brussels on Thursday to discuss resuming support for Ukraine including 50 billion euros and starting EU accession talks with Kyiv.

Orbán threatened to veto both measures, undermining the summit and bringing the war-torn country to a standstill two years after the military conflict broke out. Hungary insisted it had fundamental objections to Kyiv’s membership bid, arguing that President Volodymyr Zelensky’s administration had not been doing enough to fight corruption.

German MEP Daniel Freund said on social media that “Von der Leyen is paying the biggest bribe in EU history to the autocrat and Putin-friend Viktor Orbán.”

In December 2022, the EU suspended a total of about €21.7 billion of cohesion funds planned for Hungary for the period from 2021 to 2027, pending Budapest’s implementation of a certain number of reforms.

In response, Hungary introduced some judicial reforms aimed at restoring the power and independence of the National Judicial Council and limiting the government’s ability to contest court decisions.

Some €11.7 billion will remain frozen until progress is made on the terms of public contracts, the protection of academic freedom, LGBTQ rights and the recognition of migrants’ right to seek asylum. Moreover, the EU has suspended a further €10.4bn intended to fund Hungary’s post-COVID-19 recovery plan, pending further reforms.

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