Press "Enter" to skip to content

The European Commission triggered the Conditionality Mechanism against Hungary

On Wednesday, April 27, the European Commission took a historic step by finally triggering the Rule of Law Mechanism, also known as the Conditionality Mechanism, against Hungary, which could result in the country losing its access to EU funds.

Stay up to Date – Subscribe to our newsletter.

The mechanism was introduced after the European Union decided on the €800bn Next Generation EU recovery package following the Coronavirus outbreak, numerous lockdowns across Europe resulting in an economic recession. As a result of various EU officials expressing concerns over handing out enormous sums of money to certain member states, most notably Hungary due to previously having been subject to criticism about the country’s misuse of EU funds and corrupt practices. For example, in previous years, it was revealed that the Hungarian right-wing government under Viktor Orbán time and again misappropriated EU funds, thereby enriching himself, his family and friends. Moreover, the Hungarian government has been criticised for eroding democratic norms and curtailing the EU’s basic aims and values, as set out in the Treaty of the European Union (TEU) and the Treaty on the Functioning of the European Union (TFEU). 

In February 2022, the Court of Justice of the European Union (CJEU) finally rejected legal challenges brought in by Hungary over the Rule of Law Mechanism’s applicability and thereby gave the Commission the green light to start procedures that could end with the institution withholding crucial EU funds from member states breaching the rule of law. 

Setting a precedent

Triggering this procedure is a significant step, and with it, the Commission is setting a precedent: it is the first time that this mechanism has been used and that a member state faces a real risk of losing access to a portion of EU funding. 

Simultaneously, it comes at a critical time: it has been barely a month since prime minister Viktor Orbán was re-elected, with his party securing a surprising two-thirds majority in parliament. It is fairly predictable that he will use the timing of the Commission triggering this mechanism as a political tool by claiming that this was a politically motivated step and a response to him winning the election, being “Brussels’ undesired candidate”. Orbán is also likely to portray this issue over the rule of law as a fictional problem; possibly arguing that he as the “defender of the Hungarian nation” only seeks to occupy himself with the real issues that Hungarian people face, instead of focusing on issues that the “liberal international left” in Brussels is wasting time on. 

Despite the predictable backlash that the EU institution and its supporters will face from the Hungarian government and its loyalists, triggering this mechanism was nevertheless a crucial step towards stopping the Fidesz party from enriching itself and continuing its corrupt practices. It also sends a powerful message that the EU is willing to eradicate such behaviour and a warning to other EU member states not to follow Hungary’s path. 

Nevertheless, given the tool’s novelty, there remain doubts over its actual efficiency. 

For now, Hungary will have the opportunity to “make comments about the Commission’s legal findings, offer additional information and propose solutions to address the alleged breaches.” This exchange of communication resembles the Article 7 proceedings, in which Hungary has also already been involved, and it is expected to continue for months. In case the Commission then still believes that there is a threat to the EU funds, it can put forth a recommendation to freeze the portion of the funding that was supposed to go to Hungary. The recommendation will then be sent to all the other EU member states, who will have a month to vote on whether to freeze the funds. The Council then has to approve it by a qualified majority – meaning that it needs the approval of 55% of all EU member states, which represent at least 65% of the total EU population. As explained by Liboreiro (2022), this is a significant difference from the beforementioned Article 7 proceedings, which needed unanimity and previously failed due to Poland’s alliance with Hungary. 

Therefore, the chances are good that, if the Commission sent out a recommendation to freeze funds after months of communicating with Hungary, it would actually be successful. 

What follows the Commission’s triggering of the rule of law mechanism is a long process, and it remains to be seen whether the tool is able to protect the EU’s budget and could be applied in similar cases in the future. However, it is, in any case, unlikely that the Hungarian government will change its stance and approach toward the rule of law because of the conditionality mechanism. Rather, it seems that the relationship between Brussels and Hungary will further deteriorate, and that the Hungarian government will use this as another example of how the EU “attacks” the country, portraying itself as a victim of unfair practices in order to garner sympathy from the ordinary population. 

Sources

Greilinger, G. (2022): Orbán 4.0 – How Fidesz secured an election victory and what it means for Hungary and Europe, Quo Vademus,
https://quo-vademus.org/orban-4-0-how-fidesz-secured-an-election-victory-and-what-it-means-for-hungary-and-europe/

Greilinger, G: (2022): CJEU paves the way for application of the Rule of Law Conditionality Mechanism, Quo Vademus, https://quo-vademus.org/cjeu-paves-the-way-for-implementation-of-the-rule-of-law-conditionality-mechanism/ 

Greilinger, G. (2020): EU-Funding – A Key Area of Corruption in Hungary, Quo Vademus, https://quo-vademus.org/eu-funding-a-key-area-of-corruption-in-hungary/ 

Liboreiro, J. (2022): Rule of law: What happens after Brussels triggers the conditionality mechanism against Hungary?, Euronews, https://www.euronews.com/my-europe/2022/04/06/rule-of-law-what-happens-after-brussels-triggers-the-conditionality-mechanism-against-hung 

Black Operations: A Primer on Covert Action throughout U.S. History

Covert Action (CA) has been a point of contention within political and foreign policy discourse, with constant discussions about the legalities of targeted killings and enhanced interrogation techniques. There are vast historical examples of U.S. intervention abroad which complicated matters in their respective regions, in some cases having an opposite effect than what was intended, in other cases resulting in scandals that eroded the public’s faith in governmental institutions, and in other cases simply resulting in a less stable country or government. In spite of all the discussion about covert action, it is undeniable that it can be extremely beneficial when dealing with foreign powers and with new issues like non-state actors and international terrorism.

Europe’s Shift to the Right

Two colossal wars in less than half a century engendered the concept of a unified Europe under one supranational institution – the European Union. Yet, European countries are now once again electing right-wing leaders. What does it mean for Europe's relations with the EU and the rest of the world?

EU-Funding – A Key Area of Corruption in Hungary

While it is widely known corruption is a widespread problem in Hungary, the role of EU funds and the extent to which these funds are affected by corrupt practices often goes unnoticed. EU money from cohesion funds is frequently misappropriated, and the money, as well as public contracts, are often given to government allies as well as friends and family of prime minister Orbán. The EU needs to find new solutions to exert control over the projects financed by EU money and ensure that the money is not misappropriated and further enriches corrupt government officials and cronies.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Quo Vademus
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.