EU releases funds to Hungary in controversial move

Billions of euros in once-frozen European Union funds are flowing to Hungary again after the central European state reformed its judicial system to Brussels' satisfaction.

Though billions more remain blocked over alleged violations of LGBTQ+ and migrant rights — plus concerns about  academic freedom — many EU lawmakers are furious over last month's funding releaseand have threatened legal action against the EU's executive.

The timing of the European Commission's move raised eyebrows — just before a crucial summit as EU states sought to get Budapest on board with plans to open membership talks with Ukraine and offer the country long-term financial aid. Hungary eventually got out of the way for progress on Kyiv's membership aspirationsby leaving the room when the issue came to a vote, but Prime Minister Viktor Orban's government  continues to block agreement on long-term aid.

Orban broke rank with the bloc over the past year by criticizing EU moves to sanction Russia. He has called for Ukrainians to agree to a cease-fire in the war with Russia and was also photographed shaking hands with the Russian president last year, drawing criticism from some EU counterparts.

European Commission accused of 'giving in to blackmail'

"We don't understand why the Commission decided to give in to Victor Orban's blackmail," Hungarian opposition lawmaker Katalin Cseh told DW.

"He has been using his veto powers on behalf of Vladimir Putin," Cseh said, adding that the move leaves "the door wide open for further abuse."

The Commission insisted the move was not part of a quid pro quo deal.

"We had a deadline to meet, and this is unrelated to any other discussions or developments," European Commission spokesperson Christian Wigand told DW. "What we are doing is applying the rule of law. Hungary has fulfilled the legal conditions, and therefore, we unblocked the funds concerned.

"We had to assess the progress, and there were strict deadlines for every step, and this is what we have done. We have asked questions in a lot of detail to Hungary to make sure the reforms were really what we needed."

Hungary wants more EU funds released

In a debate with EU lawmakers on Wednesday, European Commission President Ursula von der Leyen said around €20 billion ($21.7 billion) in EU funds remain out of Budapest's reach. Hungary called this unjust and claimed it was the victim of a political "witch hunt."

"Every euro cent should be paid to Hungary without any further delay. Ideological blackmail is not acceptable," Balazs Hidveghi from Hungary's ruling Fidesz party told fellow lawmakers. 

Von der Leyen said the frozen cash "will remain blocked until Hungary fulfills all the necessary conditions."

"These are the rules," she said. "We have all agreed to them, and we will follow them. This is what makes the rule of law stand out from arbitrary power."

Orban opposed to long-term aid for Ukraine

As the spat between Hungary and the EU rumbles on, Ukraine has been left with little certainty concerning long-term financial support from the EU. For now, the bloc's plan to offer €50 billion in aid over the next four years remains stalled.

Hungary said it does not oppose aid for Ukraine in principle, but it still appears staunchly against long-term financing.

"We do not even know what will happen in a quarter of a year, never mind four," Orban said in a video posted on social media platform X on Tuesday.

Hungary might be ready for a compromise

But a compromise may now be nearing. On Tuesday, a source close to discussions in a meeting of EU finance ministers told DW that Hungary had "expressed a willingness for constructive talks going forward." Details of the potential deal remain closely guarded, but von der Leyen said she was "confident" the bloc would find a solution.

If all else fails, the 26 other EU member states could club together to offer aid to Ukraine outside the bloc's official procedures, though diplomats say this Plan B may send undesirable signals of disunity to Russia — and Washington, where US lawmakers are still debating details of their support for Kyiv.

Will EU be left hamstrung by Hungarian whims?

If EU officials succeed in getting Budapest's backing for funds to Ukraine, it won't remove the threat of political roadblocks at every turn.

One EU diplomat who asked not to be named told DW that Hungary must not be allowed to "keep a gun to everyone's head year on year."

Sergio Carrera, a researcher at the Center for European Policy Studies, said EU rules requiring unanimous backing for foreign policy moves lie at the crux of the issue.

Under this setup, Carrera said a single government "may jeopardize the entire union and put the entire union at risk."

Changes to those rules, however, would themselves require a unanimous vote.

"Then we are back in square one," Carrera explained."We are letting governments like the Hungarian government backslide on the rule of law for years," he warned, arguing Brussels should use existing legal tools to get tougher on Budapest.

Hungary will take over the EU Council's rotating presidency for the second half of 2024, giving it greater power over the bloc's policy-making agenda.

On February 1, EU leaders will gather in Brussels in a bid to hash out an agreement on support for Ukraine and changes to the bloc's budget.

Additional reporting from Jack Parrock.

Edited by: Sean M. Sinico