BRUSSELS (ANP/DPA) – Hungary lost its right to around €1 billion in European aid during the New Year due to violations of the rule of law.
In order to receive the aid, the country should have implemented certain reforms by the end of last year, but this did not happen, a spokeswoman for the European Commission confirmed to the German press agency dpa.
Economically weak regions
The money was intended to support economically weak regions in the country. The payment of the aid was already frozen at the end of 2022 after the European Commission concluded that Hungary had not respected certain EU standards and fundamental values.
Brussels demanded that Hungary implement reforms, including changing laws to prevent conflicts of interest and combat corruption.
China
Hungary has now turned to China for financial support. In April, Hungary managed to secure a €1 billion loan from Chinese state banks.
Chinese companies are also very active in Hungary. For example, electric car manufacturer BYD is building a large factory in Szeged and battery manufacturer CATL is building a mega factory in Debrecen. Chinese companies are also building a new railway line from Budapest to the Serbian capital Belgrade.
But despite China’s help, Hungarian Prime Minister Viktor Orbán is still trying to free the frozen funds. According to the European Commission, around €19 billion in EU funds are currently blocked for Hungary, including corona aid.
Last month, Orbán threatened to veto the EU’s next seven-year budget if Brussels did not release the funds. It was not the first time Orbán has made such a threat.
In December 2023, despite ongoing criticism of rule of law violations in Hungary, the European Commission released around €10 billion in frozen EU aid to the country. The move was criticised by some members of the European Parliament.
