Hungary Loses €1 Billion in EU Aid Over Rule-of-Law Violations

The European Commission confirms Hungary failed to meet required reforms, while tensions rise over additional frozen funds and Orbán's reliance on Chinese loans.

• Hungary forfeits €1.04 billion in EU aid after missing a December 2024 deadline to implement reforms addressing corruption and conflicts of interest.
• The frozen funds were initially allocated to support economically weaker regions in Hungary but were withheld due to violations of EU rule-of-law standards.
• Prime Minister Viktor Orbán criticized the decision, claiming Hungary had met the conditions and accusing the EU of politically motivated actions.
• To address financial gaps, Hungary secured a €1 billion loan from Chinese state banks in 2024, with further Chinese investments in infrastructure and manufacturing underway.
• Approximately €19 billion in EU funds, including COVID-19 recovery grants, remain blocked, as Orbán continues to pressure the EU through veto threats on key decisions.

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