Hungary Loses €1 Billion in EU Funds Over Rule of Law Disputes

The European Commission cites insufficient reforms as €19 billion in additional funds remain frozen under the conditionality mechanism.

The European Commission permanently withdrew €1.04 billion in EU funds from Hungary, marking the first such penalty under the bloc's conditionality mechanism.
The funds were frozen due to alleged violations of the rule of law, including concerns over corruption, conflicts of interest, and judicial independence in Hungary.
While Budapest has enacted some reforms, the Commission deemed them insufficient, leaving €19 billion in EU funds still frozen across multiple programs.
Hungarian Prime Minister Viktor Orbán has criticized the EU's actions as political pressure, pledging to fight for the release of the remaining funds.
The loss of funds comes as Hungary faces economic challenges and growing political opposition, with calls for early elections gaining momentum.