The European Commission is ready to allocate a billion dollars to Hungary: what does Orban and Ukraine have to do with it?

The EU plans to allocate almost a billion euros to Hungary / Illustrative collage 24 Channel

The European Commission has approved the transfer of $1 billion in advance payments to Hungary as part of the COVID-19 recovery fund frozen due to problems with the rule of law in the country.

This was reported by Channel 24 correspondent in Brussels Sofia Nazarenko. She noted that the EU executive in Brussels had welcomed Budapest's post-renewal recovery and resilience plan.

This plan also includes the REPowerEU unit, under which EU member states will end their dependence on Russian fossil fuels by 2030. The plan to restore Budapest after the consequences of the pandemic is estimated at 10.4 billion euros: 6.5 billion euros of grants and 3.9 billion euros of loans.

According to the terms of the fund, member states have the right to request pre-financing specifically for the implementation of the REPowerEU unit, and the payment of these pre-financing amounts does not depend on the achievement of any intermediate or overriding goals by member states, said European Commission Speaker Verle Nuyts.

In order for Hungary to receive an advance from the European Commission, this decision must be approved by the EU Council within four weeks. The European Commission says that as soon as these funds are transferred to Budapest, the EC will control their spending. Moreover, in the future these funds will be deducted from regular payments to Hungary.

If we find that certain goals have not been achieved (reform – Channel 24), then the Commission can return the corresponding element of pre-funding, Nuyts noted.

Despite the advance, other payments to Hungary will be blocked until it implements 27 conditions to ensure the EU's financial interests are protected and the independence of the judiciary is strengthened. Verle Nuyts added that Budapest's judicial reform is a “good step” in the right direction. However, further assessment will be made within the framework of the fund's requirements after Brussels receives the first payment request from Hungary.

Let us note that according to Rueters, the EU took this step in order to avoid Orban’s veto on further assistance to Ukraine. However, the European Commission disowned this and stated that they were acting in accordance with the agreed rules.

Orban threatens to block all aid to Ukraine

Journalists from Politico received a letter sent by Viktor Orban to the President of the European Council, Charles Michel. It is undated, but contains the seal of the office of the head of the Hungarian government.

In the corresponding letter, the Prime Minister emphasized that at present no decision can be made on financing Ukraine, opening negotiations on accession to the EU or further sanctions against Russia.

Viktor Orban stresses that a “strategic discussion” should take place during the meeting of EU leaders in Brussels in mid-December 2023.

The European Council must assess the implementation and effectiveness of our current policy towards Ukraine, including various assistance programmes. The European Council should also have a frank and open discussion on the implementation of the EU's strategic goals in Ukraine, Orban wrote in the letter.

The Hungarian Prime Minister in this letter asks the question why Europe should continue to support Ukraine. As an argument, he argues that the United States allegedly “may not be able to continue funding due to the impasse regarding future support.”