A group of EU lawmakers on a visit to Budapest raised doubts on whether they think Hungary is ready to receive frozen EU cash.
Members of the European Parliament weighed in on the ongoing row between the European Commission and Viktor Orbán’s right-wing government following Brussels’ concerns about judicial independence and corruption in Hungary.
Four MEPs from across the spectrum criticized Hungary’s audit body as unfit for purpose and accused the government of using public tenders to “enrich the family and friends of Viktor Orbán.”
“Our questions to the state audit authority concerning misuse, manipulation of tenders, reliability of budget accounts, reporting of fraud cases to prosecution remained unanswered,” Monika Hohlmeier, the chair of the Parliament’s budgetary control committee, told reporters in Budapest.
At the end of a three-day visit with Hungarian public officials, NGOs and journalists, European lawmakers praised Hungary’s progress on some rule-of-law issues but pointed out several shortcomings, which they will pass on to the Commission.
The Parliament has no say on whether the Commission will unfreeze cohesion and post-pandemic recovery funds for Hungary but it has repeatedly urged the EU’s executive to harden its stance.
Hohlmeier, a German center-right MEP, accused the Hungarian government of handing public tenders to friendly businesses while using measures such as special taxes and last-minute emergency legislation to undermine competition.
“Let me remind you that Hungary is a member of the EU single market and in the single market, there can be no discrimination of companies, they all must have the same rights and the same obligations,” added Hohlmeier.
Nonetheless, MEPs praised Hungary’s efforts to strengthen judicial independence and hailed the establishment of the country’s Integrity Authority, a new anti-corruption body.
The Hungarian government recently unveiled a judicial reform to secure EU cash amid ongoing economic contraction and inflation, which hit 24 percent year-on-year in April.
This reform could allow Hungary to unblock approximately €13 billion of cohesion funds, according to EU officials. They stressed that beyond the technical assessment, the Commission will have to weigh the political costs of handing out cash to Hungary.
However, the rest of the cohesion funds — worth €22 billion in total — remain blocked on other grounds such as democratic backsliding, a “child protection law” widely deemed homophobic, Hungary’s treatment of asylum seekers, and the academic independence of Hungarian universities.
Separately, the country is also awaiting €5.8 billion in grants and €6.6 billion in cheap EU loans under the recovery fund. But to do this, it will have to clear 27 conditions or “super milestones.”
The Hungarian government did not immediately respond to a request for comment.
Paola Tamma contributed reporting.
