BRUSSELS, March 30 (Reuters) – Hungary has made progress
on bolstering guarantees of judicial independence but is “not
quite there yet”, and needs to improve democratic credentials in
other areas before getting billions worth of blocked European
Union funds, officials said on Thursday.
Four officials cautioned about expecting aid for Hungary
from the bloc’s long-term budget, or up to 15.4 billion euros
($16.80 billion) from the EU’s COVID recovery stimulus to start
flowing this summer.
“We are progressing well. We are reaching the end of the
discussions on the judicial milestone,” said one of the
officials, all of whom spoke under condition of anonymity.
“But we don’t only have the judicial reforms. There also is
a whole list of corruption reforms” needed, including on
improving public procurement, to get the money, they said.
In more than a decade in power, Hungarian Prime Minister
Viktor Orban has had many bitter run-ins with the EU and its
executive arm, the European Commission, over Budapest
restricting the rights of gays and migrants, as well as
tightening state controls over non-governmental organizations,
academics, media and courts.
No official comment from Budapest or the Commission was
available on Thursday.
Last month, Hungary’s negotiator said ironing out remaining
issues with Brussels over democratic reforms prescribed to win
the recovery funds could last until the summer.
“We are almost there, not quite there yet, but we are
getting there” with the judicial reforms, said second EU
official, who is involved in negotiations between the
Brussels-based Commission and Budapest.
The person said that meeting those requirements would open
Budapest’s access to up to 20 billion euros in development
funds, but it was unlikely that any would be sent straight away.
The lag is due to how these funds are spent, with member
countries first financing projects on their own and only later
asking the Commission for reimbursement. The officials said
Budapest would unlikely have the bills ready to send in even if
it unlocks access to the money mid-year.
The sources said some recovery payments could be
possible this summer but that mostly the money would come later
in the year if Hungary meets the necessary conditions.
Hungary and Poland are the only EU members lagging behind in
getting the recovery funds, which the Commission has blocked
over accusations that the countries’ nationalist, populist
governments damage democracy and the rule of law.
The Commission is withholding Hungary’s access to the
development funds over the same concerns around corruption and
freedom of courts.
Under pressure from high inflation at home, Orban has sought
to strike a deal with Brussels on the money, while also
wrangling with the EU on issues including support for Ukraine
and punishing Russia for invading its neighbour.
($1 = 0.9167 euros)
(Reporting by Gabriela Baczynska; Editing by Richard Chang)
