A senior legal adviser to the European Union’s highest court has questioned whether billions of euros in EU funds should have been released to Hungary.
This reopens a politically sensitive dispute over rule-of-law standards inside the European bloc.
The funding had originally been frozen in 2022 after the European Commissionconcluded that Hungary was failing to meet key democratic standards.
Brussels raised concerns about corruption and judicial independence unde Viktor Orbán’s government.
Under a new EU mechanism, member states can see their funding suspended if breaches of the rule of law risk affecting the EU budget.
In late 2023, the European Commission decided that Hungary had introduced sufficient judicial reforms to satisfy the required conditions. It subsequently lifted part of the suspension, making roughly €10 billion available to Budapest.
The move triggered instantaneous controversy. Critics in the European Parliament argued that Hungary’s reforms were incomplete and merely cosmetic, and that the Commission had failed to properly verify whether changes were truly implemented in practice.
The unfortunate timing of the decision also fueled political speculation. The funds were released shortly before an important EU summit at which leaders needed Hungary’s support for further financial aid to Ukraine.
European Parliament later brought a case before the European Court of Justice challenging the Commission’s decision.
On Thursday, Advocate General Tamara Ćapeta, who provides an independent legal opinion to the court, said the Commission should not have authorized the disbursement of the funds. According to her assessment, Hungary had not fully met the required conditions, and the Commission had not adequately justified its conclusion.
A final ruling will follow in the months to come.
