Hungary Asks European Parliament to Withdraw Lawsuit Over Released EU Funds

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Peter Magyar addresses Hungary EU funds lawsuit

BUDAPEST, June 18 (Parliament Politics Magazine) – Hungarian Prime Minister Peter Magyar said on Thursday he would ask the European Parliament to withdraw its 2024 lawsuit against the European Commission over the release of European Union funds to Hungary.

The legal challenge stems from the Commission’s 2023 decision to unblock €10.2 billion while seeking to persuade the previous government to lift its veto on aid for Ukraine.

Magyar, who attended his first EU summit in Brussels since his inauguration in early May, emphasized the urgency of the situation for the national economy. The new administration is working to secure €16.4 billion in previously frozen recovery and cohesion funds, a process contingent on legislative reforms.

The European Parliament initiated the lawsuit following accusations that the Commission offered funds as leverage to secure the approval of aid for Ukraine. While the Commission has consistently rejected these claims, maintaining the two issues were unrelated, the proceedings remain active.

“This lawsuit could have a major impact on Hungary’s EU funds,” Magyar said in a Facebook post from Brussels.

He intends to request that the president of the European Parliament either withdraw the lawsuit entirely or suspend the proceedings to prevent the current funding from being jeopardized by actions taken under the previous administration.

“I will ask the president (of the EP) to withdraw the lawsuit, ‌or ⁠at least request the suspension of proceedings so that EU funds due to the Hungarian people are not jeopardised because of the decisions of the previous government,” Magyar added.

Magyar defeated former leader Viktor Orban in an April election and secured a constitutional majority, allowing his centre-right Tisza party to reverse legislation passed by his predecessor. Unblocking the funds frozen due to rule-of-law concerns served as a central pillar of his campaign platform.

The European Commission noted last month that reforms implemented by the new government cleared the path for the release of €16.4 billion. These funds are considered essential to reviving the Hungarian economy, which has suffered through three years of stagnation. If Hungary successfully delivers on its remaining reform pledges, the financing could begin flowing as early as the fourth quarter. The government is currently prioritizing these adjustments to ensure the financial support reaches the Hungarian people without further administrative or legal delay.

Ashton Perry is a former Birmingham BSc graduate professional with six years critical writing experience. With specilisations in journalism focussed writing on climate change, politics, buisness and other news. A passionate supporter of environmentalism and media freedom, Ashton works to provide everyone with unbiased news.

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