Debate: Ongoing hearings under article of the TEU regarding Hungary
Date: WEDNESDAY, 15 JANUARY 2020
Speaker: Didier Reynders
Language: EN

We are analysing this new legislation. At this stage, I would only regret that such reform has been carried out at a fast pace without consulting the Venice Commission and without public consultation. I note that the new legislation does not intend to address the existing concerns about the increasing challenges that the independent National Judicial Council faces in balancing the powers of the administrative authority managing the judiciary. These challenges have led the Council to adopt the country—specific recommendations on judicial independence already mentioned by Vice—President Jourová. The fact that the President of this administrative authority resigned in November to become a member of the Constitutional Court does not resolve the structural concerns related to the possibility of arbitrary decisions in the management of the judicial system.  Another issue that the Commission is analysing relates to the judgement of the Supreme Court of 19 September, declaring unlawful an order by a district court judge requesting a preliminary ruling of the European Court of Justice. The implications of this judgment, including for possible disciplinary proceedings, call for a careful assessment because the very functioning of the EU legal system requires that national courts have unimpeded access to the European Court of Justice. I’ve heard a lot of comments about Roma discrimination. The European Union’s Racial Equality Directive prohibits discrimination on grounds of race and ethnicity in education. The Commission has initiated an infringement procedure against Hungary regarding segregation of Roma peoples in mainstream education and is closely monitoring the steps being undertaken by Hungary to remedy this situation.  The Commission has zero tolerance towards fraud with the EU budget and expects the same level of commitment from Member States, which are mainly responsible for the management of some three quarters of the budget. The Commission conducts audits when there are reasons to do so and can take the necessary measures to protect the EU budget.  The European Anti-Fraud Office plays a key role in this regard, and you know the Commission has proposed a regulation on the protection of the EU budget in case of generalised deficiencies as regards the rule of law in a Member State. It is a tool to protect the EU budget and ensure sound financial management. The reasoning is simple. In order to control the use of EU funds and to protect the EU’s financial interests against corruption and fraud, each Member State needs an independent justice system, effective investigation and prosecution services, and an effective functioning of public authorities implementing the Union budget. If these functions are endangered by a generalised rule of law deficiency in a way which affects, or risks affecting, the Union’s financial interests, the Union would be empowered to suspend, reduce or restrict access to EU funding in a proportional manner.  The proposal is currently being examined by Parliament and the Council of the European Union and, if adopted, could make an important contribution to the protection of the EU budget.  I have heard also, Mr President, calls for a new rule of law mechanism. I can assure you that the Commission is working on a comprehensive European rule of law mechanism as a matter of priority. It will cover all Member States and provide a synthesis of significant developments related to the various competences of the rule of law, including for example, systemic problems with a process for enacting laws, lack of effective judicial protection by independent and impartial courts, the capacity to fight corruption, and issues in relation to media pluralism. This will allow us to identify and prevent, early on, rule of law—related issues.  To conclude, I regret that I cannot report improvements of the situation in Hungary since the tabling of the European Parliament’s original proposal.  I hope that the debate today will help the Hungarian authorities to further reflect on the concerns expressed. The Commission stands ready to engage with the Hungarian authorities on resolving issues.