Debate: Ongoing hearings under Article TEU regarding Hungary to strengthen Rule of Law and its budgetary implications
Date: WEDNESDAY, 10 APRIL 2024
Speaker: Didier Reynders
Language: FR

As regards the Article 7 procedure, the Commission has had the opportunity to explain on different occasions that it shares an important number of the concerns expressed by the European Parliament in its reasoned proposal that triggered this procedure in 2018. The Commission has made clear that whatever position the Council will be taking on the Article 7 procedure, it must ensure a fair handling of the proposal tabled by the Parliament. The Commission always stands ready to participate in hearings and state of play in the Council and is of the view that the procedure should be maintained as long as the issues that triggered it are not solved.  As you know, the Commission also addresses the respect of the EU common values in Hungary and various work strands which run in parallel with the Article 7 procedure. As the President of the Commission, Ursula von der Leyen, stated during the January plenary session, Hungary’s access to EU funds is also about the fundamental values that bring us together.  When this Commission took office, we promised to safeguard the rule of law in the Union while treating all Member States equally. This has been a priority for us. That is why the Commission has published its annual Rule of Law Reports, and we have used all the instruments available to protect both the EU values and the EU financial interests.  Our goal has always been to push for reforms in all the Member States. The Commission has relied on the recommendations from the Rule of Law Report to identify the criteria for Hungary to access EU funding. This has been notably the case under the Recovery and Resilience Facility and regarding the horizontal enabling condition linked to the respect of the EU Charter of Fundamental Rights.  In May last year, Hungary passed a new law setting up a justice reform that addresses the relevant recommendations from the 2022 Rule of Law Report. This law strengthens judicial independence and limits the possibility of political interference in the judiciary. This was required for Hungary to meet the conditions for accessing reimbursements from cohesion policy funds.  This is what we requested and this is what Hungary delivered after long and intense discussions. The decisions taken in this regard relating to the horizontal enabling conditions fall under the responsibility of my colleague, Commissioner Schmit.  The Commission has kept the Parliament regularly briefed about this process and stands ready to provide updates anytime. The Commission considers that it acted in full compliance with EU law and will defend its decision of last December concerning access to certain cohesion policy funds, including before the EU court.  Funding is still suspended under the horizontal enabling conditions linked to the respect of the EU Charter of Fundamental Rights for concerns relating to LGBTIQ rights, academic freedom and asylum rights.  Funding is also blocked under the general regime of conditionality for the protection of the EU budget, notably when it comes to issues linked to the fight against corruption and the transparency of public procurements, as well as academic freedom. This instrument is under the responsibility of my colleague, Commissioner Johannes Hahn.  Finally, no regular payments can be made at this stage from the Recovery and Resilience Facility, as Hungary still does not meet all the ‘super milestones’ under its recovery plan. These funds will remain blocked until Hungary fulfils all the necessary conditions.  Hungary has received some pre-financing under REPowerEU like any other Member State, as requested by the applicable regulation. This pre-financing is not subject to any condition for any Member States.  As you know, the European Parliament’s reasoned proposal triggering the Article 7 procedure against Hungary covers a wide range of issues; judicial independence is only one of them. Other concerns remain, as I touched upon, including as regards corruption, freedom of expression and the right to equal treatment. Permettez-moi de conclure en soulignant que pour la Commission, il est important que le Conseil maintienne, comme cela a été annoncé à son ordre du jour, la procédure article sept jusqu’à ce que toutes les préoccupations qui la sous-tendent aient été traitées de manière satisfaisante. La Commission est prête, comme toujours, à poursuivre le dialogue sur toutes ces questions avec les autorités hongroises, au niveau tant technique que politique, afin de résoudre les problèmes qui subsistent. Je vous remercie bien entendu pour votre attention, mais je serai à l’écoute de vos interventions.