UPDATE 1-EU court should annul resumption of EU payments to Hungary, adviser says

The EU ​Court of Justice should annul ‌the European ​Commission's decision in 2023 to lift a suspension on the payment of EU funds to Hungary, ‌the court's adviser said on Thursday, noting that the required reforms by Budapest had not yet gone into effect. The Commission in 2022 suspended the payment of ‌funds to Hungary over concerns about corruption, threats to the rule of law ‌and the undermining of democracy.

The EU ​Court of Justice should annul ‌the European ​Commission's decision in 2023 to lift a suspension on the payment of EU funds to Hungary, ‌the court's adviser said on Thursday, noting that the required reforms by Budapest had not yet gone into effect.

The Commission in 2022 suspended the payment of ‌funds to Hungary over concerns about corruption, threats to the rule of law ‌and the undermining of democracy. A year later, the Commission concluded Hungary had met its requirements and lifted the suspension, making the country eligible to receive around 10 billion euros ($11.9 billion) from ⁠various ​EU funds.

But the ⁠European Parliament brought the case to the EU Court of Justice, demanding the annulment of ⁠that decision, claiming that the Commission had committed "manifest errors" and had misused its powers. The court's ​Advocate General Tamara Capeta sided with the parliament and said the ⁠Commission had permitted disbursements before the required reforms had entered into force and had failed to ⁠assess ​the reforms of Hungary's judicial system.

"The Commission may not disburse EU funds to a member state until the required legislative reforms are in ⁠force and are effectively being applied," she said. The Commission had also failed to ⁠address developments ⁠that could undermine or offset the reforms, she added.

The adviser's opinion is not binding, but is often followed by the ‌court. ($1 = 0.8415 ‌euros)

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