Hungary urges EU parliament to drop lawsuit over funds release

Hungary's Prime Minister Peter Magyar plans to ask the European Parliament to withdraw its 2024 lawsuit against the European Commission over EU funds released to Hungary.

Hungarian Prime Minister Peter Magyar ​said on Thursday he would ask ‌the ​European Parliament (EP) to withdraw its 2024 lawsuit against the European Commission over the release of European Union funds to Hungary.

The EP sued the ‌EU's executive in 2024 after it unblocked €10.2 billion ($11.71 billion) for Hungary in December 2023, a move made while it was seeking to persuade Budapest to lift its veto on €50 billion ($57.38 billion) in aid for Ukraine. Some ‌members of the European Parliament accused the Commission of effectively offering funds in exchange for dropping the ‌veto, which had frequently been used by former right-wing leader Viktor Orban on key EU decisions on Ukraine. Orban lost power in April.

The Commission rejected the accusation, saying that the two decisions were not related. "This lawsuit could have a major impact ⁠on ​Hungary's EU funds," Magyar said ⁠in a Facebook post from Brussels,where he attended the first EU summit since his inauguration in early May.

"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," ⁠he said. Magyar defeated Orban in an election in April and secured a constitutional majority in parliament that allows him to roll back ⁠or ​change legislation passed by Orban's Fidesz.

Unblocking the European Union funds that were frozen under Orban's government over rule-of-law concerns was a key campaign promise of Magyar's centre-right Tisza party. The European Commission said ⁠last month that reforms under the new government would allow the release of €16.4 billion($18.82 billion) in previously frozen ⁠EU recovery and cohesion ⁠funds.

The EU money, which could start flowing in the fourth quarter if Hungary delivers on its reform pledges, is crucial to reviving the Hungarian economy after ‌three years of ‌stagnation. ($1 = 0.8715 euros)