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EU Court Adviser Urges Annulment of €10 Billion Hungary Payout

The adviser says EU funds were cleared before required judicial changes were in force.

The European Commission unfroze  funds for Hungary on the eve of a critical summit to decide on opening membership negotiations with Ukraine that Viktor Orban had threatened to block

Overview

  • The non-binding opinion by Advocate General Tamara Ćapeta recommends scrapping the Commission’s December 2023 decision to unfreeze roughly €10.2 billion for Hungary.
  • The European Parliament filed the case in 2024, arguing the Commission misapplied rule-of-law conditions after suspending funds in 2022 over corruption and judicial independence concerns.
  • Ćapeta found the disbursement occurred before required judicial reforms had entered into force or were being applied, while the Commission insists agreed milestones were formally met.
  • A final ruling is expected in the coming months, and such opinions are often followed by the EU court.
  • An annulment could prompt a repayment request with possible offsets against future payments, and about €18 billion in other EU funds for Hungary remains frozen as national elections approach in April.