Hungary is set to lose more than €1 billion in European Union cohesion funds, the result of an ongoing conflict with Brussels over the country’s alleged violations of the rule of law. The deadline for Hungary to meet the requirements and implement corrective measures passed yesterday, marking a pivotal moment in its relationship with the Union.
This would be the first time a member state permanently and irrevocably loses funding under the Rule of Law Conditionality Regulation, a mechanism introduced in 2020 and purportedly aimed at strengthening countries’ compliance with “EU values”. This is done by allowing the European Commission to withhold funds to governments found in breach of the rule of law — as defined by Brussels, of course.