Magyar Pushes to Resolve Hungary's EU Funds Dispute

Hungarian Prime Minister Peter Magyar has announced that he will ask the European Parliament to withdraw or suspend its lawsuit against the European Commission over the release of European Union funds to Hungary.

The European Parliament filed the lawsuit in 2024 after the Commission released €10.2bn ($11.71bn) to Budapest. The decision came as the EU was seeking to persuade Viktor Orban's government to lift its veto on a €50bn ($57.38bn ) aid package for Ukraine. Some members of the European Parliament claimed the move amounted to a cash-for-consent deal, which the Commission denied.

Magyar said the lawsuit could have a significant impact on European funds allocated to Hungary and argued that citizens should not have to pay the price for the decisions of the previous government.

Unlocking frozen EU funds was one of the main campaign promises of the Tisza Party, which secured a constitutional majority following the April elections. The European Commission announced last month that reforms introduced by the new government would allow for the release of €16.4bn ($18.82bn) from recovery and cohesion policy funds, with payments potentially beginning in the fourth quarter if Budapest fulfills its commitments.

(Reuters, bak)