Hungary Passes Judicial Law as EU Says ‘Too Early’ for Funds

Zoltan Simon and Stephanie Bodoni
·3 min read
3

(Bloomberg) -- Hungary’s approval of legislation aimed at de-politicizing the courts is only a first step needed to unlock billions of euros of funds frozen by the European Union over rule-of-law and corruption concerns, a top official from the bloc said.

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Prime Minister Viktor Orban’s government must first implement changes envisioned by judicial legislation overwhelmingly approved by Hungarian lawmakers on Wednesday, European Commission Vice President Vera Jourova told reporters in Brussels.

It must then meet all 27 so-called super-milestones imposed on Hungary to address long-standing concerns over the rule of law and eroding democratic standards to access the funds, she said. Those include measures to tackle corruption and protect academic freedom as well as asylum and LGBTQ rights.

“Procedurally speaking, this is a very good step forward and Hungary is responding to our requests,” she said. “But, it is not the end of the process. Further steps will need to follow. We will also analyze the laws adopted, which also need to enter into force.”

Last week, EU Budget Commissioner Johannes Hahn had raised the Hungarian government’s hopes of moving more quickly on fund access by saying that approval of the judiciary changes may help Hungary tap €13 billion ($14.3 billion) of the €22 billion pot of cohesion money earmarked for the country. Additional measures are needed to tap the rest, as well as €5.8 billion in Covid-recovery funds, he said on April 27.

The EU decision in December to withhold Hungary’s funding was the culmination of years of dispute in which Orban has railed against Brussels for what he sees as meddling in Hungary’s internal affairs while using its cash to finance a self-styled “illiberal democracy” that spurns the bloc’s liberal, multicultural values.

Hahn met Orban and his key ministers in Budapest on Tuesday to discuss EU funds as part of a tour of the bloc’s capitals. He didn’t issue a statement after the meetings.

Among the changes, the judiciary bill strengthens the remit of a council of judges to supervise the courts, limits the right of the government to make appeals to the Constitutional Court and automates the distribution of cases among judges to avoid meddling.

The changes, however, only partially address long-standing concerns, according to the Budapest-based rights organization Hungarian Helsinki Committee.

One is that the head of the judiciary may also be elected to lead the council of judges, which is supposed to supervise the courts, spokesman Zsolt Zadori said.

“The formal preliminary assessment by the commission of the legislation concerned and its full implementation under the recovery plan will only be possible after the full set of documents covering all 27 super milestones and targets has been officially submitted by Hungary as part of the first payment request,” Jourova said. “So, it’s too early.”

--With assistance from Lyubov Pronina.

(Updates with EU Commission comments throughout.)

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