Hungary has lost one billion euros in European Union funds that were frozen over corruption concerns, marking the first time Brussels has enforced such a penalty.
In 2022, Brussels began "conditionality" proceedings against Hungary, seeking to block disbursements because of alleged infringements linked to public procurement as well as a lack of control and transparency.
Budapest did undertake reforms that allowed some funds to be unblocked, but a total of €19 billion remain frozen.
Under timelines laid out in the EU's conditionality regulation, "the first tranche of suspended commitments" – which amounted to €1.04 billion – expired at the end of 2024 without the suspension being lifted, the commission said this week.
This means Hungary has now lost that funding.
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Democratic 'backsliding'
Since his return to power in 2010, nationalist Prime Minister Viktor Orban has strengthened his grip on power, allowing some of his allies to become very wealthy.
In July, the European Commission concluded in a report that Hungary did not meet EU democratic standards – notably on corruption, political financing, conflicts of interest and media independence.
Orban has promised to fight to protect money "that is ours".
In December, Orban threatened to veto the EU's budget to pressure it into relenting, saying: "They constantly try to take the money of Hungarians by a variety of means and a variety of methods."
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Opposition on the rise
With Orban under pressure amid an economic downturn, his new political rival Peter Magyar called for early legislative elections on Wednesday, with several opinion polls showing his party in the lead.
The vote is currently scheduled for the spring of 2026.
"Time is running out. Let's bring forward the election date so that the country does not unnecessarily lose another year," Orban said in his new year wishes for 2025.
"We will bring home the billions that the European Union owes us."
Since 2018, Hungary has also been targeted by an Article 7 procedure, which sanctions member states for "serious violations" of the rule of law and can in theory result in the suspension of a country's voting rights in the EU Council.
