As the clock strikef midnight on New Year’s Eve, Hungary started facing a devastating blow of losing $1.1 billion in EU funding, part of a larger freeze totaling $20 billion. The European Union has taken this drastic measure due to concerns about Hungary’s rule of law, adding to the country’s economic woes and risking prolonging its recession.
Viktor Orban
Despite Hungary’s efforts to meet the required reforms to unlock the funds, the European Commission has deemed their progress insufficient. The reforms, which focus on anti-corruption laws and conflicts of interest, have proven challenging for Hungary to address.
In addition to the funding freeze, Hungary is facing daily penalties related to its treatment of asylum seekers, resulting in significant financial losses. The European Court of Justice has also imposed fines on Hungary for disregarding previous rulings.
The Orbán government has criticized the EU’s actions as politically motivated, while opposition leader Peter Magyar has seized on the opportunity to criticize the government’s handling of the situation.
As Hungary navigates these challenges, tough decisions lie ahead. The government has already announced cuts to infrastructure projects and social spending in response to the funding freeze, with implications for the country’s economic future.
