EU Proposes Tougher Rule-of-Law Conditions for Budget Funds, Putting Hungary in Crosshairs
BRUSSELS — The European Commission unveiled a sweeping proposal Wednesday to tie all major EU budget payments—including cohesion and agricultural funds—to strict rule-of-law compliance, in a move that could significantly restrict access to EU money for countries like Hungary, as reported by Euro News.
European Commission President Ursula von der Leyen announced the changes as part of the next seven-year multiannual financial framework (MFF), which could reach €865 billion. “The rule of law must be respected unconditionally. It’s the backbone of our Union,” von der Leyen said. “With the next financial cycle, we’re going further: smart conditionality will be the norm, not the exception.”
At the heart of the proposal is the National and Regional Partnership Plans (NRPs), which account for nearly half of the EU’s total planned spending. Under the new rules, funds will only be released if member states comply with core EU values—including gender equality, judicial independence, media pluralism, and anti-corruption safeguards.
According to draft regulations seen by Euronews, failure to meet these benchmarks could trigger payment suspensions. Member states would be notified, and if issues remain unresolved, the European Council could freeze funds. The proposed framework also introduces a link between funding and the EU’s annual rule-of-law reports.
A new transparency clause mandates the creation of a central database listing final beneficiaries of EU funds. The revamped budget also includes €49 billion for “AgoraEU” and Erasmus+, aimed at bolstering democratic institutions, civil society, and media freedom across the continent.
For Hungary, the timing is critical. Already under Article 7 proceedings and the only EU member state to have had funds suspended under the bloc’s Rule of Law Conditionality Regulation, the nation risks further financial isolation. Most of Hungary’s current funding comes from cohesion and agricultural channels—both of which will fall under the new NRPs.
The Hungarian government has decried the ongoing probes as politically motivated, arguing that Brussels is using budgetary tools to punish dissenting voices. Yet critics say Budapest has undermined judicial independence, curtailed media freedoms, and failed to address corruption.
Though powerful, the new proposal is not final. It must still be approved by the European Parliament and the EU Council—where unanimity is required. Hungary, like every other member state, holds a veto, and it’s expected to use that leverage in what’s shaping up to be a high-stakes budget battle.
