Top EU legal opinion calls for annulment of Hungary funding decision

A senior legal adviser to the Court of Justice of the European Union has recommended that the European Commission reverse its 2023 decision to release €10 billion in EU funds to Hungary, as per the latest report by POLITICO.

The case stems from a lawsuit filed by the European Parliament, which argues that the Commission violated its own rules when it unfroze the money in December 2023.

The funds had previously been withheld over rule-of-law concerns. Members of the European Parliament contend that the move was politically motivated, coming just before a key EU leaders’ summit at which the bloc sought Hungarian Prime Minister Viktor Orbán’s support for aid to Ukraine.

Advocate-General Tamara Ćapeta issued a legal opinion advising the court to annul the Commission’s decision. While advocates-general are not judges, their opinions often influence the court’s final rulings, which in this case are expected in the coming months.

The opinion was issued at a politically sensitive moment, with Orbán trailing in opinion polls ahead of an April election. EU leaders have largely avoided publicly confronting Budapest in recent months, amid concerns that overt criticism could bolster Orbán’s domestic campaign narrative. One EU diplomat described the legal opinion as “not what we needed” so close to the vote. The Commission declined to comment, and Orbán did not address the issue upon arriving at an EU summit in Belgium.

In her opinion, Ćapeta stated that the Commission had “incorrectly” applied its rule-of-law conditions by releasing the funds before Hungary’s reforms had been fully implemented. She argued that the Commission failed to conduct “a proper assessment of the reforms relating to the independence” of Hungary’s Supreme Court and the appointment procedures for members of the Constitutional Court — areas the Parliament said had not been adequately addressed.

She also criticised the Commission for insufficient transparency, saying it had not properly justified its decision. According to a court statement, “The Commission owes an explanation not only to Hungary, but to the EU citizens at large.” However, she did not support the Parliament’s claim that the Commission had abused its powers.

If the court annuls the decision, the Commission would be expected to seek repayment of the funds.

By Tamilla Hasanova