Tuesday

30th May 2023

Liberal MEPs demand von der Leyen scrutinise Hungary's plan

  • EU Commission president Ursula von der Leyen and Hungary's prime minister Viktor Orbán met in April to negotiate over the recovery plan (Photo: European Commission)

A group of MEPs from the liberal Renew Europe group have written to EU Commission president Ursula von der Leyen to urge her not to approve Hungary's recovery plan until an effective anti-fraud system is in place in the country.

"We are not saying that Hungary as a country should not get its fair share of the EU's recovery funds. But we think those funds should benefit all Hungarians, not just a few politically-connected ones," the MEPs wrote in the letter, co-signed by group president Dacian Ciolos.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The MEPs, including Hungarian lawmaker Katalin Cseh, French MEP Valerie Hayer and Spanish legislator Luis Garicano, argue that the EU executive itself concluded that "determined systematic action to prosecute high-level corruption is lacking".

In the commission's 2020 economic recommendations - which are expected to be addressed in member states' national recovery plans - the executive said that "accountability for decisions to close investigations remains a matter of concern, as there are no effective remedies against decisions of the prosecution service not to prosecute alleged criminal activity".

It also adds that "restrictions on access to information continue to hinder the fight against corruption".

The MEPs want the commission to ask Budapest to allow access to all the final beneficiaries of EU recovery funds to the bloc's anti-fraud agency, OLAF, as a condition to accessing the recovery fund.

Another condition, proposed by MEPs, should be that Hungary adopts laws to ensure that persons and entities with a "record of serious financial irregularities or conflicts of interests found by OLAF" will not be able to access EU funds.

Hungary should also revise legislation that hinders access of journalists and civic organisations to public information.

The EU Commission's approval for Budapest's plan could come as early as 8 July, an EU official said. It concerns some €7.2bn of funding.

Von der Leyen has been visiting capitals of EU countries whose plans have been approved by the commission, although the council of member states also needs to give the green light for governments to access the funds.

Council scrutiny is expected to start in July. The council of member states will also need to approve the release of new tranches of money, once agreed milestones countries committed to in their plans are reached.

A commission spokesperson on Monday (28 June) said that member states need to explain to the commission the adequate control mechanism, and the commission assesses if those "controls system provide sufficient assurances".

"Member states will need to collect data on the final recipients of funds, the contractors, the subcontractors and the beneficial owners and make it available upon request," the spokesperson said.

Some EU countries have blocked the use of a common EU-wide database, called Arachne - which makes it harder for OLAF to monitor the flow of EU funds.

Over 20 countries have signed up to use the database voluntarily for the recovery fund, but they are not required to do so.

However, member states are to be required to set up national systems to record and report the final beneficiaries of EU recovery funds.

Hungary has been at the top of OLAF's investigation list for the two previous years, and has been leading the rate of financial recommendations - money to be recovered - in several annual reports by the agency.

EU Commission warns Hungary over anti-LGBTIQ measures

EU Commission vice-president Thierry Breton and justice commissioner Didier Reynders have written to Hungary's justice minister Judit Varga expressing legal concerns before the Hungarian bill - intended to protect children but including anti-LGBTIQ measures - enters into force.

Commission to approve first Covid-recovery plans next week

This means that, following council approval, and after the financing agreement has been signed with EU governments, the first countries can receive pre-financing from the recovery fund, of up to 13 percent of their allocated funds.

Analysis

Von der Leyen's moment to step up her game

"It is the opportunity she has to seize now to set the course for the remainder of her mandate," said Georg Riekeles from the European Policy Centre.

Latest News

  1. Germany unsure if Orbán fit to be 'EU president'
  2. EU Parliament chief given report on MEP abuse 30 weeks before sanction
  3. EU clashes over protection of workers exposed to asbestos
  4. EU to blacklist nine Russians over jailing of dissident
  5. Russia-Ukraine relations the Year After the war
  6. Why creating a new legal class of 'climate refugees' is a bad idea
  7. Equatorial Guinea: a 'tough nut' for the EU
  8. New EU ethics body and Moldova conference This WEEK

Stakeholders' Highlights

  1. International Sustainable Finance CentreJoin CEE Sustainable Finance Summit, 15 – 19 May 2023, high-level event for finance & business
  2. ICLEISeven actionable measures to make food procurement in Europe more sustainable
  3. World BankWorld Bank Report Highlights Role of Human Development for a Successful Green Transition in Europe
  4. Nordic Council of MinistersNordic summit to step up the fight against food loss and waste
  5. Nordic Council of MinistersThink-tank: Strengthen co-operation around tech giants’ influence in the Nordics
  6. EFBWWEFBWW calls for the EC to stop exploitation in subcontracting chains

Stakeholders' Highlights

  1. InformaConnecting Expert Industry-Leaders, Top Suppliers, and Inquiring Buyers all in one space - visit Battery Show Europe.
  2. EFBWWEFBWW and FIEC do not agree to any exemptions to mandatory prior notifications in construction
  3. Nordic Council of MinistersNordic and Baltic ways to prevent gender-based violence
  4. Nordic Council of MinistersCSW67: Economic gender equality now! Nordic ways to close the pension gap
  5. Nordic Council of MinistersCSW67: Pushing back the push-back - Nordic solutions to online gender-based violence
  6. Nordic Council of MinistersCSW67: The Nordics are ready to push for gender equality

Join EUobserver

Support quality EU news

Join us