In a significant development within the European Union’s legal framework, the Advocate General for the EU’s highest court has recommended overturning the European Commission’s controversial 2023 decision to release billions in suspended funds to Hungary. Tamara Ćapeta, representing the European Court of Justice, presented a non-binding opinion on Thursday arguing that the Commission prematurely disbursed approximately €10.2 billion ($12.1 billion) despite Hungary’s failure to implement required judicial reforms addressing rule-of-law deficiencies and corruption concerns.
The funds had been initially suspended in 2022 following extensive concerns about democratic backsliding under Prime Minister Viktor Orbán’s right-wing populist government. The Commission had identified systemic issues including inadequate corruption prevention measures, compromised judicial independence, and problematic public procurement processes that potentially allowed EU funds to be channeled to politically connected businesses.
While Advocate General opinions are not legally binding, they typically influence the court’s final rulings. The case was brought forward by the European Parliament in 2024, challenging the Commission’s assessment that Hungary had implemented sufficient reforms to justify fund release.
The ongoing dispute occurs against the backdrop of Hungary’s significant reliance on EU funds as a major net recipient, with additional billions remaining frozen amid continued concerns about democratic standards. Orbán, who has governed since 2010, consistently rejects criticisms as foreign interference in national sovereignty, while his government faces mounting domestic political challenges from center-right opposition leader Péter Magyar, who promises democratic restoration and improved EU relations.