In a bold and controversial decision, the European Union has permanently denied Hungary access to over €1 billion in regional aid, citing violations of the bloc’s rule of law standards. The move has drawn sharp criticism, particularly from Italy’s right-wing Lega party, a coalition partner in Prime Minister Giorgia Meloni’s government, which blasted the decision as politically driven and undemocratic.
The funds, originally designated to bolster Hungary’s underdeveloped regions, were frozen after the EU determined Budapest failed to meet required reforms. Despite ongoing infringement proceedings since 2022, Hungary missed the December 2024 deadline to implement satisfactory changes, according to the European Commission.
“This loss is irrevocable, and Budapest has no right to appeal,” stated Anna-Kaisa Itkonen, a spokesperson for the Commission.
Hungary’s Europe Minister János Bóka fired back, claiming on Facebook, “Brussels wants to withdraw the funds that Hungary and the Hungarian people are entitled to for political reasons.”
Italy’s Lega party, led by Deputy Prime Minister Matteo Salvini, has rallied behind Hungary’s government. Paolo Borchia, Lega’s leader in the European Parliament, decried the EU’s action as a “shameful attack on rights, freedom, solidarity, and democracy.” Borchia also reaffirmed the party’s solidarity with Hungarian Prime Minister Viktor Orbán, accusing EU elites of targeting a democratically elected government that doesn’t align with their agenda.
Through the “Patriots for Europe” group, which includes Lega and Hungary’s ruling Fidesz party, Salvini’s allies have called for protests against what they view as an overreach of EU power.
This unprecedented decision marks the first time a member state has permanently lost EU funds under the Rule of Law Conditionality Regulation. Introduced earlier in the decade, this regulation empowers the European Commission to withhold funds from nations deemed in violation of EU principles.
The controversy underscores growing tensions between Brussels and member states like Hungary, raising questions about the balance between EU oversight and national sovereignty.
